NEWS – India Employment Report 2024 released by the International Labour Organisation (ILO) and the Institute of Human Development (IHD)

HIGHLIGHTS

• Educational Profile of Unemployed Youth
  • Share of those with secondary or higher education among unemployed youth doubled from 35.2% in 2000 to 65.7% in 2022.
  • Nearly 83% of India’s unemployed workforce comprises youngsters.
• Employment Trends
  • Employment and underemployment of youth increased from 2000 to 2019 but declined during the pandemic.
  • Educated youth faced higher unemployment rates during this period.
• Labour Market Indicators
  • Long-term deterioration in Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) till 2018.
  • Improvement observed after 2019, coinciding with periods of economic distress.
• Job Growth and Sectoral Dynamics
  • Non-farm sectors saw insufficient growth to absorb workers from agriculture.
  • Construction and services sectors absorbed labor from agriculture.
• Informal Work and Social Protection
  • Around 90% of workers are engaged in informal work.
  • Limited coverage of social protection measures and a rise in contractualization.
• Skill Gap Among Youth
  • Challenges in basic digital skills among youth: 75% unable to send emails with attachments, 60% unable to copy and paste files, and 90% unable to use spreadsheet formulas.
• Quality Employment Concerns
  • High joblessness among highly educated youth due to limited quality job opportunities.
  • Many prefer waiting for better employment rather than accepting low-paying, insecure jobs.
• Gender Gap and Social Inequalities
  • Low rates of female labor force participation contribute to gender gap challenges.
  • Scheduled Castes and Scheduled Tribes face barriers in accessing better jobs despite affirmative action and targeted policies.
• Government Interventions and Challenges
  • Chief Economic Adviser highlights challenges in addressing unemployment despite government interventions.
  • Emphasis on commercial sector’s role in job creation and caution against political considerations in policy implementation.
• Tax Policies and Employment Generation
  • Mention of corporate income tax breaks, subsidies, and National Education Policy to spur job creation.
  • Focus on balancing tax codes to promote employment generation over capital accumulation.
• Global Perspective on Unemployment
  • Discussion on governments’ role in welfare policies and their impact on labor market dynamics.
  • Questioning whether welfare policies inadvertently reduce the incentive to work, leading to disruptions in the labor market.