ILO Report Red Flags Youth Unemployment In India, CEA Responds | CNBC TV18

Summary

A recent ILO report indicates India's improved employment rates despite stagnant wages and high youth unemployment. It reveals that 83% of the unemployed are youth, with an increased jobless rate among educated youth during COVID-19. The chief economic advisor, V Anand Nageswaran, suggests that government hiring is not the solution and urges states and the private sector to focus on job creation, advocating for a shift in mindset from excessive government intervention to private sector engagement.

Takeaways

• 📈 India's employment rates have improved recently, but employment conditions remain poor.
• 💼 Wages are stagnating in India, contributing to the ongoing employment challenges.
• 👨‍🎓 High levels of youth unemployment persist, with 83% of the unemployed being young people.
• 📚 The jobless rate among educated youth has increased during the COVID-19 pandemic.
• 📈 The proportion of young people with secondary education among the total unemployed has nearly doubled from 35% in 2000 to 66% in 2022.
• 🏛️ The International Labor Organization (ILO) released a report highlighting these findings.
• 🗣️ Chief Economic Advisor V Anand Nageswaran suggests that massive central government hiring is not the solution to unemployment.
• 🌐 He urges states and the private sector to take more initiative in job creation.
• 🎭 Nageswaran references a 1970s film 'Muhammad bin Tolk' to illustrate the idea that government intervention alone cannot solve unemployment.
• 🚀 The advisor emphasizes the need to shift the mindset from expecting government intervention for every social or economic problem to encouraging the private sector's role in job creation.

Q & A

What is the current state of India's employment rates?

India's employment rates have improved in recent years after a period of long-term deterioration.

What are the main employment challenges in India according to the ILO report?

The main challenges include stagnant wages and high levels of youth unemployment.

How does the ILO report characterize the youth unemployment situation in India?

India's youth account for 83% of the unemployed population, and the jobless rate among educated youth has risen during the COVID-19 pandemic.

What was the proportion of young people with secondary education among the total unemployed in 2000 and how has it changed by 2022?

In 2000, it was just over 35%, and by 2022, it had nearly doubled to nearly 66%.

What is the stance of the chief economic advisor, V Anand Nageswaran, on government intervention in unemployment?

He believes that massive central government hiring is not the answer to India's unemployment problem and urges states and the private sector to do more on job creation.

What does V Anand Nageswaran suggest as an alternative to government hiring to address unemployment?

He suggests that the private sector should take the lead in job creation and that there should be a shift in mindset away from expecting government intervention for every social or economic problem.

What is the reference to the film 'Muhammad bin Tolk' and how does it relate to the discussion on unemployment?

The film is referenced to illustrate the point that merely talking about unemployment is not a solution, echoing the character's approach to addressing problems which is to keep talking about them without providing specific solutions.

What is the role of the commercial sector according to V Anand Nageswaran in job creation?

He believes that the commercial sector, which engages in for-profit activities, should be the primary driver of hiring and job creation.

What does the chief economic advisor suggest the government can and must do regarding employment?

While he agrees that the government can and must hire in some areas, he emphasizes that it should not be the sole solution to unemployment.

What is the implication of the statement 'we need to get out of that mindset' by V Anand Nageswaran?

It implies that there is a need to change the prevailing belief that the government should intervene in every social or economic issue and instead encourage other sectors to take on more responsibility.

What is the context of the statement made by V Anand Nageswaran about the film 'Muhammad bin Tolk'?

The statement is made to highlight the importance of action over mere discussion and to emphasize that while acknowledging problems is necessary, it is equally important to propose and implement concrete solutions.

Outlines

00:00

📊 India's Employment Challenges

India has seen an improvement in employment rates after a period of decline, but conditions remain poor with stagnant wages and high youth unemployment. The International Labor Organization (ILO) reports that 83% of the unemployed are young people, and the COVID-19 pandemic has worsened the situation. The chief economic advisor, V Anand Nageswaran, stresses that government intervention alone is not the solution and encourages states and the private sector to take action on job creation. He references a film from the 1970s, 'Muhammad bin Tlak,' to illustrate the point that not every problem can be solved by the government and that it's important to communicate the urgency of issues like unemployment.

Keywords

💡Employment Rates

Employment rates refer to the proportion of the working-age population that is currently employed. In the context of the video, it is mentioned that India's employment rates have improved after a period of long-term deterioration. This is a central theme as it sets the stage for discussing the current state of employment in India.

💡Stagnating Wages

Stagnating wages imply that there has been little to no growth in the income earned by workers over a period of time. The video script points out that despite improvements in employment rates, wages in India have not seen significant growth, which is a key issue affecting the quality of employment.

💡Youth Unemployment

Youth unemployment specifically refers to the unemployment rate among young people. The script highlights that 83% of the unemployed population in India are youth, indicating a significant demographic challenge. This is a crucial point as it underscores the urgency of addressing job creation for younger generations.

💡International Labor Organization (ILO)

The ILO is a United Nations agency that focuses on labor issues, advocating for workers' rights, encouraging decent job creation, and promoting social protection and dialogue on work-related issues. The script mentions a report released by the ILO, which provides data and insights into India's employment situation.

💡COVID-19 Pandemic

The COVID-19 pandemic has had a global impact on employment, and the script notes that the jobless rate among educated youth in India has risen during this period. This keyword is important as it contextualizes the current employment challenges within the broader economic disruption caused by the pandemic.

💡Secondary Education

Secondary education typically refers to the period of education following primary school, often including middle and high school. The script indicates that the proportion of young people with secondary education among the total unemployed has nearly doubled from 35% in 2000 to 66% in 2022, suggesting a mismatch between educational attainment and job opportunities.

💡Chief Economic Advisor

The Chief Economic Advisor is a high-ranking government official who provides counsel on economic policy. In the script, the Chief Economic Advisor, V Anand Nageswaran, is quoted as saying that massive central government hiring is not the answer to India's unemployment problem, emphasizing the role of states and the private sector in job creation.

💡Government Intervention

Government intervention refers to the actions taken by the state to influence economic or social outcomes. The video discusses the belief that government intervention is necessary for every social or economic problem, with the Chief Economic Advisor suggesting that this mindset needs to change, particularly regarding job creation.

💡Private Sector

The private sector consists of businesses and organizations that operate independently of government control. The script suggests that the private sector should take a more active role in job creation, indicating that it is a key player in addressing unemployment.

💡Job Creation

Job creation refers to the process of generating new employment opportunities. It is a central theme in the video, with the Chief Economic Advisor urging states and the private sector to do more in this area. The script implies that job creation is a shared responsibility that goes beyond the government.

💡Bombay Stock Exchange

The Bombay Stock Exchange (BSE) is one of the largest and oldest stock exchanges in Asia. The script mentions the Chief Economic Advisor speaking at the BSE, which provides a context for his remarks on unemployment and the need for private sector involvement in job creation.

Highlights

India's employment rates have improved after a period of long-term deterioration.

Employment conditions in India remain poor with wages stagnating.

High levels of youth unemployment persist in India.

The International Labor Organization (ILO) released a report on India's employment situation.

India's youth account for 83% of the unemployed population.

Jobless rate among educated youth has risen during the COVID-19 pandemic.

The proportion of young people with secondary education among the total unemployed has nearly doubled from 2000 to 2022.

Chief Economic Advisor V Anand Nageswaran discusses the government's role in addressing unemployment.

Massive central government hiring is not the solution to India's unemployment problem.

States and the private sector are urged to do more on job creation.

The government should not intervene in every social or economic problem.

The commercial sector should engage in hiring for profit activity.

The mindset that every social or economic problem requires government intervention needs to change.

The film 'Muhammad bin Tolk' is referenced to illustrate the futility of merely talking about unemployment.

The government can and must hire in some areas, but it is not the only solution.

India may be lacking in capacity in several areas, as suggested by a paper by DH Kapoor.

The Bombay Stock Exchange hosted the discussion on India's employment challenges.

Transcripts

India's employment rates have improved

in recent years after a period of

long-term deterioration however

employment conditions remain poor with

wages stagnating and high levels of

youth unemployment now these are the

findings of a report released by The

International labor organization or the

ILO the ILO report highlights that

India's youth account for 83% of the

unemployed population according to the

ILO the jobless rate among education

youth has also risen during the covid-19

pandemic the proportion of young people

with a secondary education among the to

total unemployed is nearly doubled from

just over 35% in 2000 to nearly 66% in

2022 now releasing the report the chief

economic advisor V Anand nageswaran said

it's not correct to think that the

government must intervene in addressing

every social or economic problem he said

massive central government hiring is not

the answer to India's unemployment

problem and urge States and the private

sector to do more on job creation take a

look the reason why I said that the

absence of specific Solutions is not a

complaint or a criticism but part for

the course I want to recall a film from

1970s when I was probably somewhere

around 10 12 years of age it was a movie

which was first originally a play and

then became a very famous movie Muhammad

bin tlak by the noted Tamil journalist

lawyer actor CH

ramaswami and in that uh play he becomes

a prime minister Minister T he comes as

a tlak the the emperor and then he

becomes a prime minister and then he

begins to address various problems uh

corruption the national language issue

and then the unemployment problem and

for that he simply says look all I will

do is I'll keep talking on every Dice

and every stage that we have to solve

the unemployment problem and that is my

contribution to solving the unemployment

unemployment problem because he said

this is not something that I can address

I would simply say I will say that this

problem needs to be addressed urgently

in every Forum I I'm I'm invited to

speak at so the point therefore here is

that I think there is an element of

Truth in what he uh said in that movie

we should ask ourselves what can the

government do on employment short of

hiring massively by

itself of course I do agree that it can

and must hire in some areas in fact

according to a very good paper by DH

Kapoor in the Journal of economic

perspectives some time ago India may be

lacking in capacity I'm talking about

capability talking about capacity in

terms of numbers in several areas and

numbers are indeed part of the solution

in terms of government employment but

apart from that to think that every

social or economic for every social or

economic problem that there is a

government intervention is not quite

correct we need to get out of that

mindset in the normal world it is the

commercial sector those who engage in

for profit activity who need to do the

hiring well that's the chief economic

adviser at the Bombay Stock Exchange