In this blog, we discuss the current unemployment rate in India, as well as the unemployment rate over the past decade.
But according to Regular Labor Force Survey (PLFS) Data released by the Bureau of Labor on September 23, 2024 showed that there was no significant change in the unemployment rate between July 2023 and June 2024. The release of the Union Statistics and Program Implementation Department said that in rural areas, the Labor Force Participation Rate (LFPR) increased from 50.7% in 2017-18% to 2023-24% of the population, while the Labor Force Participation Rate (LFPR) rose from 50% in 2023-24 to 5.6.7%, while the Labor Force Participation Rate (LFPR) increased to 47%.
The same statement shows that the unemployment rate in rural areas fell from 5.3% in 2017-18 to 2.5% in 2023-24, while for urban areas it fell from 7.7% to 5.1%.
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These changing labor demand and employment rate trends require well-thought-out policy measures to address existing economic challenges and ensure sustainable growth in rural and urban areas. It highlights the importance of diversifying economic activities to create more jobs and enhance the country’s financial capacity.
Also read: India’s GDP: Current and Historical Growth Rate, India’s ranking in the world
Unemployment in India: Historical data
If you want to know the unemployment rate over the past decade or 15 years, we put the data in a neat little chart:
| Year |
Unemployment rate (percentage) |
| 2024 |
7.8 (September 2024) |
| 2023 |
8.003 |
| 2022 |
7.33 |
| 2021 |
5.98 |
| 2020 |
8.00 |
| 2019 |
5.27 |
| 2018 |
5.33 |
| 2017 |
5.36 |
| 2016 |
5.42 |
| 2015 |
5.44 |
| 2014 |
5.44 |
| 2013 |
5.42 |
| 2012 |
5.41 |
| 2011 |
5.43 |
| 2010 |
5.55 |
| 2009 |
5.54 |
| 2008 |
5.41 |
source: CMIE
State/UT Estimated Unemployment Rate (UR)
Below is a list of unemployment rates (URs) in India’s states and union territories in 2022-23. Data from PIB.
| Status/UT |
UR (in %) |
| Lakshadweep |
11.1 |
| Goa |
9.7 |
| Andaman and N. Island |
9.7 |
| Kerala |
7 |
| Haryana |
6.1 |
| Punjab |
6.1 |
| Ladakh |
6.1 |
| Meghalaya |
6 |
| Puducherry |
5.6 |
| Arunachal Pradesh |
4.8 |
| Manipur |
4.7 |
| Uttarakhand |
4.5 |
| Rajasthan |
4.4 |
| Telangana |
4.4 |
| Jamuk and Kashmir |
4.4 |
| Himaal Pradesh |
4.3 |
| Nagaran |
4.3 |
| Tamil Nadu |
4.3 |
| Andhra Pradesh |
4.1 |
| Chandigarh |
4 |
| Bihar |
3.9 |
| Odisha |
3.9 |
| The whole of India |
3.2 |
| Maharashtra |
3.1 |
| Dadra & Nagar Haveli & Daman & Diu |
2.5 |
| chhattisgarh |
2.4 |
| Karnataka |
2.4 |
| Uttar Pradesh |
2.4 |
| Mizoram |
2.2 |
| Tinjin |
2.2 |
| West Bengal |
2.2 |
| Delhi |
1.9 |
| Assam |
1.7 |
| Gujarat |
1.7 |
| Jharkand |
1.7 |
| Madhya Pradesh |
1.6 |
| Tripura |
1.4 |
How is the current unemployment rate calculated?
India’s past and current unemployment rate is a key economic indicator, and its proportion is a percentage that varies according to current economic conditions.
Unemployment often increases when job opportunities become scarce during economic downturns. Conversely, during times of economic growth and prosperity, unemployment is expected to decline as many jobs are available to the public.
The formula for calculating the current unemployment rate in India is as follows:
Unemployment rate = number of unemployed people/civilian labor
or,
Unemployment rate = number of unemployed people/(number of employment + number of unemployed people)
To be classified as unemployed, individuals must meet specific criteria:
They must be at least 16 years of age and can work full time for the past four weeks.
During this period, they should actively seek employment.
Some exceptions include temporary dismissal and actively seeking to rejoin a previous job.
Also read: Fiscal Deficit: Meaning, Indian History, Causes, Current Deficits, and more
Major economic events that affected India’s unemployment rate in the past
Several major events have severely affected India’s unemployment rate throughout our economic history.
- Global Financial Crisis (2008-2009): The 2008 global financial crisis severely affected India’s economy, causing slowing growth and reducing employment opportunities in various sectors.
- Demonetization (2016): The government’s decision to devalue high-value currency notes in 2016 has caused economic disruption, especially in the informal sector, resulting in temporary unemployment.
- Implementation of Goods and Services Tax (GST) (2017): The introduction of GST was intended to simplify the tax structure, but initially caused short-term disruption in the economy, affecting businesses and employment.
- The Covid-19-1920 pandemic: The shared 19th pandemic and subsequent lockdown measures had far-reaching impacts on the Indian economy, with unemployment surges as business shutdowns and economic activity stagnated.
- Inflation pressure: India has also faced inflationary pressures over the years, affecting the current unemployment rate in India. High inflation will erode consumers’ purchasing power, thereby reducing demand for goods and services. This could have a cascading impact on businesses, resulting in cost-cutting measures, including layoffs and employment freezes, resulting in higher unemployment rates.
FAQ
1. Which country is the state with the highest unemployment rate in India? How about in India with the lowest unemployment rate?
As of December 2022, Haryana had the highest unemployment rate at 37.4%. As for the lowest data, data at the same time suggest that Odisha is the lowest unemployment state in India at 0.9%.
2. How does the unemployment rate affect India’s economy?
The unemployment rate affects the Indian economy by affecting spending, growth and job opportunities. High rates can hinder economic progress and can lead to social unrest, while low rates indicate a booming job market and economic growth. Policymakers use it to inform strategies for job creation and economic development.
