Young and Jobless: 63% Indians between 20-24 are unemployed
- The unemployment rate in India hit 7.1% in January 2020.
- According to the data by
Centre for Monitoring Indian Economy( CMIE), people below the age of 30 account for only a fifth of the total employed persons.
- As of 2019, the people under the age of 30 having salaried jobs declined to 29% — accounting for nearly 25 million.
The country which is known for its youngest populations — is unable to provide them with employment. Only 37% of people in the 20-24 age group are employed — and this situation could lead to dangerous consequences. This is despite the fact that India has 35% of its working population in the 5 to 30 year age bracket.
According to experts, this can impact India’s economy in the long run. “This should get much more attention from policymakers. Allowed to persist this can leave scars on India’s economy and polity for long years,” said
CMIE data shows unemployment rate in India in the age group 20-24 years has risen to a shocking level of 37%. This… https://t.co/XKdZpPlHeR— Kaushik Basu (@kaushikcbasu) 1581041868000
In 2019, only one in five employed persons is below 30 years of age, according to the data by Centre for Monitoring Indian Economy (CMIE). The share of the people below the age of 30 in employment has been declining every year.
Gen X takes away the salaries
As the age profile increases, so does the rate of employment. More than half of the people above 40 years of age are employed, as of December 2019. However, an economy which is trying to push for digital transformation — needs the contribution of younger people.
“This structural shift is disturbing because this ageing profile is least capable of tackling the challenges of new technology and an increasingly competitive business environment,” CMIE said.
Over and above it, people under the age of 30 lost 25 million salaried jobs — that is a 29% reduction. And, India has fewer salaried jobs to start with — at 21% of the total employment. This includes industrial workers, white collar workers, managers and support staff.
“There is an absolute decline in salaried jobs for those under 30 years of age. There has to be at least some increase in salaried jobs for those below 30 years of age,” CMIE concluded.
Job creators, not job seekers says FM
Some part of this lack of salaried jobs, is also a reflection of growing ‘entrepreneurial spirit’ in India. During the latest budget speech, Finance Minister Nirmala Sitharaman said that these entrepreneurs are not job seekers but ‘job creators’.
However, the CMIE said that these enterprises should grow beyond just a ‘means of self-employment.’
“There is only one kind of employment that can do this — self-employment. The count of self-employed shot up by 23 million from 33 million in 2016 to 56 million in 2019. Their share in total employment has increased to nearly 14% in 2019,” CMIE data shows.
India’s consumer confidence was at a six-year low— and it just dipped further
AdvertisementEducation Budget 2020 gets ₹99,300 crore allocation, new schemes introduced — including 'INSAT' to enroll Asian and African students
India's most populous state is struggling as unemployment doubles
Popular on BI
- A Google recruiter says he discovered he'd lost his job after a call with one of his candidates suddenly disconnected
- A Google employee of 11 years says he and his wife stared at each other in 'disbelief' when they realized they'd both been laid off by the company
- A Google engineer of 8 years says his 'spidey-senses' detected incoming layoffs — and felt 'isolated' when his 'faceless' severance email arrived
- DGCA slaps ₹10L fine on Go Air for leaving behind 55 passengers at B'luru airport
- Vedanta Q3 net profit drops 41% on higher input costs
- ED attaches 32 properties worth ₹70 crore in fraudulent TDS refund case
- RRR surpasses Cruise’s Top Gun 2 & Spielberg’s The Fabelmans in the top 10 movies of 2022
- Weekend OTTs: Ayushmann Khurrana’s ‘An Action Hero’ to ghost hunts with ‘Lockwood and Co’