Kerala tops youth unemployment rate; headcount of elderly alarming

Kerala is having a tough time as the youth unemployment rate continues to climb, according to the latest labour force survey from the Central Statistical Ministry. The survey, released recently, revealed that the unemployment rate among individuals aged 15-29 in the state has reached 29.9%. This means that nearly 30 out of every 100 young people are currently without a job.

The Periodic Labour Force Survey (PLFS) for the period July 2023 to June 2024, issued by the Labour Bureau, showed no significant change in India’s unemployment rate, which remained at 3.2% in 2023-24 after five years of reduction.

This alarming figure positions Kerala as having the highest youth unemployment rate in India, only surpassed by the Union Territories of Lakshadweep at 36.2% and the Andaman Islands at 33.6%. The survey also highlights a notable gender disparity, with 47.1% of unemployed individuals being women, compared to just 19.3% of men.

In contrast, states like Madhya Pradesh and Gujarat report much lower youth unemployment rates. The national average is a mere 3.2%, emphasising the seriousness of the situation in Kerala.

One out of every six individuals is elderly

A recent report from the SBI Economic Research Department reveals that Kerala has also the highest percentage of elderly people among Indian states, with 16.5% of its total population classified as elderly. Tamil Nadu follows closely with 13.6% of its population in the same age group. Other states on the list include Himachal Pradesh, Punjab, and Andhra Pradesh. In contrast, Bihar has the lowest proportion of elderly individuals, at just 7.7%, followed by Uttar Pradesh at 8.1% and Assam at 8.2%.

Overall unemployment rate

Adding to the youth unemployment figures, Kerala has also experienced an increase in its overall unemployment rate, which now stands at 7.2% for the 2023-24 period, up from 7% last year. Despite this rise, the report indicates a general downward trend in unemployment since 2017. Back in 2017-18, the unemployment rate was higher at 11.4%.

Currently, Kerala ranks second among Indian states for unemployment, trailing only Goa, which has an unemployment rate of 8.5%. States such as Nagaland (7.1%) and Meghalaya (6.2%) have lower rates than Kerala.