International According to a report by the Labor Organization (ILO), the unemployment rate of highly educated youth in India is higher than that of those who have not received any schooling. According to the data given in the report, the unemployment rate for educated graduates was 29.1 percent. This rate is almost nine times higher than the unemployment rate for people who cannot read or write, which stands at 3.4 percent. In the year 2022, the percentage of young unemployed Indians in the age group of 15 to 29 years had decreased to 82.9 percent. In 2000, young unemployed Indians were 88.6 percent. Furthermore, according to ILO data, the percentage of educated youth has increased to 65.7 percent compared to 54.2 percent in 2000.
Unemployment is high in cities
The report noted that the unemployment rate was six times higher for youth with secondary or higher education. It was 18.4 percent. It is noteworthy that the share of women among educated unemployed youth was 76.7 percent. Whereas that of men was 62.2 percent. ILO figures show higher rates of unemployment in urban areas than in rural areas.
Mismatch between skills and jobs
The new ILO report on India’s labor market shows that there is a huge mismatch between the skills of labor and the jobs being created in the market. The report also brings to mind earlier warnings suggested by well-known economists such as former RBI governor Raghuram Rajan. These alarming trends suggest that India’s poor schooling will hamper its economic prospects over time.
Youth unemployment in India is higher than the global level
“Unemployment in India was primarily a problem among youth, especially among youth with secondary education or more, and it increased over time,” the ILO report said. Data show that the Indian economy has been unable to generate enough remunerative jobs in non-agricultural sectors for the newly educated youth labor force. This high and rising unemployment rate reflects a sad situation. “The youth unemployment rate in India is now higher than the global level,” the ILO said.
Our poor performance in female labor force
If we look at the female labor force participation rate in the world, India performs the worst at 25 percent. However, the report noted that the labor force participation rate among women had improved after a “substantial increase” in subsistence employment during the pandemic.
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