Why India’s youth struggle for employment

Dr. Tulika Devi

(tulika29thjan@gmail.com)

In India, many highly educated individuals often struggle to find employment despite their extensive qualifications, leading to a significant mismatch between education and job availability. This issue underscores the broader problem of ‘jobless growth,’ where economic expansion does not translate into increased job opportunities, leaving many overqualified individuals unemployed or underemployed.

The India Employment Report 2024, released by the International Labour Organisation and the Institute for Human Development in March 2024, states that in today’s situation, the likelihood of an educated youth being jobless in India is much higher compared to an uneducated youth. The youth unemployment rate has increased with the level of education, with the highest rates among those with a graduate degree or higher and higher among women than men. In 2022, the unemployment rate among youths was six times greater than among persons with a secondary or higher level of education (at 18.4 percent) and nine times greater among graduates (at 29.1 percent) than for persons who cannot read and write (at 3.4 percent). Educated female youths experienced higher levels of unemployment compared with educated male youths. A large proportion of highly educated young men and women, including the technically educated, are overqualified for the job they have.

Another problem is the quality of education. There is a significant learning deficit at school levels and in general, and the quality of education imparted by institutions of higher learning remains poor. The World Bank has expressed concern that over 70% of 10-year-olds in India are struggling with learning poverty, meaning they are unable to understand and read simple texts.

The Periodic Labour Force Survey presented by the Indian Government claims the opposite, stating that the unemployment rate in the country is continuously falling. However, the ILO report reveals that the proportion of unemployed individuals with at least secondary education was 35.2% in 2000 and had almost doubled to 65.6% by 2022. Similarly, a study conducted by IIM Lucknow found that as the education level among the youth in the country increases, so does unemployment. This is why leading economists worldwide call India’s economic growth over the past two decades since 2004–05 a jobless growth, where the country’s GDP (Gross Domestic Product) is rapidly increasing, but jobs are not growing at the same pace. As a result, the youth of the country are either wandering in search of jobs or accepting jobs far below their qualifications, thus fueling the phenomenon of disguised unemployment.

In this scenario, it can be said that the youth, whose potential we look to for the demographic dividend, have become a demographic nightmare due to a lack of employment. But why is this happening? Why is it that, despite getting an education, the youth of the country are not able to secure jobs?

Three main factors might be responsible for the unemployment problem in India: government policies, societal norms, and the youth themselves.

In the conventional job market, quality education has always been considered the primary and essential requirement for securing employment. Consequently, the rapid growth of schools and universities in India is unparalleled, leading to a proliferation of private institutions. However, the quality of education provided by many of these private schools, colleges, and universities is often lacking. The poor quality of the Indian education system is no secret. This issue is prevalent from school education to higher education alike. For instance, the Annual Status of Education Report (ASER) almost always highlights the dismal state of Indian school education. The World Economic Forum states that every year, 13 million people join the workforce in India, but only one in four management professionals, one in five engineers, and one in ten graduates are employable. The Indian education system is based on rote learning, where students chase assignments or numbers instead of acquiring practical knowledge. Hopefully, the New Education Policy 2020 will bring some changes.

However, if we talk about the ground reality, a report from the World Economic Forum tells us that even today, vocational courses have not been implemented in 85% of the country’s schools. Similarly, the Indian government’s flagship Skill India Mission does not seem to be succeeding. Data from the Periodic Labour Force Survey shows that in 2011–12, only 2.2% of individuals in the country had formal vocational training, which increased to only 3.7%, or 21.05 million, by 2022.

According to the National Scholarship Portal 2015, only 2.7% of the country’s workforce received formal skill training, compared to 52% in the US, 80% in Japan, and 96% in South Korea. Furthermore, government data establishes that even trained individuals are not getting jobs. Experts believe that the quality of training in government skilling schemes is poor, or that these schemes are merely certifying an individual’s prior learning. Additionally, the length of these courses is too short to teach any employable skill effectively. The government needs to urgently ensure the right to an apprenticeship for every youth in the country. While training the youth, the government is also making a significant mistake in understanding the country’s market scenario. There are vocational courses initiated by the government, where, without evaluating the reality of the job market and their own capacity, youth either drop out of vocational courses or leave vocational skill-based jobs within two to three years. If we look at the world today, a vocational trainee and a skilled individual can make their career anywhere, whether it’s in hair cutting, beautician, woodworking, cooking, culinary arts, or electrical diplomas. Today’s job market requires all kinds of skills, and with the help of social media, one can establish their own enterprise based on skills, and thus, the youth of the country can emerge not as job seekers but as job creators.

But the youth in the country are either struggling for white-collar jobs, getting lost in the crowd preparing for government jobs, or those with some financial backing are eager to try their luck abroad. The rapidly growing startup ecosystem is a sign of progress, but it is still limited to a few metro cities and development centres due to resource constraints and infrastructure bottlenecks.

Another major aspect is our societal norms. At every turn, individuals must validate their decisions with society, which tends to appreciate only those who achieve visible success. If someone rises from the crowd to become a successful actor, entrepreneur, artist, or bureaucrat, their efforts are celebrated. Otherwise, their hard work and attempts are often viewed negatively. This societal pressure discourages the youth from taking significant risks or innovating, confining them to seek social validation and recognition.

Our society needs to understand that everyone’s talent is different, and therefore, everyone’s path will be different. We must move away from the mindset of considering one job segment superior to another. Hard work should be appreciated universally, and individuals should be encouraged to pursue their unique paths without fear of societal judgement.

Thirdly, to some extent, the youth are also responsible for unemployment. Internet penetration in India has increased significantly, with extensive use in rural areas as well. According to the 2023 report by the Internet and Mobile Association of India, over 820 million people in the country use the internet, with more than 50% from rural areas. This indicates that the urban-rural divide regarding internet usage has largely diminished, and the youth can use this resource for their development. It is concerning that the youth are not optimally utilising their resources. The internet is a tool that can connect anyone to the global network and open up new opportunities. Moreover, lakhs of educated youth spend many years repeatedly preparing for government exams. While attempting these exams once or twice is reasonable for those genuinely interested in this career path, dedicating one’s entire 20s to this pursuit is detrimental to both individual potential and society as a whole. This represents a significant waste of youthful energy. Imagine the impact if this enormous effort were directed towards other fields and innovative ventures.

Considering all these aspects, the government, society, and the youth themselves must collectively make comprehensive efforts to create better employment opportunities in the country and ensure the proper utilisation of the youth’s talents. By doing so, India can harness the potential of its demographic dividend rather than letting it become a demographic nightmare.