Archive · 12 Nov 2025
Educated Indian Youth Return to Agriculture as Urban Jobs Decline
Imagine India has many cities where people look for jobs in factories and offices.
But lately, not enough new jobs are being made in these cities.
So, many young people who finished their studies can't find work in the cities, and their unemployment rate is going up.
At the same time, fewer jobs are available in factories.
Because city jobs are scarce, a lot of people are going back to working on farms, even though farming isn't always a steady or high-paying job.
This means more people are working in agriculture than before, and fewer are working in factories or mines.
It's like the country's job system is a bit broken right now, with too many people looking for too few non-farm jobs.
India's urban unemployment rate increased to 18.4% in July-September 2025, hitting educated urban youth the hardest.
The overall unemployment rate for individuals aged 15+ slightly decreased to 5.2%, but the youth unemployment rate (15-29 years) rose to 14.8%.
A significant number of workers are returning to agriculture, with its share in the workforce rising to 42.4%.
Employment in manufacturing and mining sectors saw a sharp decline, falling from 26.6% to 24.2%.
Job losses in manufacturing were most pronounced in industrial states such as Chhattisgarh and Odisha.
- Who
- Educated, urban Indian youth, and the overall Indian workforce aged 15 years and above.
- What
- A rise in urban unemployment and a shift of workers back to the agriculture sector, while manufacturing and mining jobs decline.
- When
- July-September 2025 quarter (FY26), compared to the April-June 2025 quarter.
- Where
- Across India, with significant increases in urban joblessness in North Indian states like Uttarakhand, Himachal Pradesh, and Jammu & Kashmir, and job losses in manufacturing in states like Chhattisgarh and Odisha.
- Why
- Lack of job creation in non-farm sectors, particularly in urban areas and manufacturing, is forcing workers, including educated youth, to return to agriculture.
Urban Youth Unemployment
Return to Agriculture
Unemployment Rate Trend
Urban Youth Unemployment
Urban unemployment rate climbed from 17.9% to 18.4% between Q1 and Q2 FY26, with educated urban youth most affected.
Return to Agriculture
The share of the workforce in agriculture rose from 39.5% to 42.4%, indicating a fallback due to lack of non-farm opportunities.
Nature of Employment
Urban Youth Unemployment
Youth unemployment rate (15-29 years) edged up from 14.6% to 14.8%, struggling to find opportunities in formal sectors.
Return to Agriculture
Increased dependence on monsoon-dependent agriculture signals underemployment rather than new job creation.
- Urban Unemployment Rate (July-Sep 2025)
- 18.4%
- Urban Unemployment Rate (Previous Quarter)
- 17.9%
- Overall Unemployment Rate (Persons 15+)
- 5.2%
- Youth Unemployment Rate (15-29 years)
- 14.8%
- Share of Workforce in Agriculture
- 42.4%
- Share of Workforce in Manufacturing & Mining
- 24.2%
- Share of Workforce in Services
- 33.5%
Sources
Joblessness slowed to 5.2% in Q2: PLFS data
India's festive hiring rises 17%; gig, temp roles see 25% surge this year
Telangana Jobless Rate Down In 2nd Quarter