India’s Labour Market: Why Increased Women’s Participation Coexists with High Unemployment - The Policy Edge

A background note can be accessed here: Urban Women’s Labour Participation Rises in September, but Unemployment Reaches 9.2% Urban women’s labour force participation rose in September 2026 even as their unemployment rate increased to 9.2 percent. What can these simultaneous movements tell us about the capacity of urban labour markets to absorb women entering or re-entering the workforce, and what additional evidence would distinguish weak labour demand from difficulties in matching workers to available jobs? The simultaneous rise in urban women’s participation and unemployment suggests that labour force entry may be outpacing employment absorption, but does not establish weak labour demand.