India’s youth unemployment declines to 9.9% in 2025, government tells Parliament

India’s youth labour market showed signs of improvement in 2025, with the unemployment rate for people aged between 15 and 29 years falling to 9.9 per cent, down from 10.9 per cent recorded in 2022, according to the latest Periodic Labour Force Survey (PLFS) data presented by the Centre in Parliament on Monday.

Responding to a question in the Lok Sabha, Labour and Employment Minister Mansukh Mandaviya said the government’s focus on employment generation and skill development has helped improve labour market outcomes for young people. He noted that the Worker Population Ratio (WPR)—which measures the share of employed people in the population—rose from 38.5 per cent in 2022 to 41.4 per cent in 2025 for the 15-29 age group.

The minister said the government has adopted a multi-pronged strategy to boost employment through entrepreneurship, manufacturing, skilling and direct recruitment.

Among the flagship programmes driving employment are the Pradhan Mantri Mudra Yojana, Prime Minister’s Employment Generation Programme (PMEGP), PM SVANidhi, Stand-Up India, Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin). These schemes aim to support self-employment, small businesses and livelihood opportunities across rural and urban India.

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The government also highlighted its recruitment efforts in the public sector, stating that vacant posts in ministries and departments are being filled on an ongoing basis. Since October 2022, over 12.5 lakh appointment letters have been distributed through 19 Rozgar Melas, which have been organised across the country to accelerate government hiring.

MSMEs continue to be one of the largest sources of employment in the country, the minister said. According to official data, 8.9 crore enterprises have been registered on the Udyam Registration Portal, including the Udyam Assist Platform, supporting employment for more than 39 crore people.

The government also pointed to the contribution of the Production Linked Incentive (PLI) scheme in boosting manufacturing-led employment. Covering 14 sectors, the scheme has attracted investments exceeding Rs 2.4 lakh crore against an approved outlay of Rs 1.91 lakh crore. As of March 2026, the initiative had generated over 14.15 lakh direct and indirect jobs, according to the government.

Another major employment initiative, the Pradhan Mantri Viksit Bharat Rozgar Yojana, is expected to facilitate the creation of more than 3.5 crore jobs over a two-year period. The scheme, with an outlay of Rs 99,446 crore, provides incentives to both first-time employees and employers. By June 2026, over 13.18 lakh first-time workers and 67,369 establishments had received financial support under different components of the programme.

The Centre also highlighted the growing role of India’s startup ecosystem in job creation. As of June 30, 2026, more than 2.4 lakh startups had been recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). Government-backed initiatives such as the Fund of Funds for Startups, Startup India Seed Fund Scheme and the Credit Guarantee Scheme for Startups continue to provide financial support to emerging businesses.

To improve employability, the government said it is expanding vocational training through the Skill India Mission, which includes programmes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), National Apprenticeship Promotion Scheme, Jan Shikshan Sansthan, and Industrial Training Institutes (ITIs). In addition, the National Career Service (NCS) portal is helping connect job seekers with employers while offering career counselling, vocational guidance and information on skill development programmes.

The latest PLFS figures indicate a gradual strengthening of India’s youth labour market, with both declining unemployment and rising workforce participation suggesting an improvement in employment opportunities over the past three years.