India's urban youth unemployment drops below global average
What's the story
India's urban youth unemployment rate has fallen to 9.9% in 2025, according to a recent report by SBI Research. The figure is well below the global average of 12.6%, as estimated by the International Labour Organization (ILO). The data was derived from the latest Periodic Labour Force Survey (PLFS) and unit-level analysis for 2025.
Consistent decline
Youth unemployment decline
The report highlights a steady decline in India's youth unemployment rate since 2022, despite global labor market challenges. The rate has fallen from 10.9% in PLFS 2022 to 10.3% in 2024 and further down to the current figure of 9.9%. "Globally, youth unemployment continues to remain substantially higher than overall unemployment levels," the report said, emphasizing the difficulties young people face in finding jobs worldwide.
Structural picture
Unemployment rates for older age groups
SBI Research also contends that unemployment rates for those aged 30 years and above give a better structural picture of employment conditions in the economy. Using this revised methodology, the report estimates much lower unemployment rates for the 30-plus population. For urban males over 30, the unemployment rate was estimated at just 2.26%, compared to PLFS-reported figures of 11.8% for younger age groups.
Market transformation
Structural transformation of labor market
The report also notes that India's labor market is undergoing a structural transformation with increased participation in manufacturing and non-agricultural sectors. It highlights increasing employment opportunities across several states, along with economic growth and infrastructure development, as factors improving labor market conditions in the country.