In a shocking revelation, the latest report from the International Labor Organization (ILO) highlights a disturbing reality in India: Higher education does not necessarily translate into better job prospects. Contrary to expectations, educated youth are struggling with higher unemployment rates than their less-educated counterparts, painting a worrying picture of the country’s labour market dynamics.
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Graduates Struggle: A Harsh Reality
The report reveals a bitter truth: Unemployment among India’s graduates is a show stopper at a staggering 29.1%, which is at least 9x higher than among the illiterate, who are only 3.4%. Middle-educated people are even more affected as the employment rate for those with more than secondary qualifications is 9x higher than that of their unemployed fellow graduates. The exposure or breakdown of this myth dispels the long-held belief that education is the most effective way to guarantee employment.
A Mismatch in Skills and Opportunities
The statistics highlight the deep mismatch between the skills possessed by the workforce and the demands of the job market. This discrepancy undercuts warnings from economists such as former central bank governor Raghuram Rajan, who have warned that India’s education system is not adequately preparing young people for the realities of the modern workforce.
Gender Disparity
The report also highlights a worrying gender gap in unemployment. Among educated unemployed youth, 76.7% share is among women, while among men this percentage is 62.2%. This inequality increases the challenges women face in accessing meaningful employment opportunities, leading to wider social inequalities.
Urban Areas Hit Harder
The struggle for employment is particularly acute in urban areas, where joblessness rates surpass those in rural regions. This urban-rural disparity highlights the complex interplay between economic development, education, and employment opportunities across different geographical settings.
Determine The Path Forward
The ILO results made all the major players in India aware of the need for policymakers and stakeholders. Bridging the gap between education and job opportunities is important to ensure an environment of sustainable economic growth and social progress. This will ultimately lead to increased productivity. This gap cannot be bridged unless collective action is taken as the country is in real danger of wasting its demographic dividend and being left far behind on the world stage.
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Broader Regional Concerns
The context of a country like India is no different. These same difficulties have also troubled neighbouring China, where the youth unemployment rate remains high. This sub regional movement can therefore inspire concerted action by states and international partners to tackle the deeper factors underlying youth unemployment.
