- By Ridam Sharma
- Wed, 16 Apr 2025 12:35 PM (IST)
- Source:JND
States With Lowest Unemployment Rate: A country's lowest unemployment rate is a key factor that is responsible for the nation’s economic wellness, an indicator of high job creation and workforce utilisation. The lowest unemployment rate depends on significant factors like high industrial growth, good government policies, and skill-upgradation schemes. Low-unemployment nations generally have higher consumer spending, low poverty rates, and improved social stability. However, low unemployment rates might cause labour market scarcity and inflationary tensions, which necessitate balanced economic schemes for maintaining growth.
India’s lowest unemployment rate mirrors its economic growth and development. India's unemployment rate was 3.2 per cent in 2023-24, a consistent five-year decline. The nation of billions has an enormous labour market. However, challenges like educated youth with an unemployment rate of 10.2 per cent affect the country’s standard of workers rationally. Additionally, women have higher unemployment rates compared to men, which reflects gender disparity and overall employment opportunities in the country. Government efforts, focussing on skill development along with beneficial employment schemes, seem like the need of the moment.
Which State Has The Lowest Unemployment Rate?
According to the 2023-24 Periodic Labour Force Survey, Madhya Pradesh has the lowest unemployment rate in India, at 2.6 per cent. These stats highlight the state's strong employment generation policies and improved financial stability. Gujarat and Jharkhand are next on the list with the lowest unemployment rates. The list of lowest unemployment rates reflects regional disparities in labour market performance among Indian states.
List Of Top 10 Indian States With Lowest Youth Unemployment Rate:
Here’s a list of the top 10 states with the lowest youth unemployment rates, as per the Periodic Labour Force Survey (PLFS) 2023-24 Data:
| Rank | State/UT | Male (%) | Female (%) | Total (%) |
|---|---|---|---|---|
| 1 | Madhya Pradesh | 2.8 | 2.1 | 2.6 |
| 2 | Gujarat | 3.3 | 2.7 | 3.1 |
| 3 | Jharkhand | 4.8 | 1.5 | 3.6 |
| 4 | Delhi | 4.6 | 4.8 | 4.6 |
| 5 | Chhattisgarh | 6.6 | 5.8 | 6.3 |
| 6 | Dadra & Nagar Haveli | 7.8 | 3.7 | 6.6 |
| 7 | Tripura | 6.8 | 6.7 | 6.8 |
| 8 | Sikkim | 8.3 | 6.8 | 7.7 |
| 9 | West Bengal | 8.5 | 10 | 9 |
| 10 | Uttar Pradesh | 9.3 | 12.3 | 9.8 |
Delhi’s Rank As Per The Lowest Unemployment Rate:
Delhi has the fourth lowest unemployment rate in India, at 4.6 per cent. The capital's balanced labour market is fueled by its diverse economy, which includes IT, trade, and services. These sectors provide sufficient employment opportunities for both men (4.6 per cent) and women (4.8 per cent). Still, employees face prevalent issues, such as job quality and informal sector work trends.