According to a recent report from the International Labour Organization (ILO), in India, young people with higher education levels face a higher likelihood of unemployment compared to those with no formal schooling.
The report reveals that for graduates, the unemployment rate stands at 29.1 percent, nearly nine times higher than the 3.4 percent rate for those who are illiterate.
It’s worth noting that in 2022, the proportion of unemployed young Indians aged 15 to 29 decreased to 82.9 percent, down from 88.6 percent in 2000. Additionally, the percentage of educated youths increased to 65.7 percent compared to 54.2 percent in 2000, as per ILO data.
Furthermore, the report highlights that young individuals with secondary education or higher face a jobless rate six times higher, reaching 18.4 percent. Notably, women constitute 76.7 percent of educated unemployed youths, compared to 62.2 percent for men. Urban areas experience a higher unemployment rate compared to rural areas.
The ILO report indicates a significant mismatch between the skills possessed by the workforce and the jobs available in the market, echoing concerns raised earlier by economists like former central bank Governor Raghuram Rajan. This disparity suggests that India’s inadequate education system may impede its economic growth in the long run.
The report underscores, “Unemployment in India is predominantly a problem among youths, especially those with secondary education or higher, and this issue has been worsening over time.”
The data indicates that the Indian economy struggles to generate enough well-paying jobs outside of the agricultural sector for newly educated young workers, contributing to the rising unemployment rates. The ILO notes that youth unemployment rates in India now surpass global levels.
India has the lowest female labor force participation rate globally, at 25 percent. However, during the pandemic, there was an improvement in female participation due to a “significant increase” in subsistence employment, according to the report.
