Shocking: 40% of India’s population under 25 is unemployed

India currently has the youngest population in the world, and this is a great advantage in this competitive world, but India’s youth are not receiving proper employment opportunities.

‍So despite holding a proper degree, why are there no jobs for youths?

The big picture

Azim Premji University's Centre for Sustainable Employment recently published a report called State of Working India 2023, which claims that 42.3% of graduates under 25 years old are unemployed even though the unemployment rate dropped from 8.7% in 2017-18 to 6.6% in 2021-22.

‍How big is the problem?

It is reported that 42.3% of graduates under 25 years of age are unemployed, 22.8% of those between 25 and 29, 5% of those over 35 years, and 1.6% of those over 40.

The main causes of unemployment are higher aspirations, wage demands not being met, and not being able to find jobs based on their skills.

‍The changing Indian work structure

The Unemployment Problem is damaging the work structure as most people are shifting from formal to agriculture or self-employment opportunities because of Covid 19.

People lost their jobs during the pandemic and there was a sudden spike in April - June 2020 where people shifted from formal to self-employment opportunities.

‍What problems does it create for regular wage earners?

From 2004 to 2017, approximately 3 million regular wage jobs were created, which increased to approximately 5 million for the 2017–2019 period.

In 2020–2021, regular wage worker jobs were reduced by approximately 2.2 million, while formal jobs (with guarantees and benefits) increased from 25% to 35% in 2017–2021, and approximately 3 million formal jobs were created in 2021.

‍Trends in gender

If a mother-in-law is employed, 70% of urban women and 50% of rural women are likely to work. However, these numbers drop to 30% (urban) and 20% (rural) if the mother-in-law is not employed.

Furthermore, the report notes that female employment is falling due to pandemic-related distress, as there is a shift from formal employment towards self-employment driven by falling household incomes.

‍📌Sources Used

📌42.3% of graduates under 25 unemployed, finds latest State of Working India report (getdailybrief.com)

📌Over 40% of India’s graduates under 25 unable to find jobs, says report (cnbctv18.com)

📌42.3% graduates under 25 years were unemployed in 2021-’22, says study (scroll.in)

📌42.3% of graduates under 25 unemployed, finds latest State of Working India report | Business News - The Indian Express

📌Unemployment rate highest among graduates under 25 yrs, finds report on 'State of Working India' (theprint.in)