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Why rural unemployment has increased in Kerala | Heres the reason

The number of jobless youths in rural Kerala increased to 76 per thousand in 2023-24, from 65 in the previous year. The national average in these years was 25 and 24, respectively.

As per latest studies, rural unemployment figures see a marginal rise
| Updated on: Dec 19, 2025 | 04:00 PM

Thiruvananthapuram: Rural unemployment in Kerala appears to be on the rising end with many unemployed youths looking for job options in near by states and foreign countries.

One reason that has accelerated the rise in joblessness is the rise in arrival of educated youngsters from middle east and European nations in the past 5 years.

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The number of jobless youths in rural Kerala increased to 76 per thousand in 2023-24, from 65 in the previous year. The national average in these years was 25 and 24, respectively.

"There has been a rise in the number of unemployed youths after the Covid pandemic trying to settle back in their home town. Sadly, many don't get a job of their preference in their home town leading to a very embarrassing situation”, said Suresh Kumar, economist and job analyst.

Also, Kerala had the fourth-highest rural unemployment rate in both years, according to the ‘Handbook of Statistics on Indian States’ released by the Reserve Bank of India (RBI) recently.

However, signalling a positive trend in the urban labour market, the unemployment rate in the state’s urban areas dipped to a 10-year low of 67 per thousand in 2023-24. The national average was 51.

In the past 10 years, Kerala recorded its highest rural unemployment rate — 107 per thousand — in 2014-15.

Urban areas witness a dip in unemployment rate

The second-highest peak was in 2017-18 — 100 per thousand. The lowest rate during the period (65 per thousand) was recorded in 2022-23. The unemployment rate among rural women was more than double that of men. It increased to 121 in 2023-24 from 92 in the previous year. Joblessness among rural males showed a slight decline — from 47 in 2022-23 to 46 the next year. Still, it was nearly double the national average of 27.

However, joblessness among urban females showed a sharp decline to 109 in 2023-24, from 129 in the previous year. Joblessness among urban males declined from 48 to 44 during the period. The national average for females and males was 71 and 44, respectively.

Professor Abhijith of the Centre for Development Studies said the rising unemployment rates need to be read with caution.

"Declining unemployment rate was associated with falling wages and increased unpaid family labour in the recent past. The current rise in unemployment may be an indicator that now more women can afford to stay unemployed for a longer period, searching for better and suitable job options,” he said.

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