Youth Unemployment in India
According to the International Labour Organisation (ILO), over 80% of India's unemployed workforce consists of youth. The "India Employment Report 2024" reveals that the proportion of young individuals with secondary education or higher among the unemployed youth has surged from 35.2% in 2000 to 65.7% in 2022.
Youth unemployment and underemployment increased between 2000 and 2019 but declined during the pandemic years. The youth unemployment rate rose from 5.7% to 17.5% between 2000 and 2019 but decreased to 12.4% in 2022.
Gender Disparities in Youth Unemployment
The highest youth unemployment rates are observed among those with graduate degrees, particularly impacting women. In 2022, women not engaged in employment, education, or training constituted nearly five times higher than the proportion of men (48.4% versus 9.8%), accounting for around 95% of the total youth population in this category.
Employment Trends in India
Employment in India remained mostly self-employed and casual between 2000 and 2022. Nearly 90% of the workforce is engaged in informal employment, with the proportion of regular employment declining after 2018. The report highlights widespread insecurities regarding livelihoods, with only a small fraction covered by social protection measures.
Wage Trends and Skill Deficiencies
Wages remained low in 2012-22. While casual laborers' wages showed a modest upward trend, regular workers' real wages remained stagnant or declined. Self-employed real earnings also declined after 2019.
Despite India's significant youthful population, the report underscores a deficiency in necessary skills. A large proportion of young individuals struggle with basic computer and mathematical skills.
Future Outlook and Policy Recommendations
The report forecasts a decline in India's youth population from 27% in 2021 to 21% by 2036. However, youth employment in India generally offers lower quality compared to adult employment.
The report advocates for policies focused on promoting job creation, enhancing employment quality, mitigating labor market inequalities, strengthening skills development, and filling knowledge gaps on labor market dynamics and youth employment patterns. It also emphasizes the need for supporting MSMEs, investing in sectors with high employment potential for youth, and formulating an inclusive urban policy to cater to the needs of migrants and disadvantaged youth.