Mumbai: India is facing an unprecedented job crisis, with millions of educated youth finding it increasingly difficult to secure employment. Job openings are becoming scarce, and thousands of people are moving to cities hoping to fill limited vacancies.
In July, approximately 25,000 job seekers from across the country appeared at the Air India office in Mumbai for a chance to fill 2,216 loader job vacancies, according to an Economic Times article. This overwhelming turnout is a common occurrence as India’s unemployment crisis worsens.
Fifty per cent of India’s population is under 30 and almost 65% under 35, as per a recent survey by The Times of India. India has a demographic advantage compared to nations with ageing populations. However, this potential asset remains untapped without adequate job generation.
Rising Unemployment Among Youth
The latest date from CMIE , a think tank, indicates that the unemployment rate among 20-24 year olds has reached an alarming 45%. Most youth, after failing to find stable jobs in the formal sector, turn to the informal economy, where 90% of India’s workforce is employed. This sector includes low-skilled jobs on farms, construction sites, and other precarious work environments.
According to a SBI report, out of the 112 million jobs created in the last decade, only 10% were in the formal sector, highlighting the severe lack of quality employment.
Low Labour Force Participation and Gender Disparity
To further compound the problem, India has one of the lowest labour force participation rates among Asian nations. The participation rate stands at 55%, compared to China’s 66%, South Korea’s 65%, and Japan’s 63%, as per a report by Our World in Data. This gap is even more pronounced for women, who account for only 33% of the labour force, compared to the world average of 49%.
India’s female participation rate is among the lowest globally, despite similar enrollment numbers in higher education for men and women. Many Indian women are discouraged from joining the workforce due to societal norms that prioritize caregiving over employment.
The Role of Education in the Job Crisis
A study by the Indian Employment Report (2024) revealed a paradox: as Indians become more educated, their chances of securing a high-quality job diminish. This stems from an education system that often fails to equip students with the necessary skills for the modern workforce. Outdated curricula and underfunded schools leave graduates unprepared to meet the demands of a rapidly evolving job market.
Addressing India’s Job Creation Challenges
To combat the youth unemployment crisis, India must focus on attracting foreign investments. Increasing foreign direct investment (FDI) could spur job creation, especially in manufacturing and other labour-intensive industries. India must implement more business-friendly policies that attract global corporations to set up operations locally.
Moreover, improving the quality of education is critical. Education boards need to update curricula to ensure graduates are ready for modern jobs, while vocational training should be expanded to offer practical skills in high-demand industries.
India’s future prosperity depends on its ability to generate jobs for its youth, and by closing the gender gap in the workforce, the country could significantly boost its GDP. Solving the job crisis is not only an economic necessity but a social imperative to ensure that India’s youth are empowered to contribute to the country’s growth and development.
India’s unemployment crisis is deepening as millions of educated youth struggle to find jobs. Despite economic growth, job creation lags behind, leaving many without opportunities. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
