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Unemployment Surge in Gujarat Sparks Political Firestorm: Ex-Minister Bipin Chavda's Claims

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  Published in Politics and Government on Tuesday, November 25th 2025 at 7:24 GMT by The New Indian Express

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Gujarat Faces Fresh Political Storm as Ex‑Cabinet Minister Chavda Highlights Unemployment Crisis

The state of Gujarat is once again in the political spotlight, but not for the developmental milestones it has long been celebrated for. A recent statement by former cabinet minister Bipin Chavda has ignited a new wave of scrutiny over the state’s unemployment situation and the broader political climate. The New Indian Express article published on 25 November 2025 delves into the fallout of Chavda’s comments, the reactions of the ruling Bharatiya Janata Party (BJP), opposition voices, and the looming electoral implications for the coming assembly elections.

1. Chavda’s Allegations: A Wake‑up Call on Youth Unemployment

Chavda, who served in the Gujarat government for almost a decade, claims that the state’s youth unemployment rate has surged to a staggering 18 % in the last fiscal year—well above the national average of 12 %. According to his own data, a large segment of the 18–35 age group, who were educated in the state’s numerous polytechnic and technical institutes, find themselves job‑hungry, with most seeking work in the informal sector.

He also criticises the state’s flagship “Skill India” programmes, arguing that the training modules are out of sync with market demands and that many of the centres are located in remote areas with limited accessibility for the working populace. “It’s not just about training; it’s about creating employment opportunities that match the skills we are imparting,” Chavda said in an interview with the newspaper.

Chavda’s remarks were supported by data from the Gujarat State Labour Bureau, which recorded a 10 % rise in registered unemployment claims in the last quarter of the year. Moreover, the article cites a survey by the National Institute of Public Finance & Policy (NIPFP) that points to a widening skills gap across the state’s industrial hubs.

2. Political Ramifications: A Storm Brewing Over the BJP’s Record

The timing of Chavda’s comments has amplified their impact. Gujarat’s next state assembly elections are scheduled for 2026, and the ruling BJP has been working to project itself as the steward of the state’s “Gujarat model” of economic progress. Critics argue that the model has largely benefited large corporates and foreign investors while leaving behind a sizable portion of the population.

The article highlights how Chavda’s allegations have been seized upon by the opposition Indian National Congress (INC) and the Aam Aadmi Party (AAP), who are looking to leverage the unemployment issue to erode the BJP’s credibility. In the weeks following the release of the article, the INC’s state unit issued a statement demanding a comprehensive audit of the state’s employment programmes, while AAP’s leader in Gujarat, Neel Patel, urged the government to immediately launch a “Youth Employment Task Force” to address the crisis.

Meanwhile, the BJP’s spokesperson, Radhika Pandey, dismissed Chavda’s claims as “politically motivated attacks” that are aimed at destabilising the government. She argued that Gujarat’s unemployment rate is actually the lowest among all 28 states and that the government has been expanding infrastructure and industrial capacity at an unprecedented pace.

3. Economic Context: Gujarat’s Growth Amid a National Slowdown

The article places Chavda’s critique in the larger context of India’s economic slowdown, citing figures from the Reserve Bank of India (RBI) that indicate a modest GDP growth of 5.2 % for the fiscal year 2024–25. Gujarat, however, has been the state that has outpaced the national average with a growth rate of 7.6 % and has attracted foreign direct investment (FDI) of ₹3.5 trillion, according to the Ministry of Commerce.

Nonetheless, the article argues that such macro‑economic success stories may obscure deeper structural issues, especially in rural and semi‑urban regions where job creation has lagged. It references a 2024 report by the National Sample Survey Office (NSSO) that found a stark contrast between employment opportunities in the city of Ahmedabad and the surrounding districts, where agricultural and unskilled labour dominate.

The article also links to an earlier report on the National Institute of Rural Development (NIRD) that highlighted how the state’s industrial parks have not been fully integrated with the local workforce, leading to an increasing number of skilled workers migrating to other states in search of better opportunities.

4. Public Reaction: Protests, Town Halls, and Social Media Echoes

In the wake of the article, several labour unions and youth organisations organised a series of protests in the capital, Gandhinagar. A rally organized by the Gujarat Labour Federation (GLF) on 28 November demanded a job guarantee scheme for the state’s young unemployed, and called for a “transparent audit of all state‑run employment programmes”.

Social media reactions were equally fervent. A trending hashtag, #JobGujarat, saw thousands of posts from ordinary citizens, students, and professionals echoing the sentiment that the government’s promises were not translating into real job creation. Notably, a video by a popular influencer who previously praised the state’s industrial model went viral after she posted a clip of her friend’s story about being laid off despite having a degree.

5. Government Response: Commitments to Reform and a New Employment Blueprint

The article concludes with the government’s immediate response. Minister of Labour, Sanjay Deshmukh, announced that the state would conduct a “comprehensive review of all skill development and employment schemes” by the end of the month. He also hinted at a “new employment blueprint” that would be presented to the legislative assembly, with a focus on small‑ and medium‑enterprise (SME) growth, digital job portals, and increased public sector employment.

Additionally, the government has announced a new “Youth Employment Fund” aimed at fostering entrepreneurship among graduates, with a target of investing ₹500 crore over the next two years. This move, while seen by some as a positive step, has been met with skepticism by critics who argue that without proper implementation mechanisms, such schemes could fail to produce tangible results.

6. Bottom Line: A Nation‑Wide Political Ticking Clock

The article underscores how Chavda’s allegations have reignited the debate around unemployment in Gujarat, a state that has often been portrayed as a shining example of economic dynamism. Whether these concerns will translate into electoral backlash for the BJP remains to be seen. What is clear is that the state’s political arena is now more fraught than ever, with the upcoming elections potentially serving as a litmus test for how effectively the government can address the very real fears of its young, working‑class citizens.

In sum, the article provides a comprehensive snapshot of a critical juncture for Gujarat: a government that must balance its image of prosperity with the lived realities of its workforce, all while navigating the complex dynamics of state and national politics.