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Uttar Pradesh’s Unemployment Rate Hits Record Low 2.6%

This is the lowest level since the CMIE began tracking unemployment data for different states in 2016.



Uttar Pradesh

Discover how UP’s unemployment rate has reached a historic low of 2.6%, indicating positive economic growth and job opportunities in the region.

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Good News for Uttar Pradesh

The latest data from the Centre for Monitoring Indian Economy (CMIE) has revealed that Uttar Pradesh, the most populous state in India, has achieved a remarkable feat. In September 2023, the state’s unemployment rate dropped to an all-time low of 2.6 percent. This is the lowest level since the CMIE began tracking unemployment data for different states in 2016.

Recovering from the Pandemic

Uttar Pradesh’s unemployment rate has been steadily declining since it reached a peak of 17.5 percent in April 2020. This increase was due to the nationwide lockdown imposed to combat the COVID-19 pandemic. The state government attributes this impressive recovery to its various initiatives aimed at boosting the economy, creating jobs, and providing relief to workers and businesses affected by the crisis.

Key Measures Taken

The state government has implemented several key measures to achieve this positive outcome:

Atmanirbhar Uttar Pradesh Rojgar Abhiyan: This special employment scheme aimed to provide jobs to 1.25 crore migrant workers who returned to the state during the lockdown.

One District One Product (ODOP) Scheme: This scheme promotes traditional industries and handicrafts in each district by offering financial assistance, marketing support, and skill development.

Simplification of Labour Laws: The government simplified labor laws and reduced compliance burdens for industries, especially micro, small, and medium enterprises (MSMEs), which are crucial to the state’s economy.

Attracting Investments: The state attracted new investments from domestic and foreign companies by offering incentives and creating a favorable business environment.

Infrastructure Development: The government enhanced the state’s infrastructure by constructing new roads, highways, airports, metro rail, and industrial corridors.

Positive Impact on the Economy

The state government claims that its efforts have resulted in significant improvements in per capita income, gross state domestic product (GSDP), and tax revenue. According to the Economic Survey 2022-23, Uttar Pradesh’s GSDP grew by 10.1 percent in 2022-23, surpassing the national average of 9.5 percent. The per capita income increased by 8.7 percent to Rs 78,599, and tax revenue rose by 14.3 percent to Rs 1.72 lakh crore.

Challenges Ahead

Despite the positive developments, experts caution that the unemployment rate alone may not provide an accurate picture of Uttar Pradesh’s labor market. Many workers may have dropped out of the workforce due to a lack of opportunities or low wages. Additionally, the quality of employment may be poor, with many jobs being informal, casual, or contractual, lacking social security or benefits.

To sustain economic growth and job creation in the long run, Uttar Pradesh faces several challenges:

Improving Human Development Indicators: The state needs to focus on improving literacy rates, healthcare, and nutrition, which are still below the national average.

Addressing Regional Disparities: Uttar Pradesh has some of the highest regional disparities and inequalities in India, which need to be addressed.

Diversifying the Economy: Promoting sectors like manufacturing, services, and agriculture can lead to value addition and more employment opportunities.

Enhancing Skill Development and Education: The state should prioritize skill development and education, especially for the youth and women who make up a significant portion of the population.

Strengthening Social Protection: Measures should be taken to provide social protection and welfare schemes for vulnerable sections of society, such as farmers, laborers, and informal workers.


Uttar Pradesh has made significant progress in reducing its unemployment rate and reviving its economy after the COVID-19 pandemic. However, continuous efforts are needed to improve the quantity and quality of employment and ensure inclusive and sustainable development for all its people.