EDUCATION, EMPLOYMENT AND STATE DEVELOPMENT
The uneven landscape of graduate unemployment across Indian states
Unemployment among young graduates is more than double the rate for young people as a whole. Where a graduate lives shapes both the chance of finding work and the kind of work they find.
MoSPI, PLFS 2025 · Usual-status unemployment: graduates aged 21–29, 22.2%; all youth aged 15–29, 9.9%.
Higher education: Ministry of Education, AISHE 2023–24 · Employment: MoSPI, PLFS 2025
Employment figures cover graduates aged 21–29 and are weighted calculations from microdata.
01 / COLLEGE ENROLMENT
College enrolment varies widely across states.
higher education enrolments for every 100 people aged 18–23 nationally.
College enrolment ranges from 17.7 per 100 people aged 18–23 in Bihar to 72.3 in Puducherry. The median across the 31 states and UTs is 30.8; the national ratio is 30.0.
Widening access to education and expanding employment opportunities need to be considered within the same state development agenda.
GER counts college enrolments, including students from other states, relative to the population aged 18–23.
College enrolment varies widely within regions too.
Northern6 states/UTs Median 40.8%
Central4 states/UTs Median 27.5%
Eastern4 states/UTs Median 22.0%
Western3 states/UTs Median 33.9%
Southern6 states/UTs Median 44.3%
North Eastern8 states/UTs Median 29.9%
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31 of 31 states/UTs. Medians weight states/UTs equally; India is the national estimate.
Source: Ministry of Education, AISHE 2023–24, Table 19.
02 / GRADUATE UNEMPLOYMENT
Graduate unemployment varies widely across states.
of young graduates in the labour force are unemployed.
The national rate is 22.2%, but states differ substantially. Unemployment needs to be read alongside the composition of employment and earnings.
The estimated rate ranges from 7.1% in Gujarat to 53.6% in Nagaland. The median across states and UTs is 25.7%.
Usual principal plus subsidiary status; people outside the labour force are excluded.
Lower values mean less graduate unemployment.
Northern6 states/UTs Median 23.1%
Central4 states/UTs Median 16.8%
Eastern4 states/UTs Median 31.4%
Western †3 states/UTs Median 14.7%
Southern6 states/UTs Median 24.7%
North Eastern8 states/UTs Median 39.9%
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31 of 31 states/UTs. Medians weight states/UTs equally; India is the national estimate. † Small sample (30–99).
Source: MoSPI, PLFS 2025.
03 / DURATION OF UNEMPLOYMENT
Prolonged unemployment is common among graduates.
of unemployed young graduates report a spell exceeding one year.
Duration adds a second dimension to the employment picture. The proportion reporting prolonged unemployment differs substantially across states.
Among states and UTs with published estimates, the share ranges from 23.2% in Delhi † to 88.4% in Manipur, with a median of 65.5%.
Current unemployment spells. † Delhi: 79 observations.
Lower values mean a smaller share in long unemployment spells.
Northern †6 states/UTs Median 55.1%
Central4 states/UTs Median 69.2%
Eastern4 states/UTs Median 72.1%
Western2 of 3 shown Median 44.7%
Southern5 of 6 shown Median 50.5%
North Eastern †7 of 8 shown Median 74.8%
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28 of 31 states/UTs. Medians weight states/UTs equally; India is the national estimate. 3 estimates omitted (fewer than 30 observations). † Small sample (30–99).
Source: MoSPI, PLFS 2025.
04 / WORK BELOW QUALIFICATION LEVEL
Graduates working below their qualification level
of employed young graduates work in occupations classified at NCO skill levels 1–2.
This is a classification-based indicator of qualification mismatch. NCO skill levels 1–2 correspond to educational levels below a graduate qualification. They include clerical and sales work, farming, trades, machine operation and elementary occupations.
The estimates range from 29.6% in Puducherry † to 79.3% in Bihar. The median across states and UTs is 61.8%.
Employed graduates in occupations classified at NCO skill levels 1–2. † Puducherry: 95 observations.
Lower values mean less qualification mismatch.
Northern6 states/UTs Median 59.0%
Central4 states/UTs Median 75.0%
Eastern4 states/UTs Median 69.2%
Western †3 states/UTs Median 45.8%
Southern †6 states/UTs Median 42.8%
North Eastern †8 states/UTs Median 64.1%
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31 of 31 states/UTs. Medians weight states/UTs equally; India is the national estimate. † Small sample (30–99).
Source: MoSPI, PLFS 2025. Classification: DGE, NCO-2015.
AISHE and PLFS cover different years and populations; they do not follow individuals.
05 / REGULAR SALARIED WORK
Access to salaried work differs sharply.
of employed young graduates are in regular salaried work nationally.
The estimates range from 24.1% in Bihar to 80.5% in Kerala. The median across states and UTs is 58.3%. This median summarises salaried shares, not the full employment picture.
Unemployment is 33.8% in Bihar and 27.4% in Kerala. The composition of employment adds information that unemployment alone does not provide.
Kerala has the highest unrounded share; Puducherry also rounds to 80.5% (95 observations).
Unemployment in these two states
| State | Salaried shareAmong employed | UnemploymentLabour force |
|---|---|---|
| BiharLowest salaried share | 24.1% | 33.8% |
| KeralaHighest salaried share | 80.5% | 27.4% |
Higher values mean a larger share in salaried work.
Northern6 states/UTs Median 57.6%
Central4 states/UTs Median 36.4%
Eastern4 states/UTs Median 40.5%
Western †3 states/UTs Median 65.6%
Southern †6 states/UTs Median 76.9%
North Eastern †8 states/UTs Median 53.9%
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31 of 31 states/UTs. Medians weight states/UTs equally; India is the national estimate. † Small sample (30–99).
Source: MoSPI, PLFS 2025. Main employment first; subsidiary employment otherwise.
06 / EARNINGS
Salaried earnings also vary across states.
Among graduates with salaried work and positive reported earnings, the national monthly median is ₹20,000. State and UT medians range from ₹10,500 in Manipur to ₹30,000 in Delhi. The median of these 31 estimates is ₹16,500.
Higher values mean higher monthly salaried pay.
Northern6 states/UTs Median ₹15,750
Central4 states/UTs Median ₹15,000
Eastern4 states/UTs Median ₹15,000
Western †3 states/UTs Median ₹25,000
Southern †6 states/UTs Median ₹23,750
North Eastern †8 states/UTs Median ₹15,000
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31 of 31 states/UTs. Medians weight states/UTs equally; India is the national estimate. † Small sample (30–99).
Source: MoSPI, PLFS 2025. Positive earnings from main or subsidiary salaried work; salaried shares use main work first. Unadjusted for living costs or hours.
IMPLICATIONS FOR STATE DEVELOPMENT
State development models and governance matter.
States differ widely in higher education enrolment, graduates’ prospects of finding work, the kinds of jobs they do and what they earn. Taken together, these differences point to the importance of state development models and governance in shaping opportunities, from access to higher education to employment after graduation.
YouthPOWER’s State Handbooks of Youth Opportunity assess each state’s principal opportunities and challenges and profile every district, with the aim of connecting data, political leadership and local action so that every state and each district in it becomes a place where young people can learn, work, participate and thrive.
Explore your own state ↓YOUR TURN
Explore your own state.
How does your state compare? Select your state, then explore each measure and compare it with India or another state.
Start with the map ↓SOURCES & DEFINITIONS
What the numbers mean.
Sources, definitions and coverage for this analysis.
Sources
Employment and earnings: MoSPI, PLFS January–December 2025; survey-weighted analysis of first-visit microdata.
Higher education: Ministry of Education, AISHE 2023–24, Table 19.
Occupations: Directorate General of Employment, NCO-2015, Volume I, pages 18–19.
Who is counted?
Graduates are aged 21–29 with a degree or higher qualification. The youth comparison covers ages 15–29, including graduates. Unemployment uses usual principal plus subsidiary status over the preceding year, as a share of the labour force.
GER measures college enrolments per 100 people aged 18–23, including students from other states.
Work and earnings
Below-qualification employment covers graduates in NCO skill-level 1–2 occupations. Occupational and salaried shares use main employment first, subsidiary employment otherwise.
Earnings are the weighted median of positive monthly salaries from either main or subsidiary work, unadjusted for living costs or hours.
States and regions
Comparisons cover 28 states plus Delhi, Jammu and Kashmir, and Puducherry. India includes all states and UTs. Expand any chart region to see its members.
The six regions adapt the Zonal Councils and North Eastern Council: Sikkim is North Eastern, Uttarakhand Northern, and Rajasthan Central.
Medians and sample sizes
State and regional medians give each state/UT equal weight; India is the national estimate. † marks 30–99 observations; estimates below 30 are omitted. Small differences may reflect sampling variation.
The comparisons assess state outcomes; individual policy effects are not estimated.