Unemployment Rate in India
In recent years, India's jobless rate has significantly decreased. The unemployment rate for people 15 and older fell from 6% in 2017-18 to 3.2% in 2023-24, according to the Economic Survey 2024-25, indicating a favorable trend in job creation and economic recovery.
But difficulties still exist, especially among some groups and in rural areas. The unemployment rate rose to 9.2% in June 2024, according to the Centre for Monitoring Indian Economy (CMIE), mostly as a result of more unemployment in rural areas. Furthermore, according to the Economic Survey, there is a discrepancy between educational credentials and employment prospects, with 53% of graduates and 36% of postgraduates experiencing underemployment.
The government intends to address these problems by concentrating on industries including manufacturing, services, and infrastructure in order to generate an average of 7.85 million non-farm jobs yearly until 2030. Additionally, initiatives are being made to improve skill development and match school achievements with industry needs.
Which state is no. 1 in unemployment in India?
Lakshadweep has the highest unemployment rate among Indian states and Union Territories, at an astounding 36.2%, according to the most recent statistics from the Periodic Labour Force Survey (PLFS) for July 2023 to June 2024. Kerala (29.9%) and the Andaman & Nicobar Islands (33.6%) come next.
Kerala has a particularly high youth unemployment rate (for those aged 15 to 29), with 19.3% of young males and 47.1% of young women without jobs. Kerala has a high literacy rate, but it also has issues like a gap between educational attainment and employment prospects, which causes a large number of young people to be unemployed.
Why is unemployment so high in India?
A complex problem with roots in structural, educational, economic, and policy-related variables is India's consistently high unemployment rate. Here is a summary of the main causes:
1. Inconsistency between market demands and education
A significant gap exists between the skills imparted by educational institutions and those demanded by employers. Despite a large number of graduates, many lack practical, industry-specific skills, leading to high unemployability rates. Only about 51.25% of youth are deemed employable due to inadequate training in essential skills like communication, critical thinking, and leadership
2. Jobless Growth
India's economic growth has been driven by capital-intensive industries and technological advancements, such as automation and artificial intelligence. These sectors often require fewer workers, leading to jobless growth where GDP increases without a corresponding rise in employment opportunities.
3. Dominance of the Informal Sector
The informal sector, which employs about 80% of India's labor, is known for its poor pay, unstable employment, and restricted access to social services. The popularity of this industry limits the number of formal, steady job possibilities available.
4. Technological Displacement
Advancements in automation and artificial intelligence are replacing many traditional jobs, particularly in manufacturing, transportation, and clerical work. Without proactive reskilling initiatives, workers are at risk of displacement without alternative employment options.
5. Rigid Labor Laws and Bureaucratic Hurdles
India 's labor laws are often seen as rigid and outdated, making it difficult for companies to hire and fire employees flexibly. Additionally, bureaucratic red tape hinders entrepreneurship and the growth of small and medium-sizeds (SMEs), which are crucial for job creation.
6. Regional Disparities
Regional variations in unemployment rates are substantial. Some of the highest unemployment rates are reported by states like Kerala, Lakshadweep, and Haryana; they are frequently caused by things like poor infrastructure, overqualification of graduates, and a lack of industrial development.
7. Gender and Societal Norms
Young women's engagement in the workforce is frequently restricted by social standards and safety concerns, which raises their unemployment rates. Furthermore, young people's employment options may be restricted by cultural norms surrounding the kinds of vocations deemed suitable.
8. Inadequate Policy Implementation
While various policies and initiatives have been introduced to address unemployment, their implementation has often been inconsistent and ineffective. For instance, the National Skill Development Corporation aimed to train 150 million people by 2022, but challenges in execution have hindered its success.
Why is India facing unemployment?
India's Unemployment Crisis
India has a serious problem with unemployment because of several factors:
- Skill Mismatch: There is a discrepancy between educational outcomes and job market demands, as evidenced by the fact that 40% of postgraduates and more than 50% of graduates are underemployed.
- Insufficient Vocational Training: Compared to 52% in the US and 96% in South Korea, only roughly 3.7% of India's workforce has formal vocational training.
- The informal sector, which employs more than 90% of India's labor, is characterized by lower productivity, less job security, and little social safety.
- Slow Job Creation in Important Sectors: In spite of an increasing economy, job creation has not kept up with the growing workforce, resulting in a 3-4 million job shortfall per year.
- Policy and Institutional Challenges: The success of government programs targeted at skill development and job creation has been hampered by problems like ineffective ministry coordination, ineffective implementation, and insufficient budget.
Addressing these issues requires comprehensive reforms in education, vocational training, labor policies, and job creation strategies to align the workforce's skills with market demands and promote formal employment opportunities.
Unemployment rates vary significantly across different regions.
India's unemployment rates vary significantly across regions due to factors like industrialization, education, and infrastructure. States such as Haryana and Rajasthan experience high unemployment, while Chhattisgarh and Gujarat report lower rates. These disparities highlight the need for targeted policies to address regional employment.
Which state has the lowest unemployment rate?
Unemployment rate in India - According to the July 2023-June 2024 Periodic Labour Force Survey (PLFS), Madhya Pradesh had the lowest unemployment rate of any Indian state, at 2.6%. This is significantly less than the 7.8% national average. Jharkhand (3.6%), Delhi (4.6%), and Gujarat (3.1%) are other states with low unemployment rates.
Which country is top in unemployment?
As of 2024, Eswatini holds the highest unemployment rate globally at 37.6%. according to data from the CIA World Factbook and World Population Review.
Other countries with notably high unemployment rates include Sudan (49.5%), South Africa (33.5%), Djibouti (26.3%), and Equatorial Guinea (25%).
These elevated unemployment rates are often attributed to factors such as political instability, economic challenges, and limited access to quality education and job opportunities.
In contrast, countries like Japan, Switzerland, and Singapore report some of the lowest unemployment rates globally, reflecting their strong economies and robust labor markets.
If you're interested in exploring unemployment rates in specific countries or regions, feel free to ask!
Which degree holders are most unemployed in India?
In India, postgraduate degree holders face the highest unemployment rates. According to the Economic Survey 2024-25, 44% of postgraduates are underemployed in roles below their educational qualifications, highlighting a significant skills mismatch in the job market. This trend underscores the need for aligning educational outcomes with industry demands to improve employment prospects for highly educated individuals.What are the main causes of unemployment in India?
India's unemployment crisis is driven by several interrelated factors:
1. Population Growth: Rapid population increase outpaces job creation, leading to a surplus labor force.
2. Skill Mismatch: Educational institutions often fail to equip students with industry-relevant skills, resulting in a significant skills gap.
3. Agricultural Dependence: Overreliance on agriculture, which offers seasonal employment, limits year-round job opportunities.
4. Slow Industrial Growth: Insufficient industrialization hampers the creation of diverse employment opportunities.
5. Informal Sector Dominance: A large portion of the workforce is engaged in informal employment, charaterized by low wages and job insecurity.
Addressing these issues requires comprehensive reforms in education, skill development, industrial policy, and labor market regulations.
How to control unemployment? 5 steps
Addressing unemployment in India requires a multifaceted approach that aligns educational outcomes with market demands, promotes skill development, and fosters economic growth. Here are key strategies:
1. Enhancing Skill Development
Initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Skill India Mission aim to provide industry-relevant training to youth. These programs focus on bridging the skill gap and improving employability.
2. Promoting Entrepreneurship
Schemes such as Pradhan Mantri Mudra Yojana (PMMY) offer financial assistance to small businesses and entrepreneurs, encouraging self-employment and job creation.
3. Revitalizing Manufacturing and Industrial Sectors
Programs like Make in India focus on boosting domestic manufacturing, attracting foreign investment, and creating jobs in key sectors.
4. Expanding Rural Employment Opportunities
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides wage employment to rural households, enhancing livelihood security and reducing migration to urban areas.
5. Implementing Policy Reforms
Simplifying labor laws, reducing bureaucratic hurdles, and incentivizing sectors with high employment potential can stimulate job creation. Recent budget allocations focus on rural employment schemes and subsidies to support these reforms.
By integrating these strategies, India can address its unemployment challenges and promote sustainable economic growth.
In recent years, India's jobless rate has significantly decreased. The unemployment rate for people 15 and older fell from 6% in 2017-18 to 3.2% in 2023-24, according to the Economic Survey 2024-25, indicating a favorable trend in job creation and economic recovery.
But difficulties still exist, especially among some groups and in rural areas. The unemployment rate rose to 9.2% in June 2024, according to the Centre for Monitoring Indian Economy (CMIE), mostly as a result of more unemployment in rural areas. Furthermore, according to the Economic Survey, there is a discrepancy between educational credentials and employment prospects, with 53% of graduates and 36% of postgraduates experiencing underemployment.
The government intends to address these problems by concentrating on industries including manufacturing, services, and infrastructure in order to generate an average of 7.85 million non-farm jobs yearly until 2030. Additionally, initiatives are being made to improve skill development and match school achievements with industry needs.
Which state is no. 1 in unemployment in India?
Lakshadweep has the highest unemployment rate among Indian states and Union Territories, at an astounding 36.2%, according to the most recent statistics from the Periodic Labour Force Survey (PLFS) for July 2023 to June 2024. Kerala (29.9%) and the Andaman & Nicobar Islands (33.6%) come next.
Kerala has a particularly high youth unemployment rate (for those aged 15 to 29), with 19.3% of young males and 47.1% of young women without jobs. Kerala has a high literacy rate, but it also has issues like a gap between educational attainment and employment prospects, which causes a large number of young people to be unemployed.
Why is unemployment so high in India?
A complex problem with roots in structural, educational, economic, and policy-related variables is India's consistently high unemployment rate. Here is a summary of the main causes:
1. Inconsistency between market demands and education
A significant gap exists between the skills imparted by educational institutions and those demanded by employers. Despite a large number of graduates, many lack practical, industry-specific skills, leading to high unemployability rates. Only about 51.25% of youth are deemed employable due to inadequate training in essential skills like communication, critical thinking, and leadership
2. Jobless Growth
India's economic growth has been driven by capital-intensive industries and technological advancements, such as automation and artificial intelligence. These sectors often require fewer workers, leading to jobless growth where GDP increases without a corresponding rise in employment opportunities.
3. Dominance of the Informal Sector
The informal sector, which employs about 80% of India's labor, is known for its poor pay, unstable employment, and restricted access to social services. The popularity of this industry limits the number of formal, steady job possibilities available.
4. Technological Displacement
Advancements in automation and artificial intelligence are replacing many traditional jobs, particularly in manufacturing, transportation, and clerical work. Without proactive reskilling initiatives, workers are at risk of displacement without alternative employment options.
5. Rigid Labor Laws and Bureaucratic Hurdles
India 's labor laws are often seen as rigid and outdated, making it difficult for companies to hire and fire employees flexibly. Additionally, bureaucratic red tape hinders entrepreneurship and the growth of small and medium-sizeds (SMEs), which are crucial for job creation.
6. Regional Disparities
Regional variations in unemployment rates are substantial. Some of the highest unemployment rates are reported by states like Kerala, Lakshadweep, and Haryana; they are frequently caused by things like poor infrastructure, overqualification of graduates, and a lack of industrial development.
7. Gender and Societal Norms
Young women's engagement in the workforce is frequently restricted by social standards and safety concerns, which raises their unemployment rates. Furthermore, young people's employment options may be restricted by cultural norms surrounding the kinds of vocations deemed suitable.
8. Inadequate Policy Implementation
While various policies and initiatives have been introduced to address unemployment, their implementation has often been inconsistent and ineffective. For instance, the National Skill Development Corporation aimed to train 150 million people by 2022, but challenges in execution have hindered its success.
Why is India facing unemployment?
India's Unemployment Crisis
India has a serious problem with unemployment because of several factors:
- Skill Mismatch: There is a discrepancy between educational outcomes and job market demands, as evidenced by the fact that 40% of postgraduates and more than 50% of graduates are underemployed.
- Insufficient Vocational Training: Compared to 52% in the US and 96% in South Korea, only roughly 3.7% of India's workforce has formal vocational training.
- The informal sector, which employs more than 90% of India's labor, is characterized by lower productivity, less job security, and little social safety.
- Slow Job Creation in Important Sectors: In spite of an increasing economy, job creation has not kept up with the growing workforce, resulting in a 3-4 million job shortfall per year.
- Policy and Institutional Challenges: The success of government programs targeted at skill development and job creation has been hampered by problems like ineffective ministry coordination, ineffective implementation, and insufficient budget.
Addressing these issues requires comprehensive reforms in education, vocational training, labor policies, and job creation strategies to align the workforce's skills with market demands and promote formal employment opportunities.
Unemployment rates vary significantly across different regions.
India's unemployment rates vary significantly across regions due to factors like industrialization, education, and infrastructure. States such as Haryana and Rajasthan experience high unemployment, while Chhattisgarh and Gujarat report lower rates. These disparities highlight the need for targeted policies to address regional employment.
Which state has the lowest unemployment rate?
Unemployment rate in India - According to the July 2023-June 2024 Periodic Labour Force Survey (PLFS), Madhya Pradesh had the lowest unemployment rate of any Indian state, at 2.6%. This is significantly less than the 7.8% national average. Jharkhand (3.6%), Delhi (4.6%), and Gujarat (3.1%) are other states with low unemployment rates.
Which country is top in unemployment?
As of 2024, Eswatini holds the highest unemployment rate globally at 37.6%. according to data from the CIA World Factbook and World Population Review.
Other countries with notably high unemployment rates include Sudan (49.5%), South Africa (33.5%), Djibouti (26.3%), and Equatorial Guinea (25%).
These elevated unemployment rates are often attributed to factors such as political instability, economic challenges, and limited access to quality education and job opportunities.
In contrast, countries like Japan, Switzerland, and Singapore report some of the lowest unemployment rates globally, reflecting their strong economies and robust labor markets.
If you're interested in exploring unemployment rates in specific countries or regions, feel free to ask!
Which degree holders are most unemployed in India?
In India, postgraduate degree holders face the highest unemployment rates. According to the Economic Survey 2024-25, 44% of postgraduates are underemployed in roles below their educational qualifications, highlighting a significant skills mismatch in the job market. This trend underscores the need for aligning educational outcomes with industry demands to improve employment prospects for highly educated individuals.What are the main causes of unemployment in India?
India's unemployment crisis is driven by several interrelated factors:
1. Population Growth: Rapid population increase outpaces job creation, leading to a surplus labor force.
2. Skill Mismatch: Educational institutions often fail to equip students with industry-relevant skills, resulting in a significant skills gap.
3. Agricultural Dependence: Overreliance on agriculture, which offers seasonal employment, limits year-round job opportunities.
4. Slow Industrial Growth: Insufficient industrialization hampers the creation of diverse employment opportunities.
5. Informal Sector Dominance: A large portion of the workforce is engaged in informal employment, charaterized by low wages and job insecurity.
Addressing these issues requires comprehensive reforms in education, skill development, industrial policy, and labor market regulations.
How to control unemployment? 5 steps
Addressing unemployment in India requires a multifaceted approach that aligns educational outcomes with market demands, promotes skill development, and fosters economic growth. Here are key strategies:
1. Enhancing Skill Development
Initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Skill India Mission aim to provide industry-relevant training to youth. These programs focus on bridging the skill gap and improving employability.
2. Promoting Entrepreneurship
Schemes such as Pradhan Mantri Mudra Yojana (PMMY) offer financial assistance to small businesses and entrepreneurs, encouraging self-employment and job creation.
3. Revitalizing Manufacturing and Industrial Sectors
Programs like Make in India focus on boosting domestic manufacturing, attracting foreign investment, and creating jobs in key sectors.
4. Expanding Rural Employment Opportunities
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides wage employment to rural households, enhancing livelihood security and reducing migration to urban areas.
5. Implementing Policy Reforms
Simplifying labor laws, reducing bureaucratic hurdles, and incentivizing sectors with high employment potential can stimulate job creation. Recent budget allocations focus on rural employment schemes and subsidies to support these reforms.
By integrating these strategies, India can address its unemployment challenges and promote sustainable economic growth.
