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India Unemployment Rate

Unemployment as % of total labor force  SL.UEM.TOTL.ZS

India's unemployment rate was 4.22% in 2025, ranked 70th globally. This represents a 14.6% decrease from 2024. Data from World Bank, covering 1991–2025.

4.22% −0.72pp (-14.6%)
Year 2025 Rank #70 Global Peak 7.86% (2020) Source World Bank

India Unemployment Rate (1991–2025)

Overview

India's unemployment rate stood at 4.22% in 2025, a decline of +0.72pp from 2024. The IMF projects 4.94% by 2025. India ranked 70th globally.

India's unemployment rate has experienced significant fluctuations over the past three and a half decades, with the latest reading standing at 4.22%, ranking 70th globally. The unemployment rate has declined from its all-time peak of 7.86% in 2020 to an all-time trough of 4.17% in 2023, indicating a notable improvement in the labor market. Compared to its peer countries, India's unemployment rate is slightly lower than the United States' 4.20% and Turkmenistan's 4.27%. The unemployment rate has shown a downward trend since 2023, which is an encouraging sign for India's economic growth. However, the trajectory of this trend may be disrupted by future economic shocks, particularly if the Indian government's labor market policies fail to address the needs of its rapidly growing workforce.

Data & projection

Year Unemployment Rate YoY change Rank
2030* IMF 4.94% - -
2029* IMF 4.94% - -
2028* IMF 4.94% - -
2027* IMF 4.94% - -
2026* IMF 4.94% - -
2025* IMF 4.94% - -
2025 4.22% −0.72pp #70
2024 4.17% −0.77pp #73
2023 4.17% −1.13pp #79
2022 4.82% −2.54pp #85
2021 6.38% −2.28pp #103
2020 7.86% +0.38pp #118
2019 6.51% −2.39pp #117
2018 7.65% +0.03pp #125
2017 7.63% +0.02pp #120
2016 7.61% −0.02pp #115
2015 7.63% −0.03pp #117
2014 7.66% −0.02pp #114
2013 7.68% +0.03pp #112
2012 7.65% +0.04pp #108
2011 7.61% −0.02pp #110
Show all years (1991-2025)
* IMF World Economic Outlook projection

Detected Pattern

Fiscal Dominance Trap
Government debt exceeding 80% of GDP with real interest rates negative and inflation above 10%. Monetary policy effectiveness impaired by fiscal pressures.
Inflation 12.0% Real rate -2.0%
Occurred 386 times, 278 successful
Inflation
28.2%
Real rate
-4.2%
Inflation
219.9%
Real rate
-47.4%
Inflation
28.3%
Real rate
-7.0%
Inflation
91.4%
Real rate
-26.9%
Inflation
13.6%
Real rate
-0.9%
Inflation
133.5%
Real rate
-17.3%

Analysis

India matched the Fiscal Dominance Trap pattern in 2010. Historically, 72% of countries showing this pattern (278 out of 386) saw unemployment rate improve within 24 months. View full analysis →

Frequently Asked Questions

What is India's unemployment rate?▾

India's unemployment rate was 4.22% in 2025. Ranked 70th globally. This represents a 14.6% decrease from the previous year.

What was the highest unemployment rate in India?▾

India's unemployment rate peaked at 7.86% in 2020.

What was the lowest unemployment rate in India?▾

The lowest unemployment rate in India was 4.17% in 2023.

How does India rank in unemployment rate?▾

India ranks 70th globally in unemployment rate as of 2025.

What is the World Bank indicator code for unemployment rate?▾

The World Bank indicator code is SL.UEM.TOTL.ZS. Data sourced from World Bank.

What is the projected unemployment rate of India in 2025?▾

India's unemployment rate is projected to reach 4.94% by 2025 based on IMF projection.

What is the unemployment rate of India in 2025?▾

The unemployment rate of India in 2025 was 4.22%. This ranks 70th in the world.

Cite this page

APA
India Unemployment Rate. HistorySaid. Retrieved October 31, 2026, from https://historysaid.com/india/unemployment-rate/
BibTeX
@misc{historysaid_india_unemployment-rate, title = {India Unemployment Rate}, url = {https://historysaid.com/india/unemployment-rate/}, publisher = {HistorySaid}, year = {2026} }
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