Rephrase the title:In India, being educated might increase your chances of unemployment: ILO report

Since childhood, we have been taught that pursuing education and obtaining a solid degree is the only sure-shot way to secure a lucrative job and financial stability. However, a recent report the International Labour Organisation (ILO) has upended this conventional wisdom, revealing a startling trend: the more educated the youth in India, the higher their likelihood of unemployment.

According to this latest ILO report on India’s labour landscape, the proportion of unemployed youth with an education has surged from 54.2% in 2000 to a staggering 65.7% in 2022. Astonishingly, the unemployment rate among graduates stands at 29.1%, nearly nine times higher than the 3.4% for illiterate individuals. Even those with secondary or higher education face daunting odds, with an unemployment rate six times higher at 18.4%.

These statistics paint a bleak picture of a widening chasm between the skills possessed the workforce and the demands of the job market. Per Bloomberg, this reality aligns with the predictions put forth prominent economists such as former central bank Governor Raghuram Rajan, who had cautioned about the impact of India’s inadequate educational system on its economic trajectory.

The ILO report underscores this concern, noting that youth unemployment rates in India now surpass global averages. The lack of creation of viable non-farm jobs for newly educated youths exacerbates the problem, leading to an alarming rise in unemployment rates.

Of particular concern is the disproportionate impact on women, who comprise a staggering 76.7% of the educated unemployed youth, compared to 62.2% for men. India’s persistently low female labour force participation, hovering around 25%, exacerbates the issue, despite the “significant increase” in subsistence employment that was seen during the pandemic.

Urban areas bear the brunt of joblessness, surpassing rural regions. The proliferation of gig jobs, characterised temporary and low-paying employment (like food delivery drivers), further compounds the challenges. Digital platforms have especially blurred the lines between traditional employment and self-employment, presenting fresh challenges for worker well-being and working conditions.

Looking ahead, India faces the imminent addition of 70-80 lakh youths to its labour force over the next decade. For further action, the ILO recommends a multi-faceted approach, including promoting job creation, enhancing employment quality, tackling market inequalities, bolstering skill development, and addressing knowledge gaps in labour market dynamics and youth employment trends.

All in all, the study’s findings serve as a stark reminder of the urgent need for comprehensive reforms in India’s education and employment sectors. Only through concerted efforts to bridge the gap between skills and job market demands can the country hope to unlock the full potential of its burgeoning youth population and drive sustainable economic growth.