India's Youth Unemployment Crisis: Insights from the India Employment Report 2024

India Employment Report 2024: India continues to grapple with a severe youth unemployment crisis, as highlighted in the report, a joint publication by the International Labour Organisation (ILO) and the Institute of Human Development (IHD). Approximately 83 percent of the unemployed population in the country belongs to the youth demographic, according to the report.

Education and Unemployment Trends

The report reveals a troubling trend where the proportion of educated young people among the unemployed has nearly doubled over the years. Dropout rates after secondary education remain high, particularly in economically disadvantaged states and among marginalized communities. Despite increased enrollment in higher education, concerns persist regarding the quality of education, with significant learning gaps observed at various levels.

Labour Market Dynamics and Regional Disparities

Important labor markets measures like the Labor Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) consistently decreased until 2018 but began to show signs of recovery after 2019. However, the report cautions against interpreting these improvements without considering underlying factors. Significant disparities in employment outcomes exist among Indian states, with certain regions consistently ranking lower in employment indicators.

Challenges in Youth Employment                    

India stands at a critical juncture regarding youth employment, with the potential to harness its demographic dividend. However, challenges abound, exacerbated by the COVID-19 pandemic and technological advancements that have reshaped job demands. Regional disparities further complicate the employment landscape, with states at different stages of demographic transition experiencing varying outcomes.

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Labour Market Dynamics and Livelihood Insecurities

Recent years have seen contradictory shifts in labor market indicators, reflecting a mix of improvements and setbacks. While there has been a gradual improvement in employment conditions, challenges persist, particularly in the informal sector, where nearly 90 percent of workers are engaged. Livelihood insecurities remain widespread, especially among those lacking social protection measures.

Skill Deficit and Gender Disparities

Despite India's youthful population, there is a concerning lack of essential skills among the workforce, hindering employability. Gender disparities persist, with low rates of female labor force participation, especially among educated women. Social inequalities also pose barriers to accessing better job opportunities, particularly for marginalized communities.

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The India Employment Report 2024 underscores the urgent need for comprehensive policies and interventions to address the complex challenges facing youth employment in India and ensure inclusive and sustainable economic growth.