Institute for human development & International labor organization published India Employment Report 2024: Key Insights

Youth employment, education and skills in India

written by Zaif khan

In the middle of this year surging brain drain and soaring unemployment is the highlighted headings of the Indian employment report third series published by IHD. The report is on the basis of 2000 to 2022 national sample survey & Periodic labor force survey data.  

Key Findings:

Dreadful employment conditions for youth in India:

• Consistently decreasing/stagnant wages with no improvement in employment rate resulted increase in workforce participation and unpaid family work among youth. Indian youth accounted for 83% unemployed workforce.
• Enrollment in higher education of youngsters is doubled from 35.2% in 2000 to 65.7% in 2022.      
• Between 2000 and 2019 the underemployment increased among educated youth facing joblessness at high level.
• Too many educated youth rushing for few government jobs as in june 2022 1.7 million people applied for 3400 jobs of minimum qualification class 10th in state of Gujrat.
• Constantly holding the bottom position in employment rate of youth in South Asia and gender imparity is also clearly visible in stats.

Devious Improvements 

• In previous two decades the India's job market show growth but without gaining overall momentum of employment.
• Not sufficient growth in non-farm sector to absorb workers from agriculture, even before 2018 the workers are of non-agricultural sector increased comparatively to agricultural sector.   
• 90% of workforce engaged in informal jobs and the only remaining portion has regular employment.
• In India very less number of young population is equipped with digital literacy skills, as 75% not able to send mails with attachments and 90% unable to perform google suite tasks.
• Improvements in employment conditions occurring at a very slow pace despite of 371millon people between 15-29 age group.
• Structural labor market regulations characterized albeit rise in informal and casual employment amounts to 90% of total labor market.
• Since, enrollment in higher studies has raised but employability fit candidate rate is poor. 

Depriving wages and earnings for workers

• The regular workers is facing stagnant or reducing wages after 2019 and casual laborer gained modest upward line during 2012-2022.
• No daily minimum wages are provided to 62% unskilled casual agricultural workers and 70% of construction sector workers.  
• Controlled labor process algorithmically by the digitally mediated platforms has increased the informal work and declining social security provisions.
• Surge in contractual and flexible jobs and very small portion has long term written contract.
• Declining returns on education due to oversupply of graduates in aggregate employment opportunities.
• Untapped potential for new technologies use to increasing employment with proper supply of skillset.   

Figure shows skill structure of employment in percentage 

Escalating conditions for migration in future

• The demand for urbanization is rapidly increasing that raise the expectation of high migration rate and increase in urban population.
• Large variation between states for employment outcomes and some sates are continuously losing the ranking in employment indicators.

Policy Recommendations

• Employment centric growth with macro economic policies to enhance non- farm employment in manufacturing & emerging service sector. Important improvements needed in make in India scheme 
• Investment in the green and blue economies can generate up to 50 million jobs by 2030.
• Decentralized approach need to be implemented to support micro, small and medium size enterprises.
• Inclusive migration policy and urbanization method need to be adopted for raising demands of urban employment opportunities.
• Enhance the role of women's participation in government jobs and quality employment.
• Bridge the digital gap to in deprived groups of the society.
• Address the formal employment demand by creating more labor centric market policies. 

Table shows the growth percentage rate on monthly wages 

Figure shows average monthly earnings of regular, casual and self employed workers (rupees)