Top-10 Indian States with the Highest Unemployment Rate

Unemployment is a critical economic issue that affects people and nations. The unemployment rate is the percentage of the labor force that is jobless but actively seeking employment. In some countries, economic challenges have led to extremely high unemployment rates. This article outlines the top 10 Indian states with the highest unemployment rates.

Indian States and Union Territories

India has 28 states and 8 union territories. States like Uttar Pradesh and Maharashtra have their own governments, while union territories like Delhi and Chandigarh are directly governed by the central government. Each state has its own culture, language, and traditions, making India a diverse country with many different regions and people.

Unemployment Rate in India

In June 2024, India’s unemployment rate rose to 9.2%, up from 7% in May 2024, according to data from the Centre for Monitoring Indian Economy (CMIE). Unemployment among women was particularly high, reaching 18.5%, while male unemployment stood at 7.8%. The Labour Participation Rate (LPR), which includes people working or looking for work, increased to 41.4%. Unemployment in rural areas jumped from 6.3% to 9.3%, while in cities, it slightly increased from 8.6% to 8.9%.

Top-10 Indian States/ UTs with the Highest Unemployment Rate as of 2024

Lakshadweep, with the total unemployment rate of 36.2%, stands as the Indian UT with the highest unemployment rate, followed by Andaman & Nicobar Islands, Kerala and Nagaland.

Here is the list of top-10 Indian states/ UTs with the highest unemployment rate as of 2024:

Top-10 Indian States/ UTs with the Highest Unemployment Rate as of 2024
Rank	Indian States/ UTs	Male Unemployed (%)	Female Unemployed (%)	Total Unemployed (%)
1.	Lakshadweep	26.2	79.7	36.2
2.	Andaman & Nicobar Islands	24	49.5	33.6
3.	Kerala	19.3	47.1	29.9
4.	Nagaland	27.9	26.6	27.4
5.	Manipur	19.9	27.5	22.9
6.	Ladakh	11.4	38.3	22.2
7.	Arunachal Pradesh	21.9	19.6	20.9
8.	Goa	13.2	31	19.1
9.	Punjab	16.7	24.5	18.8
10.	Andhra Pradesh	16.4	19.7	17.5

Indian State/ UT with the Highest Unemployment Rate

Lakshadweep has the highest unemployment rate in India, with 36.2% of the population unemployed. The male unemployment rate is 26.2%, while female unemployment is significantly higher at 79.7%. The limited economic opportunities in this small union territory contribute to the high unemployment levels, particularly affecting women.

Second Largest Indian State/ Union Territory with the Highest Unemployment Rate

The Andaman & Nicobar Islands have an unemployment rate of 33.6%. Male unemployment is 24%, while female unemployment is much higher at 49.5%. The isolated nature of the islands and limited job sectors make it difficult for many residents, especially women, to find employment.

India’s Third State with the Highest Unemployment Rate

Kerala, a southern state, has an overall unemployment rate of 29.9%. Male unemployment stands at 19.3%, while female unemployment is 47.1%. Despite its high literacy rate and human development indicators, Kerala faces challenges in creating enough job opportunities, particularly for women.