Unemployment was a problem even before the pandemic struck, but the conventional job market in 2020 made it worse because new graduates had it extremely tough. Shortages of certain talents and a lack of resources for teaching new ones just added to the already existing issue. The influence of Covid-19 has contributed to the rising youth unemployment rate in India over time. Below listed are 10 states with the most unemployed youth in the country:
The era of an unemployed India (source- the Hindu)
1. Haryana
Haryana is the top region by unemployment rate in India. According to the survey results of the Center for Monitoring the Indian Economy (CMIE), the unemployment rate in the state of Haryana is 37.3%. In August 2022, unpredictable monsoons disturbed agricultural activities. Irregular monsoons interrupted the crop planting and harvesting cycles as a result of which the state suffered and the situation added to the existing crisis. It was highlighted that another factor causing an increase in unemployment is industries and corporations restructuring their processes to make them more "labour efficient"—getting the same task done by fewer people. The fact that the state draws job seekers from the northern states, which fuels fierce competition, is another factor contributing to the state's rising unemployment rate.
Rising unemployment during the pandemic (source: The Daily Guardian)
2. Jammu and Kashmir
Since 2016, the state has had months of protests, strikes, and internet outages, which had a negative impact on the economy. When new legislation was unveiled in August 2019, the area was under lockdown, and communications were cut off. About 1.2 lakh individuals lost their jobs in the commerce industry over the course of four months, with tourism and handicrafts suffering the most. Senior CPI(M) leader and Former MLA, Tarigami asserted that since the Central Dispensation removed the region's special constitutional status, it completely halted all economic activity and since then Jammu and Kashmir have seen an exponential leap in unemployment. As of August 2022, unemployment is at 32.8%.
J&K records second highest unemployment rate in India (source: Kashmir Observer)
3. Rajasthan
In August 2022, the state's unemployment rate was recorded as 31.4%. Exam disruptions, cancellations, and getting involved in legal matters are said to be the primary causes of unemployment. The coronavirus pandemic and the ensuing lockdown, which wrecked the economy and caused enormous losses in jobs and livelihoods, are two important factors in the rise in the unemployment rate. In Rajasthan, tourism is a significant source of income and jobs. Over the past year, it has completely stopped, and the stats reflect this. Many small business owners also suffered tremendous losses and have turned to selling vegetables or daily wagerers for survival The state has not yet completely recovered from the effect of the pandemic.
Unemployed youth from Rajasthan protest outside Congress office in Lucknow (source: The Indian Express)
4. Jharkhand
Between March and May 2020, the unemployment rate in Jharkhand's urban parts was higher than that in the state's rural districts. This is typically the case during the agriculturally lean season when a big number of labourers relocate from the rural sections of the state to urban areas since there aren't enough job possibilities in the villages. The lockout also had a negative impact on the farmers. Although favourable weather conditions did not have an influence on the agriculture sector, supply chain and transportation disruptions had a significant impact. The effects on salaried wage workers were as severe.
According to the poll, before the Covid-19 outbreak and the installation of the lockdown, the unemployment rate in Jharkhand was 10.6% in January 2020 and 11.8% in February 2020, according to statistics provided by the CMIE, "...during this time, the rate of unemployment in urban Jharkhand has typically been higher than that in urban India". The unemployment rate for both men and women began to decline in June 2020 as economic activity returned, but it is still high because all activities have not yet resumed, according to the poll. Today Jharkhand ranks as the fourth state in the country with an unemployment rate of 17.3%.
Jharkhand’s unemployment rate surges during lockdown (source: Sabrang India)
5. Tripura
The state stands in the fifth position in India with an unemployment rate of 16.3% under the BJP government. Numerous TET-qualified individuals are scurrying around looking for work, but the relevant authorities do nothing to support or assist them. Instead, Ratan Lal Nath, the education minister, decided to close 961 government schools which could resolve the unemployment problem. The most recent Tripura Economic Review report states that additional private sector investments, particularly in agriculture, horticulture, fisheries, animal husbandry, and forestry, along with several flagship programs and central sector schemes, will undoubtedly increase production and the income of the people in Tripura.
Unemployment rate in Tripura is highest in the country (source: Sangbad Pratidin)
6. Goa
Goa is one of the top six states, with a rate of 13.7% in India with the highest unemployment rate despite being a tiny state. Goa is in such a severe employment problem despite being such a mineral-rich state and a major tourist destination in India. Due to Covid 19 outbreak, the agriculture and fishing industries have been vastly affected. Unpredictable weather conditions also added to the problem. Mining activities are at a standstill which affects the livelihood of many people. Due to the consequences of an ever-worsening employment situation the state witnessed an increase in addictions, domestic violence, stress, illiteracy, and other problems.
Unemployed migrants live on the streets in Goa (source-canal abeirto)
7. Bihar
According to the CMIE data, Bihar stands at a rate of 12.8% in the country. Bihar government's economic survey from February of this year showed that the state has experienced an average growth of 10% more than the rest of the nation. The poll found that air transportation, trade and repair services, road transport, financial services, and other services were the major growth drivers in Bihar's economy. Being an agrarian economy, egg production and animal husbandry made up a sizable portion of this increase.
The Bihar region's informal workforce was severely impacted by the lockdown that was imposed following the pandemic breakout. This represents about 94% of Bihar's total labour force. The problems were further made worse by a massive influx of migrants during the first stage of the lockdown. Another significant wave of unemployment in the state has resulted from this. Rural areas experience a greater relative lack of employment than urban areas. Even the daily wage is less than the average for all of India.
Unemployment in Bihar on an all-time high (source-SME futures)
8. Delhi
The capital of the country is ranked as the eighth state with a rate of 8.2% unemployment. The state during the lockdown saw major job cuts in the urban areas as compared to the rural sector. There was an increase in the rate of unemployment in women than men. Arvind Kejriwal, the chief minister of Delhi, recently praised Manish Sisodia, the finance minister, for his "bold and innovative" Budget 2022–23, saying it offers residents of the city a solution to the problems of unemployment and inflation as the government seeks to create 20 lakh new jobs over the following five years. This program will be implemented to increase the tourist attraction in the state and to improve the joblessness the state has been facing.
Public protest against unemployment (source- Tribune India)
9. Punjab
Due to a rise in the prevalence of unemployment among highly educated youth in Punjab, these individuals are leaving their home states for both foreign and domestic employment in search of a better quality of life. Punjab's service industry is the most dominant in terms of employment and (GVA) gross value added. Despite the industry's bigger share in related industries like agriculture, it has a small employment share. The work options for young people in specific places have been impacted by the growing use of machines in agriculture. The majority of the state's industries are small-scale, low-wage, and employment-intensive. Among the top ten unemployed states in India, Punjab is the ninth at a rate of 7.4%.
Punjab’s unemployment rate more than national average (Source- Tribune India)
10. Himachal Pradesh
The Covid pandemic made the situation dire. Numerous young people returned to their native states. Over the past two years, more than 40 industrial units have shut down, and many others have been forced to postpone expansion plans. The state's largest source of income, the tourist sector, was hardest damaged. Travel restrictions over the previous two years caused a significant loss for the industry. Many persons connected to this firm were made jobless.
8.82 lakh unemployed in Himachal Pradesh (source: Tribune India)
In summary, the most significant issue from a sociopolitical perspective is youth unemployment, and in India, it is believed that 25% of young people looking for work are unemployed. The Union government has often declared that creating unnecessary salary-based jobs should not be the government's first concern, but rather assisting youth in finding meaningful work. We anticipate that the situation will improve over time as we recover from the pandemic and as a result of the government's numerous new initiatives and programs aimed at combating unemployment.
We can say that the unemployment problem has reached a critical level in India. So, therefore it can be concluded that unemployment is inversely related to the productivity of the economy.
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