Answer:

Introduction

In 2024, youth unemployment in India remains alarmingly high, with educated youth comprising 83% of the unemployed workforce. This stark reality persists despite a growing number of graduates and diploma holders. The disconnect between education and employment opportunities highlights a critical mismatch that needs urgent attention.

Body

Reasons for High Unemployment Rates Among Educated Youth:

• Skill Mismatch: Graduates often lack industry-specific skills, leading to unemployability.
  For example: Only 25% of engineering graduates are fit for IT roles due to outdated curricula.
• Quality of Education: Expansion in the number of educational institutions has led to a decline in qualitative education and training, with many lacking proper accreditation and faculty.
  For example: Numerous colleges offer subpar education, resulting in unemployable graduates.
• Job Market Saturation: High competition for a limited number of jobs leads to unemployment, even among highly educated individuals.
  For example: In Uttar Pradesh, over 75,000 applicants, including postgraduates, competed for low-level government positions.
• Gender Disparity: Social norms and lack of supportive infrastructure result in higher unemployment rates among educated women.
  For example: In 2022, 76.7% of the educated unemployed youth were women, facing significant barriers to employment.
• Frictional Unemployment: Individuals willingly remain unemployed to pursue higher education, research, or prepare for competitive exams or better jobs resulting in natural unemloyment.
  For example: A significant number of graduates and post graduates take ‘gap years’ to prepare for the UPSC exams, resulting in a temporary increase in unemployment rates.
• Economic Downturns: Economic downturns lead to reduced hiring and increased layoffs, affecting employment rates.                                             For example: The COVID-19 pandemic led to widespread layoffs in the hospitality and tourism sectors, with many recent graduates in hospitality management unable to find employment despite their qualifications.
• Structural Changes in Industries: Changes in industries, such as the decline of traditional manufacturing sectors and the rise of new technology-driven industries, create mismatches between the skill’s demand-supply and  job displacement.
  For example: The decline of the textile industry in regions like Ludhiana has left many traditional textile workers unemployed, while there is a rising demand for IT professionals in Bengaluru.
• Labour Market Policies and Regulations: Rigid labour market policies and regulations can discourage hiring, making it difficult for new graduates to find jobs.
  For example: In Kerala, strict labor laws and high minimum wages have led some businesses to be cautious in hiring new graduates, fearing the long-term cost implications.
• Global Competition and Outsourcing: Global competition and outsourcing reduce the number of available jobs domestically as companies move operations to countries with cheaper labour.
  For example: Several IT companies in India have outsourced their back-office operations to the Philippines, reducing job opportunities for recent IT graduates in cities like Hyderabad.
• Demographic Shifts: Changes in the demographic structure, such as a rapidly growing youth population, can outpace job creation.
  For example: In Uttar Pradesh, a state with one of the highest youth populations in India, the rate of job creation has not kept pace with the number of graduates entering the job market each year.
• Geographic Immobility: Geographic immobility, where individuals are unwilling or unable to move to areas with better job opportunities, exacerbates unemployment.
  For example: Many graduates from rural areas in Bihar are reluctant to move to metropolitan cities like Mumbai or Delhi for employment due to cultural and familial ties, resulting in higher local unemployment rates.
• Insufficient Job Creation Policies: Inadequate job creation policies and lack of incentives for businesses to hire more workers contribute to high unemployment rates.
  For example: The government’s slow implementation of the ‘Make in India’ initiative has led to fewer manufacturing jobs than anticipated, affecting employment prospects for engineering graduates.

However, despite the increasing number of graduates and diploma holders in India, unemployment is not solely due to skill mismatches and other factors. Frictional and technological unemployment also significantly impact employment rates in the country.

Measures to Address Youth Unemployment:

• Enhancing Skill Development: Implement industry-specific vocational training and continuous skill upgrades.
  For example: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aims to bridge the skill gap through certified training courses.
• Improving Quality of Education: Reform curricula to align with industry needs and promote research and innovation in educational institutions.
  For example: The National Education Policy 2020 focuses on holistic and multidisciplinary education.
• Promoting Employment-Intensive Sectors: Encourage growth in manufacturing and agriculture through incentives and technological integration.
  For example: ‘Make in India’ initiative aims to boost manufacturing, creating more job opportunities.
• Supporting Entrepreneurship: Provide financial and mentorship support to young entrepreneurs to foster job creation.
  For example: Startup India offers funding, tax benefits, and incubation support to startups.
• Addressing Gender Disparities: Create policies supporting women’s participation in the workforce, such as flexible working hours and childcare facilities.
  For example: Companies like Tata Consultancy Services offer flexible work options to retain female employees.

Conclusion:

To address high unemployment rates among educated youth, India must enhance skill development, improve education quality, promote labor-intensive sectors, support entrepreneurship, and address gender disparities. Implementing these solutions will transform India’s demographic dividend into a powerful engine of economic growth, ensuring a brighter future for its youth and fostering a more inclusive and resilient economy.