- The “India Employment Report 2024: Youth education, employment and skills,” a comprehensive analysis jointly published by the International Labour Organization (ILO) and the Institute of Human Development (IHD), reveals that 83% of the unemployed workforce in India comprises its youth. This significant statistic underscores the challenges and nuances of youth employment trends in India.
- Key Findings:
- Educational Impact: The proportion of educated youth among the unemployed has risen dramatically from 35.2% in 2000 to 65.7% in 2022.
- Labor Market Trends:
- Labor Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) showed a decline from 2000 to 2018 but improved post-2019.
- Shifts were noted with an increase in agricultural employment and a decrease in non-farm jobs, especially in manufacturing, while construction and services sectors saw growth.
- Employment Types:
- A significant rise in self-employment post-2019.
- The informal sector dominates, encompassing about 90% of workers.
- Skill Gaps: Large segments of youth lack basic digital and mathematical skills, impacting employability.
- Urbanization and Migration: Projected increase in urban population due to high migration rates, expected to reach around 40% by 2030.
- Gender and Social Inequality: Persistent challenges in employment for educated women and discrimination against Scheduled Caste (SC) and Scheduled Tribe (ST) communities.
- Wage Trends: Stagnation and decline in wages noted, with a negative trend in earnings for the self-employed post-2019.
- Challenges:
- Technological Impact: Advancements in technology have altered the demand for skills and types of employment available.
- Regional Disparities: Variation in youth employment outcomes across different states.
- Demographic Shifts: The youth population, currently at 27% of the total population, is expected to decrease to 23% by 2036.
- COVID-19 Impact: The pandemic has introduced additional complications into the youth labor market.
- Recommendations:
- The report emphasizes several policy areas needing attention to improve youth employment outcomes:
- Job Creation: Promoting initiatives that create more job opportunities.
- Quality of Employment: Enhancing the conditions and benefits associated with employment.
- Addressing Inequalities: Tackling disparities within the labor market to ensure equitable job opportunities.
- Skill Enhancement: Strengthening skill development and active labor market policies.
- Data and Learning: Improving understanding of labor market patterns and effectively addressing youth employment challenges.
- This report serves as a crucial tool for policymakers and industry leaders, offering insights and strategies to tackle the increasing challenges faced by India’s youth in the employment sector.
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