IN NEWS: Youth Unemployment Trends in India (PLFS 2023–24) – States with Highest and Lowest Rates
Introduction
According to the Periodic Labour Force Survey (PLFS) 2023–24, India’s youth unemployment rate stands at 10.2% (Male: 9.8%, Female: 11%), while the overall unemployment rate remains relatively low at 3.2%. The data highlights significant inter-state disparities in employment outcomes, reflecting differences in economic structure, skills, and opportunities.
ANALYSIS
Top 10 States/UTs with Highest Youth Unemployment
| Rank | State/UT | Male (%) | Female (%) | Total (%) |
|---|
| 1 | Lakshadweep | 26.2 | 79.7 | 36.2 |
| 2 | Andaman and Nicobar Islands | 24.0 | 49.5 | 33.6 |
| 3 | Kerala | 19.3 | 47.1 | 29.9 |
| 4 | Nagaland | 27.9 | 26.6 | 27.4 |
| 5 | Manipur | 19.9 | 27.5 | 22.9 |
| 6 | Ladakh | 11.4 | 38.3 | 22.2 |
| 7 | Arunachal Pradesh | 21.9 | 19.6 | 20.9 |
| 8 | Goa | 13.2 | 31.0 | 19.1 |
| 9 | Punjab | 16.7 | 24.5 | 18.8 |
| 10 | Andhra Pradesh | 16.4 | 19.7 | 17.5 |
Top 10 States/UTs with Lowest Youth Unemployment
| Rank | State/UT | Male (%) | Female (%) | Total (%) |
|---|
| 1 | Madhya Pradesh | 2.8 | 2.1 | 2.6 |
| 2 | Gujarat | 3.3 | 2.7 | 3.1 |
| 3 | Jharkhand | 4.8 | 1.5 | 3.6 |
| 4 | Delhi | 4.6 | 4.8 | 4.6 |
| 5 | Chhattisgarh | 6.6 | 5.8 | 6.3 |
| 6 | Dadra and Nagar Haveli and Daman and Diu | 7.8 | 3.7 | 6.6 |
| 7 | Tripura | 6.8 | 6.7 | 6.8 |
| 8 | Sikkim | 8.3 | 6.8 | 7.7 |
| 9 | West Bengal | 8.5 | 10.0 | 9.0 |
| 10 | Uttar Pradesh | 9.3 | 12.3 | 9.8 |
Key Observations
1. Regional Disparities
- UTs and smaller regions like Lakshadweep and Andaman show very high unemployment due to limited economic diversification
- Northeastern states reflect structural employment constraints
2. Kerala Paradox
- Kerala has:
- High literacy and human development
- Yet high unemployment (29.9%)
- Indicates skill mismatch and preference for white-collar jobs
3. Strong Performance of Central & Western States
- Madhya Pradesh and Gujarat show lowest unemployment
- Reasons:
- Agriculture + industry mix
- Expansion of MSMEs and industrial zones
- Higher labour absorption capacity
4. Gender Disparity in Employment
- Female unemployment consistently higher than male
- Reflects:
- Social barriers
- Lower workforce participation
- Skill and opportunity gaps
5. Informal Sector Absorption
- States like Uttar Pradesh and West Bengal maintain moderate unemployment due to:
- Large informal sector employment
- Self-employment and agriculture
Structural Challenges Identified
- 12 million new entrants annually in labour market
- Slow pace of formal job creation
- Need for skill alignment with industry demand
Implications
1. Need for Skill Development
Focus on industry-relevant skilling and vocational training
2. Boost to Labour-intensive Sectors
Manufacturing, MSMEs, and services need expansion
3. Gender Inclusion Policies
Encourage female workforce participation
4. Regional Policy Targeting
Special focus on UTs and NE states
STATIC PART
Periodic Labour Force Survey (PLFS)
- Conducted by: National Statistical Office (NSO), Ministry of Statistics & Programme Implementation
- Started: 2017–18
- Objective:
- Measure employment and unemployment trends
- Provide annual and quarterly labour market data
Key Indicators
- Unemployment Rate (UR): % of unemployed persons in labour force
- Labour Force Participation Rate (LFPR): % of working-age population engaged in labour force
- Worker Population Ratio (WPR): % of employed persons
Updated – 07 April 2025 | 09:12 AM IST | News Source: Indian Express