India is at a critical point. On one side, it has a young population and growing technology. On the other side, it is facing major job-related problems. With the rise of artificial intelligence (AI) and the latest unemployment data, there are serious concerns about how to secure jobs for the future. The question is: how can India protect jobs while moving forward with new technology like AI?
Unemployment Situation in India
According to the National Statistical Office (NSO), India’s unemployment rate stood at 5.6% in June 2025. This figure has remained the same as in May. The data comes from the Periodic Labour Force Survey (PLFS). It is the third month in a row where NSO has shared unemployment statistics after it began publishing them from April 2025.
The data shows a mixed picture. While the overall unemployment rate did not rise, the situation is different in rural and urban areas. In rural areas, the unemployment rate dropped by 20 basis points to 4.9%, while in urban areas it increased by 20 basis points to 7.1%. For men, the unemployment rate stayed flat, but for women, it decreased slightly, bringing the overall rate down to 5.6%.
The fall in rural unemployment does not mean more jobs are being created. Instead, many people are leaving the workforce entirely. This means they are not even looking for jobs anymore. The Labour Force Participation Rate (LFPR) dropped by 40 basis points, and the Worker Population Ratio (WPR) dropped by 30 basis points to 38.7% in June. In rural areas, the WPR fell even more—by 50 basis points.
The NSO press release explained that some of the decline in LFPR could be because of unpaid helpers in rural areas, especially among women, moving towards unpaid domestic work. The data also showed a decrease in the share of rural women working in agriculture, from 70.2% in May to 69.8% in June. This may be linked to a fall in rural inflation, which reduced the need for women workers in farming.
Impact of AI on Jobs
While the job data gives us a short-term picture, we must also look at the long-term changes that technology like AI is bringing. AI is changing how industries work, how knowledge is gained, and how jobs are performed. Generative AI can write, solve problems, teach, and even create. This means many simple tasks that were done by humans can now be done by machines.
India produces more than 10 million graduates every year, including 1.5 million engineers. Yet, many of them remain unemployed or are working in jobs below their qualifications. With the rise of AI, many of the jobs they hoped to get may not even exist in the near future. The fear is that without proper planning, the gap between people who have good jobs and those who don’t will keep growing.
The risk is especially high in a country like India, where many still lack access to quality education and training. If people are not prepared for the new kind of jobs that AI will bring, they will be left behind.
What Needs to Be Done?
To protect jobs and prepare the workforce for the future, India needs a strong plan. The first step is to stop thinking only about job creation. AI does not just remove jobs, it changes them. A teacher can now use AI tools to create better lessons. A software developer can use AI to write code faster. But to use AI properly, workers need to learn how to work with these tools. This is where upskilling becomes important.
India must focus on teaching skills that machines cannot easily replace. This includes skills like data analysis, critical thinking, creative problem-solving, and emotional intelligence. Students must learn how to work with technology, not just use it.
This means changing how universities and colleges prepare students. Many institutions still train students for jobs that may soon be outdated. AI and digital tools must be included in all areas—science, commerce, engineering, and humanities. A biology student should understand how AI helps discover new medicines. A commerce student must learn how AI can improve marketing and customer service. A complete change in curriculum is needed.
India should also launch a National Mission on AI Readiness. This mission should not just focus on elite institutions but must also cover tier-2 and tier-3 cities, polytechnics, and ITIs. Everyone, regardless of location or background, should get access to AI-related training.
Universities and industries must work together. Employers must tell colleges what skills they are looking for. In return, colleges should train students in those areas. Regular changes must be made in course content based on industry needs.
We also need special AI centres to teach students, train teachers, and carry out research. Fellowships and funding for AI-related research must be made available. This will help in understanding the social and ethical effects of AI. All educational institutions should have a clear path to becoming AI-ready.
Startups working in the AI sector should get government help, through clear rules and financial support. Without strong action from the government and industry, AI could worsen job losses in sectors like manufacturing, agriculture, and services.
To deal with this, India must use AI smartly. For example, AI can improve farming by predicting weather or advising on best crop practices. In manufacturing, it can make work faster and safer. In services, it can help in fields like healthcare, logistics, and customer service. But for this to work, people must be trained to use the new machines and tools.
Insightful Take
India’s unemployment rate may look stable right now, but the real problem lies beneath the surface. Many people are simply giving up on looking for jobs. At the same time, AI is reshaping the job market in a way we have never seen before. Unless we act fast, a large section of our young population may not be ready for the jobs of the future.
India has always shown that when it focuses on a goal, it can succeed. The same needs to happen now. With proper planning, skill training, and cooperation between the government, schools, and industries, India can prepare its people for the AI era and protect jobs at the same time.
It is no longer just a matter of economics. It is about the kind of future we want for our society.
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