The India Employment Report 2024, developed by the Institute for Human Development (IHD) in partnership with the International Labour Organization (ILO), offers a comprehensive analysis of the current landscape and shifting dynamics of the Indian labor market. The report emphasizes youth employment, education, and skill development while examining trends over the past two decades, particularly the repercussions of the COVID-19 pandemic on employment patterns.
A key finding of the report highlights a significant demographic trend: the increasing proportion of the working-age population, which rose from 61% in 2011 to 64% in 2021, with projections indicating a further increase to 65% by 2036. This demographic transition has resulted in an annual influx of 7-8 million young individuals into the labor force. Despite a rise in educational attainment among the youth, their participation in economic activities has notably decreased from 52% in 2000 to 37% in 2022.
Unemployment emerges as a critical challenge, primarily impacting the youth, especially those with secondary education or higher. The report reveals a troubling trend: the share of unemployed youth within the total unemployed population surged to 82.9% in 2022. Additionally, the proportion of educated youth among the unemployed escalated from 54.2% in 2000 to 65.7% in 2022. Gender disparities are pronounced, with educated unemployed women constituting a larger fraction than their male counterparts.
The report identifies two fundamental issues driving youth unemployment: a lack of job opportunities and the unemployability of educated youth, largely due to inadequate education quality and insufficient vocational training. Alarmingly, only a small percentage of Indian youth have benefited from formal vocational training, which is crucial for aligning education with employment market needs. Moreover, the growth of employment in the agricultural sector post-2019 reflects the struggles young individuals face in finding jobs in other sectors, primarily caused by educational inadequacies.
A major concern raised in the report is the prevalence of informal employment, even within the formal sector. In 2023, a significant number of jobs were found to be informal, with many formal sector positions also exhibiting informal characteristics. This situation has led to widespread job insecurity and low-wage employment, with a considerable portion of workers earning below the government-mandated minimum wage.
The gender gap in labor force participation continues to be a pressing issue, as the participation rates of young women are significantly lower than those of young men. The report attributes this disparity to various factors, including societal norms and a lack of supportive policies for women's employment. The decline in women's workforce participation has contributed to rising unemployment rates, although a slight improvement has been observed post-2019.
The report presents a series of strategic recommendations aimed at addressing the challenges of youth unemployment and improving employment quality:
The India Employment Report 2024 serves as a vital resource for comprehending the complex issues surrounding youth unemployment in India. By implementing the recommended strategies, there is potential to significantly enhance employment outcomes for youth, promote gender equality within the workforce, and foster a more inclusive and resilient economy.
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