 "employment")
The unemployment rate in India has gone down since the Covid-19 pandemic but the young graduates, fresh out of college and below the age of 25, are finding it the most difficult to get jobs, findings of a report released on Wednesday showed.
India's unemployment rate fell from 8.8 per cent in 2019-20 (FY20) to 7.5 per cent in FY21 and 6.6 per cent in FY22. However, according to the "State of Working India 2023" report released by Azim Premji University, the unemployment rate among young graduates is at a whopping high of 42.3 per cent.
The second-most unemployed group, at 22.8 per cent, is that of graduates and or people with higher qualifications, aged between 25-29 years. It is followed by a 21.4 per cent unemployment rate in those with the qualification of higher secondary and aged less than 25 years.
Interestingly, for graduates, the unemployment rate falls from over 40 per cent for those under 25 years of age to less than 5 per cent for those who are 35 years and above. According to the report, this indicates that, on average, graduates eventually find jobs by their late 20s or early 30s. However, they may not find jobs just after they are out of college.
Another question the report poses is the nature of the jobs they find and whether these match their skills and aspirations. "More research is needed on this important topic," it said.
Also Read
The report added that although unemployment is falling, the earnings have been stagnant. "Low unemployment is matched by stagnant earnings, indicating that labour demand continues to be weak," it said.
Also Read: Employment in India registered V-shaped recovery post-pandemic: Former CEA
Also Read: Employment in India registered V-shaped recovery post-pandemic: Former CEA
It added that this means the continued weak aggregate demand is being passed on to the workers. According to the Periodic Labour Force Survey 2021-22, the total household income from labour only grew at a compounded annual rate of 1.7 per cent in real terms since 2017-18.
Interestingly, regarding gender, females living in urban areas continue to have the highest unemployment rate of 9.9 per cent. It has, however, fallen sharply from over 12 per cent in the previous four years.
This group is followed by a 7.8 per cent unemployment rate in urban males and 6.5 per cent in rural males. Unemployment in rural females was recorded at 4.5 per cent in FY22.
The report also highlights another important point. The workforce participation rate (WPR) of females has improved in the last five years, especially in rural areas. But this is not due to the rise in the number of jobs. It is mainly due to self-employment.
After the pandemic, from April to June in 2020, the share of female participation in agriculture fell from 72.4 per cent to 69.1 per cent between April and June in 2022. On the other hand, the share of self-employed in the total female workforce has jumped from 57.8 per cent to 61 per cent during the same period.
Also, there is a seasonal pattern in female workforce participation in rural areas. Women tend to enter the workforce during the peak seasons and withdraw during the lean seasons.
The report further added that this does not necessarily mean "a reduction in hours spent in care work and other domestic activities" for females.
Also Read: India's double brain drain
"In the India Working Survey we find that increased workforce participation may be accompanied by constant or even increased time spent in housework for women," it said.
