India Employment Report 2024

• The International Labour Organisation (ILO) and the Institute of Human Development (IHD) have released a report named “India Employment Report 2024”.

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.