Unemployment Rate in India State wise 2026, Survey, Causes and Impact

Unemployment rate in India is a key indicator of the country’s economic health and labour market conditions. It reflects the share of the working-age population that is willing to work but unable to find employment. Recent India unemployment rate data shows notable changes across urban and rural areas, age groups, sectors, and states. The unemployment rate in India latest figures highlight differences between youth unemployment rate in India, female unemployment rate in India, and overall employment trends. 

What is India’s Unemployment Rate?

The unemployment rate measures the percentage of the labor force without jobs. This economic indicator reflects the health of a nation’s job market. Understanding India unemployment data is crucial for assessing economic stability. It is also vital for students preparing for competitive exams.

Recent data highlights significant shifts in India’s employment trends. Figures reflect the dynamic nature of the country’s job market. Both urban and rural areas show specific patterns.

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Latest Unemployment Figures

The latest data indicates positive movement in job availability. This decline shows improvements in job creation efforts.

• November 2025: 4.7%. This is the lowest level since 2018.
• October 2025: 5.2%.
• Historical Average (2018-2025): 8.04%.
• Record High: 20.80% in June 2020, during the pandemic.
• Reporting Bodies: Ministry of Statistics and Programme Implementation (MoSPI) via Periodic Labour Force Survey (PLFS), and Centre for Monitoring Indian Economy (CMIE).

Unemployment Rate Trends in India: Segment-wise Data

Different segments of the population show varying job market patterns. This information helps in targeted policy making.

The rural employment challenges saw a new low. The urban employment figures also decreased. Female joblessness saw a notable drop. This suggests broader labor market improvements.

State wise Unemployment Rate in India

The unemployment rate in India shows wide differences across states and Union Territories. Among people aged 15–29 years, Lakshadweep records the highest unemployment rate at 36.2%, followed by the Andaman and Nicobar Islands at 33.6%.

Kerala, despite having the highest literacy rate in the country, reports an unemployment rate of 29.9%. The data highlights a sharp gender gap in the state, with unemployment at 47.1% among women and 19.3% among men. Kerala also has a relatively low Worker-Population Ratio (WPR) compared to many northern and northeastern states, which means a smaller share of its population is engaged in employment.

Below are the top 10 Indian states and Union Territories with the highest unemployment rates:

Related Labor Indicators

Other economic indicators complement job market health. They offer a complete picture of employment in India.

• Labour Force Participation Rate (LFPR): Increased to 55.8% in November 2025. It was 55.4% in October 2025. LFPR shows the proportion of the population aged 15 and above working or seeking work.
• Employment Rate: Rose to 53.2% in November 2025. It was 52.5% in October 2025.

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Measurement Methodology

MoSPI collects labor force data through the PLFS. The survey uses two main approaches for measuring labor status.

• Usual Status: This method considers a person’s activity status over the past 365 days.
• Current Weekly Status (CWS): This method assesses a person’s activity status over the last seven days. MoSPI revamped PLFS monthly reports from January 2025 for CWS data.

PLFS Unemployment Rate in India

The Periodic Labour Force Survey (PLFS) provides the most reliable India unemployment rate data, helping us understand recent changes in employment, unemployment, and workforce participation. The latest PLFS figures for July–September 2025 show marginal but important improvements across key labour market indicators such as LFPR, WPR, and unemployment rate in India.

• The India unemployment rate data from PLFS shows a slight improvement during July–September 2025
• The Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased marginally to 55.1%, indicating higher workforce engagement.
• Female participation in the labour force improved, with LFPR rising to 33.7%, reflecting gradual progress in women’s employment.
• The Worker Population Ratio (WPR) increased from 52.0% to 52.2%, showing a small rise in actual employment levels.
• Female WPR recorded growth across rural, urban, and overall sectors, supporting better inclusion of women in the workforce.
• The unemployment rate in India latest declined to 5.2% from 5.4%, highlighting improved job absorption.
• Growth in rural employment was driven by Kharif agricultural activities, raising agriculture’s share to 57.7%.
• The urban unemployment rate in India remained stable, with the services sector share increasing to 62.0%.
• Self-employment in rural areas rose to 62.8%, while regular salaried jobs in urban areas improved slightly to 49.8%.

Causes of Unemployment in India

Unemployment in India is mainly caused by a fast-growing population, slow job creation, and a gap between skills and available jobs. Structural issues in agriculture and industry also add to the problem.

• Rapid population growth
• Dependence on seasonal agriculture
• Skill mismatch and lack of job-oriented education
• Slow industrial and manufacturing growth
• Automation and use of technology

Impact of Unemployment in India

Unemployment affects both the economy and society by reducing income levels and slowing growth. It also creates social stress, especially among youth.

• Increase in poverty and lower living standards
• Rise in youth frustration and mental stress
• Slower economic growth
• Increase in migration and social problems

Government Initiatives for Employment

Several schemes contribute to improving employment opportunities. These programs target different sectors and groups.

• Prime Minister’s Employment Generation Programme (PMEGP): Promotes self-employment through financial assistance.
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Provides guaranteed wage employment in rural areas.
• Production Linked Incentive (PLI) Scheme: Encourages manufacturing and job creation in key sectors.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Focuses on skill development for youth.
• National Career Service (NCS) Portal: A digital platform connecting job seekers with opportunities.
• Pradhan Mantri Viksit Bharat Rozgar Yojana: An Employment Linked Incentive (ELI) scheme. It aims to create over 3.5 crore jobs.

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Measures for Women’s Employment

Specific initiatives target women’s workforce participation. They promote their involvement in the labor force.

• Skill Training: Industrial Training Institutes offer specialized training for women.
• AICTE Scholarships: PRAGATI and Saraswati scholarships support women in engineering.
• AI Career for Women Initiative: Provides training and economic opportunities for girls in AI.
• Palna Component (Mission Shakti): Offers childcare facilities and protection.
• NAVYA: Gives vocational training to adolescent girls (16-18 years).
• Protective Provisions: Labor laws include 26 weeks of paid maternity leave and mandatory crèche facilities in large establishments. The Code on Occupational Safety allows women to work in all roles, with consent for flexible hours.

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