Youth unemployment in India 2025: Latest rates and trends

Unemployment is a big problem in India. With over 371.4 million youth, finding the right job is not easy. Latest trends according to Ministry of Statistics and Programme Implementation (MoSPI) shows that India’s overall unemployment rate fell to 5.2% in July–September 2025, down from 5.4% in the previous quarter, indicating a slight improvement in the job market at the national level.

Young Indians aged 15-29 years are facing joblessness; the unemployment rate stood at 14.8% in July-September 2025, which is higher than 14.6% in the April-June quarter. The increase in unemployment in youth was more noticeable in cities than in rural areas. Urban youth unemployment increased to 18.4%, up from 17.9% in the previous quarter. Gender-wise, among urban young men, unemployment rose to 16.2%, while young women saw a jump to 25.3%, reflecting the challenges that urban Indian youth still face in finding work.

Labour Force Participation Among Youth

Despite the rise in unemployment due to various factors like reducing the workforce, the adoption of AI technology by companies, and sudden layoffs by IT and MSME firms, the Labour Force Participation Rate (LFPR) for urban youth remained broadly steady at 41.4%, indicating that the proportion of young people seeking work has not changed significantly.

Gender Differences in Employment

The data highlights a significant gender gap in employment opportunities in India. While male youth unemployment in urban areas is lower than female youth unemployment. Rural female youth are largely employed in agriculture, as the Indian population largely depends on farming for their livelihood. In rural areas, female employment in agriculture accounted for 74.2% of jobs, up from 71% in the previous quarter. Male rural youth saw a smaller but notable increase in agricultural employment to 49.2%.

Rural vs Urban Employment in India

While cities have higher salaried job opportunities in India, rural employment continues to be dominated by agriculture. Agriculture sector still remains the largest employer for rural youth in India, while urban areas see a steady increase in salaried jobs.

Overall, while young women face significantly higher unemployment rates than young men, youth unemployment remains a concern; the national job market shows signs of improvement with a falling overall unemployment rate and rising urban salaried jobs, especially for women.