Economy Watch: India's Youth Face Rising Unemployment | Vantage with Palki Sharma

Summary

India is facing a youth unemployment crisis, with 65% of its young population out of work, a stark increase from 35% in 2000. The mismatch between rapid population growth and slow job creation, worsened by the pandemic, has left millions of young Indians without opportunities. The global job market is also struggling, with major economies facing high unemployment rates. Technological disruptions like AI are reshaping job markets, creating new opportunities but also eliminating certain roles. For India’s youth, the future demands constant upskilling and adaptability to navigate the changing job landscape.

Takeaways

• 😀 India's job market has been severely impacted by global layoffs, with many people losing their jobs across various sectors.
• 😀 According to the International Labour Organization (ILO), India's youth unemployment has almost doubled from 35% in 2000 to 65% in 2022.
• 😀 A significant 83% of the unemployed workforce in India is under the age of 34, a concerning statistic given India's youthful population.
• 😀 India's large, young population is considered a national asset, but the country has struggled to create sufficient job opportunities.
• 😀 The COVID-19 pandemic exacerbated the issue, halting job creation and reversing the positive trends seen before 2019.
• 😀 In the coming decade, India will need to create jobs for an additional 7 to 8 million job seekers annually, posing a significant challenge.
• 😀 Globally, job creation has slowed down, with the ILO projecting only a 1% increase in global job growth in 2023 and 1.1% in 2024.
• 😀 Unemployment rates in several European countries, including Spain, Greece, and Italy, exceed 7%, and China is facing an even worse crisis.
• 😀 Emerging technologies like Artificial Intelligence (AI) are both disrupting and creating new job opportunities, which India must focus on.
• 😀 Job seekers, especially the youth, must continuously upskill and adapt to emerging trends, as classroom learning may soon become obsolete.

Q & A

What does the recent ILO report reveal about youth unemployment in India?

The ILO report indicates that youth unemployment in India has drastically increased, with 65% of Indian youth being unemployed by 2022, up from 35% in the year 2000.

Why is the youth unemployment rate in India so high?

The high youth unemployment rate in India is mainly due to a mismatch between the rapidly growing population and the slow pace of job creation, compounded by disruptions like the pandemic.

How does India’s population growth relate to its unemployment challenges?

India’s population has surged dramatically from 2000 to 2022, but job creation has not kept up with this growth. As a result, more people are entering the workforce without sufficient job opportunities.

What is India’s demographic advantage, and how is it impacted by youth unemployment?

India’s demographic advantage is its young population, which is seen as a key driver for economic growth. However, high youth unemployment threatens this advantage, as the potential of the workforce is not being fully utilized.

What was the impact of the pandemic on India’s job market?

The pandemic significantly worsened the job market in India, reversing previous positive employment trends and slowing down job creation, which has not yet fully recovered.

How many new job seekers is India expected to add in the coming decade?

India is expected to add between 7 to 8 million new job seekers in the coming decade, further intensifying the challenge of job creation.

What is the global trend regarding job creation, according to the ILO?

Globally, job creation is slowing down, with the ILO projecting only a 1% growth in 2023 and a marginal 1.1% growth in 2024, signaling a broader unemployment crisis in major economies.

Which countries are struggling with high unemployment rates, according to the script?

Countries like Spain, Greece, Sweden, Italy, Finland, and France are all struggling with unemployment rates over 7%. Additionally, China has an unemployment rate close to 12%, though it stopped publishing youth unemployment data.

How is AI expected to affect the job market, and what should India’s youth do in response?

AI is expected to disrupt the job market by automating many tasks, which could displace jobs. However, it will also create new opportunities. India's youth should focus on upskilling, learning emerging technologies, and aligning their training with market demands.

What is the role of upskilling in India’s employment future?

Upskilling is crucial for India’s youth as it allows individuals to stay competitive in a rapidly changing job market, especially with the rise of new technologies like AI. Continuous learning and adapting to market needs will be key to securing future employment.