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Urban Youth Unemployment in India Drops to 9.9%, Below Global Average: SBI Report

Urban youth unemployment in India has steadily declined to 13.6% in 2025 from 16.8% in 2022, according to SBI Research. The overall youth unemployment rate for ages 15-24 stands at 9.9%, below the global average of 12.6%. The report attributes part of the youth unemployment to increased higher education participation. For the population aged 30 and above, unemployment rates are substantially lower at 2.26% for urban males.

Key Points: India Youth Unemployment Dips to 9.9% in 2025, Below Global Level

  • India's youth unemployment rate fell to 9.9% in 2025, below the global average of 12.6%
  • Urban youth unemployment declined from 16.8% in 2022 to 13.6% in 2025
  • Rural youth unemployment remained stable around 8-9%
  • Higher education participation partly explains youth unemployment figures
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Urban youth unemployment in India declines, remains below global average: SBI Research

SBI Research shows India's urban youth unemployment declined to 13.6% in 2025 from 16.8% in 2022, remaining below the global average of 12.6%.

"Globally youth unemployment rate is estimated at around 12.6% in 2025 for the age group 15-24 years... this is significantly higher than the overall global unemployment rate - SBI Research Report"

New Delhi, May 8

Urban youth unemployment in India has shown a steady decline over the last few years and remains significantly lower than the global average, according to a research report by State Bank of India.

The report, based on the latest Periodic Labour Force Survey (PLFS) 2025 data and unit-level analysis, highlighted that India's youth unemployment rate has moderated consistently since 2022 despite persistent global labour market challenges.

The SBI report said, "Globally youth unemployment rate is estimated at around 12.6% in 2025 for the age group 15-24 years (ILO, 2025), this is significantly higher than the overall global unemployment rate, highlighting the persistent challenges faced by young population in accessing employment opportunities."

In comparison, India's youth unemployment rate stood at 9.9 per cent in 2025, lower than the global benchmark. The report noted that the rate has gradually declined from 10.9 per cent in PLFS 2022 to 10.3 per cent in 2024 before reaching 9.9 per cent in 2025.

The report further observed that urban youth unemployment, though higher than rural unemployment levels, has also witnessed a notable decline over the years. According to the findings, urban youth unemployment dropped from 16.8 per cent in 2022 to 14.3 per cent in 2024 and further to 13.6 per cent in 2025. Rural youth unemployment, meanwhile, remained relatively stable in the range of 8-9 per cent during the same period.

"The rural-urban pattern shows persistently higher youth unemployment in urban areas, although urban unemployment declined from 16.8% in 2022 to 14.3% in 2024, while rural unemployment remained lower and broadly stable around 8-9%," the report added.

The SBI study attributed part of the youth unemployment numbers to the growing trend of higher education participation among young people. It argued that conventional unemployment measurements in the 15-29 age bracket may not fully reflect labour market realities because many individuals in that age group continue formal education.

The report suggested that unemployment rates for the population aged 30 years and above present a more accurate picture of structural employment conditions in the country.

Using its revised methodology, SBI estimated unemployment rates for the 30-plus population at substantially lower levels. For urban males, the unemployment rate was estimated at 2.26 per cent compared to the PLFS-reported 11.8 per cent for younger age groups.

The report also noted that India's labour market is undergoing structural transformation with improving participation in manufacturing and non-agricultural sectors, alongside rising employment opportunities across several states.

- ANI

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Reader Comments

P
Priya S
Finally some good economic news! But the report mentioning higher education participation affecting numbers is important. Many of us are doing PG or professional courses now, so we're not counted as 'unemployed' - we're investing in our future. The real challenge is quality of jobs, not just unemployment rate.
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James A
Interesting comparison with global averages. But India has a much younger population, so 9.9% youth unemployment vs 12.6% global is actually quite significant achievement. The structural shift towards manufacturing sounds promising - hope it creates more formal sector jobs.
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Vikram M
Yaar, these SBI reports always have a rosy picture. My cousin did his BTech from a good college in Bangalore and is still doing data entry work for ₹12,000/month. Unemployment numbers may be down but underemployment is the real issue. The 30+ age group having 2.26% unemployment - that's only for those who already have something.
S
Sarah B
The rural-urban divide in unemployment (8-9% rural vs 13.6% urban) is interesting. Urban youth are more educated and have higher expectations, so they search longer for suitable jobs. Rural youth often take up agriculture or casual work quickly. Not necessarily better, just different dynamics.
A
Ananya R
One thing missing from this analysis is the quality of jobs being created. My brother works in a 'startup' but no PF, no job security, and 12-hour days. These gig economy jobs are counted as employment but they're not sustainable. Need more focus on formal sector employment with benefits. 🇮🇳

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