Beyond Unemployment: Rethinking Kerala’s Employment Ecosystem

Seventy Years of Kerala – What Should Our Next Achievement Be?

On 1 November 2026, Kerala marks the 70th anniversary of its formation. Since its formation in 1956, the State has experienced numerous challenges, transformations, achievements and setbacks. Through these seven decades, Kerala has established a distinctive identity through its social development, educational progress, healthcare achievements and human development indicators. The much-recognised Kerala Model of Development has attracted attention beyond the boundaries of the State and has demonstrated how investment in education, healthcare and social welfare can contribute to human development.

The people of Kerala have also made significant contributions beyond their homeland. Through migration to different parts of India and countries across the world, Malayalis have established themselves in diverse professional fields and contributed to the development of their adopted regions. Their achievements have brought recognition not only to Kerala but also to India. The State’s progress in literacy and education is another important achievement that reflects the value placed on human development.

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However, as Kerala celebrates seven decades of progress, it is equally important to recognise the challenges that remain unresolved. Despite educational advancement and a skilled population, many people continue to struggle to find suitable employment within the State. Young graduates invest years in education, often with considerable financial resources, but do not always find opportunities that match their qualifications, capabilities and expectations.

This raises an important question: if Kerala could develop a distinctive model in education, healthcare and social development, why should it not aspire to create a distinctive model in employment as well?

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The next stage of Kerala’s development should focus on building an employment ecosystem that offers meaningful work, fair remuneration, economic security and human well-being. Rather than treating employment merely as a way to reduce unemployment figures, Kerala should develop an approach that connects individual capabilities with emerging economic opportunities and ensures that people can build sustainable lives within the State.

The objective should not simply be to create more jobs, but to create better jobs. Kerala needs to identify the gaps in its existing employment system, explore new areas of economic opportunity and develop practical policy solutions. A successful Kerala Model of Employment should become another contribution to the State’s development and potentially offer useful lessons to other parts of India.

Understanding the Employment Challenge

Unemployment is not simply the absence of a job. It is also connected with underemployment, inadequate wages, the mismatch between education and employment opportunities, and the absence of secure and healthy working conditions.

The Kerala Economic Review 2025 reported approximately 22.98 lakh registered work seekers in the State as of 31 August 2025. This figure indicates the scale of registrations in the employment-exchange system. However, it should not be interpreted as the exact number of unemployed people, because registration does not necessarily establish a person’s present employment status or active job-search status.

The Periodic Labour Force Survey (PLFS) 2025 also provides an important indication of the challenge faced by young people. According to its usual-status estimates, the unemployment rate among persons aged 15–29 in Kerala was 18.2 per cent. The corresponding figures were 12.5 per cent for males and 29.8 per cent for females. These figures concern the specified age group and survey definition; they should not be treated as the unemployment rate for all educated people in Kerala.

These indicators raise important questions about the relationship between education, employment opportunities and the labour market.

Several factors deserve closer examination:

Mismatch Between Qualifications and Employment Opportunities

The Kerala Development Report 2026 provides insights into employment patterns, economic sectors and the changing structure of the labour market. It shows that the services sector contributed 64.7% of Kerala’s Gross State Domestic Product (GSDP) in 2023–24, while accounting for 48.5% of total employment. This difference raises questions about how economic growth translates into employment opportunities across different skill levels and educational backgrounds.

The Kerala Knowledge Economy Mission (KKEM) also reported, as of October 2025, more than 20.6 lakh registered job seekers, 8,239 employers and 33.7 lakh vacancies mobilised. These figures highlight the importance of effectively connecting job seekers with available employment opportunities. However, the figures alone do not establish whether the qualifications and skills of job seekers correspond to the requirements of employers. They nevertheless underline the need for stronger coordination between educational institutions, skill-development initiatives and the labour market.

Inadequate Remuneration

Salary levels may not adequately reflect an individual’s educational investment, cost of living and the responsibilities attached to a job. The Kerala Development Report 2026, drawing on Periodic Labour Force Survey (PLFS) data for April–June 2024, presents differences in average daily earnings among different categories of workers in Kerala.

Among regular wage employees, the average daily earnings were ₹800 for men and ₹666 for women across rural and urban areas. Among self-employed workers, the corresponding figures were ₹641 for men and ₹264 for women. The disparity was also evident among casual workers, whose average daily earnings were ₹903 for men and ₹469 for women.

These figures highlight considerable gender differences in earnings across different employment categories. Although average earnings do not establish whether individual workers receive less than the legally prescribed minimum wage, they raise important questions about income adequacy, economic security and equal remuneration. Employment should therefore be evaluated not merely by the availability of work, but also by whether the income earned enables individuals to meet their living expenses and maintain a reasonable standard of living.

Migration

People may migrate outside Kerala or India in search of better employment opportunities, higher remuneration and career development. International migration continues to play a significant role in Kerala’s employment landscape. According to the Kerala Migration Survey (KMS) 2023, the estimated number of emigrants from Kerala increased from 2,121,887 in 2018 to 2,154,275 in 2023, representing an increase of 32,388 emigrants (approximately 1.5%) (Rajan, 2024). Although the increase is relatively marginal, it indicates the continued importance of overseas employment in Kerala’s economy. Migration remains closely connected to employment opportunities, income security and livelihood aspirations. However, the persistence of international migration also raises important questions about the State’s ability to generate adequate, stable and meaningful employment opportunities within Kerala itself. Rather than viewing migration merely as an individual choice, it is important to examine the economic and structural conditions that influence people’s decisions to seek employment outside the State.

These developments highlight the need to examine migration alongside employment availability, remuneration and job security. Unemployment should not be treated as an isolated problem, but as part of a wider employment challenge.

Economic Security and Fair Remuneration

Employment should provide more than a monthly income. It should enable individuals to meet their essential expenses, manage rising living costs, save for the future and maintain a reasonable standard of living.

The Kerala Knowledge Economy Mission (KKEM), implemented by the Kerala Development and Innovation Strategic Council (K-DISC), is one of the State’s major initiatives to connect job seekers with employment opportunities through its Digital Workforce Management System (DWMS). According to the Kerala Development Report 2026, as of October 2025, the Mission had registered over 20.6 lakh job seekers and 8,239 employers and mobilised 33.7 lakh vacancies. The report further states that employment was facilitated for 6.7 lakh individuals, including 60,097 direct placements (Kerala State Planning Board, 2026). These figures need to be understood separately: vacancies mobilised indicate employment opportunities brought onto the platform, whereas employment facilitated and direct placements represent different employment-related outcomes. While the Mission demonstrates the State’s efforts to strengthen employment facilitation through digital platforms, the distinction between opportunities generated and actual placements remains important when assessing the effectiveness of employment programmes.

However, the existence of welfare institutions and protective measures does not automatically guarantee effective implementation or universal access. The Comptroller and Auditor General of India (CAG), in its Report No. 7 of 2024: Performance Audit on Welfare of Building and Other Construction Workers, identified shortcomings in worker registration, the administration of welfare benefits, monitoring and grievance redressal. The audit also found that only ₹1.69 crore was spent on workers’ welfare from the ₹10 crore corpus fund allocated to the Migrant Workers’ Welfare Fund during the period 2018–19 to 2022–23. These findings highlight the importance of effective implementation, regular monitoring and institutional accountability in ensuring that labour-welfare programmes translate into meaningful benefits for workers.

This raises an important policy question: should the success of employment policies be measured only by the number of people placed in jobs, or should it also take into account the quality, security and sustainability of those jobs?

A meaningful employment policy should consider several factors, including the adequacy of wages, timely payment, job security, social security coverage, reasonable working hours and opportunities for career progression. These factors are essential to ensuring that employment contributes to long-term economic stability and individual well-being.

Women’s Employment and Equal Opportunities

The PLFS 2025 figures show a substantial difference between male and female unemployment rates among Kerala’s 15–29 age group. The reported rates were 12.5 per cent for males and 29.8 per cent for females.

This difference deserves further investigation. It is important to examine not only whether women obtain employment, but also the barriers that may prevent them from entering or remaining in the workforce.

Workplace safety, transport facilities, childcare responsibilities, flexible working arrangements, equal remuneration and opportunities for career progression are important considerations.

Policies should ensure that women can participate in employment without having to compromise their safety, dignity or personal well-being.

Constitutional and Governance Perspectives

Employment and working conditions are also relevant to India’s constitutional vision of social and economic justice.

Article 14 guarantees equality before the law and equal protection of the laws. Article 16 provides for equality of opportunity in matters of public employment. Article 19(1)(g) protects the freedom to practise a profession or carry on an occupation, trade or business, subject to constitutional restrictions.

The Directive Principles of State Policy provide further guidance. Article 39(a) directs the State to ensure that citizens have adequate means of livelihood. Article 41 addresses the right to work, education and public assistance within the limits of the State’s economic capacity and development. Article 42 concerns just and humane conditions of work and maternity relief, while Article 43 addresses a living wage and conditions of work ensuring a decent standard of life. These provisions can be consulted in the Constitution of India.

These constitutional provisions provide a framework for understanding the State’s responsibilities towards livelihood, equality and humane working conditions. Article 41, in particular, is a Directive Principle and should not be misunderstood as an unconditional, directly enforceable right to an individual government job.

Government employment programmes and skill-development initiatives should also be evaluated through measurable outcomes. The number of people trained or registered is not sufficient to establish success. It is equally important to examine how many participants obtain employment, whether the employment matches their qualifications, what remuneration they receive and whether they remain employed.

Labour and Labour Welfare in Kerala: Existing Institutions and Their Role

The creation of employment opportunities must go hand in hand with the protection and welfare of workers. The Government of Kerala aims to improve productivity by creating job opportunities, developing skills, promoting gender equality, ensuring minimum-wage protection and providing health protection. These measures are intended to improve working conditions and promote the overall well-being of workers through wage protection and social security.

The Labour Department plays an important role in implementing labour welfare activities and promoting harmonious relationships between employers and employees. An important part of this institutional framework is the network of Labour Welfare Boards functioning across the State.

According to the Kerala State Planning Board’s Economic Review 2023, Kerala has 28 Labour Welfare Boards. Of these, 16 Welfare Fund Boards function under the Labour Department, while the remaining 12 operate under various other departments, including Agriculture and Industry.

The existence of these boards reflects the State’s institutional commitment to labour welfare. They provide an important foundation for addressing workers’ welfare and social security needs across different sectors.

However, the existence of welfare institutions alone does not establish whether every eligible worker receives adequate protection. It is equally important to examine the accessibility, coverage and effectiveness of these mechanisms. Questions concerning the number of beneficiaries, timely delivery of welfare benefits, awareness among workers, adequacy of financial assistance and coverage of workers in different sectors deserve further investigation.

A comprehensive Kerala Model of Employment should therefore connect employment generation with effective labour welfare. Creating jobs without ensuring fair wages, health protection and social security may increase employment numbers without necessarily improving workers’ lives.

The State should assess whether existing Labour Welfare Boards and related institutions are adequately equipped to respond to changing employment patterns, including contractual work, informal employment, platform-based work and emerging occupations.

The ultimate objective should be to ensure that every worker, irrespective of the sector in which they are employed, can access appropriate protection, dignity and a reasonable standard of living.

Creating a meaningful employment ecosystem requires more than announcing new schemes or setting employment targets. It requires practical implementation, coordination between government departments, educational institutions, employers and local authorities, along with regular evaluation of outcomes.

District-Level Employment Assessments

Employment planning should begin with a clear understanding of the employment conditions in each district. District-level employment assessments could be conducted annually through coordination between District Planning Offices, employment exchanges, local self-government institutions, educational institutions and industry representatives.

These assessments should identify the number of job seekers, their educational qualifications, existing skills, employment preferences and the sectors in which they seek opportunities. They should also examine the availability of local employment, wage levels, vacancies, underemployment and the reasons behind migration for work.

The findings could be published through district-level employment reports and accessible digital dashboards. Such assessments would help identify gaps between the skills available among job seekers and the requirements of local employers. Their effectiveness could be evaluated by examining whether they lead to better job matching, increased local employment, reduced waiting periods for job seekers and improved employment retention.

Paid Internships and Practical Training

Educational qualifications alone may not provide graduates with sufficient exposure to actual working environments. Therefore, government departments, public-sector institutions, local self-government bodies, research organisations and participating private employers could introduce structured paid internship programmes for graduates.

These internships should provide practical exposure in areas such as legal research, public administration, environmental management, local governance, social welfare, technology and other relevant sectors. Each internship should have a defined duration, reasonable stipend, assigned supervisor and clearly identified learning objectives.

Internships should not become a source of unpaid or inexpensive labour. Participants should receive fair compensation for their work, along with an opportunity to develop practical skills. The programmes could be evaluated through completion rates, skills acquired, participant feedback, subsequent employment and the proportion of interns who secure further employment or professional opportunities.

Strengthening Labour Welfare and Social Protection

Labour welfare should extend beyond the existence of welfare boards and the announcement of benefits. Workers must be able to access these protections without unnecessary administrative difficulties.

Local self-government institutions, labour offices and welfare boards could jointly organise periodic registration and awareness camps to help workers understand their eligibility, register with the appropriate welfare institutions and access available benefits. Particular attention should be given to unorganised workers, women workers, migrant workers, construction workers and people employed in informal occupations.

Grievance-redressal mechanisms should also be made accessible so that workers can report delayed wages, non-payment, unsafe working conditions and difficulties in obtaining welfare benefits. The effectiveness of these measures could be assessed through the number of workers registered, the proportion receiving eligible benefits, the time taken to resolve grievances and the extent of social security coverage.

Improving the Implementation of Existing Government Programmes

Kerala already has employment-related initiatives, including the Kerala Knowledge Economy Mission and various labour welfare programmes. Rather than measuring their success only through registrations, vacancies mobilised or the number of beneficiaries, their outcomes should be examined more comprehensively.

Evaluation should consider how many registered job seekers actually obtain employment, whether the jobs correspond to their qualifications and skills, the wages and working conditions offered, and whether the employment continues over time. Periodic assessments could also examine the participation of women, persons from economically weaker backgrounds and other groups facing barriers to employment.

Coordination between existing programmes, educational institutions, employers and local authorities could reduce duplication and improve the use of public resources. Most importantly, employment programmes should be evaluated on the basis of the quality, accessibility and sustainability of the opportunities they create.

A meaningful employment policy must therefore connect planning with implementation and implementation with measurable outcomes. The objective should not simply be to increase the number of people entering employment, but to ensure that employment provides fair remuneration, practical opportunities, social protection and long-term economic security.

Towards a Kerala Model of Employment: The Next Chapter of Kerala’s Development

Kerala’s journey over the past 70 years shows how much a society can achieve when people are placed at the centre of development. The State has made significant progress in education, healthcare and social welfare. These achievements provide a strong foundation for its future development. Now, Kerala has an opportunity to build on this progress by creating more meaningful and secure employment opportunities for its people.

Education gives individuals knowledge, skills and hopes for a better future. However, it is equally important to ensure that these efforts lead to suitable employment and financial independence. People should have opportunities to use their education and abilities, earn a fair income and build a secure life. Employment should also provide safe working conditions and allow individuals to maintain their health, dignity and well-being.

A Kerala Model of Employment should focus not only on creating more jobs but also on improving the quality of employment. This requires better connections between educational institutions and employment opportunities, practical training, paid internships, support for small businesses and local industries, fair wages and stronger social protection for workers.

Achieving these goals requires cooperation between government departments, educational institutions, employers, local self-government institutions and labour welfare organisations. District-level employment planning, regular assessment of local employment needs and transparent evaluation of government programmes can help make employment policies more effective. Their success should be measured not only by the number of jobs created or people placed but also by the quality, security and sustainability of those jobs.

Kerala has already demonstrated the importance of investing in education, healthcare and social welfare to improve people’s lives. Strengthening the employment ecosystem can be an important part of its next stage of development. By improving access to suitable employment, working conditions and economic security, the State can make its development process more inclusive and responsive to people’s needs.

As Kerala moves forward, a Kerala Model of Employment can provide a practical direction for connecting education with meaningful work, supporting local economic opportunities and improving the well-being of workers. This would build on the State’s existing achievements while addressing the changing employment needs of its people.

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Aswani S. Babu is a law graduate from the University of Delhi with experience in legal research and litigation support across civil, criminal, family, labour and motor accident matters.

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