Recently published The India Employment Report 2024 provides a comprehensive assessment of the challenges plaguing India’s labour market, particularly concerning youth unemployment and social inequalities. The data and insights presented underscore the urgent need for holistic policy interventions aimed at addressing structural deficiencies, enhancing skill development initiatives, promoting inclusive growth, and bridging gender and social disparities in the labour market. By prioritizing youth employment and fostering an enabling environment for sustainable and equitable growth, India can harness its demographic dividend to propel socioeconomic development and prosperity for all segments of society.
India’s demographic dividend, characterized by its large and youthful population, presents both opportunities and challenges for its labour market dynamics. However, despite economic growth and development initiatives, the issue of youth unemployment remains a significant concern. The India Employment Report 2024 provides crucial insights into the extent of this problem, revealing alarming trends and structural deficiencies that impede inclusive and sustainable growth. This article synthesizes the key findings of the report, examining the underlying factors contributing to youth unemployment and labour market challenges in India.
Youth Unemployment: A Growing Concern:
According to the India Employment Report 2024, youth unemployment in India is a pervasive issue, with nearly 83% of the unemployed workforce comprised of young individuals. Notably, the share of educated youth among the unemployed has doubled from
35.2% in 2000 to 65.7% in 2022. This surge in unemployment among educated youth underscores the mismatch between educational qualifications and job market demands, highlighting systemic inefficiencies in skill development and employment generation initiatives.
Challenges Faced by Educated Youth:
Educated youth, despite possessing qualifications, encounter formidable barriers to accessing suitable employment. The report indicates that many highly educated individuals are reluctant to accept low-paying and insecure jobs, perpetuating the cycle of unemployment. This reluctance stems from aspirations for better opportunities, contributing to a mismatch between skill sets and available employment options.
Paradoxical Improvements Amidst Structural Deficiencies: 
The report highlights paradoxical improvements in labour market indicators over the past two decades, juxtaposed with persistent structural deficiencies. While there have been sporadic improvements in indicators such as the Labor Force Participation Rate (LFPR) and Worker Population Ratio (WPR) post-2019, these improvements coincide with periods of economic distress. The authors caution against interpreting these improvements optimistically, as the
quality and sustainability of the generated jobs remain questionable. Structural issues such as insufficient growth in non-farm sectors and the prevalence of informal employment continue to hinder inclusive growth and youth employment prospects.
Gender Disparities and Social Inequalities:
Moreover, the report underscores the widening gender gap in the labour market, with low rates of female labour force participation exacerbating the unemployment challenge among young women, particularly those with higher education. Additionally, despite affirmative action and targeted policies, marginalized communities, such as Scheduled Castes and Scheduled Tribes, continue to face barriers in accessing quality employment opportunities. Despite improvements in educational attainment, social hierarchies persist, with marginalized groups predominantly engaged in low-paid temporary and informal employment.
Social Inequalities and Marginalized Communities:
Despite affirmative action and targeted policies, marginalized communities, such as Scheduled Castes and Scheduled Tribes, continue to face barriers in accessing quality jobs. While educational attainment has improved across all social groups, entrenched hierarchies persist, perpetuating disparities in employment outcomes. The report emphasizes the necessity of inclusive policies to uplift marginalized communities and promote equitable access to employment opportunities.
In this election, the present government has nothing in its manifesto regarding youth. When we see the manifesto of the opposition party Congress, they talk of “YUVA NYAY”. Congress has promised to bring a law to control paper leaks, if the paper is leaked then the government will give compensation. The Congress Party has also promised to fill 30 lakh vacancies in state and central government jobs “Bharti Bharosa”.
Apart from this many number of paper leak cases have come up and the youth are very upset with this as they are worried about everything like money, time, and age. Paper leaks are happening for every exam in many states since the last few years. Due to this, many students are becoming mentally disturbed and committing suicide. Their years of preparation go in vain. The present BJP government is not doing anything about it. But Congress will provide fast-track courts to adjudicate cases of leaking question papers for job examinations and provide monetary compensation to the victims.