On unemployment in Indian States

Syllabus: GS III, Subject: Economy, Topic: Unemployment and issues, Issue: Measuring unemployment & Indices, trends, reports

Context: The India Employment Report 2024 released by the International Labour Organization (ILO) and the Institute for Human Development (IHD).

Key trends in unemployment in India

  • Two-thirds of unemployed individuals in India were young graduates.
  • Periodic Labour Force Survey data for 2022-23 shows diverse unemployment rates across Indian states.
  • States with more self-employment have lower unemployment.
  • Highly urbanized states like Goa and Kerala exhibit higher unemployment rates.
  • Higher education levels among the labor force are associated with higher unemployment.

Analysis of the unemployment trend:

  • Graduates may lack the skills needed for the modern sector, calling for improvements in teaching infrastructure and standards.
  • Aspirations for high-wage jobs might lead graduates to shun informal employment,
  • Structural transformation, with reduced agriculture and increased urbanization and education, heightens unemployment pressure.

The way ahead:

  • Policy focus on employment generation is crucial to mitigate rising unemployment in developing economies like India.
+1 advantage for mains (Data point):·   Goa has the highest unemployment rate, nearly 10%, significantly above the national average, with Kerala, Haryana, and Punjab also reporting high rates.
Scroll to Top