India labor market: Youth unemployment burdens households as Odisha shows growth

Analysis of the Periodic Labour Force Survey (PLFS) highlights contrasting trends in India's labor market, specifically regarding youth unemployment and regional economic shifts in Odisha.

Nationally, youth unemployment presents a significant economic burden on households. The unemployment rate for those aged 18–29 is 14.8%, rising to 29.4% among tertiary-educated individuals. This trend depletes domestic savings and reduces per-capita consumption. Many households with unemployed graduates struggle with earning deficits, with 62.5% lacking a member in a regular salaried position. Additionally, 40.1% of tertiary-educated youth are categorized as Not in Employment, Education, or Training (NEET).

In contrast, the state of Odisha has shown marked improvement in labor metrics. The Worker Population Ratio (WPR) for persons aged 15 and above rose from 47.6% in 2018-19 to 58.9% in 2022-23. During the same period, the unemployment rate fell from 7% to 3.9%. Odisha's female Labour Force Participation Rate reached 44.7% in 2022-23, which is above the national average. While the workforce remains concentrated in agri-allied sectors (48.1%), there has been growth in services, construction, and manufacturing.