Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Unemployment in India
Central Idea
- In 1932, M Visvesvaraya highlighted the issue of unemployment among educated individuals in India.
- Ninety years later, the issue of youth unemployment remains a significant concern, despite official data indicating a decrease in the overall unemployment rate.
Unemployment Trends: Data Analysis
- Official Statistics: According to the Periodic Labour Force Survey (PLFS), the unemployment rate decreased from 6.1% in 2017-18 to 3.2% in 2022-23.
- Disparities in Experience: Despite the overall reduction, young, highly educated workers face the highest unemployment rates, indicating a structural problem in the Indian economy.
Educational Attainment and Unemployment
- Higher Education and Unemployment: Individuals with higher education have consistently faced higher unemployment rates since the 1990s.
- Trends Over Time: Unemployment rates for graduates have fluctuated, reaching 17% in 2017-18 and then dropping to 13% in 2022-23.
Youth Unemployment
- Young Graduates: The unemployment rate for young workers (aged 18 to 29) with graduate degrees has been notably high, with significant long-term unemployment spells.
- Increasing Share of Graduates: The proportion of graduates in the labor force has risen from 5% in 1993-94 to around 15% in 2022-23, impacting overall unemployment rates.
Challenges and Implications
- Growing Concern: The increasing share of educated workers in the labor force, coupled with high unemployment rates among them, points to a deepening problem.
- Need for Analysis: Understanding the causes of unemployment among the highly educated is crucial, whether it’s the education system’s failure to impart relevant skills or the economy’s inability to create sufficient jobs.
Conclusion
- Serious Issue: Youth unemployment in India is a critical issue that needs comprehensive analysis and action.
- Harnessing Demographic Dividend: Effective measures are required to ensure that the aspirations of the youth are met and the potential of India’s demographic dividend is fully realized.
- Policy Focus: Addressing youth unemployment requires targeted policies that focus on skill development, job creation, and aligning education with market needs.
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