The International Labour Organization (ILO), a United Nations agency dedicated to promoting social and economic justice by establishing international labor standards in partnership with the Institute of Human Development (IHD), has recently unveiled “The India Employment Report 2024.” This report, released on March 26, focuses on key aspects such as youth employment, education, and skills development.
India’s young population represents nearly 83% of the unemployed demographic, marking a significant shift in the proportion of educated youth within this group. The percentage of young individuals with secondary or higher education among the total unemployed youth has risen notably from 35.2% in 2000 to 65.7% in 2022. Additionally, youth employment and underemployment saw an increase from 2000 to 2019 but experienced a decline during the pandemic years.
Moreover, there has been a notable decline in the Labor Force Participation Rate (LFPR) among young people, falling from 54% in 2000 to 42% in 2022. This decrease is especially significant among individuals aged 15-19 years in contrast to those aged 20-24 years and 25-29 years. Additionally, the quality and circumstances of employment for young individuals are inferior compared to the older demographic.
Table of Contents
key Highlights That Have Been Mentioned in The India Employment Report 2024
The report emphasizes that India’s working-age population (aged 15-29) has risen from 61% in 2011 to 64% in 2021, with projections indicating it will reach 65% by 2036. Additionally, approximately 6-8 million young individuals join India’s labor force annually. Despite the percentage of youth receiving education climbing from 18% in 2000 to 35% in 2022, the proportion of youth engaged in economic activities dropped from 52% to 37% over the same timeframe.
Furthermore, among the unemployed youth (secondary and higher education), women account for a larger share of 76.7% as compared to men 62.2%.
Lack of Opportunity and Employability of Educated Youth Due to Poor Quality of Education in India
India, with its vast population and growing economy, faces a critical issue concerning the lack of opportunity and employability among educated youth. Despite a large number of graduates every year, a significant portion struggles to secure meaningful employment due to the poor quality of education they receive.
One of the primary reasons for the poor quality of education in India is the outdated curriculum and traditional teaching methods prevalent in many educational institutions. The focus on rote learning and theoretical knowledge often leaves students ill-equipped to face real-world challenges. Modern industries demand practical skills, critical thinking, and problem-solving abilities, which are often lacking in graduates.
Lack of Practical Skills Development
The emphasis on theoretical knowledge overshadows the importance of practical skills development. Many students graduate without hands-on experience in their field of study, making them less attractive to employers. Practical training, internships, and industry collaborations are essential to bridge this gap and enhance employability.
Insufficient Infrastructure and Resources
Unequal distribution of resources and inadequate infrastructure in educational institutions contribute to disparities in education quality. Rural areas often suffer from a lack of proper facilities, qualified teachers, and access to technology, further widening the gap between urban and rural education standards.
Discrepancies in Education Quality Across Regions
The quality of education varies significantly across different states and regions in India. While some institutions maintain high standards, others struggle with outdated facilities and ineffective teaching methods. This disparity hampers the overall employability of graduates and perpetuates the cycle of unemployment.
Impact on Employability and Job Opportunities
The mismatch between industry requirements and educational outcomes leads to reduced employability among graduates. Employers often seek candidates with practical skills, communication abilities, and adaptability, which many fresh graduates lack. As a result, unemployment rates among educated youth remain high, especially in competitive sectors.
The International Labour Organization (ILO) and the Institute of Human Development (IHD) have highlighted that the proportion of technically skilled youth in India remains low. In 2022, only a small fraction, 15.62% of the youth, had received vocational training. Among them, merely 4.09% had undergone formal vocational training programs.
In 2023, the majority of jobs created in the Indian subcontinent were in the informal sector, accounting for 90.4%. Additionally, nearly half of the jobs in the formal sector, specifically 45.2%, also fell under the informal category. There are several reasons for the prevalence of low productivity and low-earning jobs in India.
- Overcrowded Job Markets: Certain industries, such as agriculture and manual labor, experience high levels of competition due to the large number of workers vying for limited job opportunities. This oversupply of labor can drive down wages in these sectors.
- Technology and Automation: The adoption of technology and automation in various industries can lead to job displacement and reduced demand for certain types of labor, contributing to a pool of low-earning jobs.
- Informal Economy Challenges: The informal economy’s prevalence poses challenges such as lack of social security benefits, limited access to credit, and vulnerability to exploitation, all of which contribute to low earning potential for workers.
- Regulatory Barriers: Cumbersome regulations, bureaucratic red tape, and complex labor laws can deter businesses from expanding and creating higher-paying jobs, particularly in sectors that require significant capital investment.
A substantial number of regular workers (51.9%) did not receive the prescribed average daily minimum wage for unskilled workers, which stands at 480 rupees per day as per government regulations. Additionally, there exists a notable gender gap in the labor market, characterized by low female participation in the workforce.
According to the Census of 2011, the workforce participation rate among females stands at 25.51%, while for males, it is 53.26%. In the rural sector, the female workforce participation rate is higher at 30.02% compared to males at 53.03%. However, in urban areas, there is a noticeable disparity.
In terms of specific states, in rural areas, Himachal Pradesh boasts the highest female workforce participation rate at 47.4%, whereas Tamil Nadu leads among major states with 21.8%. Interestingly, the workforce participation rates between rural and urban males are quite similar, but there is a significant gap between rural and urban females.
Another noteworthy statistic is that in rural India, over 50% of the workers fall into the self-employed category, while in urban areas, more than 40% are classified under self-employed and regular wage categories, based on the NSS 68th Round (2011-12).
The participation of women in the labor force continues to lag behind that of men, primarily due to the fact that women are predominantly engaged in unpaid work. Even when women are employed in paid work, they are often concentrated in the informal sector and are more likely to be among the impoverished. Additionally, they encounter considerable wage disparities compared to their male counterparts. Notably, the labor force participation rate (LFPR) is particularly low among urban females.
The 68th Round of the National Sample Survey revealed that in 2011-12, the worker population ratio (WPR) for females in the rural sector was 24.8, while for males, it stood at 54.3. In the urban sector, the WPR was 14.7 for females and 54.6 for males. Among the major states, Bihar showed the highest disparity in WPR between males and females in rural areas, while Assam and Gujarat exhibited significant disparities in the urban sector.
According to the 4th Employment Unemployment Survey, the WPR for individuals aged 15 years and above was 29.6 for females and 73.5 for males. Himachal Pradesh recorded the highest WPR for females in rural areas, while Assam had the highest WPR for males.
Enhancing Education and Skill Development
Investing in education and skill development programs is crucial to equip individuals with the skills needed for modern job roles. Collaborations between industries and educational institutions can bridge the gap between theoretical knowledge and practical skills.
Encouraging Entrepreneurship
Promoting entrepreneurship can create new job opportunities and foster innovation. Providing incentives such as startup grants, mentorship programs, and streamlined regulatory processes can encourage more individuals to start their ventures.
Improving Job Quality
Strengthening Labor Laws
Updating and enforcing robust labor laws ensures fair treatment of workers, promotes job security, and prevents exploitation. Creating a conducive environment for both employers and employees leads to a healthier work culture.
Promoting Work-Life Balance
Emphasizing work-life balance initiatives, such as flexible working hours, remote work options, and wellness programs, can improve job satisfaction and productivity. Happy and healthy employees contribute positively to the overall economy.
The issues plaguing youth in the Indian subcontinent are complex and multifaceted, requiring holistic solutions that address education, employment, mental health, societal norms, and political structures. Empowering the youth with quality education, vocational training, mental health support, and opportunities for meaningful participation in society is crucial for sustainable development.