As per the India Employment Report 2024, which was jointly published by the International Labour Organisation (ILO) and the Institute of Human Development (IHD), the youth of India are still struggling with the country’s increasing unemployment rates. Specifically, nearly 83% of the unemployed population are part of this demographic. Despite the increase in skill development programmes and the expansion of the educational infrastructure, a substantial number of young Indians are still unemployed. This is a significant obstacle, and there is some hindrance in obtaining meaningful and productive employment.
The COVID-19 pandemic compounded the issues facing youth in the labour market. Although there was some recovery following the lockdowns, it was marked by a spike in substandard work.
Disparity Between Industry Demand and Skills
Comprehending the discrepancies between industry demand and skills is critical in order to develop a workforce that is adequately equipped to navigate the economy of the future. Digital capabilities are surpassing the current capabilities of the workforce. Frequently, young people are unable to determine the abilities they require for future employment opportunities. Academic curricula must train them to know how to navigate the job market and prepare them for the relevant jobs. Educational curriculum should also be more closely aligned with industry requirements. The employability of graduates could be substantially enhanced if institutions were to collaborate closely with industries to develop courses that were more pertinent.
Structural Issues in Employment
With India’s growing youth population, the formal work sector has not kept up. The youth workforce frequently ends up working on a contract basis or in the informal economy with no stability. This also leads to many people working in industries unrelated to their degree or in jobs that do not allow them to make the most of their educational background. In the case of government posts, thousands apply for a small number of positions, and only a handful are selected. Furthermore, many government jobs require giving competitive tests for which not all candidates are prepared. Then, due to the amount of paperwork, or bureaucracy, many young people are unable to pursue such careers.
Concentration of Jobs in the Services Sector
The growth observed in recent decades has largely been fuelled by the rapid development of India’s services sector, which is less labour-intensive compared to the manufacturing sector. Inclusive growth necessitates the swift creation of employment opportunities at the lower end of the economic spectrum, rather than solely focussing on higher wage and skill levels.
Unemployment Due to Technological Advancements
Technological advancements present a risk of automation, potentially leading to significant job losses. The advent of artificial intelligence and high-precision robotics poses an unprecedented threat to cognitive skills, resulting in a heightened level of concern compared to prior technological advancements. Automation does create new opportunities; however, it simultaneously heightens the demand for highly skilled workers in emerging roles. Furthermore, securing employment in such positions poses challenges for many young individuals, particularly those from rural backgrounds.
What’s the Impact on Women?
The IHD/ILO report indicated that a greater proportion of educated unemployed youth were women (76.7%) compared to men (62.2%). India has one of the lowest female labour force participation rates globally, approximately 25%. The absence of a comprehensive care economy, characterised by insufficient affordable childcare and family support, alongside inadequate infrastructure policies, rigid social norms, and a shortage in necessary skills are constant obstacles for women that hinder their participation in the workforce.
Absence of Jobs in Small Towns and Rural Areas
Individuals from small towns and rural regions often have to relocate to larger cities in pursuit of improved employment opportunities. Private employment opportunities are absent in their hometowns. Furthermore, these youth must contend with candidates who have received their education from more prestigious and recognised institutions located in the cities, which lessens their chances of getting jobs. There is a necessity to develop initiatives that generate local employment in sectors such as agriculture, textiles, housing, healthcare and education.
Government Employment Initiatives
The Government of India has implemented various schemes and programs designed to generate employment and enhance employability across multiple sectors. Initiatives include the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), Skill India Mission, and Startup India.
Administrative processes and laws frequently result in delays in the execution of projects and heightened costs.
The lack of strong support systems for skill development and entrepreneurship is another significant factor leading to the outcome of government employment initiatives. The quality of skill training provided through various schemes frequently does not meet industry requirements, leaving beneficiaries inadequately prepared for the job market.
Doing Our Bit
Re-skilling and continuous learning initiatives should be promoted, especially in light of rapid technology improvements. A reduction in gender imbalance is also required. More areas, such as energy, transportation, science, technology, engineering, and mathematics (STEM), should create work opportunities for women. Skilling and livelihood programmes of different entities including nonprofits like Smile Foundation should be customised to specific area and sector needs and more emphasis should be placed on guaranteeing that rural youths have equal chances as those who live in cities.