Joblessness among India’s minorities rose in 2023-24, despite the overall unemployment rate in the country remaining unchanged for the first time in five years. The unemployment rate for Muslims increased from 2.4% in 2022-23 to 3.2% in 2023-24, marking the sharpest rise among all religious communities.
According to the latest Periodic Labour Force Survey, Sikhs experienced the highest unemployment rate at 5.8%, up from 5.1% the previous year. Christians also saw a slight increase in joblessness. In contrast, unemployment among Hindus decreased slightly by 0.1 percentage points.
Amitabh Kundu, an economist and former head of the post-Sachar Evaluation Committee, explained the situation: “Despite facing higher poverty rates, Muslims often have lower unemployment because they tend to take any available job, even at lower wages.” He added that “disguised unemployment” in rural areas contributes to this lower rate. In urban areas, Muslims have the lowest joblessness rate compared to other groups.
Kundu noted that many Muslim women are reluctant to seek employment, saying, “Sociocultural factors, along with poverty, play a role in their hesitancy to enter the job market.”
While the unemployment rate for all minorities was higher in urban areas than in rural areas, the overall quality of jobs has declined. For example, the percentage of Muslims in regular salaried jobs dropped from 21.5% in 2019-20 to 18% in 2023-24. This trend is concerning, as Kundu remarked, “It reflects a broader issue of economic vulnerability faced by many in the community.”
The survey also highlighted that literacy rates among Muslims are the lowest compared to other communities, with only a 2.6% increase over five years. Kundu stated, “Improving literacy rates is crucial for enhancing employability among Muslims.”