Gyan Pathak
Periodic Labour Force Survey for the first quarter (April-June) of the current financial year 2026-27 shows a disturbing trend in youth unemployment rate, Labour Force Participation Rate (LFPR) and Worker Population Ratio. There has been a sharp increase in youth (15-29 years of age) unemployment rate since April 2025, when the new series of this labour data was launched, which hit the highest in the last one year.
The estimate of unemployment in Current Weekly Status (CWS) shows that youth unemployment rate in April-June 2026 reached 15.9 per cent, which was highest in any quarter since April 2025. It was 14.6 per cent in April-June 2025 and 14.3 per cent in October-December 2025, rising to 15 per cent in Jan-March 2026. While youth unemployment rate in the first quarter was 15.9 per cent, the share of female unemployment rate was 19.6 per cent and youth male unemployment rate 14.5 per cent. Youth unemployment rate was about three times the unemployment rate for all ages at 5.4 per cent.
Urban youth unemployment rate reached as high as 18.2 per cent in April-June 2026 quarter compared to 17.9 per cent during April-June 2025. The share of youth urban female unemployment rate during the first quarter of the current financial year was as high as 25.2 per cent and urban youth male unemployment rate 16 per cent.
Rural youth unemployment rate in the first quarter of the current year was 14.7 per cent compared to 13.1 per cent in the corresponding period last year. The share of rural female youth unemployment during April-June 2026 was 17.1 per cent and male youth male unemployment 13.8 per cent.
Compared to the youth unemployment rate, the unemployment rate for all age group in CWS was 5.4 per cent in April-June 2026. It has been rising in the last three quarters. In Oct-Dec 2025 it was 4.8 per cent, which rose to 5 per cent during Jan-March 2026. The share of female unemployment was 5.7 per cent in the first quarter of 2026-27 and for male it was 5.3 per cent. Urban unemployment rate was 6.7 per cent and rural unemployment rate was 4.8 per cent. All the data shows that urban unemployment rate has been worsening faster than the rural unemployment rate, though rural employment remains very low waged with little on not social security coverage.
As for LFPR in CWS, that is the number of persons employed and the number of persons in search of a job, it has been 40.7 per cent for youth during April-June 2026 which was a sharp decline from 42 per cent in the corresponding period last year. Female youth participation in the labour market has declined from 22.1 per cent to 21 per cent during this period, while the decline in male youth participation declined from 61.5 per cent to 60.4 per cent.
Urban youth participation during April-June 2026 was 41.2 per cent with share of female youth at 20.8 per cent and male youth 60 per cent. Rural youth participation during this period was 40.5 per cent, with female youth participation 21 per cent and male youth participation 60.6 per cent.
For all age group labour participation was 41.5 per cent in the first quarter of 2026-27, with female participation at 25.5 per cent and male participation 57.7 per cent. Participation rate is deteriorating since Octo-Dec 2025 when it was 42.2 per cent. Urban participation was 39.7 per cent during April-June 2026 with female participation rate 19.9 per cent and male participation rate 59.2 per cent. Rural participation during this period was 42.3 per cent with female participation 28.1 per cent and male participation 56.9 per cent.
WPR, that is workers who actually worked at least one hour in the last seven days, for youth was 34.3 per cent in the first quarter of the current financial year. It has been deterioration since April-June 2025 when it was 35.8 per cent. Share of female youth WPR during April-June 2026 was as low as 16.8 per cent while it was 51.6 per cent for male youth.
Urban youth WPR was 33.7 per cent during April-June 2026, with share of female as low as 15.6 per cent and male 50.4 per cent. Rural youth WPR was 34.5 per cent with share of female 17.4 per cent and for male 52.3 per cent.
WPR in CWS for all age group in April-June 2026 was 39.2 per cent which was sharp decline from 40.2 per cent during Oct-Dec 2025. It declined to 39.9 per cent during Jan-March 2026. Urban WPR during April-June 2026 was 37.1 per cent with female WPR 18.2 per cent and male WPR 55.6 per cent. Rural WPR during this period was 40.2 per cent with female WPR 26.7 per cent and male 54.1 per cent.
The percentage distribution of workers in CWS of age 15 years and above shows that in rural areas, most of the workers (61.4 per cent) were self-employed during April- June, 2026. About 55.9 per cent of male and 72.0 per cent of female workers in rural areas were self-employed. Own account workers were 44 per cent. Contributing family workers were 16.1 per cent, regular wage or salaried workers were 16.1 per cent and casual labour were 22.5 per cent.
In urban areas, the majority of the workers in CWS (48.9 per cent) worked as regular wage /salaried, with 47.5 per cent of male workers and 54.8 per cent of female workers. Own account workers were 33 per cent, contributing family workers were 6.2 per cent, self-employed 39.9 per cent and casual workers 11.2 per cent.
The whole picture shows that the current financial year 2026-27 began with distortion in the labour market, and the first quarter was worst since the corresponding period in 2025. Labour market distortion needs to be taken seriously now, especially on account of the prospect of deficient rainfall this year and the impact of Middle East war and other external disturbances in the supply chain.
