The unemployment rate rose to 7.9% in December from 7.0% in November, its highest since 8.3% in August.
Economic activity and consumer sentiment have been hit in the South Asian nation after a rise in cases of the omicron coronavirus variant and social distancing restrictions in many states.
Urban unemployment rate rose to 9.3% in December from 8.2% in the previous month while the rural unemployment rate was up 7.3% from 6.4%, the data showed.
Many economists worry that the omicron variant could reverse the economic recovery seen in the previous quarter.
Mumbai-based CMIE data on unemployment is closely watched by economists and policymakers as the government doesn't release monthly figures.