In a recent report by the International Labour Organization (ILO), a concerning trend has emerged regarding unemployment rates among educated youth in India. The data revealed that higher-educated young individuals are more likely to be unemployed compared to those without any formal schooling.
According to the report, the jobless rate for graduates stands at a staggering 29.1%, which is nearly nine times higher than the 3.4% rate for individuals who are unable to read or write. Similarly, the unemployment rate for young people with secondary or higher education is six times higher at 18.4%.
The ILO report pointed out that this disparity reflects a significant mismatch between the skills possessed by the labor force and the types of jobs available in the market. This mismatch has been a persistent challenge and has worsened over time, particularly affecting youths with higher levels of education.
Economists like former Reserve Bank of India Governor Raghuram Rajan have long warned about the consequences of India’s education system on its economic prospects. The report emphasized that India’s inability to create enough high-quality jobs in sectors outside of agriculture has contributed to the high and increasing unemployment rates among educated youth.
The situation is further exacerbated for women, who face a higher rate of joblessness among educated youths compared to men. The report highlighted that women accounted for 76.7% of the educated unemployed youth, showcasing a significant gender disparity in employment opportunities.
The report also raised concerns about the rise of gig jobs, such as temporary and low-paying employment in sectors like food delivery. The digital platforms facilitating gig work have blurred the lines between traditional employment and self-employment, posing new challenges for worker well-being and working conditions.
India’s female labor force participation rate, one of the lowest globally at about 25%, was also highlighted in the report. While there was a slight improvement during the pandemic due to an increase in subsistence employment, significant structural challenges remain in integrating educated youth, especially women, into the workforce.
Sources By Agencies