[ad_1]
The International Labour Organization released a report according to which higher educated young people in India are more likely to be unemployed than those without any schooling.
Considering the data provided in the report, for graduates the unemployment rate was 29.1 percent. These figures are almost nine times higher than the unemployment rate of those who can’t read or write that stands at 3.4 percent.
Also read: Over 40% Indian graduates under 25 years remain unemployed: Report
It is important to note that in 2022, the percentage of young unemployed Indians in the age group 15 to 29 years dropped to 82.9 percent. In 2000, the share of young unemployed Indians stood at 88.6 percent. Moreover, the percentage of educated youths surged to 65.7 percent as compared with 54.2 percent in 2000, as per the ILO figures.
Also read: Urban unemployment rate drops in Oct-Dec
The report pointed out that for young people with secondary or higher education the jobless rate was six times higher and stood at 18.4 percent. It is noteworthy that women accounted for 76.7 percent of the educated unemployed youths as compared with 62.2 percent for men. The ILO figures suggest higher rate of unemployment in urban areas than in rural parts.
Reasons for mismatch between skills and job creation?
The new ILO report on India’s labour market further suggests that there is a sharp mismatch between the skills of the labour force and the jobs being created in the market. This report also brings to focus the earlier warnings suggested by well-known economists like former central bank Governor Raghuram Rajan. These alarming trends suggest that India’s poor schooling will hinder its economic prospects over time.
Also read: Salary hikes to be lowest in three years. But it’s not all bad
The ILO report stated, “Unemployment in India was predominantly a problem among youths, especially youths with a secondary level of education or higher, and it intensified over time.”
Also read: Fed’s Powell signals willingness to cut rates if job market weakens, risking higher inflation
The figures suggest that the Indian economy has been unable to create enough remunerative jobs in the non-farm sectors for new educated youth labour force entrants. The high and increasing unemployment rate reflect the tragic trend. “Youth unemployment rates in India are now higher than the global levels,” the ILO stated.
Considering female labour force participation rate in the world, India fares worst with 25 percent. However, the labour force participation rate among females improved during the pandemic following “significant increase” in subsistence employment, the report informed.
(With inputs from Bloomberg)
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 30 Mar 2024, 08:55 AM IST
[ad_2]
Source link