Unemployment edges down to 3.7% in Q1 as labour force participation slips 04.07.2026

According to the latest Labour Force Survey from the Department of Census and Statistics, Sri Lanka’s unemployment rate decreased slightly to 3.7% in the first quarter of 2026, down from 3.8% in the previous year. However, the overall labour force participation rate declined by 0.5 percentage points to 49.2%. While male participation fell to 69.1%, female participation saw an increase to 32.5%. The total labour force reached 8.41 million people, with 8.10 million currently employed. The services sector remains the dominant employer, accounting for 50.4% of total employment, followed by industry and agriculture. Notably, unemployment remains disproportionately high among women and youth. Specifically, the unemployment rate for those aged 15 to 24 stands at 16.1%, and educated women with GCE Advanced Level qualifications or higher face a significantly higher unemployment rate of 9.7% compared to men.















