India’s new employment policy ought to focus on young adults

What is the News?

Research has been conducted to study the employment data in India, for which it used the findings of India’s Periodic labor Force Data survey, National Sample Survey Organization.

What are the findings of the research?

Farm Employment: A sharp decline was seen in the farm works among young adults. Less than 10% of young adults (aged 20-29 years) in states such as Punjab, Haryana, and Tamil Nadu work on farms.

Non-Farm Employment shows a disappointing result: Tamil Nadu has the highest ratio of non-farm employment of young adults at 41.5% in 2018-19. In Karnataka also, it is rising rapidly. In states like Kerala and UP, the ratio has fallen over time.

Unemployment: It is rising by double digits in many states, among young adults.

Zero unemployment among men who crossed 30’s: It seems they have accepted any job because of their age group.

Enrollment in higher education- There is an increase in the proportion of young adults in higher education. Around 18% of young adults in Haryana and 20% in Kerala reported being in education in 2018-19. Even the less prosperous states like Bihar and UP, shown a high proportion of young adults in education, delaying their entry into the workforce.

The employment to population ratio among young adults in India has declined to 43.4% in 2018-19 from 63% in 2004-05.

Why is this research important?

The government is in the process of setting up an expert committee for drafting a National Employment Policy. The findings of this research will be beneficial for the government to formulate the policy.

What are the suggestions provided by the research?

The research shows the demand-supply mismatch between job seekers and job providers. It suggested that government should focus on this aspect and should remould the education system to reduce its focus on higher education and raise the profile of skill-based occupations and manufacturing work.

New Employment policy should also pay close attention to the labour market dynamics of young adults in India.

Source: This post is based on the article ” India’s new employment policy ought to focus on young adults” posted in the Livemint on 15th November 2021.