Joblessness among minority communities in India saw an increase during the 2023-24 period (July-June) compared to the previous year, despite the national unemployment rate remaining steady for the first time in five years. A particularly sharp rise in unemployment was observed among Muslims, with their rate jumping from 2.4% to 3.2%. Meanwhile, Christians saw only a slight uptick in unemployment.
Sikhs experienced a rise in their unemployment rate, from 5.1% in 2022-23 to 5.8% in 2023-24, marking the highest rate among religious minorities.
In contrast, the unemployment rate among Hindus showed a slight decline of 0.1 percentage point. According to the latest Periodic Labour Force Survey, Sikhs had the highest unemployment rate, followed by Christians. On a more positive note, unemployment rates for all religious groups were lower in 2023-24 compared to pre-COVID levels in 2019-20. Notably, Muslims maintained the lowest unemployment rate during 2023-24, consistent with their pre-COVID standing.
Amitabh Kundu, head of post-Sachar Evaluation Committee, told Radiance, “The level of poverty among Muslims is significantly greater than that of Hindus, especially when the scheduled caste population is excluded from consideration.” The Sachar Committee had reported that Muslims experienced high poverty levels, with data from 2004-05 showing 31% of Muslims were poor, second only to scheduled castes and tribes at 35%.
Kundu, now a senior economist and Professor Emeritus at LJ University in Ahmedabad, explained that disguised unemployment in rural areas lowers unemployment rates across communities. He pointed out that Muslims in urban settings show the lowest levels of joblessness, partly because individuals from impoverished backgrounds often accept any available work, even at below-minimum wages, to avoid prolonged unemployment. This explains why Muslims in urban areas have lower unemployment rates than Hindus.
Minority unemployment rates in rural areas surpass the national average. Muslim women in urban areas exhibit a lower unemployment rate than their Hindu counterparts, which Kundu attributes to many Muslim women not actively seeking jobs.
The hesitancy to seek employment is reflected in the lower labour force participation rates (LFPR) of both Muslims and Sikhs, which have remained below the national average since 2017-18. However, LFPR across religious groups has risen by over 8 percentage points from 2017-18 to 2023-24, though Muslims experienced slightly less growth. A large portion of employed Muslims are self-employed, while fewer hold regular jobs, with household help not being included in this analysis.
