Employment rate in India: Indian youth employment rate drops in FY22

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The employment rate of Indian youth (15-24) stood at 10.4% in 2021-22 from 10.9% in 2020-21, according to the Consumer Pyramid Household Survey by the Center for Monitoring Indian Economy . This figure is much lower than the World Bank estimate of 23.2% for 2020.

According to the CMIE, what is most concerning is the very sharp drop in this ratio in the CPHS dataset over the past five years. The youth employment rate in 2016-17 was 20.9% and fell to 17.9% in 2017-18, 15.5% in 2018-19 and 14.7% in 2019-20.

“In 2020-21, the first year of the pandemic, India’s youth employment rate dropped dramatically to 10.9% and 10.4% in 2021-22,” CMIE said in its report. weekly labor market analysis.

According to the CMIE, employment conditions are quite unfavorable for young people, resulting in a relatively low labor participation rate (LPR). Between 2016-17 and 2021-22, while the average LPR was 42.6%, for youth it was well below 22.7%.

Moreover, while the overall unemployment rate averaged 7%, young people experienced an unemployment rate of over 34%. “Apparently the high unemployment rate deters them from joining the labor market. This is especially true for women,” the CMIE said.

CMIE is of the opinion that there is no shortage of capital in the world today.

“Ideally, India should seize this rare opportunity of easy availability of labor and capital to fuel rapid growth,” he said. “However, it seems to be missing that bus,” CMIE added.

According to the CMIE, an economy must be ready to offer jobs to the new annual cohorts of young hopefuls who find themselves in this transition phase.

“A young, energetic and freshly educated population, if harnessed well, can generate growth and savings and pave the way to prosperity,” he said. “If left unexploited for a long time, they could become a source of social tension,” he added.

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