International Labor Organization (ILO) in association with Delhi-based IHD has highlighted in its recent India Employment Report 2024, that the jobless rate for graduates was 29.1 per cent, almost nine times higher than the 3.4 per cent for those who can’t read or write. In India, those without schooling are more likely to be employed that those with higher education qualifications.
The unemployment rate for young people with secondary or higher education was six times higher at 18.4 per cent. Over 80 per cent of India’s unemployed workforce comprises the youth. The percentage of unemployed youth possessing secondary education or higher surged from 35.2 in 2000 to 65.7 in 2022, reveals the India Employment Report-2024, by the ILO.
In 2021, India’s youth accounted for 27% of the population, a figure projected to decrease to 21% by 2036. Each year, the workforce sees an addition of 7-8 million young individuals. However, according to the report, employment opportunities for the youth in India generally lack quality compared to those available for adults. Employed youth are notably more inclined towards vulnerable occupations or informal sectors.
Comments on the situation by an expert
The report highlights a notable increase in the proportion of young individuals with at least a secondary education among the unemployed, rising from 35.2% in 2000 to 65.7% in 2022. Additionally, it reveals that a substantial 83% of India’s total unemployed population comprises young people.
In response to these findings, on March 27, the Congress party accused the Narendra Modi-led government of attempting to distort, distract, and divert attention from critical issues. The party emphasized that youth unemployment remains a significant concern that must be addressed, particularly with the approach of the Lok Sabha Elections in 2024.
Comparisons and reasons on a Global level
In China, the unemployment rate among young individuals aged 16-24 rose to 15.3% in the first two months of the year. This rate is approximately three times higher than the 5.3% unemployment rate observed among the urban population as a whole.
Meanwhile, in India, the percentage of young unemployed individuals, aged 15-29, decreased to 82.9% in 2022 from 88.6% in 2000, according to figures from the International Labor Organization (ILO). However, there was a notable increase in the proportion of educated youth among the unemployed, rising from 54.2% to 65.7% during the same period.
The reason for this situation can be attributed to lower quality of education, labor market imbalances, declining growth of productivity and an outlook uncertainty. Disparities are evident between the curriculum taught in schools and colleges and the actual learning outcomes achieved by students.
Impact and future of the rising jobless rate of educated people (Globally)
ILO disclosed that in 2023, the global unemployment rate experienced a slight improvement, decreasing to 5.1% from 5.3% in 2022. The global jobs gap and labor market participation rates also showed signs of improvement during the same period.
However, a report highlights underlying fragility in these numbers, projecting a worsening labor market outlook and a rise in global unemployment in 2024. An additional two million workers are expected to join the job market, pushing the global unemployment rate up to 5.2% from the previous year’s 5.1%. The report also notes a decline in disposable incomes across the majority of G20 countries, with the erosion of living standards due to inflation unlikely to be swiftly compensated.
Significant disparities persist between higher and lower income countries. In 2023, the jobs gap rate was 8.2% in high-income countries compared to 20.5% in low-income countries. Similarly, while the unemployment rate in high-income countries remained at 4.5%, it was notably higher at 5.7% in low-income countries.
Moreover, the report predicts the persistence of working poverty. Although the number of workers living in extreme poverty had declined after 2020, it grew by approximately 1 million in 2023. Additionally, the number of workers living in moderate poverty increased by 8.4 million during the same period.
Conclusion
Rising unemployment, especially among educated youth, is a global concern per the International Labour Organization. In India and China, disparities persist despite some improvements. Globally, the labor market outlook is fragile, with projected increased unemployment in 2024. Addressing these challenges requires strategies to improve education quality and tackle labor market imbalances for sustainable growth. Failure risks worsening global unemployment and inequality.
