FX.co ★ India Unemployment Rate Unexpectedly Drops

India’s unemployment rate edged down to 4.9% in February 2026 from 5.0% in January, defying market expectations of a rise to 5.1%. The rate moved closer to the record low of 4.7% reached in November of the previous year, underscoring the resilience of the Indian labor market, supported by robust manufacturing activity and government measures to counter the impact of US tariffs. Unemployment in urban areas eased slightly, to 6.5% from 6.6% in January, while the rural unemployment rate remained unchanged at 4.2%. Meanwhile, the labor force participation rate was stable at 55.9%.