Kerala jobs challenge is pushing the state to look beyond traditional industries and develop emerging sectors capable of generating employment. At the India Today Conclave – South 2026, Kerala State Planning Board Vice-Chairperson KM Chandrasekhar highlighted medical devices, artificial intelligence, space, aviation, tourism, sports and the creative economy as areas with significant employment potential.
Chandrasekhar said Kerala's unemployment rate stood at 29.8%, compared with 12.5% nationally, and outlined an ambitious target of reducing the state's rate by half over the next five years.
Emerging Sectors Could Drive Employment
According to Chandrasekhar, Kerala needs to diversify its economic base to create more opportunities for its workforce. Traditional industries alone may not be sufficient to address the state's employment challenge, making newer and higher-value sectors increasingly important.
Medical devices are already emerging as one such area. Kerala has around 110 units operating in the sector, while startups and small industries have also expanded their presence.
Artificial intelligence, space technology and aviation were also identified as areas where Kerala could develop new employment opportunities. These sectors require specialised skills and could create opportunities across technology, engineering, research and related services.
Tourism and Creative Economy in Focus
High-value tourism is another sector the state sees as having potential to generate employment. Rather than relying solely on conventional tourism models, Kerala is looking at opportunities that can generate greater economic value and support businesses across the wider tourism ecosystem.
Sports and the creative economy were also highlighted as potential sources of jobs, particularly as new businesses and services emerge around these industries.
Investment and Easier Business Setup
Chandrasekhar said Kerala has introduced initiatives such as the SERAL scheme and the Invest Kerala single-window approach to make it easier for businesses to establish operations in the state.
The broader objective is to attract investment while supporting startups and small industries that can contribute to employment generation.
However, addressing Kerala's jobs challenge will require sustained investment and coordination across different sectors of the economy. Chandrasekhar said reducing unemployment and building a stronger economy would take time and require a collective effort.
The state's focus on emerging industries therefore forms part of a broader strategy to expand employment opportunities beyond its traditional economic sectors.
Related: Invest Kerala
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