The islands report a literacy rate of 86.9 percent, and more students than ever are graduating from colleges and universities. Yet, the labour market has failed to keep pace with this demographic shift.
The Andaman and Nicobar Islands are facing a growing unemployment crisis, with official data showing that one in every three graduates in the territory is jobless. The 2023-24 Periodic Labour Force Survey (PLFS) puts the graduate unemployment rate at 33.4 percent, more than two and a half times the national average of 13 percent. The islands’ youth are especially affected: among individuals aged 15 to 29, unemployment stands at 36.2 percent, one of the highest in the country.
This sharp rise in joblessness is occurring against the backdrop of high educational attainment. The islands report a literacy rate of 86.9 percent, and more students than ever are graduating from colleges and universities. Yet, the labour market has failed to keep pace with this demographic shift. Higher secondary passouts face an unemployment rate of 18.6 percent, while even postgraduates are seeing a jobless rate of 13.4 percent. In stark contrast, the unemployment rate among the non-literate population is just 2.6 percent.
Urban areas have been hit particularly hard. The unemployment rate in urban parts of the islands is 14.2 percent, compared to 9.1 percent in rural regions. Sri Vijaya Puram, the administrative and commercial hub, exemplifies the urban-rural divide. The city’s heavy reliance on seasonal tourism, public sector employment, and a narrow services sector has left its youth vulnerable to economic volatility and underemployment.
The gender gap in employment outcomes is even more striking. According to the PLFS, the unemployment rate for women in the islands has soared to 49.5 percent, compared to 24 percent for men. This figure points to structural challenges faced by women entering or remaining in the workforce, ranging from limited childcare and transport infrastructure to a lack of flexible employment models.
Migration, Mismatch, and Missed Opportunities
The problem is not new. Between 2018 and 2023, graduate unemployment in the islands rose steadily from 27 percent to 33.4 percent. For those with secondary education, the jobless rate jumped from 7.6 percent in 2022-23 to 12.2 percent in 2023-24. The overall unemployment rate rose from 9.7 percent to 11.8 percent in just one year.
Despite the rising trend, the islands have seen little change in economic structure or employment generation strategies. The formal economy remains dominated by the public sector, which currently employs nearly 70 percent of the territory’s workforce. However, with few new vacancies and a freeze on large-scale recruitment in recent years, this pipeline has dried up for new entrants. The private sector remains weak, with minimal presence in manufacturing, IT, financial services, or renewable energy.
As a result, many young islanders are leaving the territory in search of jobs. Migration to mainland cities such as Chennai, Bengaluru, and Kolkata has increased, driven by better employment prospects and a broader range of career options. This steady outflow has created a worrying brain drain, weakening the islands’ local talent pool and slowing the pace of innovation.
The current economic model offers few alternatives. Tourism, a traditional growth sector, remains seasonal and vulnerable to external shocks, including climate-related disruptions and geopolitical volatility. Rural areas continue to depend on fishing, subsistence agriculture, and handicrafts, sectors with limited wage growth or career mobility.
The islands also suffer from a persistent mismatch between educational qualifications and available job opportunities. While the number of graduates has risen, there has been no corresponding expansion of sectors capable of employing them. Most existing jobs remain low-skill or administrative in nature, with little demand for specialized training or professional degrees.
So far, there has been no comprehensive employment policy or economic roadmap announced by the administration to address the crisis. Experts have previously pointed to the need for job-linked skills in sectors such as eco-tourism, fisheries, marine conservation, and IT-enabled services. Others have called for targeted infrastructure investments, especially in internet connectivity and transport, to break the islands’ geographic isolation and attract private-sector participation.
Gender-inclusive reforms are also seen as essential. Measures such as safe and affordable transport, workplace safety, and childcare support have been cited in multiple national employment studies as key enablers of higher female workforce participation.
Looking ahead, the islands’ ecological sensitivity rules out heavy industry or high-pollution infrastructure. However, this very limitation presents opportunities to lead in green sectors, such as sustainable tourism, renewable energy, climate adaptation, and marine research. These areas could generate employment that aligns with both environmental and economic goals.
The challenge now is to shift from reactive measures to a proactive employment strategy. Without structural reforms and cross-sectoral collaboration, the current data trends suggest that joblessness will continue to rise, and with it, migration, disillusionment, and inequality.
The islands’ young, educated population represents a critical resource. Without timely intervention, the Andaman and Nicobar Islands risk losing not just jobs, but an entire generation of skilled human capital that could have shaped the region’s future.
