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Unemployment Data: ‘Business is slow in the city, but the situation is still better in the villages…’ The latest data of the government has increased the concern.

by Rajiv Mishra
January 18, 2026
in Business
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Unemployment Data: 'Business is slow in the city, but the situation is still better in the villages...' The latest data of the government has increased the concern.
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The unemployment rate in the country was 4.8 percent in December, which was 4.7 percent in November. These figures released on Thursday by the Statistics Ministry of the Central Government relate to people aged 15 years and above. The ministry said the unemployment rate in rural areas was 3.9 percent, while in urban areas it was 6.7 percent. The unemployment rate among males aged 15 years and above in rural areas stood at 4.1 percent in December 2025. Additionally, the unemployment rate among women in urban areas declined to 9.1 percent in December 2025 from 9.3 percent in November 2025.

What is participation in the economy?
The total labor force participation rate (LFPR) for persons aged 15 years and above increased to 56.1 percent in December, compared to 55.8 percent in November. According to the official statement, the LFPR in rural areas is estimated to be 59.0 per cent in December 2025, compared to 58.6 per cent in November 2025. In urban areas, the LFPR saw a slight decline during this period, from 50.4 per cent to 50.2 per cent.

The ‘labor force’ of any country is that part of the total population that is eligible and willing to work. The LFPR measures the percentage of the total working-age population (usually 15 years or older) that is actively participating in the economy. It includes two types of people: first, those who are employed, that is, those who have a job or business, and second, those who are looking for work, that is, those unemployed who want to work.

What is women’s participation?
The total labor force participation of women aged 15 years and above increased from 35.1 percent to 35.3 percent in November 2025. In rural areas, the unemployment rate increased from 39.7 per cent to 40.1 per cent in December 2025, while in urban areas it declined from 25.5 per cent in November 2025 to 25.3 per cent in December. Additionally, a gradual improvement was seen in the Worker Population Ratio (WPR) for people aged 15 years and above in December 2025. Among rural men, the WPR increased from 75.4 per cent in November 2025 to 76.0 per cent in December 2025, while the WPR for urban men declined from 70.9 per cent in November 2025 to 70.4 per cent in December 2025, resulting in an overall male WPR of 74.1 per cent.

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