According to the Karnataka State Handbook on Youth Opportunity released by the Future of India Foundation, around 23 per cent of Karnataka's youth fall into this category, even as the state's unemployment rate has declined to 8.6 per cent.
The report highlights that economic growth has not created equal opportunities across Karnataka. With employment and industries heavily concentrated around Bengaluru, young people from several districts are increasingly moving towards the capital city in search of jobs, increasing pressure on urban infrastructure and housing.
The study states that around 42 per cent of Karnataka's youth are currently part of the workforce, while another 35 per cent are pursuing education or training. Among employed youth, 44 per cent are engaged in regular salaried employment.
Using 180 indicators from 27 government databases, the report assessed districts across five key parameters: education, skill development, employment opportunities, quality of work and workforce participation.
The findings reveal a major regional gap. Bengaluru Urban ranked first with a YouthPOWER score of 65, while Yadgir, one of Karnataka's least developed districts, recorded a score of 42. Karnataka's overall score stood at 48.5, slightly below the national average of 50.
However, the report noted significant improvement in youth participation in the labour force over recent years. The participation rate increased from 40 per cent in 2017-18 to 45.6 per cent in 2025. During the same period, unemployment declined from 15.8 per cent to 8.6 per cent, real monthly wages increased by around 23 per cent, and the proportion of young people receiving vocational or technical training rose from 6.5 per cent to 28.5 per cent.
Despite these improvements, the report stated that benefits remain unevenly distributed across the state.
Kartik Narayan, Chief Executive Officer of Apna.co, said the challenge is not limited to skill availability but also involves access to opportunities. He said employment opportunities should reach people in their own regions instead of requiring workers to relocate, adding that concentration of jobs in one location limits access based on mobility rather than talent.
Narayan said the 23 per cent of Karnataka's youth who are outside education, employment and training should not automatically be considered unskilled or unwilling to work. He pointed out that limited mobility remains a major barrier, particularly for women in several districts. According to him, when women in 20 districts cannot independently travel to markets, mobility restrictions directly affect workforce participation.
The report also highlighted persistent gender challenges within Karnataka's workforce. Despite the Shakti scheme providing free bus travel for women, women in 20 of the state's 31 districts continue to face restrictions on travelling alone to markets, healthcare centres or outside their communities.
In nearly 12 districts, most women have limited participation in household decisions affecting their lives. The report stated that graduate unemployment among women stands at 24 per cent, while only one in four young women participates in the workforce. Only one-third of young women are able to independently travel to nearby markets or healthcare facilities.
The report also raised concerns regarding skill development infrastructure. Although Karnataka has one of India's largest networks of Industrial Training Institutes, many students leave without obtaining the certification they enrolled for. Such cases have been reported in Bagalkot, Bidar, Chikkamagaluru, Davangere, Kalaburagi, Kodagu, Raichur, Vijayanagar and Vijayapura.
Around half of trainer positions in Industrial Training Institutes remain vacant, while only one in four registered enterprises provides apprenticeship opportunities.
The study further examined lending patterns across districts. While most districts direct bank credit towards agriculture, industry and businesses capable of generating employment, Mysuru and Udupi record a higher share of personal loans. The report suggested that this trend may restrict capital flow towards businesses that can create local employment opportunities.
To address these challenges, the Future of India Foundation recommended strengthening local employment opportunities, improving skill development systems, encouraging entrepreneurship and making youth development a priority in district-level governance.
Ruchi Gupta, Executive Director of the Future of India Foundation, said the YouthPOWER scorecard provides elected representatives, administrators and citizens with a non-partisan framework to address youth-related concerns.
The report underlines that Karnataka's economic progress has not reached all sections of its young population equally, highlighting the need for balanced regional development, improved access to employment and stronger support systems for youth across the state.
About The Author
Comment List