India’s government claims a drop in youth unemployment to 9.9% in 2025, driven by a range of employment initiatives, despite varying data sources highlighting a complex labour market landscape.
India’s government told parliament on Monday that unemployment among people aged 15 to 29 fell to 9.9% in 2025 from 10.9% in 2022, while the share of young people in work rose to 41.4% from 38.5%, according to a written reply by Labour and Employment Minister Mansukh Mandaviya in the Lok Sabha. The ministry said job creation and employability remain central priorities as it outlined a broad package of employment schemes and training programmes.
Those measures include Pradhan Mantri Mudra Yojana, the Prime Minister’s Employment Generation Programme, DDU-GKY, RSETIs, PM SVANidhi and Stand-Up India. The ministry also said filling vacancies in the Union government remains a continuous process, adding that more than 12.5 lakh recruitment letters have been issued through 19 Rozgar Melas since October 2022.
The government highlighted the role of micro, small and medium enterprises, saying 8.9 crore MSMEs have been registered on the Udyam portal and that they employ more than 39 crore people. It also pointed to the production-linked incentive schemes across 14 sectors, which it said had attracted more than Rs 2.40 lakh crore in actual investment and generated more than 14.15 lakh jobs by March 31, 2026. Separately, the Pradhan Mantri Viksit Bharat Rozgar Yojana has been designed to support the creation of more than 3.5 crore jobs over two years, with a special focus on manufacturing.
Other labour market data paint a mixed picture. SBI Research, as reported by New Kerala, said urban youth unemployment fell to 13.6% in 2025 from 16.8% in 2022, and that the wider youth unemployment rate for those aged 15 to 24 stood at 9.9%, below the global average of 12.6%. By contrast, MacroTrends’ historical data shows India’s youth unemployment rate at 16.02% in 2025, suggesting the figures vary by source and methodology. The government also cited startup, skills and job-matching initiatives, including the National Career Service portal, as part of its wider effort to improve access to work.
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