India is grappling with a persistent challenge, soaring youth unemployment rates coupled with poor employment conditions. Despite improvements in overall labour force participation, workforce engagement, and employment rates, the quality of jobs remains a pressing concern, as highlighted by recent reports from the Institute for Human Development (IHD) and the International Labour Organisation (ILO).
Rising Unemployment Among Educated Youth
The 'India Employment Report 2024,' jointly released by ILO and IHD, highlights that approximately 83 per cent of India's unemployed workforce comprises youth.
Notably, the proportion of educated young people among the total unemployed youth has nearly doubled, rising rapidly from 35.2 per cent in 2000 to 65.7 per cent in 2022, as highlighted by the report. High dropout rates post-secondary education, especially in economically disadvantaged regions, contribute significantly to the growing ranks of unemployed educated youth.
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The report highlighted a significant variations in employment outcomes across states, with certain states consistently ranking lower in employment indicators. States such as Bihar, Uttar Pradesh, Odisha, Madhya Pradesh, Jharkhand, and Chhattisgarh have faced challenges with poor employment outcomes over the years.
Challenges in Labour Market
While there has been a slight improvement in labour participation rates post-2019, experts caution against hasty interpretations, citing complexities in the driving factors.
Stagnant or declining wages, especially for regular workers and the self-employed, pose significant challenges to economic prosperity. The predominance of informal employment, accounting for nearly 90 per cent of the workforce, worsens livelihood insecurities, with only a fraction covered by social protection measures.
Gender Disparities
Women, particularly those with higher education, face disproportionate challenges in securing employment, with low rates of labour force participation among young women.
The report highlighted a significant skill deficit among the youth, which hindered their employability, with basic digital literacy skills notably lacking among a substantial portion of the population.
Policy interventions are crucial to address the youth employment crisis, focusing on promoting job creation, improving employment quality, and addressing labour market inequalities. Strengthening skills development programs and active labour market policies is essential to bridge the gap between job demand and supply.
Regional disparities in employment outcomes highlight the need for targeted interventions in states with poor employment indicators, emphasizing the importance of inclusive urban policies to address the needs of migrants and marginalized youth.
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