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Posted 27 Mar 2024

Updated 30 Mar 2024

2 min read

  • It examines the challenge of youth employment in India and changes over the past two decades.

 

  • Key findings:
    • Employment growth remained stagnant up to 2019 and then moved upward, dominated by poor-quality employment in informal sector (nearly 82% in informal sector). 
    • Slow and steady transition of the workforce to non-farm employment has reversed due to the covid pandemic. 
    • Women largely account for increase in self-employment and unpaid family work
    • Wages has remained low and are stagnant or declining. 
    • Labour productivity consistently increased alongside capital deepening, indicating association of growth with technological progress and productivity gains rather than employment.

 

  • Challenges in youth employment:
    • India is at an inflexion point, as youth population, at 27% in 2021, is expected to decline to 23% by 2036.
    • Education participation of youths who are out of labour force drive the low youth labour force participation rate.
      • Probability of any kind of employment is lower as education rises but higher for youths having technical education.
    • Youth unemployment increased nearly threefold, from 5.7% in 2000 to 17.5% in 2019.

 

Five Key policy areas for action:

  • Make production and growth more employment-intensive
  • Improve job quality through investing in emerging sectors, creating inclusive migration policy and ensuring basic rights; 
  • Overcome labour market inequalities boosting participation of women and youth;  
  • Make systems for skills training and active labour market policies more effective;
  • Bridge knowledge deficits on labour market patterns with reliable statistics. 
  • Tags :
  • Employment
  • Labour Productivity
  • Youth Employment
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