Analysis of Unemployment Rates Among Urban Youth in India (FY25)
The analysis of the latest quarterly Periodic Labour Force Survey (PLFS) data highlights the varying unemployment rates among urban youth across different Indian states and Union Territories (UTs) for FY25.
States with Rising Unemployment Rates
- Assam: Urban youth unemployment rose from 23.9% in Q1 to 27.5% in Q3.
- Bihar: Increased from 20.8% in Q1 to 26.4% in Q3.
- Madhya Pradesh: Climbed from 11.2% in Q1 to 15% in Q3.
- Haryana: Increased from 11.2% in Q1 to 12.9% in Q3.
- Jammu & Kashmir: Rose from 29.8% in Q1 to 35.3% in Q3.
- Delhi: Increment from 3.7% in Q1 to 4.9% in Q3.
States with Declining Unemployment Rates
- Kerala: Decreased from 27.7% in Q1 to 24.9% in Q3.
- Chhattisgarh: Dropped from 23.3% in Q1 to 20.3% in Q3.
- Uttar Pradesh: Reduced from 19.2% in Q1 to 16.8% in Q3.
- Maharashtra: Lowered from 15.1% in Q1 to 12.2% in Q3.
- Gujarat: Slightly down from 8.3% in Q1 to 8.2% in Q3.
Expert Insights
Ronak Pol, Team Lead at the Foundation for Economic Development, emphasized the need for states like Assam to focus on industries that generate large-scale employment despite their attraction to high-end manufacturing investments, such as semiconductors. He highlighted the importance of a thriving manufacturing base for providing economic security and upward mobility for young Indians.
Additional Insights
- According to an International Labour Organization (ILO) study, youth constitute approximately 83% of the unemployed workforce in India.
- The proportion of young individuals with secondary or higher education nearly doubled from 35.2% in 2000 to 65.7% in 2022.
Note: The quarterly PLFS survey does not provide data for some regions due to low sample sizes, including Goa, northeastern states (except Assam), and several UTs like Chandigarh, Puducherry, and others.