KOCHI: With nine in 10 of its young people either working, studying or undergoing training, Ernakulam has the lowest youth-not-in-employment-education-or-training, or NEET, rate among India’s 100 most populous districts.
The National Statistical Office (NSO), in its first district-level labour market estimates under the redesigned Periodic Labour Force Survey (PLFS), positions Ernakulam’s NEET rate for the 15-29 age group at 9.6%. Keralam as a whole reported a NEET rate of 21.5%, with Malappuram returning the highest value in the state at 32.2%.
Nationally, Coimbatore ranks next to Ernakulam at 14.5%, followed by Bengaluru Urban at 15%. Thrissur also figures among the top 10 districts with 17.8%, giving Keralam two entries in the list.
Across the country, 45.9% of districts have NEET rates between 20% and 30%, while 23.7% have rates above 30%.
Lekha Chakraborty of the National Institute of Public Finance and Policy attributes Ernakulam’s performance to high educational retention and a diversified economy.
“Keralam’s strong enrolment in professional, technical and paramedical courses around Kochi keeps many young people in education. The city’s port and logistics sector, IT industry, healthcare, tourism, retail and gig economy offer avenues for those entering the workforce,” she said. Lekha noted that education retention is the larger contributor, with better matching between education and employment preventing youth from slipping into NEET status.
The findings appear to challenge Keralam’s longstanding problem of educated unemployment, but Lekha pointed out that the two indicators measure distinct dimensions.
‘Goal to ensure young have fair pay, room to grow’
While educated unemployment counts graduates actively seeking work, NEET also captures those who have stopped looking, are waiting for suitable jobs, preparing for competitive exams or engaged in unpaid care work.
Moreover, a low NEET rate does not necessarily mean access to secure well-paid jobs. Those in low-paid or part-time employment are still counted as engaged, even if their qualifications are underutilised.
“Ernakulam’s low NEET indicates that most educated youth are either still enrolled or already employed, even if the employment is mismatched or part-time. What the indicator does not reveal is the quality of that employment. High rates of over-qualification, underemployment and precarious contracts can coexist with a low NEET rate. NEET is silent on the intensive margin of labour utilisation; it only records the extensive margin of non-participation,” Lekha said, cautioning against treating the 9.6% as evidence of a healthy youth labour market.
M P Jayesh, assistant professor and researcher in economics at Christ University, Bengaluru, believes Ernakulam’s performance suggests a stronger connection between young people and economic opportunities.
“While the numbers show that Ernakulam’s youth are jumping into the workforce, that’s only half the story. A low idle rate hides the reality that many young people — especially those with degrees — are stuck in low-paying, dead-end roles that don’t match their skills. The real goal isn’t just giving young people something to do; it’s making sure they have fair pay, room to grow, and work they can actually build a future on,” he said.
Experts have called for multi-year averages and comparisons with college enrolment and EPFO and ESIC data before drawing firm conclusions.