By Editor You must have seen that with every election in the country, people always talk a lot about how unemployment is growing super fast in India. Though it is not just the government’s responsibility to lower down unemployment, but that’s another topic to talk about. For now, we want to focus on the areas of India where unemployment is touching new heights, like some states have much higher unemployment rates than others. Of course, this has to do with the government policies and other factors, but whatever it is, the unemployment rates are right in front of you, and you can check out that data for every state every single year. For now, though, we’re here specifically to talk about the Top 10 Indian States With the Highest Unemployment Rates, here we go then.
1. Kerala
What? Kerala? But isn’t Kerala among the highest literacy rate states in the country? Then how come all this is resulting in such high unemployment in this state? What could be the possible reasons? Oh, we’ll come to that, but for now, that’s how it is. Somehow Kerala leads with the highest youth unemployment rate in India, you know, as high as 29.9%. In other words, out of every three young individuals (aged 15 to 29) almost one is a jobless seeker. What is more, the rate of unemployed young females is literally staggering and amounts to 47.1%, whereas for young males it is almost one-third of that, like 19.3%.
2. Nagaland
Oh, and on the runner-up position, well, the only state that is close to Kerala in terms of youth unemployment is Nagaland, with a youth unemployment rate of 27.4%. The most noteworthy point here is such a very small gender gap, like 27.9% for males and 26.6% for females. And just in case you’re wondering, well, the real issue comes down to a lack of industry and very little growth in the private sector. A bunch of people are educated here, but because of the agriculture-based economy in the state, many of them must look for jobs in other parts of the country.
3. Manipur
Next up, well, with a 22.9% youth unemployment rate, Manipur is at number three position. Nevertheless, the difference in gender here is a very worrying factor like 27.5% for females as compared to 19.9% for males. Just like Nagaland, here as well, tThe majority of the state’s jobs are either in agriculture or the government sector. However, due to sluggish industrial development and a small number of new jobs, both sectors are unable to take in the increasing number of young people looking for jobs.
4. Arunachal Pradesh
Arunachal Pradesh comes in fourth position on this list and has a youth unemployment rate of 20.9%. And just to put this into perspective, well, the stated percentage means that one out of every five young persons is without a job. The rate of male unemployment is a bit more than that of females, as it is 21.9%, whereas 19.6% is the rate of female unemployment. Ratio is not too off, but still, it is a big problem here.
5. Goa
Why Goa? Oh, well, at number five, this very state actually is a very different story of the kind of unemployment that exists in the young generation. The total youth unemployment figure is 19.1%, but the thing is, the gender difference is very significant like 13.2% for males against 31.0% for females. The fact that the place is a tourist hotspot has hardly helped the issue of unemployment, as the majority of jobs are seasonal and the whole thing is highly dependent on the tourist calendar.
6. Punjab
Again, another example of a higher unemployment rate because of the agriculture-based economy and people relying on government jobs and policies is the reason why Punjab ranks this high, with a youth unemployment rate of 18.8 percent. And sure enough, the difference in the male and female unemployment rate is noticeable here as well like almost 16.7% for males and 24.5% for females.
7. Andhra Pradesh
Next up, well, Andhra Pradesh is ranked 7th with a youth unemployment rate of 17.5%. The rate for males is 16.4% and for females 19.7%. You may already know that the state has advanced well in the IT sector and services, the problems of urban-rural imbalance and skill-job mismatch are still the major challenges right here, but that’s how it is for now in 2025. But want to know the real problem? Actually, there is a large number of young people, mostly from rural areas, who cannot get employment matching their educational qualifications.
8. Meghalaya
Oh, and Meghalaya ranked eighth, has a youth unemployment rate of 6.6%, which is lesser than the states above but still remains a worrying factor. For now, as of 2025, well, the rate of female unemployment in the region is 8.7%, while that of males is 4.6%. Here though, the absence of a major industrial base and the slow economic diversification have made private sector jobs scarce so that many youth with a decent qualification have to face the situation of unemployment or underemployment.
9. Himachal Pradesh
Coming up next, well, Himachal Pradesh ranks 9th with 6.2% youth unemployment. But the thing is, if we look closely, we can see that the percentage of female unemployment (8.6%) is more than twice that of males (3.9%). As for the reasons, see, the majority of the jobs in this area are dependent on seasonal industries such as tourism and agriculture (especially apple farming), which do not offer jobs that last throughout the year, mainly for women.
10. Assam
Finishing this list, see here is Assam with a 4.3% total youth unemployment rate. The male youth unemployment rate for Assam is 4.2% while that of females is 4.4%. Not much difference, but underemployment is an issue that is very heavily raised in the state. Out of all the young people, only a small fraction of them have part-time jobs in which they are not necessarily stable or related to their qualifications.
Conclusion
There you have it. So whenever you’re talking or debating someone on the topic of unemployment, don’t forget to mention the basic problems with these states and why the unemployment is so high in these states, and what other state governments can learn from it.