India’s urban youth unemployment falls below global average in 2025: SBI Research

India’s urban youth unemployment rate has continued to show a steady decline over the last few years and now remains significantly lower than the global average, according to a report released by State Bank of India Research.

The report, based on the latest Periodic Labour Force Survey (PLFS) 2025 data and unit-level analysis, said India’s youth unemployment rate for the 15–24 age group stood at 9.9 per cent in 2025. This is lower than the estimated global youth unemployment rate of 12.6 per cent projected by the International Labour Organization (ILO) for the same period.

According to the report, India’s youth unemployment rate has been moderating consistently since 2022 despite persistent global labour market challenges and economic uncertainties. The rate has gradually fallen from 10.9 per cent in PLFS 2022 to 10.3 per cent in 2024 before easing further to 9.9 per cent in 2025.

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“Globally, youth unemployment continues to remain substantially higher than overall unemployment levels, highlighting the challenges faced by young populations in securing employment opportunities,” the report noted.

SBI Research also argued that unemployment rates for people aged 30 years and above provide a more accurate picture of structural employment conditions in the economy. Using its revised methodology, the report estimated significantly lower unemployment rates for the 30-plus population.

For urban males above 30 years of age, the unemployment rate was estimated at 2.26 per cent, compared with the PLFS-reported 11.8 per cent for younger age groups.

The report further highlighted that India’s labour market is undergoing a structural transformation, driven by rising participation in manufacturing and non-agricultural sectors.

It added that increasing employment opportunities across several states, along with economic expansion and infrastructure growth, are contributing to improved labour market conditions in the country.