Kerala among the top in India’s youth unemployment chart despite high literacy rate: What are the real culprits?

Kerala continues to record one of the highest youth unemployment rates among Indian states and Union Territories, as revealed by the latest Periodic Labour Force Survey (PLFS). The survey, covering the July 2023-June 2024 period, shows that Kerala’s youth unemployment rate in the 15-29 age group stands at a staggering 29.9%. Within this demographic, joblessness among females is significantly higher at 47.1%, while males face a lower unemployment rate of 19.3%.
In stark contrast, Madhya Pradesh recorded the lowest youth unemployment rate in the country, followed closely by Gujarat. Nationally, the youth unemployment rate remains at 10.2%, with females experiencing a higher joblessness rate of 11% compared to 9.8% among males. Besides Kerala, other regions with alarmingly high youth unemployment rates include Lakshadweep (36.2%), Andaman & Nicobar Islands (33.6%), and several northeastern states like Nagaland, Manipur, and Arunachal Pradesh. Joblessness is more pronounced in urban areas, where the overall youth unemployment rate is 14.7%, compared to 8.5% in rural areas.
Educated males in Kerala remain unemployed
According to the 2024 India Employment Report, released by the International Labour Organisation (ILO) in collaboration with the Institute of Human Development (IHD), Kerala ranked poorly in male employment conditions among 22 Indian states, only ahead of Bihar and Odisha. The report highlights that 31.28% of educated males in Kerala, aged 15-29, remain unemployed, significantly higher than the national average of 20.28%. This stark difference is driven by two main factors: the high unemployment rate among educated males and low male youth participation in employment, education, or training (NEET), with Kerala recording 19.26% in this category.
Although Kerala offers higher-than-average wages for casual workers, the significant number of male casual workers has adversely affected the state’s overall male employment condition index. Let’s explore the factors contributing to Kerala’s elevated unemployment rate.
Key Factors Driving Up Unemployment Rates in Kerala
Mismatch of Skills: One of the primary reasons for the high youth unemployment rate in Kerala is the mismatch between the qualifications of job seekers and the requirements of the job sector. Many young individuals possess higher qualifications than what the job market demands, leading to underemployment or a complete inability to find jobs. According to the observations of P.V. Rajeev, Economic Adviser (Retired), this mismatch can be attributed to the education system, which often does not align with the skills required by employers. For instance, while there is a significant number of graduates, many sectors, such as manufacturing and services, require vocational skills that the current educational framework does not provide. Moreover, many employers offer wages that do not match the expectations of qualified candidates.
Job Market Requirements: The second contributing factor to the high youth unemployment rate is the lack of sufficient job opportunities in sectors that can absorb the educated youth. Although Kerala has a robust service sector, the number of positions available does not meet the influx of graduates entering the job market each year. Furthermore, the state’s traditional industries are not expanding at a rate that can accommodate the rising number of job seekers. This gap in job availability leads to increased competition among candidates and contributes to the high unemployment figures.
Disparities in Wages and Employment Expectations: Despite Kerala ranking first in the average monthly wage for casual male workers, with earnings of Rs 14,427 per month compared to Rs 14,115 in Delhi, the state’s high proportion of male casual workers has negatively influenced its overall male employment condition index. The national average wage stands at Rs 9,086. A significant factor contributing to Kerala’s elevated unemployment rate is the high wage expectations of its youth. Many young individuals in Kerala demand salaries that align with their educational qualifications and skills, leading them to overlook available job opportunities that do not meet these expectations. This disconnect between wage aspirations and actual job offers exacerbates the unemployment crisis in the state.
Youth Prefer Migration Over Local Employment: The Kerala Migration Survey 2023 revealed critical insights into the youth’s perceptions of employment. Many young people expressed a preference for migrating abroad for work, viewing it as a more attractive option due to better pay and opportunities. This trend reflects a mindset shift, where local job markets are perceived as insufficient to meet their aspirations. The survey underscored that approximately 30% of youth indicated they would rather remain unemployed than accept jobs that do not meet their educational qualifications, further highlighting the disconnect between job seekers’ expectations and the local job market.
Tackling Kerala’s Youth Unemployment Crisis: A Multi-Pronged Approach Needed
The youth unemployment crisis in Kerala is a multifaceted issue that requires urgent attention. Addressing it will require a collaborative effort from policymakers, educational institutions, and the private sector to create a more integrated approach that aligns education with market demands and fosters local job creation. By harnessing the potential of Kerala’s youth, the state can steer them towards meaningful employment and economic growth.