Urban Youth Unemployment Reaches Six-Quarter High in Q2; Kerala Leads States
What Happened?
Unemployment among urban youth in India rose to 18.9% in Q2 2026-27, the highest in six quarters. Kerala recorded the highest youth unemployment rate at 28.9%.
Key points
- Youth unemployment in urban areas rose from 18.2% to 18.9% in Q2 2026-27.
- Combined youth unemployment (rural and urban) decreased to 15.3% from 15.9%.
- Young women faced a higher unemployment rate of 26.1%, while young men had a rate of 16.5%.
- Kerala had the highest overall unemployment rate at 8.7% for those aged 15 and above.
- The labour force participation rate increased to 55.5% from 54.6%.
- Casual employment fell to a six-quarter low of 18.4%.
Key insights
- The increase in youth unemployment may lead to greater economic instability.
- Kerala's high youth unemployment could prompt government intervention.
- The decline in casual employment suggests a shift towards more stable job types.
Why it matters
The rise in urban youth unemployment highlights ongoing challenges in the job market.
Tags
Entities
Source
Business Standard


