By Micah Jonah
February 17, 2026
India’s job market showed signs of strain as the nation’s unemployment rate rose to 5 percent in January, up from 4.8 percent in December, according to government statistics released on Monday.
The slight increase signals pressure on the labour market despite expectations of stability, as Reuters’ poll had forecast the rate to hold steady at 4.8 percent. Analysts say factors such as seasonal layoffs, slower hiring in the construction and manufacturing sectors, and economic adjustments may have contributed to the uptick.
Construction projects, including urban metro and infrastructure developments, remain major employers in cities like Mumbai, yet casual workers continue to face uncertainty due to temporary contracts and fluctuating demand.
Economists warn that while the increase appears small, sustained rises in unemployment could affect domestic consumption, growth, and social welfare needs in the world’s second most populous nation.
Further monitoring of India’s labour market is expected in the coming months, with policymakers urged to address employment gaps and support economic resilience.
