Unemployment remains one of Bihar’s most urgent and persistent challenges, shaping its political landscape and deeply affecting its people’s lives. But here’s where it gets controversial: despite official numbers suggesting a relatively moderate unemployment rate, the deeper reality tells a far more troubling story. And this is the part most people miss — understanding Bihar’s employment crisis requires looking beyond surface statistics to grasp why so many remain jobless or discouraged from seeking work.
In recent years, unemployment has consistently ranked as a top voter concern in Bihar’s state elections. For instance, surveys after the 2015 Assembly polls by Lokniti-CSDS found that about 9.1% of voters identified jobs and unemployment as their chief issue. By the 2020 elections, that figure more than doubled to nearly 21%, making it the second highest priority among voters. With few signs of improvement, this topic is almost certain to remain front and center in upcoming elections.
To truly understand the state of employment in Bihar, relying solely on headline unemployment rates can be misleading. Official data from the Periodic Labour Force Survey (PLFS) offers the latest insights: the quarterly report from April to June 2025 and the annual report covering July 2023 to June 2024. These provide valuable but nuanced information.
For example, Bihar’s unemployment rate was reported at 5.2% for the April-June 2025 quarter and 3% in the annual figures. On the surface, this compares favorably against the national unemployment rate of 5.4% quarterly and 3.2% annually for ages 15 and above. However, these numbers alone do not paint the full picture. To get a clearer sense, it’s important to consider three interconnected indicators the PLFS tracks: the Worker Population Ratio (WPR), which shows the portion of the population that is employed; the Labour Force Participation Rate (LFPR), indicating how many people are either working or actively searching for work; and the Unemployment Rate (UR), representing those looking for jobs but unable to find one.
When we focus only on the unemployment rate, we miss a critical factor: many people aren’t counted as unemployed because they aren’t even looking for work. This is evident in Bihar’s low WPR (46.2% quarterly, 51.6% annually) and LFPR (also low), compared to national averages of approximately 52% and 58.2%, respectively. Simply put, a large portion of Bihar’s working-age population isn’t working, and even more have stopped seeking jobs altogether. Economists call this the "Discouraged Worker Effect," where people abandon their job hunt out of hopelessness, causing the unemployment rate to appear deceptively low.
How does Bihar fare against similar states? To make a fair comparison, Bihar is matched with nine other large states that have populations above 30 million and per capita incomes below the national average. These include Assam, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal.
This comparison reveals shocking disparities. Bihar consistently ranks lowest for both WPR and LFPR, with Uttar Pradesh not far ahead. The situation is even more severe among youth aged 15 to 29, where only about 28% have jobs — the lowest among these states. This bleak outlook for young adults, who should be entering the workforce and building their futures, highlights a systemic failure to create opportunities.
While quarterly data may be skewed by seasonal employment trends, the annual PLFS figures—based on longer-term "Usual Status" measures—reinforce these concerns. Bihar’s WPR is 51.6%, and LFPR is 53.2%, with only Bihar and Uttar Pradesh dipping below 60%. For women, the crisis is even starker: just 30.1% of women over age 15 are employed. Among young women aged 15 to 29, Bihar’s work participation rate is 31.2%, vastly trailing Jharkhand’s 49.3%.
Beyond numbers, the quality of employment remains a pressing issue. Only 8.7% of Bihar’s workforce holds regular wage or salaried jobs—the lowest in the comparable states, and remarkably the only state in India with a single-digit percentage here. Meanwhile, nearly 24% survive as casual laborers, indicating precarious and insecure work, a problem second only to Odisha. Such employment trends undermine the narrative often promoted by the ruling National Democratic Alliance, which claims success in formalizing the economy.
Another layer complicates Bihar’s employment data: migration. The PLFS focuses on residents during the survey period, so many who leave Bihar in search of work elsewhere are not counted, perhaps masking an even greater employment crisis.
This dire situation cannot be separated from Bihar’s governance challenges. Under Chief Minister Nitish Kumar’s nearly two-decade rule, investments in education and skill development have been inadequate. The PLFS reports Bihar’s literacy rate at just 73.2% for people aged 5 and above, significantly lagging behind the national average. Without substantial improvements in education and workforce skills, hopes for meaningful job creation remain slim.
Despite promises made at investment summits and political maneuvering, Bihar has seen little progress in industrial growth, education, or formal job creation. Political alliances have shifted, but tangible improvements on the ground have been scarce. The State’s chronic underperformance in critical areas risks deepening cycles of poverty, migration, and economic stagnation.
In conclusion, Bihar’s employment crisis is not a matter of perception but a reality grounded in robust data. The PLFS consistently shows Bihar trailing in every key labor market metric. The failure to address these structural challenges, even after years of leadership, threatens to spiral into a major social issue as the young population struggles for livelihoods.
What Bihar desperately needs is a comprehensive strategy that revitalizes its education system, generates formal employment, and curbs the tide of outward migration. Without such focused intervention, the State’s cycle of underdevelopment will likely continue, impacting generations to come.
And here’s a question for readers: Is Bihar’s persistent employment crisis a failure of governance alone, or are there deeper systemic factors at play? What solutions do you think could turn things around? Let’s discuss in the comments.
Jignesh Mevani is a Member of the Legislative Assembly in Gujarat and Convener at the Rashtriya Dalit Adhikar Manch.
