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flag India's unemployment rose to 5.0% in January 2026, mainly due to declining rural job participation.

flag India's unemployment rate rose to 5.0% in January 2026 from 4.8% in December, driven by a decline in rural labor force participation and seasonal factors like post-harvest slack and winter slowdowns. flag The overall labor force participation rate held steady at 55.9%, with rural LFPR at 58.7% and urban at 50.3%. flag Female participation remained at 35.1%, with urban women at 25.5%. flag Urban unemployment rose slightly to 7.0%, while rural unemployment increased to 4.2%. flag Worker population ratios remained largely stable, with rural WPR dipping slightly. flag The data, from the Periodic Labour Force Survey, highlights ongoing rural labor market challenges despite urban stability.

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