High youth unemployment remains a challenge post Covid: Report

According to a recent report published by Bengaluru-based Azim Premji University, a significant 42 per cent of graduates under the age of 25 found themselves unemployed in the aftermath of the Covid-19 pandemic.

Thisfigure comes as the pace of job creation in the country slowed down due to the global economic downturn.

The report titled 'State of Working India 2023: Social Identities and Labour Market Outcomes,', is based on data from the Periodic Labour Force Survey (2021-22) conducted by the National Statistical Office (NSO). It highlights a notable disparity in unemployment rates among individuals with higher education. It revealed that "the unemployment rate falls from over 40 per cent for educated youth under 25 years of age to less than 5 per cent for graduates who are 35 years and above." However, the report emphasises the importance of understanding the quality and suitability of the jobs that graduates eventually secure.

Add WION as a Preferred Source

The report also explores the connection between India's economic growth and job creation, concluding that this relationship remains weak.

It stated, "Since the 1990s, year-on-year non-farm GDP growth and non-farm employment growth are uncorrelated with each other, suggesting that policies promoting faster growth need not promote faster job creation." But it also noted that between 2004 and 2019, growth did translate into decent employment, with this trend disrupted by the pandemic, leading to an increase in distress employment.

This report arrives amidst upcoming state elections and the general elections scheduled for May 2024. It also comes amid protests by opposition parties regarding the persisting issue of joblessness. The university had previously released a report before the 2019 elections, indicating that five million jobs were lost during 2016-2018. While the report did not establish a direct link, it's worth noting that the government's demonetisation of Rs 500 and Rs 1,000 banknotes occurred in November 2016.

In August 2023, the Union government unveiled Rs 1.18 trillion worth of programs spanning various sectors, aiming to create jobs. Despite these efforts, the manufacturing sector, a significant source of employment in the economy, has struggled to expand. Informal services have taken the centre stage as the main job creators, presenting a challenge for policymakers.

The report further highlights the changing dynamics of employment in India. It stated, "On the one hand, the economy has grown rapidly since the 1980s, drawing millions of workers out of agriculture. And the proportion of salaried or regular wage workers has risen while that of casual workers has fallen." On the other hand, manufacturing has failed to significantly increase its share of GDP or employment, with construction and informal services emerging as the primary sources of job creation.

The report lastly, touches upon gender-based earnings disparities in India. It noted that over the past decades, these disparities have reduced, with salaried women workers earning 76 per cent of what their male counterparts earned in 2017, up from 70 per cent in 2004. This reduction in the gender pay gap has remained consistent through 2021-22.

WATCH WION LIVE HERE