UP, Bihar, MP Lead in Decline in Youth Unemployment

The decline in the youth unemployment rate has been led by the states with a larger share of the young population, the Finance Ministry said in a review of the Indian economy.

The Finance Ministry in a review of the Indian economy just days before the Union Budget said at the state level, the decline in the youth unemployment rate has been led by the states with a larger share of the young population, such as Uttar Pradesh (with 6.9 crore youth as per MoHFW's population estimates for 2021), Bihar (with 3.5 crore youth), and Madhya Pradesh (with 2.3 crore youth).

For instance, Uttar Pradesh's youth unemployment rate has declined from 16.7 per cent in 2017-18 to 7 per cent in 2022-23, accompanied by a rise in youth LFPR from 33.7 per cent to 41.4 per cent in the corresponding period.

Thus, the states driving the youth bulge are also leading the rise in youth employment.

Over the years, youth employment has been rising in tandem with the youth population.

According to the PLFS, youth (age 15-29 years) unemployment rate has declined from 17.8 per cent in 2017-18 to 10 per cent in 2022-23, while youth LFPR has expanded from 38.2 per cent to 44.5 per cent over the same period.

For the proportion of employed youth to rise from 31 per cent to 40.1 per cent in these six years is a feat for a populous country on the upside of a demographic transition, the review said.