Unemployment Edges Up to 5.1 pc in March, Urban Areas Drive Rise
New Delhi, Apr 16 (BNP): India’s unemployment rate for individuals aged 15 years and above rose to 5.1% in March 2026, up from 4.9% in the previous month, according to the latest Periodic Labour Force Survey (PLFS) Monthly Bulletin released by the statistics ministry.
The increase was largely driven by rising joblessness in urban areas, where the unemployment rate climbed to 6.8% in March, compared to 6.6% in February. The data indicates continued pressure in city labour markets, even as overall employment conditions remain broadly stable in rural regions.
The PLFS report highlights a modest but noticeable uptick in unemployment, reflecting ongoing structural challenges in urban job creation and labour absorption.
Meanwhile, in a separate development, the Reserve Bank of India (RBI) is engaging with commercial banks to explore ways to strengthen deposit mobilisation, amid growing concerns over shifting household savings patterns.
According to discussions held over recent weeks, RBI officials have sought feedback from lenders on strategies to attract more stable and long-term deposits. This comes as an increasing share of household savings is moving towards equities and other financial market instruments.
Banking sector experts note that this trend could pose challenges for liquidity management if deposit growth fails to keep pace with credit demand. The central bank’s consultations aim to ensure that the banking system remains resilient and well-funded despite evolving savings behaviour.
