City among top five in country with 7.1% unemployment rate
Despite being one of the most educated cities in the country, Chandigarh is grappling with a high unemployment rate of 7.1%, making the city the fifth-highest among states and union territories.
Statistics for 2023-24 shared by Union Minister for Labour and Employment Dr Mansukh Mandaviya in the Rajya Sabha highlight a growing concern about the lack of job opportunities in the city.
Neighbouring states of Haryana and Punjab fares better with the unemployment rate of 3.4% and 5.5%, respectively. The national average stands at 3.2%. Lakshadweep (11.9%), Andaman & Nicobar Islands (11.8%), Goa (8.5%), and Kerala (7.2%) are among the cities with the highest unemployment rate.
Industries shifting
The limited scope for industrial expansion has been a significant contributor to unemployment in the city. Over the past three or four years, more than 100 industrial units have shifted operations to Punjab and Haryana due to stringent regulations, lack of land and limited incentives. Issues such as the non-transfer of leasehold plots, building misuse violations and inadequate implementation of MSME schemes have further aggravated the situation here.
Outsourcing up
The number of regular posts in government departments has been steadily declining, with many positions left unfilled. The number of regular staff in the Municipal Corporation has decreased from 3,407 in 2019-20 to 2,362 in 2024-25, while that of outsourced personnel surged from 3,072 to 6,965 during the same period.
The Chandigarh Administration has 4,300 vacancies, including nearly 1,500 posts of teacher in the Education Department, over 350 of clerk in the Administration, more than 250 posts in the Police Department, over 200 posts in the Health Department and nearly 300 vacant posts of assistant professor in government colleges. Nearly 17,000
outsourced employees and 5,000 contractual staff are working in various departments of the Administration.
Policy reform needed
Experts suggest that a comprehensive policy to boost industrial growth and streamline recruitment processes in government departments is urgently needed. The migration of industries and the increasing reliance on outsourcing have only widened the gap between job seekers and available opportunities.
2023-24: Shrinking job opportunities
Lakshadweep 11.9%
Andaman & N. Island 11.8%
Goa 8.5%
Kerala 7.2%
Chandigarh 7.1%
Punjab 5.5%
Himachal Pradesh 5.5%
Uttarakhand 4.3%
Haryana 3.4%
Uttar Pradesh 3.1%
Delhi 2.1%
