India’s Job Crisis Deepens: Youth Struggle Despite Rising GDP

New Delhi | August 2025

India’s economy may be growing at over 6%, but for millions of young people, finding a stable job has never been harder. The country’s unemployment rate touched 5.6% in June before easing slightly to 5.2% in July, yet experts say the real figures may be much worse.

A Tale of Two Indias

While cities boast new malls, startups and IT parks, lakhs of graduates remain stuck in uncertainty. Campus placements at engineering and management colleges are at their lowest in years, with many recruiters reducing intake or offering only internships instead of permanent roles.

In rural areas, the picture is equally grim. With agriculture hit by floods, droughts and rising input costs, more workers are moving to cities in search of daily-wage jobs—only to face competition and underemployment.

Why Jobs Aren’t Keeping Up

• Automation and AI are replacing entry-level roles.
• Global slowdown has hurt exports in textiles, IT and manufacturing.
• Private investment remains weak, leading to fewer new industries.
• Government schemes like MGNREGA are underfunded, offering little relief.

Voices from the Ground

• “I graduated two years ago, but I’m still driving a cab to support my family,” says Rahul Sharma, a B.Tech graduate in Delhi.
• In Bihar, daily-wage labourers say they are getting less than 15 days of work a month.
• Middle-class families are worried about their children leaving for expensive overseas education, as Indian jobs fail to provide security.

The Bigger Problem

Economists warn India is facing a “jobless growth” crisis—GDP is rising, but employment is not. With more than 12 million youths entering the workforce every year, the gap between demand and supply is widening dangerously.

If left unaddressed, this could lead to social unrest, rising inequality and political discontent.

Government’s Stand

Officials maintain that job creation is happening in sectors like EVs, semiconductors and renewable energy. But critics argue these industries are still too small to absorb India’s massive workforce.

Parting Thoughts

India’s greatest strength is its youth, but without jobs, it could become its greatest challenge. Unless urgent steps are taken to boost investments, skill training and labour reforms, the dream of a rising India may turn into a nightmare for its young generation.