Unemployment Trends in India: State-by-State Analysis (2025)

Unemployment poses a significant issue in India, impacting the lives of millions throughout its 28 states and 8 union territories.

By utilizing the most recent data from the Periodic Labour Force Survey (2023-24), we have ranked all 36 regions based on the number of unemployed individuals (in lakh) to identify where the challenge is most acute.

The statistics reveal a narrative of diversity, magnitude, and unexpected findings. Let us explore the essential facts and insights.

Indian States with Highest Unemployed People

Rank	Region	Unemployed People (Lakh)
1	Uttar Pradesh	70
2	Bihar	47
3	Maharashtra	43
4	West Bengal	37
5	Rajasthan	32
6	Tamil Nadu	27
7	Kerala	23
8	Madhya Pradesh	22
9	Andhra Pradesh	21
10	Karnataka	21
11	Punjab	19
12	Haryana	18
13	Gujarat	17
14	Odisha	16
15	Telangana	15
16	Assam	11
17	Jharkhand	11
18	Delhi	7
19	Jammu & Kashmir	6
20	Chhattisgarh	6
21	Himachal Pradesh	5
22	Uttarakhand	5
23	Goa	2
24	Meghalaya	2
25	Nagaland	2
26	Arunachal Pradesh	1
27	Manipur	1
28	Tripura	1
29	Chandigarh	1
30	Puducherry	1
31	Andaman & Nicobar	0
32	Dadra & Nagar Haveli and Daman & Diu	0
33	Ladakh	0
34	Lakshadweep	0
35	Mizoram	0
36	Sikkim	0

According to the data, approximately 4.6 crore individuals are unemployed across India. This figure is substantial, yet it varies significantly from one region to another. Certain states bear a considerable burden, while others, particularly smaller union territories, report minimal unemployment.

Top 5 States with the Highest Unemployment Rates

Uttar Pradesh: 70 lakh

This is not surprising. Uttar Pradesh, being the most populous state in India, leads the list. With a population exceeding 24 crore, even a slight unemployment rate of 2.9% results in a considerable number of unemployed individuals.

Bihar: 47 lakh

Bihar, with its large population of around 13 crore and an unemployment rate of 3.6%, ranks second in terms of unemployment. The economic difficulties faced by the state significantly contribute to this issue.

Maharashtra: 43 lakh

Despite being home to the vibrant city of Mumbai, Maharashtra still reports a high unemployment figure, influenced by its population of 12.6 crore and an unemployment rate of 3.4%.

West Bengal: 37 lakh

West Bengal, with a population of 10 crore and an unemployment rate of 3.7%, experiences notable joblessness, particularly in urban regions.

Rajasthan: 32 lakh

With a population of 8.1 crore and an unemployment rate of 4%, Rajasthan finds itself among the top five states, highlighting the challenges present in its labor market.

States with Moderate Unemployment

States such as Tamil Nadu (27 lakh), Kerala (23 lakh), Madhya Pradesh (22 lakh), Andhra Pradesh (21 lakh), and Karnataka (21 lakh) are categorized as having moderate unemployment.

These states possess significant populations yet maintain relatively stable unemployment rates ranging from 3.1% to 6.5%.

Notably, Kerala exhibits a higher unemployment rate of 6.5%, which may be attributed to its educated workforce pursuing specific employment opportunities.

Smaller States and Union Territories

Conversely, smaller regions including Mizoram, Sikkim, Lakshadweep, Ladakh, Andaman & Nicobar, and Dadra & Nagar Haveli and Daman & Diu report minimal unemployment levels (less than 0.5 lakh, recorded as 0).

Their small populations—often under a crore—imply that even elevated unemployment rates (such as Lakshadweep’s 11.1%) translate into minor absolute figures.

For instance, with a population of merely 1 lakh, Lakshadweep’s unemployed count remains very low.

Interesting Observations

Population Drives Numbers: The leading states—Uttar Pradesh, Bihar, and Maharashtra—boast large populations, resulting in high unemployment figures even with low rates.

Uttar Pradesh’s 70 lakh unemployed serves as a stark illustration of how population size exacerbates the issue.

High Rates, Low Impact: Certain areas, such as Goa (9.7%) and Haryana (6.1%), experience elevated unemployment rates but lower total numbers (2 lakh and 18 lakh respectively) due to their smaller populations.

This indicates that the rate alone does not provide a complete picture.

Smaller Regions Shine: Union territories like Lakshadweep and Ladakh, despite having high or presumed unemployment rates, report nearly zero unemployed individuals owing to their limited size.

This renders unemployment less apparent, yet it does not imply an abundance of job opportunities.

Northeast Variation: Northeastern states such as Nagaland (2 lakh) and Meghalaya (2 lakh) exhibit higher unemployment figures compared to Mizoram (0) or Sikkim (0), highlighting the uneven economic development across the region.

Urban vs. Rural Divide: States like Delhi (7 lakh) and Chandigarh (1 lakh), characterized by urban-centric economies, display moderate unemployment levels, suggesting pressures within the urban job market.

Why This Matters

Unemployment is not merely a statistic—it impacts families, aspirations, and the economic development of India.

Regions such as Uttar Pradesh and Bihar require immediate job creation initiatives, particularly for their younger population.

Conversely, smaller areas with low unemployment rates may still encounter issues related to underemployment or the quality of available jobs that are not reflected in these statistics.

The information also underscores the necessity for customized policies: strategies effective in the urban areas of Maharashtra may not be suitable for the rural context of Mizoram.

Final Thoughts

The issue of unemployment in India is multifaceted, influenced by demographic factors, geographical conditions, and economic circumstances.

While Uttar Pradesh and Bihar carry the most significant burden, even states with lower unemployment figures require focus to ensure the availability of quality employment opportunities.

As India progresses, tackling this challenge will be crucial for realizing its full potential.

The data clearly indicates that each state and union territory possesses a distinct narrative, and comprehending these variations is the initial step toward developing effective solutions.

Source

• Periodic Labour Force Survey (PLFS). Note: Figures are estimates, and smaller regions may have less reliable data due to limited reporting.