ILO Report
Educated Youth in India Facing Higher Unemployment Rates, Warns International Labour Organization.
A recent report by the International Labour Organization (ILO) has shed light on a concerning trend in India’s labor market: educated young people are more likely to be unemployed compared to those without formal education. According to the report, the jobless rate for graduates stands at 29.1%, nearly nine times higher than the 3.4% rate observed among individuals who lack basic literacy skills.
Highlighting the severity of the issue, the report indicates that the unemployment rate among young people with secondary education or higher is six times higher, reaching 18.4%. The ILO emphasized that youth unemployment, particularly among those with higher education, has become a pressing issue in India, intensifying over time.
The findings underscore a significant disparity between the skills possessed by the labor force and the demands of the job market. Notably, renowned economists such as former Reserve Bank of India Governor Raghuram Rajan have warned that India’s inadequate educational system may impede its long-term economic growth.
The ILO report also draws attention to the proliferation of gig jobs, characterized by temporary and low-paying employment opportunities. This trend, including roles such as food delivery drivers facilitated by digital platforms, poses new challenges to workers’ well-being and working conditions.
Furthermore, the report highlights gender disparities in unemployment, revealing that women are disproportionately affected, constituting 76.7% of the educated unemployed youth compared to 62.2% for men. Urban areas experience higher levels of joblessness compared to rural regions.
Despite a marginal decline in the share of unemployed youth between 2000 and 2022, there has been a notable increase in the proportion of educated unemployed individuals, signaling a persistent challenge in the Indian labor market.
Moreover, India’s female labor force participation rate remains one of the lowest globally, hovering around 25%, although there was a slight improvement during the pandemic due to an increase in subsistence employment.
In light of these findings, the ILO emphasizes the need for comprehensive strategies to address youth unemployment, improve educational outcomes, and create more sustainable job opportunities in India’s evolving labor market landscape.
