Poverty and Unemployment in India: A Socioeconomic Analysis with Policy Recommendations

Abstract

This essay examines the interconnected problems of unemployment and poverty in India, emphasizing current patterns and their socioeconomic ramifications. Unemployment continues to be a major contributor to poverty despite notable economic growth, particularly among urban young and vulnerable populations like women. The report, which uses the most recent data from India's Periodic Labor Force Survey 2025, shows that while the country's overall unemployment rate has decreased to about 5.1%, young unemployment and urban joblessness are still high, which exacerbates poverty levels. The study investigates structural elements that sustain poverty, such as inequalities in the employment market, mismatches in schooling, and inadequate social safety nets. In order to solve unemployment and consequently reduce poverty in India sustainably, the study ends with policy proposals that emphasize skill development, job creation through economic diversification, and improved welfare programs.