CAUSE

One question. One truth.

“Why is youth unemployment high in India?”

India's high youth unemployment is driven by a structural labor market mismatch. Each year, 10–12 million young workers enter the workforce, but job creation lags, especially for educated youth, where unemployment is 15-25%. This reflects a skill and wage-productivity gap.

High confidenceStructural

CURRENT STATE

In late 2025, youth unemployment was approximately 14.3-14.9%, exceeding the overall rate of about 5%. Unemployment among educated youth is disproportionately high. Urban unemployment (6.5-7.0%) is higher than rural, indicating concentrated demand-supply imbalances.

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