In a startling revelation by the International Labour Organization (ILO), India’s youth unemployment has taken a perplexing turn. The latest report suggests that highly educated young people in India are more likely to face unemployment compared to those without any formal education. The jobless rate for graduates stands at a staggering 29.1 per cent, nearly nine times higher than the 3.4 per cent for those who can’t read or write.
Education-Unemployment Mismatch The ILO report highlights a significant mismatch between the skills acquired through education and the job opportunities available in the market. Despite the government’s efforts to promote education, the Indian economy has struggled to create sufficient remunerative jobs in the non-farm sectors for the growing number of educated youth entering the labor force. This discrepancy is reflected in the high and increasing unemployment rate among the educated population.
Gender Disparity and Urban-Rural Divide The unemployment crisis has hit women particularly hard, with 76.7 per cent of the educated unemployed youth being female, compared to 62.2 per cent for men. Moreover, joblessness is more prevalent in urban areas than in rural parts of the country. India’s female labor force participation rate remains one of the lowest in the world, at approximately 25 per cent, although it did see a slight improvement during the pandemic due to an increase in subsistence employment.
The Rise of Gig Economy The ILO report also raises concerns about the growing prevalence of temporary and low-paying jobs, often referred to as “gig jobs.” Digital platforms have blurred the lines between employees and self-employed individuals, creating new challenges for workers’ well-being and working conditions. This trend further complicates the employment landscape in India, where job security and fair compensation remain elusive for many.
