Youth unemployment in India poses a critical socio-economic challenge. It has one of the largest young population in the world, but not all youth fit easily into the labor market. Currently government statistics show that, in 2023–24, 10.2% of Indians aged between 15–29 were unemployed in 2023–24. While the national unemployment rate is lower than the global average, it hides disparities, a private survey found that an unemployment rate of 45.4% in 2022–23, six times the overall unemployment rate.Moreover, low levels of youth labour-force participation exacerbate the issue. This confluence of trends threaten to disrupt India's demographic dividend. This article will report on the most recent statistics on youth unemployment and examine the key skill development initiatives from the central (i.e. Skill India Mission) to state level, to close the education-employment gap
National Overview of Youth Unemployment
The youth unemployment rate in India has shown a degree of variability over the past decade, primarily driven by economic conditions and data sources. The Periodic Labour Force Survey (PLFS) shows that the youth unemployment rate for 15-29 year olds was 10.2% in 2023-24, a decrease from a peak of 17.5% in 2017-18. The ratios of the youth population to workforce contributed to youth employment high reached 31.4% for 2017-18 and now stands at 41.7% for 2023-24. However, government officials also acknowledge the "enhanced employment scenario" partially derives from increased formal sector employment as 1.3 crore net EPFO subscribers was added in 2023-24
Official data, however, mildly hides grave imbalances. Other sources suggest that many young Indians - particularly in the educated population - have problems securing appropriate jobs. Labour-market specialists suggest that participation and placement is weak, despite 21 million (3.7%) of India’s workforce having undergone formal vocation training by 2022–23! Concurrently, many trainees remain unemployed. Of the youth that received formal vocational training, the unemployment rates was 17% versus only 4% for informally trained counterparts, suggesting that there may be a misalignment in skills. In short, youth unemployment remains a serious problem, while headline PLFS numbers have improved, they indicate a structural gap between India's education system and what industry requires.
Current Scenario
On one hand, government data and high-frequency indicators have shown recovering employment. The Labour Ministry’s 2024 report spoke to growing formal-sector jobs and increased labour participation: Worker Population Ratio reached 41.7% in 2023–24 and over 1.3 crore new formal-sector jobs were created in that year. On the other hand, independent surveys suggest persistent youth distress. For example, the CMIE household survey reported nationwide unemployment jumping to 9.2% in June 2024 and commentary warns of even higher unemployment among youth that continues >45% in 2022–23.
The recent government reports state that India’s youth unemployment rate was 10% which is “lower than global levels” but analysts note these only hide severe underemployment and gaps around whether proper skills have been received. In the April 2024 budget, Finance Minister Sitharaman referenced 14 million youth that have participated in Skill India since 2015. We like big numbers, size and scale are impressive, but as outlined by experts, placement, or job-readiness regarding education; status outcomes are inconsistent at best. In short, as of Now, official youth unemployment in India is improving, but it should not be overlooked that many if not most of the youth especially in the education-to-work change are still left with all manner of difficulty.
Major Central Skill Development Programs
In order to combat youth unemployment, the Government of India has launched many national skilling initiatives largely under the Skill India Mission aimed at training, re-skilling, and up-skilling young Indians with skills demanded by industry. Among key central schemes include:
- National Skill Development Mission (NSDM) – Launched on the World Skills Day in 2015, the NSDM seeks to bring together and scale vocational training in several sectors (19). It established numerous bodies like the National Skill Development Agency (NSDA) and National Skill Development Corporation (NSDC) to establish standards and mobilize industry partnerships. NSDM's aim was to skill 400 million workers by 2022; this aim was not met.
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY) – The flagship skilling initiative launched in 2015, PMKVY provides free short-term training and certification in over a thousand job-oriented courses of over-built capacity. To date, the government has certified nearly 14 million trainees. In FY2023–24 ₹4,906 crore funds were released by the government for PMKVY. PMKVY has evolved over the last eight years and now provides "future skills" training like AI/ML, Web3, etc.
- Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) – Launched in 2014. DDU-GKY is run by the Ministry of Rural Development, and it provides placement-linked training to rural poor youth aged 15-35. Over time, DDU-GKY has expanded into more states. DDU-GKY funding is included as one of the total grants for rural skill programs. DDU-GKY is often referenced as improving employability for poor, rural youth, with mixed placement data.
- National Apprenticeship Promotion Scheme (NAPS) – NAPS was launched in 2016 with the goal of providing stipend subsidies to companies that hired apprentices. NAPS intended to train 50 lakh apprentices through 2020, but approximately 20 lakh had been trained as of 2022. In 2023, NAPS 2.0 was announced to further invigorate the Program. By 2023–24, the government had allocated approximately ₹1,238 crore to NAPS. While this effort is valuable, apprentices continue to be a small percentage of the workforce.
- Jan Shikshan Sansthan (JSS) Scheme –This project under the MSDE matters includes non-formal skill training for neo-literate and rural poor (most of those are women). In the past five years up to 2023-24, ₹666 crores was released under JSS. It offers vocational training at the community level, complementary to PMKVY.
- Craftsmen Training Scheme (CTS/ITI) – The Directorate General of Training oversees the Industrial Training Institutes (ITIs) that operate traditional trades. Under the auspices of the MSDE, the ITIs have expanded to include more contemporary and new-age courses such as AI, IoT, cybersecurity, and many others. Over 1,100 government ITIs operate throughout India. In addition to the ITIs, the government launched the Skill India Digital Hub platform in 2021 to provide online training courses (including free AI/ML modules) for students across India.
Together, these central programs make up the backbone of India's effort to skill its population. State and local governments add additional layers, since the Ministry of MSME skilling as part of its skilling under "Skill Advantage", or financing schemes that promote entrepreneurship such as the Mudra scheme for small businesses that aim for self employment through indirect support.
State-Level Initiatives
Indian states have introduced their youth skill missions to build on national schemes. One of the examples is Madhya Pradesh’s Mukhyamantri Kaushal Samvardhan Yojana (MMKSY), which started in 2017 as part of the State Skill Development Mission. Madhya Pradesh's MMKSY provides these youths across the state with free training, and it aims at an additional 2.5 lakh new trainees a year. Other states, such as Bihar, Rajasthan, Maharashtra and Tamil Nadu have a “Mukhyamantri Kaushal” program or a state skill development mission that is aimed at PMKVY-type programs (https://www.nqr.gov.in. and https://www.skillindia.gov.in.) with dedicated skilling centers. The goals of their Sankalp Yojana and Kaushal Vikas Mission are to train rural youth specifically, while West Bengal’s Banglar Kaushal seeks to target urban training by aligning training with local industries. In general, these state schemes provide training in local language, as well as an emphasis on district-level demands. Finally, state programs also extend their reach by targeting vulnerable groups (like rural, tribal, women) and offer training in trades specific to regional economies.
Policy and Legal Framework
India’s approach to youth employment and skills is also shaped by broader laws and policies. Important examples include:
- National Policy for Skill Development and Entrepreneurship (2015): This laid out high-level goals (ex: skilling 400 million by 2022) and provided frameworks such as the National Skills Qualification Framework (NSQF) set the levels of training. There are a number of parts of the Skill India Mission that emanate from this policy.
- National Education Policy, 2020: NEP-2020 significantly emphasized vocational education. It proposes integrating skill development into school curriculum and stronger industry linkages for higher education.
- Apprentices Act 1961, (amended in 2014): The 2014 amendment increased the range of apprenticeship training in industry and allowed for more on-the-job learning. Worked with the National Apprenticeship Promotion Scheme (NAPS), launched August 2016, and the new “Right to Apprenticeship” proposals, the legal arrangements aim to incorporate vocational training into the landscape of India's labour laws.
- MGNREGA (2005): The rural job-guarantee act provides rural households with at least 100 days of unskilled wage work each year. It isn't a skilling programme, but MGNREGA is commonly recognized as a safety job that enables rural youth to be underemployed.
- National Career Service (NCS) and Employment Exchanges: The government administers employment registries and job portal websites to help combat unemployment. NCS provides free online job matching capabilities and career planning tools for youth. State employment exchanges track jobseekers also but have become less popular.
- National Youth Policy (2014): This policy highlights youth empowerment, such as skills, entrepreneurship, and educational reform. It also recognizes the need for collaboration between stakeholders (government, academia, industry) to provide "competency-based, skill-oriented training."
All these policies aim to realign education and training systems with industry needs. However, critics note that implementation gaps remain.
Impact and Challenges of Skill Programs
Positive outcomes of Skill Programs: Skill programmes in India have created enormous training infrastructure. Millions of young people have received qualifications under PMKVY and similar schemes. The signs of formal employment indicators (for example EPFO additions) have improved, we can conclude that at least some trainees are finding jobs. The accelerated pace of schemes has increased awareness for young people and today, even rural and informal sectors have more young people choosing to engage in short term courses. Currently there are many training programmes now with digital skills and soft skills incorporated. The new advanced skill training added at ITIs, and at PMKVY shows there is genuine ability to be responsive to future skill requirements.
Limitations and criticisms: Despite the various skill programs that have been rolled out by the central government and state governments, there are serious issues with the skill programs - issues around the quality and relevance of programs themselves. Independent analyses have consistently pointed out that a lot of the training courses are extremely short (in some cases, 10 days long), or simply not real job training for young people. The placement tracking leaves a lot to be desired. For example, the government claims that under the PMKVY, 54% were placed, but when deeper research is done only 22% of could-be job holders, who got certificates were placed. PMKVY1.0 and PMKVY2.0 program placements were below 25%, and these placements fell again in PMKVY3.0. The uptake of the apprenticeship scheme appears to be slow, with 2 million trained, out of a target of training 5 million by 2020.
Quantitative data provides an ambiguous picture. One study indicated in 2022-23 only 3.7% of India's employees had received formal vocational training. However, informal and on-the-job-training experience have grown considerably, suggesting that many employees use non-institutional learning as it relates to skills. The disconnect between certificate issuance and actionable skills indicates that an increasing proportion of "trained" youth hold certificates without developing corresponding skills. Indeed, youth unemployment persists at high levels; the PLFS indicates a youth unemployment rate of c. 10% in 2023-24, with alternative estimates for some cohorts being significantly higher
Experts indicate that the division between demand for skills training and acceptance of training costs undermines impact. For instance, vocationally trained employees are more likely to be unemployed than similarly skilled counterparts without vocational training, A fatal lack of trust with high dropout rates, short-duration courses, saturation of certified trainers, and inflated success metrics where numbers count instead of quality activity have turned skilling into a simple numbers game.
Conclusion and Recommendations
India's youth unemployment crisis calls for skilling, but not the usual skilling. The Skill India Mission and complementary initiatives have introduced laudable innovations: expanding access to skills training, developing new skills curricula, and creating curricula and skill-development partnerships with employers. The trend in government data is toward labour-force participation and the formal-sector workforce expansion, often attributed to the successful launch of the country's new training system. On the other hand, the persistent high unemployment rates with formally trained youth signals it will take more than quantity to address youth unemployment in India.
Experts recommend several specific measures to strengthen the training ecosystem. First, they suggest supporting industry-led apprenticeship and dual training models, drawing inspiration from systems in Germany and Switzerland. One commentator has identified the need for a "right to apprenticeship" for every young person as a rising issue.
Next, outcome-based training programs must be of sufficient duration, avoiding short, one-week programs—and should focus on developing creative and critical thinking skills. Training providers must be held accountable for their programs, offering only those courses for which they are willing to take responsibility. Funding for training should be tied to employment outcomes, with clear accountability measures for short-term courses. Additionally, short courses should be carefully designed to clearly define their scope and outcomes.
Third, better coordination is needed among government, industry, and educational institutions to ensure that training programs align with actual job openings, rather than offering quick, superficial skill courses. Advisory and placement services should be established to guide youth toward training programs that lead to real employment opportunities.
Finally, a strong accountability framework is essential, incorporating greater transparency—such as publishing placement data and conducting impact evaluations—to foster a culture of continuous learning and improvement over time.