According to projections from the International Monetary Fund (IMF), India is on track to surpass Japan by 2025, positioning itself as the fourth-largest economy globally. However, despite this impressive economic growth, significant disparities remain in the labor market, particularly among the youth. The latest Periodic Labour Force Survey (PLFS) data underscores these challenges.
Released by the Labour Bureau on September 23, 2024, the PLFS report covering July 2023 to June 2024 highlights ongoing issues within the Indian labor market. After five years of decline, the overall unemployment rate has stagnated at 3.2% for 2023-24. Alarmingly, youth unemployment stands at 10.2%, with males at 9.8% and females facing a higher rate of 11%. The situation is particularly concerning for women, whose unemployment rate has risen from 2.9% to 3.2% in the past year.
States and Union Territories Experiencing High Youth Unemployment
- Lakshadweep
Lakshadweep records the highest youth unemployment rate at 36.2%, with female unemployment soaring to 79.7%, compared to 26.2% for males.
- Andaman & Nicobar Islands
With an unemployment rate of 33.6%, this territory shows a stark gender divide: 24% for males and 49.5% for females.
- Kerala
Despite having India’s highest literacy rate, Kerala faces a youth unemployment rate of 29.9%, with females experiencing a significantly higher rate of 47.1%, while males stand at 19.3%.
- Nagaland
Nagaland’s unemployment rate is 27.4%, with males at 27.9% and females at 26.6%, indicating a relatively balanced gender distribution.
- Manipur
Manipur has an unemployment rate of 22.9%, with a higher female unemployment rate of 27.5%, compared to 19.9% for males.
- Ladakh
The union territory of Ladakh reports an overall unemployment rate of 22.2%, with female unemployment at 38.3%, notably higher than the male rate of 11.4%.
- Arunachal Pradesh
Arunachal Pradesh shows an overall unemployment rate of 20.9%, with 21.9% for males and 19.6% for females, reflecting a more balanced employment landscape. However, with one-fifth of the youth unemployed, significant challenges remain.
- Goa
Goa’s unemployment rate is at 19.1%, where female unemployment (31%) greatly exceeds male unemployment (13.2%), highlighting gender-specific barriers in the tourism-driven economy.
- Punjab
Punjab faces an unemployment rate of 18.8%, with female unemployment at 24.5% and male unemployment at 16.7%. The agricultural and industrial sectors have not provided sufficient job opportunities for women, indicating a need for more inclusive economic policies.
- Andhra Pradesh
Andhra Pradesh rounds out the top ten with an unemployment rate of 17.5%, where female unemployment is at 19.7% and male at 16.4%. Although the gender gap is narrower, the high overall youth unemployment points to a skills mismatch in the labor market.
