Relevance : GS Paper II
There has been increase in the unemployment rate to 5.8% for rural men and 7.1% for urban men.
Takeaways from the unemployment data
- Under conditions of rising school and college enrolment, it paints an inaccurate picture.
- The unemployment rate is dominated by the experience of younger Indians who wait for the right job than their older peers.
- Rising education levels inflate unemployment challenges.
Analyzing the unemployment data
- Unemployment rate is a good indicator of the changes in the employment situation.
- The proportion of the population that is unemployed has increased only slightly for population aged 30 and above.
- Much of the increase in male unemployment is located among ages 15-29.
Roots of India’s present-day unemployment challenge
- Expanding education while not expanding formal sector jobs.
- Greater competition for well-paid jobs among a rising population of educated youth.
- Rising prosperity allows young graduates to wait for well-paying jobs.
Conclusion
Creating jobs for an increasingly educated workforce and ensuring that the new workers are well equipped to enter the labour force are twin challenges.
