In a recent International Labour Organisation (ILO) report titled "India Employment Report 2024: Youth Employment, education and Skills," concerning findings have surfaced regarding the stark challenges facing India's young workforce.
The report paints a concerning picture of escalating unemployment, particularly among educated youths and women in urban areas, indicating a pressing need for comprehensive policy interventions, The Wire published report said.
Unemployment among India's youth has reached alarming levels, with the report revealing a predominant crisis among young people, especially those with secondary or higher education. In 2022, a staggering 82.9% of the total unemployed population consisted of youths, signifying a deepening issue over time. Of particular concern is the surge in unemployment rates among educated youths, which increased from 54.2% in 2000 to 65.7% in 2022.
Gender disparities exacerbate the situation, with women bearing a larger share of unemployment among educated youths, accounting for 76.7% compared to men's 62.2%. This discrepancy persists even among graduates, where female unemployment rates stand significantly higher at 34.5% compared to 26.4% for men with similar qualifications.
The quality of employment opportunities for youths remains concerning, with many engaging in self-employed unpaid family work and casual wage labour. Additionally, the informal sector continues to dominate the employment landscape, comprising nearly 82% of the workforce. Despite efforts to promote formal employment, the "informalisation" of the formal sector has accelerated, leading to declining job quality.
The report also sheds light on the declining labour force participation rate (LFPR) among youths, dropping from 54% in 2000 to 42% in 2022. This decline is particularly pronounced among youths aged 15-19, underscoring systemic challenges in engaging younger demographics in the workforce. Gender disparities persist, with young men exhibiting significantly higher LFPR at 61.2% compared to young women at a mere 21.7%.
While the share of high- and medium-skill jobs saw a modest increase between 2000 and 2019, there has been a concerning reversal in recent years. Low-skill jobs have surged, while high-skill opportunities have dwindled, indicating a mismatch between available skills and job demands. Moreover, the geographical distribution of employment highlights regional disparities, with Southern and Western regions outperforming their Eastern and Central counterparts.
The report identifies five overarching employment challenges facing India, including a "stunted" structural transformation characterized by declining employment intensity in the growth process. Additionally, the widening gap between low and high-skilled jobs, coupled with regional disparities and the rising proportion of educated but unemployed youths, poses significant hurdles to inclusive economic growth.
Looking ahead, the convergence of technology and climate change is expected to reshape the labour market landscape, presenting both opportunities and challenges. Artificial intelligence, in particular, is poised to revolutionize industries, but its widespread adoption may exacerbate existing inequalities if not managed effectively, the report said.