HP’s joblessness reflects fault lines of state’s economy

HIMACHAL Pradesh, often praised for its high literacy and human development indices, now faces a grim paradox — one in every three young persons is unemployed. The latest Periodic Labour Force Survey (PLFS) puts the youth unemployment rate (ages 15–29) at a staggering 33.9 per cent, up from 29.6 per cent in the April–June 2025 quarter. In contrast, Punjab’s rate eased to 18.9 per cent, Haryana’s dipped slightly to 15.4 per cent, while the all-India average stood at 14.8 per cent.

The hill state’s joblessness is not new, but its scale has become alarming. Behind the bleak figures lie structural imbalances: a limited industrial base, seasonal tourism and a disproportionate dependence on agriculture and government employment. The state’s educated youth, many of them degree-holders, shun low-paying private sector work and await elusive government vacancies. As a result, thousands of qualified applicants compete for a handful of posts, while others migrate in search of work. The gender gap is equally stark. Unemployment among educated women remains far higher than among men, reflecting both social norms and the lack of suitable job opportunities. In rural areas too, mechanisation and shrinking farm sizes have reduced informal work options, swelling the ranks of the jobless.

The state government cannot afford to remain complacent. It must move beyond recruitment promises and chart a comprehensive employment strategy. Expanding small-scale manufacturing, agri-processing and eco-tourism can help absorb educated youth. Equally crucial is aligning skill training with market demand, promoting start-ups and incentivising private sector participation in hill-friendly industries such as renewable energy and food-processing. Himachal’s high literacy is an asset, but without jobs, it risks becoming a source of frustration and migration. The growing army of jobless youth should serve as a warning. Development must not only educate but also employ.