Outlook Business Desk
India faces a growing employment challenge, with many citizens, particularly youth under the age of 30, struggling to find work. The difference between official statistics and the reality on the ground highlights widespread underemployment and the need for more accurate data to inform effective policies.
India’s official unemployment rate was 3.2% for 2023–24 and 5.6% in June 2025, according to Mint. Other surveys, including data from the Centre for Monitoring Indian Economy (CMIE), reported higher unemployment rates in 2024, showing a difference between official figures and alternative sources.
Youth make up nearly 83% of India’s unemployed population, with urban youth unemployment at 18.8% and rural youth at 13.8%. Despite education, many young people struggle to find stable and meaningful jobs, revealing a significant gap between official statistics and the realities of the workforce.
The share of young people with at least a secondary education among the unemployed has nearly doubled from 35.2% in 2000 to 65.7% in 2022. This reflects a mismatch between education and job opportunities, highlighting the urgent need for skill-aligned employment policies for educated youth.
India’s economy has grown steadily, yet job creation lags behind. With a 7% growth rate, estimates suggest only 8–9 million jobs are generated annually, falling short of the 12 million required. This “jobless growth” paradox emphasises the need for policies that create meaningful employment alongside economic expansion.
In 2022–23, 18.3% of India’s workforce consisted of unpaid helpers in household enterprises, highlighting that a large portion of employment is in self-employment within the informal sector, where jobs are often unstable, low-paying, and lack security or benefits.
Some economists and experts argue that the official employment data from the Periodic Labour Force Survey (PLFS), which counts anyone working even one hour a week as employed, does not capture underemployment or job insecurity, potentially hiding the true scale of employment challenges in India.
The difference between official unemployment rates and the experiences of workers highlights gaps in current data. Experts stress that more detailed and accurate employment data is essential to understand underemployment, informal work and job insecurity, which can guide effective policies to address India’s employment challenges.