“Young educated Indians more prone to joblessness.”
In India, the International Labour Organization reveals that highly educated youth face higher unemployment rates compared to those with no schooling. Graduates experience a 29.1% jobless rate, nearly nine times the 3.4% rate for illiterate individuals, as per a recent ILO report on India’s labor market. Additionally, those with secondary or higher education have a 18.4% unemployment rate, six times greater than those without formal education, painting a complex picture of youth employment challenges.
The International Labour Organization (ILO) points out that in India, unemployment primarily affects young individuals, particularly those with a secondary level of education or higher. This issue has intensified over time, as indicated by the statistics.
The data reveals a stark disparity between the skills possessed by the labor force and the available job opportunities in the market. This mismatch highlights a significant challenge within India’s economic landscape, raising concerns about the efficiency of its labor market dynamics.
Eminent economists, including former central bank Governor Raghuram Rajan, have long warned about the repercussions of India’s inadequate education system on its economic future. Rajan and others emphasize that the country’s poor schooling infrastructure could impede its long-term economic growth prospects. This insight underscores the urgent need for reforms in the education sector to bridge the gap between the skills acquired by the youth and the demands of the evolving job market.
As India strives to enhance its economic competitiveness and provide meaningful employment opportunities for its growing youth population, addressing the mismatch between education and employment becomes paramount. The ILO’s findings serve as a wake-up call, urging policymakers and stakeholders to prioritize education reforms and skill development initiatives to unlock the full potential of India’s workforce.
The International Labour Organization (ILO) highlights that youth unemployment rates in India have surpassed global levels. The Indian economy struggles to generate sufficient well-paying jobs in non-farm sectors for the increasing number of educated young workers entering the labor force. This challenge is reflected in the persistently high and rising unemployment rates among this demographic.
Comparatively, in China, the jobless rate for individuals aged 16-24 surged to 15.3% during the initial two months of the year. This rate stands approximately three times higher than the 5.3% unemployment rate among the urban population.
Despite a slight decrease in the percentage of unemployed young Indians aged 15-29 from 88.6% in 2000 to 82.9% in 2022, there is a concerning trend regarding educated youth. The share of unemployed individuals with a secondary level of education or higher has increased substantially, climbing from 54.2% to 65.7% over the same period, according to the ILO data.
These figures underscore the significant challenges faced by India’s educated youth in securing meaningful employment opportunities. The gap between the skills acquired through education and the demands of the job market remains a persistent issue. Policymakers and stakeholders are urged to focus on enhancing the employability of the youth through targeted skill development programs and reforms in the education sector. Addressing these challenges is crucial to ensure that India’s growing young workforce can contribute effectively to the country’s economic growth and development.
Women face a disproportionate impact of unemployment, particularly among educated youth in India, where they accounted for 76.7% of the educated unemployed youth, compared to 62.2% for men, as per the latest figures. This disparity is compounded by higher joblessness rates in urban areas compared to rural regions.
India grapples with one of the lowest female labor force participation rates globally, hovering around 25%, according to the ILO. However, there was a slight improvement during the pandemic, attributed to a “significant increase” in subsistence employment opportunities for women.
The ILO report also sounds an alarm regarding the proliferation of gig jobs, characterized by temporary and often low-paying positions such as food delivery drivers. The advent of digital platforms has blurred the lines between traditional employment models, with workers increasingly finding themselves in ambiguous employment statuses.
The rise of gig jobs poses new challenges for worker well-being and working conditions. The gig economy’s structure, which often lacks the protections and benefits associated with formal employment, leaves workers vulnerable to exploitation and uncertainty.
For women, the challenges are often compounded by existing social and cultural barriers. Gender norms and societal expectations often limit women’s access to education and employment opportunities, exacerbating the gender gap in the labor market.
The ILO’s findings shed light on the multifaceted nature of India’s unemployment crisis, particularly among its educated youth and female workforce. Addressing these challenges requires a comprehensive approach that focuses on improving education quality, enhancing skill development programs, and creating an enabling environment for women’s participation in the workforce.
Policymakers must prioritize measures to bridge the gender gap in employment, including promoting gender-sensitive policies, providing childcare support, and addressing workplace discrimination. Efforts to formalize the gig economy and extend labor protections to gig workers are also essential to ensure fair working conditions and decent wages.
Furthermore, investments in sectors with high potential for job creation, such as healthcare, education, and renewable energy, can help alleviate unemployment pressures while fostering inclusive and sustainable economic growth.
As India navigates the complexities of its evolving labor market, concerted efforts from government, businesses, and civil society are crucial to create a more equitable, inclusive, and resilient workforce for the future. The challenges highlighted by the ILO report serve as a call to action for stakeholders to collaborate on solutions that empower all segments of the population to participate fully in India’s economic progress.