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India Employment Report 2024

India Employment Report 2024:

The India Employment Report 2024, prepared jointly by the Human Development and the International Labour Organization, was released recently.

Key findings:

  • Basic long-term feature of the employment situation in the country continues to be insufficient growth of the non-farm sectors and the ability of these sectors to absorb workers from agriculture.
  • India’s working-age population (aged 15–59) increased from 61% in 2011 to 64% in 2021 and is projected to reach 65% in 2036.
  • About 7-8 million young people are added each year to the labour force.
  • The authors warn that unemployment in the country is “predominantly a problem among youth”, especially those with a secondary level of education or higher, and that it has intensified over time.
  • In 2022, the share of unemployed youth in the total unemployed population was 82.9%,” report noted, adding that the share of educated youth among all unemployed people also increased, from 54.2% in 2000 to 65.7% in 2022.
  • Also, among the educated (secondary level or higher) unemployed youth, women accounted for a larger share (76.7%) than men (62.2%).
  • There is a significant gender gap in the labour market, with low rates of female labour force participation. The gender gap in the LFPR has remained almost consistent over the past two decades.
  • In 2022, the LFPR of young men (at 61.2%) was almost three times higher than that of young women (at 21.7%), and the gender gap was similar in both rural and urban areas.
  • The ILO and IHD stated that the jobs remained low-productive and low-earning. Real wages and earnings showed a decline or had stagnated.
  • While India’s large young workforce is a demographic dividend, the report noted that they don’t appear to have the skills to deliver with 75% of youth unable to send emails with attachments, 60% unable to copy and paste files, and 90% unable to put a mathematical formula into a spreadsheet.