India’s Unemployment Rate Falls to 5.2% in Q2FY26

India’s unemployment rate declined to 5.2% in the second quarter of FY2026, primarily due to a rise in rural employment. The rural joblessness rate dropped to 4.4% from 4.8% in the previous quarter, while urban unemployment slightly increased to 6.9%. The Labour Force Participation Rate (LFPR) rose to 55.1%, supported by higher female participation (33.7%), reflecting growing women’s engagement in the workforce. Agriculture remained the largest employer, accounting for 42.4% of total jobs, followed by the tertiary sector at 33.5%. However, youth unemployment rose to 14.8%, highlighting challenges for new job seekers. Overall, India’s labor market displayed resilience with rural job gains balancing urban slowdowns.