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Introduction
According to the India Employment Report 2024 by the International Labour Organisation (ILO) and the Institute of Human Development (IHD), India's youth face a severe unemployment crisis, with 83% of the jobless population being young people.
Rising Unemployment Among Educated Youth The proportion of educated youth (with at least secondary education) who are unemployed has nearly doubled from 35.2% in 2000 to 65.7% in 2022. Despite rising enrolment in higher education, quality concerns persist, particularly in poorer states and among marginalised groups.
Labour Market Dynamics
Youth employment and underemployment surged between 2000 and 2019 but declined during the COVID-19 pandemic.
The Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) witnessed a decline between 2000 and 2018, showing signs of improvement post-2019.
Real wages for regular workers and self-employed individuals showed a negative trend after 2019, with unskilled casual workers often not receiving minimum wages.
Regional Disparities Certain states, including Bihar, Uttar Pradesh, Odisha, Madhya Pradesh, Jharkhand, and Chhattisgarh, consistently rank lower in employment indicators, reflecting the influence of regional policies. Significant variations in employment outcomes exist across states, highlighting regional disparities in youth employment.
Challenges of Youth Employment India's demographic advantage, known as the "demographic dividend," is at risk as the youth population is projected to decrease from 27% in 2021 to 23% by 2036. The COVID-19 pandemic exacerbated challenges in the youth labour market, leading to poor-quality work, particularly in self-employment and unpaid family work.
Technological and Skill Deficits Technological advancements have impacted the demand for skills, with job insecurity remaining a concern. A significant portion of Indian youth lacks basic digital literacy skills, hindering their employability. For example, 90% of Indian youth are unable to put a mathematical formula into a spreadsheet, and 75% cannot send emails with attachments.
Gender Disparities and Social Inequalities The report highlights the widening gender gap in the labour market, with low rates of female labour force participation. Young women, especially those with higher education, face substantial challenges in securing employment. Social inequalities persist despite affirmative action, with Scheduled Castes and Scheduled Tribes facing barriers to accessing better job opportunities.
Conclusion on
India's youth unemployment crisis is a multifaceted issue, exacerbated by regional disparities, technological skill deficits, gender inequalities, and social hierarchies. Addressing these challenges requires comprehensive policy interventions to harness the potential of India's demographic dividend.
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