Urban Youth Unemployment Rises to 19% in September; Rate Among Young Women Hits 26.6%

Urban Youth Unemployment Rises to 19% in September; Rate Among Young Women Hits 26.6%

New Delhi, Oct 16: Unemployment among urban youth aged 15–29 years in India increased to 19 per cent in September 2026, up from 18.7 per cent in August, with young women continuing to face a significantly higher unemployment rate than their male counterparts, according to the latest government data.

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The September Monthly Bulletin of the Periodic Labour Force Survey (PLFS), released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday, highlighted persistent challenges in urban youth employment despite improvements in some labour market indicators.

Young Women Face Higher Unemployment

The unemployment rate among urban women aged 15–29 years rose from 26.4 per cent in August to 26.6 per cent in September. Among young urban men, the rate increased from 16.2 per cent to 16.4 per cent during the same period.

The figures underline the continuing disparity in employment opportunities between young women and men in urban India.

Urban youth unemployment has also maintained an upward trend since May 2026, when it stood at 17.5 per cent.

At the national level, the unemployment rate among youth edged up from 15.1 per cent in August to 15.2 per cent in September. In contrast, rural youth unemployment declined slightly from 13.3 per cent to 13.2 per cent.

Labour Force Participation Shows Improvement

Despite the rise in urban youth unemployment, some indicators of employment and workforce participation showed improvement during September.

The urban Worker Population Ratio (WPR) for people aged 15 years and above increased from 47 per cent in August to 47.2 per cent in September, marking its highest level since October 2025.

Urban female Labour Force Participation Rate (LFPR) also recorded a notable increase, rising by 0.5 percentage points from 25.4 per cent to 25.9 per cent. According to the ministry, this was the highest level recorded since October 2025.

However, the rise in participation was accompanied by an increase in unemployment among urban women aged 15 years and above, with the rate climbing from 8.9 per cent to 9.2 per cent.

Overall Unemployment Remains Stable

India’s overall unemployment rate among people aged 15 years and above remained unchanged at 5 per cent in September, the same as in August. However, it was lower than the 5.2 per cent recorded in September 2025.

Urban unemployment edged up from 6.8 per cent to 6.9 per cent, while the rural unemployment rate increased from 4.1 per cent to 4.2 per cent.

The figures indicate that, although the overall unemployment rate remained stable compared with the previous month, employment pressures persisted across both urban and rural areas.

Survey Covers More Than 3.7 Lakh People

The September PLFS estimates are based on a survey covering 3,70,513 people across rural and urban India.

The latest data presents a mixed picture of the country’s labour market. While workforce participation and the proportion of employed people in urban areas improved, rising unemployment among young people, particularly women, remains a significant concern.

The figures highlight the importance of expanding employment opportunities and improving access to jobs for India’s growing young workforce, especially in urban areas where competition for suitable employment remains intense.