In a recent study released jointly by the Institute for Human Development (IHD) and the International Labour Organisation (ILO), India's job market has come under scrutiny, revealing persistent challenges despite some improvements in recent years.
Titled the 'India Employment Report 2024', the study sheds light on concerning trends in the nation's workforce dynamics. While there has been an uptick in overall labour force participation, workforce engagement, and employment rates, the report highlights that the quality of employment remains subpar.
The slow transition to non-farm employment has regressed, with women bearing the brunt of increasing self-employment and unpaid family work. Moreover, youth employment is notably of inferior quality compared to that of adults, characterized by a higher prevalence of unpaid family work and stagnant or declining wages.
Chief Economic Adviser V Anantha Nageswaran, upon releasing the report, emphasized the need to shift away from the notion that every economic or social issue necessitates government intervention. He stressed the role of the commercial sector in driving employment, stating, "In the normal world, it is the commercial sector, those who engage in for-profit activity, who need to do the hiring."
Nageswaran acknowledged various government efforts aimed at facilitating employment, including skill development initiatives and the recently implemented National Education Policy (NEP). He urged that these initiatives should not be held hostage to political considerations, emphasizing the importance of sustained policy support for fostering employment opportunities.
However, the report highlighted significant challenges, particularly regarding youth unemployment. Despite a decline during the pandemic years, youth unemployment and underemployment have intensified over time, especially among individuals with secondary education or higher.
In 2022, the share of unemployed youths in the total unemployed population stood at a staggering 82.9 percent, with educated youths, particularly women in urban areas, disproportionately affected.
The findings also highlighted the need for enhanced skill development initiatives, citing issues such as instructor availability and dropout rates as areas requiring attention. Nageswaran acknowledged these shortcomings, stating, "Quite clearly, there is considerable scope for improvement and I think the government is mindful of that."
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