Kerala unemployment rate drops to 4.3%: central survey

Thiruvananthapuram: Kerala has recorded a significant decline in its unemployment rate, according to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation. The findings point to an overall improvement in employment trends both at the national level and within the state.

At the national level, unemployment is projected to decrease from 3.6% in 2022 to 3.1% in 2025. Kerala has shown a sharper improvement, with the unemployment rate falling from 7.2% in the 2023–24 period to 4.3% in 2025. The survey, conducted between January and December 2025, covered approximately 2.7 lakh households across the country.

Key unemployment trends

The data highlights both progress and areas that still need attention:

• India’s unemployment rate stands at 3.1% in 2025
• Kerala’s unemployment rate has dropped to 4.3%, marking a notable improvement
• Youth unemployment (15–29) has declined slightly at the national level
• Educated unemployment remains higher in Kerala (4.4%) compared to the national average (3.1%)

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Labour force participation: Kerala ahead overall

Kerala continues to perform better than the national average in overall labour force participation, reflecting stronger workforce engagement.

• Overall participation rate: Kerala 46.2% vs India 44.9%
• Female participation: Kerala 33.5% vs India 30.7%

This indicates improved inclusion of women in the workforce and broader economic participation across the state.

Areas where Kerala lags

Despite the positive trend, certain gaps remain, particularly in age-specific workforce participation:

• Ages 15–29: Kerala 41.7% vs India 46%
• Ages 15–59: Kerala 62.8% vs India 63.3%

These figures suggest that while overall participation is higher, younger segments of the population are less engaged in the workforce compared to the national average.

Long-term trend and expert view

Officials associated with the state’s planning body have pointed to steady long-term improvement. Kerala’s unemployment rate has declined from 7.2% in 2017–18 to 4.3% in 2025, alongside a rise in female workforce participation.

Experts say the data reflects gradual structural progress in Kerala’s economy, supported by higher participation rates and improving employment conditions. However, they also note that addressing unemployment among educated individuals and increasing youth participation will be key to sustaining this progress.