India’s estimated unemployment rate for individuals aged 15 years and above has experienced a significant decline, reaching 3.2% in fiscal year 2023 (FY23). This marks a substantial drop from 6% in FY18, according to the labor ministry, indicating a positive shift in the employment landscape. The ministry’s figures are based on the latest Annual Periodic Labour Force Survey (PLFS) report, which underscores a notable increase in employment over the years, accompanied by a consistent decrease in the unemployment rate.
For the 15+ age group, the unemployment rate has consistently declined, dropping from 5.8% in FY19 to 4.8% in FY20, 4.2% in FY21, 4.1% in FY22, and finally reaching 3.2% in FY23. This trend is mirrored in the worker-population ratio for the same demographic, which has steadily risen from 47.3% in FY19 to 50.9% in FY20, 52.6% in FY21, 52.9% in FY22, and reaching 56% in FY23.
The report also highlights the unemployment rate for youth aged 15-29 years, which stood at 10% in FY23, representing a significant decrease from 17.8% in FY18. This age group’s unemployment rate has shown a gradual reduction, falling from 17.3% in FY19 to 15% in FY20, 12.9% in FY21, and 12.4% in FY22.
In a separate statement, the ministry referenced the Reserve Bank of India’s (RBI) latest KLEMS data, indicating that employment in the country increased to 64.33 crore in the year 2023-24, compared to 47.15 crore in 2014-15. This translates to a total increase in employment of about 17.19 crore during this period.
Furthermore, the Union Budget for 2024-25 included a package of five schemes and initiatives aimed at facilitating employment, skilling, and other opportunities for 41 million youth over a five-year period, with a central outlay of ₹ 2 trillion. This initiative aims to further strengthen the positive trend in employment growth and create more opportunities for the youth of India.
