The Dynamics of Employment, Workforce and Sectoral Transformation in Kerala: A Scrutiny of Paradoxes and Prospects

Author(s)	Mr. Joji Jacob, Dr. Preemy P Thachil
Country	India
Abstract	Kerala embodies a contradiction characterised by high human development indicators with high unemployment, especially among the women and educated youth. This paper probes the dynamics of this distinct labour market. It investigates the transition of the state, which has bypassed an industrial vigour to become a service-led economy. The present study seeks to examine the employment-unemployment trends in relation to national averages, the structure of the workforce (formal vs. informal), and sectoral reallocation of the workforce by using data primarily from the Periodic Labour Force Survey (PLFS) and Kerala Economic Reviews. The analysis reveals a structural detach between the educated labour supply and the demands of the job market, intensified by high wage expectations and skill mismatches. The research work postulates that this paradox is not merely a deficiency in employment. The paper provides various policy suggestions focused on restructuring of industries, revising curriculum, formalising MSMEs, and addressing gender-specific barriers to foster inclusive and sustainable employment.
Keywords	Kerala, Unemployment, Labour Market, Workforce, Service Sector, Skill Mismatch
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-31
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.59264

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