A stark reality check has come for Kerala, touted as one of India's most progressive states. Data from the Periodic Labour Force Survey (PLFS) Annual Report for July 2023 to June 2024 reveals that the state is grappling with one of the highest youth unemployment rates in the country.
The trend is alarming, and it comes at a time when the national average for unemployment has remained stagnant at 3.2 percent in 2023-24, according to the PLFS Annual Report. Closer home, however, Kerala is facing a dire employment crisis, specifically among the youth.
What has caused this unemployment crisis in Kerala? Why does the state find itself in this predicament despite being a model in many other areas? The answer, much like the problem, is complex. One thing is clear - immediate attention and swift action are needed to tackle the issue.
While the state excels in education and holds a prominent position across several human development indicators, it has struggled to create employment opportunities that are commensurate with its rising literacy and educational standards. A mismatch between skills inculcated in the education system and the state's industry needs could be a major reason.
Another concern that has been raised is the lack of entrepreneurship and industrial development in Kerala. While there has been a focus on promoting IT and high-tech industries, not enough has been done to support traditional sectors where a large population of unskilled or semi-skilled youth can find employment.
The stark difference in the state's performance across social indicators and economic development indices serves as a reminder of the need for a more holistic approach to growth. Kerala must address its employment challenges while preserving its strengths in education and healthcare.