The ‘India Employment Report 2024,’ a joint project between the Institute for Human Development (IHD) and the International Labour Organization (ILO), investigates the persistent challenge of high unemployment rates among the youth in India. Established in 1998 under the umbrella of the Indian Society of Labour Economics (ISLE), the IHD functions as a non-profit independent organization dedicated to advancing a socio-economic and political structure that eradicates poverty and deprivation, striving for inclusivity across society.
The latest data available is for the urban unemployment rate in India. According to the 22nd Periodic Labour Force Survey (PLFS), conducted in the first quarter (January-March) of 2024, the urban unemployment rate stands at 6.7% for people aged 15 years and above.
In July 2023, there was a marked decrease in labour demand within non-agricultural sectors in rural regions, prompting fewer rural workers to actively seek employment. Consequently, there was a substantial decline in rural employment rates, with statistical evidence indicating a setback of around five million individuals within the rural labour force. Urban areas similarly witnessed a significant reduction in labour force participation, underscoring pressing economic challenges that demand urgent attention.
India has struggled with fluctuating unemployment, which has been a persistently urgent issue in the nation for many years. The table enlists historical trends in the Unemployment rates of India for the last 10 years.
List of Unemployment Rate in India from 2013 to 2024 | |
Year | Unemployment Rate in Percentage |
2024 | 6.70% |
2023 | 8.40% |
2022 | 7.33% |
2021 | 5.98% |
2020 | 8.00% |
2019 | 5.27% |
2018 | 5.33% |
2017 | 5.36% |
2016 | 5.42% |
2015 | 5.44% |
2014 | 5.41% |
2013 | 5.42% |
The below-given unemployment rate of the Indian state till 2023.
The Centre for Monitoring Indian Economy CMIE statistics released on 1st March 2023 are based on the breakdown of unemployment in different states of India. Here is a complete list of the Unemployment Rate in India State-wise as of December 2022.
The unemployment rate in India State-wise | |
State | % of Unemployment Rate in India |
Haryana | 37.4 |
Rajasthan | 28.5 |
Bihar | 19.1 |
Jharkhand | 18 |
Jammu and Kashmir | 14.8 |
Tripura | 14.3 |
Sikkim | 13.6 |
Goa | 9.9 |
Andhra Pradesh | 7.7 |
Himachal Pradesh | 7.6 |
Assam | 4.7 |
Haryana | 3.74 |
Chhattisgarh | 3.4 |
Madhya Pradesh | 3.2 |
Maharashtra | 3.1 |
Karnataka | 2.5 |
Gujrat | 2.3 |
Odisha | 0.9 |
The India Unemployment Rate varies on the availability of job opportunities and economic alterations in the country, during economic growth and stability it’s expected that job opportunities will not be scarce and hence the unemployment rate is expected to decline. The unemployment rate in India is expressed as a percentage that varies based on numerous factors and specifically on the prevailing economic conditions.
The formula to calculate the current unemployment rate in India –
Unemployment Rate = Number of Unemployed Persons / Number of Employed Persons + Number of Unemployed Persons
A lower unemployment rate suggests the availability of better employment prospects and economic stability in urban areas and that only a smaller proportion of the workforce is unemployed.
An individual is called to be unemployed if:
The following table demonstrates the Month-wise Unemployment Rate in India in the year 2022 along with further bifurcation of Urban and Rural rates from January 2022 to December 2022:
Month-wise Unemployment Rate in India | |||
Months (2022) | India Rate | Urban Rate | Rural Rate |
December | 8.30 | 10.09 | 7.44 |
November | 8.03 | 8.92 | 7.61 |
October | 7.92 | 7.34 | 8.19 |
September | 6.43 | 7.71 | 5.83 |
August | 8.28 | 9.57 | 7.68 |
July | 6.83 | 8.22 | 6.17 |
June | 7.83 | 7.32 | 8.07 |
May | 7.14 | 8.24 | 6.63 |
April | 7.83 | 9.22 | 7.18 |
March | 7.57 | 8.28 | 7.24 |
February | 8.11 | 7.57 | 8.37 |
January | 6.56 | 8.14 | 5.83 |
Azim Premji University’s Centre for Sustainable Employment has published the “State of Working India 2024” report, providing insights into the current state of the Indian workforce and labor market. The report presents findings on the trends in unemployment in India spanning a decade. It encompasses aspects like unemployment rates, female workforce participation, intergenerational mobility, and the workforce dynamics concerning different castes. The data used for this report was sourced from various surveys conducted by the National Statistical Office, India Working Survey, and Periodic Labour Force Surveys (PLFS). According to the report, the overall unemployment rate decreased from 8.7% in 2017-18 to 6.6% in 2021-22.
Initiated by the National Sample Survey Office (NSSO) in April 2017, the Periodic Labour Force Survey (PLFS) aimed to gather comprehensive data on employment and unemployment trends in India. The latest findings from the PLFS for April to June 2023 revealed a positive change in the country’s labor market. Specifically, the survey indicated a decreasing trend in the unemployment rate among individuals aged 15 years and above residing in urban areas.
April – June 2023 | April – June 2022 | |
Unemployment Rate Decrease in urban areas | 6.6% | 7.6% |
Individuals aged 15 years and above | 3.2% | 4.1% |
Gender-Based Unemployment Rate | ||
Males | 5.9% | 7.1% |
Females | 9.1% | 9.5% |
These statistics and forecasts highlight the challenge India faces in generating employment opportunities at a pace that matches its growing population. It underscores the need for concerted efforts from the government, private sector, and various stakeholders to address this issue and implement policies that promote job creation and economic development across urban and rural areas.
India is progressing on its development journey, but challenges like unemployment still hinder overall growth. Here are some factors contributing to unemployment that shed light on the current situation.
These are some of the key impacts of unemployment on the economy, society, and individuals, highlighting the negative consequences associated with high unemployment rates.
To solve the current economic problems and balance the unemployment trends in rural and urban areas, immediate policy measures are required given the shifts in labour demand and employment rates. It emphasizes the increase of economic activities to stabilize employment possibilities and strengthen the financial stability of the nation.
India's unemployment rate climbed to a four-month high of 7.60% in April 2024, according to data from the research firm Centre for Monitoring India Economy
India's unemployment rate increased in April 2023 to 8.11 per cent from 7.8 per cent in March 2023
India's unemployment rate declined to 6.8 per cent in January-March 2023 (Q4FY23) from 7.2 per cent in the previous quarter of the same year, according to the Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO).
To tackle unemployment, policymakers need to focus on generating employment opportunities, aligning education with industry requirements, promoting inclusive growth, and addressing regressive social norms affecting women's employment.
Recent reports include the 'India Employment Report 2024' by the Institute for Human Development (IHD) and the International Labour Organisation (ILO), as well as the Periodic Labour Force Survey (PLFS) initiated by the National Sample Survey Office (NSSO).
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