Govt says youth employment indicators improved in 2025; unemployment rate falls to 9.9%

The Centre on July 27 told Parliament that key employment indicators among India's youth improved in 2025, with the unemployment rate declining and more young people entering the workforce, according to the government's latest annual employment survey.

In a written reply to the Lok Sabha, Minister of State for Labour and Employment Shobha Karandlaje said the Periodic Labour Force Survey (PLFS) 2025 showed improvements across major labour market indicators for the 15-29 age group.

The survey, based on a revised methodology introduced from January 2025, is the government's official assessment of employment and unemployment in the country.

According to the survey, the Worker Population Ratio (WPR) for youth increased from 38.5% in 2022 to 41.4% in 2025, while the Labour Force Participation Rate (LFPR) rose from 43.2% to 46% over the same period. The unemployment rate among people aged 15–29 declined from 10.6% in 2022 to 9.9% in 2025.

The government also cited the Reserve Bank of India's KLEMS database, which estimates that total employment in the country increased to 64.33 crore in 2023–24 from 47.15 crore in 2014-15, representing a growth of 36.44% over the period.

It added that more than 8.23 crore net subscribers joined the Employees' Provident Fund Organisation (EPFO) between September 2017 and July 2025, indicating growth in employment and increasing formalisation of the labour market.

Highlighting employment generation initiatives, the ministry said more than 12.5 lakh appointment letters have been issued through 19 Rozgar Melas since the programme was launched.

It also outlined measures including the Skill India Mission, the National Career Service Portal, Future Skills PRIME for emerging technologies, and the Pradhan Mantri Viksit Bharat Rozgar Yojana, an Employment Linked Incentive Scheme with an outlay of Rs 99,446 crore aimed at supporting the creation of more than 3.5 crore jobs over two years.

The government further said that 8.9 crore MSMEs have been registered on the Udyam Registration Portal and Udyam Assist Platform, supporting employment for more than 39 crore people across the country.