Nagaland, one of India’s most literate states, is grappling with a troubling paradox. Despite its impressive literacy rate of 95.7%, the state continues to struggle with high unemployment, particularly among its youth.
The northeastern state ranked third in India in terms of literacy, surpassing even traditionally high-ranking Kerala (95.3%) and trailing only behind Mizoram (98.2%) and Lakshadweep (97.3%), according to the latest national figures. While this achievement may reflect the success of educational initiatives and access, it sits uneasily alongside the rising tide of unemployment.
“Nagaland has one of the highest literacy rates in the country and the irony is that we have one of the lowest unemployed rates,” Nagaland government spokesperson and cabinet minister KG Kenye recently said when hundreds protested against the “illegal” appointment of assistant professors and librarians in the higher education department.
The minister noted that unemployment remains one of the most challenging issues facing the state.
The Periodic Labour Force Survey (PLFS) 2023-24 paints a stark picture. The unemployment rate in Nagaland, calculated under the “usual status” for individuals aged 15-59, stands at 7.8%, which is more than double the national average of 3.5%.
The PLFS, launched by the National Statistics Office (NSO), is a crucial tool for understanding the Indian labour market. It provides data on key employment and unemployment indicators at more frequent intervals compared to previous surveys.
Literacy and Unemployment Rates in Nagaland and India
| Metric | Nagaland | National Average (India) |
| Literacy Rate | 95.7% | Not specified |
| Unemployment Rate (15-59) | 7.8% | 3.5% |
As per the 2011 Census, 60.41% of Nagaland’s population falls within the working-age bracket of 15–59 years. Among them, youths aged 15–29 comprise 30.88% of the population, as defined by the National Youth Policy 2014.
This demographic should ideally represent a thriving workforce ready to contribute to the state’s economy. Instead, a large portion remains either unemployed or underemployed, reflecting a shortage of suitable job opportunities and structural challenges in the labour market.
The report also revealed that Nagaland has a high dependency ratio of 63.8%, indicating a significant proportion of the population is not part of the workforce.
According to the Nagaland Economic Survey 2024–25, a matter of concern is the Worker Population Ratio (WPR) in the age group of 15-29 years, where out of the total Labour Force Participation Rate (LFPR), only 36.5% are employed.
The report revealed that the number of unemployed individuals officially registered with the Employment Exchange under the Directorate of Skill Development & Entrepreneurship stood at 70,920 as of 31 March 2024.
Although the number of registered unemployed youth has declined slightly—recorded at 70,934 in December 2023 and 73,230 in November 2022—the reduction averages only about 1.5% annually, indicating a slow pace of progress in job creation or placement.
Registered Unemployment in Nagaland
| Date | Number of Unemployed Individuals Registered |
| November 2022 | 73,230 |
| December 2023 | 70,934 |
| March 2024 | 70,920 |
However, analysts have pointed out that Nagaland’s high unemployment rate may not stem solely from a lack of jobs, but from structural issues within the system that inadvertently “incentivise” joblessness over self-employment. One of the most pressing concerns is the demand for official unemployment certificates, which have become a highly sought-after document, an analyst shared.
Another critic argued that the policy requiring applicants to produce unemployment certificates while applying for government jobs needs urgent review.
Analysts suggest that the employment crisis is less about the number of job seekers and more about the lack of alignment between the educational outputs and the labour market’s demands. Many graduates, though educated, find themselves ill-equipped for the types of jobs that are available or unable to access opportunities due to geographic, infrastructural, or systemic limitations.
The situation is further exacerbated by a lack of private sector growth, limited industrial presence, and a dependence on government jobs—positions that are increasingly scarce and highly competitive.
A final-year student pursuing Sociology Honours at a government college shared his perspective on the unemployment crisis. He noted that while job opportunities do exist, many graduates are reluctant to take up what are considered “small jobs” immediately after completing their studies.
Employment Categories in Nagaland (2023-24)
| Employment Category | Percentage |
| Self-Employed | 66.3% |
| Regular Wages/Salaries | 28.2% |
| Casual Labour | 5.5% |
“Many of us want to earn big from the start and that is where we may go wrong. But still, even I am thinking of giving competitive exams a try first, and only consider coaching. Our educational background does not prepare us to compete with those who have been rigorously preparing,” he said.
He admitted that he had never seriously considered appearing for competitive examinations until recently. “I’ve come to realise that without attempting competitive exams, there are very few options in the government sector where there is a sense of job security,” the student shared.
Interestingly, the latest Nagaland Economic Survey revealed that over the past three years—2021-22, 2022-23, and 2023-24—the majority of employed individuals in the state fall under the “self-employed” category. This segment consistently accounted for the largest share of employment, followed by those in “regular wages/salaries” and “casual labour” categories.
In 2023-24, the percentage of self-employed individuals stood at 66.3%, a slight dip from 67% in 2022-23, but an increase compared to 63.5% in 2021-22.
Official data indicated that as of 2025, the Nagaland Startup Portal hosted 334 startups, including 188 registered startups and 88 women-led startups, generating approximately ₹50 crore in revenue.
The data also revealed that in 2024-25, the total number of factories registered in Nagaland increased to 1,110, up from 1,067 in 2023-24. Similarly, the total number of employees grew from 12,467 in 2023-24 to 12,951 in 2024-25.
Dimapur district recorded the highest number of registered factories in the state, with 510 factories, while Zunheboto had the least registered factories, with only one. In terms of employment, Chümoukedima had the highest number of employees, with 1,196, while Kiphire had the least, with only 25 employees.
Despite progress in self-employment and entrepreneurship, Nagaland still faces a major gap between education and job opportunities. With a large youth population and high literacy rate, the state stands at a crossroad.
Also Read: Shattered dreams: In Arunachal, a film institute begins with student discontent
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