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Unemployment among educated youth at 16%: study
Why in the news ?
- Recently a report on ‘State of Working in India’, prepared by Centre for Sustainable Employment at the Azim Premji University is released.
- As per the report, while the Indian economy may be growing at a fast pace, the growth is not leading to many new jobs with less than one per cent growth in employment creation.
More in the news
Findings of the report :
- The jobs that exist are low-paying, with 92 per cent of the female workers and 82 per cent of the male workers earning less than Rs 10,000 per month.
- In 1970s, for a 3 per cent to 4 per cent rate of GDP growth back then, employment grew by around 2 per cent every year.
- Now the number has come down to less than 1 per cent when the GDP is growing at 7 per cent.
- Unemployment has risen across the country between 2011 and 2015 with a seven million drop in total employment.
- More recent data from private sources show that the absolute decline has continued past 2015.
Comparison
- Unemployment has risen to more than 5% overall, and the study slices the data to show that in geographic terms, north Indian States are most severely affected.
- While in demographic terms, young people with higher education levels suffer an unemployment rate as high as 16%, for a national average of over five per cent.
Wages Issue
- While wages are rising in almost all sectors, hidden within the positive data is the worrying fact that rural wage growth collapsed in 2014.
- In the organised manufacturing sector, though the number of jobs has grown, there has also been an increase in the share of contract work, which offers lower wages and less job security.
Source
The Hindu, Indian Express.