In 2023, India’s overall unemployment rate decreased compared to 2022. However, recent data from the Centre for Monitoring Indian Economy (CMIE) reveals an increase in youth unemployment. The unemployment rate for individuals aged 20-34 spiked in the third quarter (Q3) of the fiscal year 2024.

Unemployment rates rose for all age groups within this range. Specifically, the rate increased from 43.65% to 44.49% for the 20-24 age group and reached a 14-quarter high of 14.33% for the 25-29 age group. For those aged 30-34, unemployment peaked at a 10-quarter high of 2.49%.

These increases can partly be attributed to higher levels of joblessness in rural areas as opposed to urban ones. Data indicates that unemployment in rural areas rose in Q3 FY24 from Q2 across all examined age groups.

Meanwhile, urban unemployment improved in the 20-24 and 30-34 age groups, according to CMIE.

The CMIE’s data offers a valuable snapshot of India’s unemployment situation, despite economists’ concerns about monthly figure volatility. The rise in youth unemployment, and particularly in rural areas, paints a bleak picture of India’s economic conditions.