India's Job Crisis: Youth Unemployment Jumps to 16.1% in Q3, Women See Slight Relief

India's urban unemployment rate for people aged 15 years and above remained at 6.4% in the December quarter compared to the previous quarter, according to the ministry statistics data released on Tuesday. The latest periodic labour force survey (PLFS) data also revealed that it fell 10 basis points from same period last year.

Joblessness, or unemployment rate, is defined as the percentage of unemployed people in the labour force. The jobless rate for men dipped marginally to 5.8% in Q3 from 5.7% in Q2. However, the rate improved for women to 8.1% from 8.4% during the same period.

It also highlighted that the unemployment rate for the youth (15-29 age group) increased to 16.1% in Q3FY25 from 15.8% in Q2FY25. It was led by a rise in the jobless rate for both young men and women. People in this age group are important because they are basically first-timers in the labour markets and this metric reflects their robustness.

Additionally, labour force participation rate (LFPR), which represents the share of people either working or seeking employment in the urban population, also remained steady at 50.4% in Q3.

Men showed greater enthusiasm for work, increasing their LFPR to 75.4% in the last quarter from 75% in the preceding one. Meanwhile, LFPR for women workers fell to 25.2% from 25.5% in the same period.

India's Job Crisis

To resolve India's employment crisis, the government asserted to work to create a system that gives opportunity to every youngster and allows the youth to fulfil their aspirations.

Addressing a ‘Rozgar Mela’ last year, Prime Minister Narendra Modi highlighted that earlier governments lacked in policy and intention, leading to India falling behind the world in rising sectors, including in modern technologies.

Highlighting the government's efforts to give jobs, the Prime Minister added that all-around infrastructure works such as the construction of expressways, highways, ports, rail networks and airports underway in the country. He also referred to the production-linked incentives (PLI) scheme to encourage domestic manufacturing.

Modi also talked about how India has entered into agreements with 21 countries to facilitate immigration and employment for Indian youths.