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Unemployment among educated youth at 16%: study
News
- Azim Premji University published “State of Working India Report “2018 highlighted India’s employment growth and growth in employee’s salary
Important fact
- Report has recommended Government to formulate National Employment Policy in the wake of increasing unemployment rate
- Finding of the report on unemployment
- Unemployment has risen to more than 5% overall.
- In North Indian States, young people with higher education levels suffer an unemployment rate as high as 16%.
- Women’s employment is still low, In Uttar Pradesh, only 20 women are in paid employment for every 100 men, while 50 in Tamil Nadu and 70 in Mizoram and Nagaland.
- Finding of the report on salary
- 57% of Indian workforce earnings is up to Rs.10,000 per month and 1.6% employee’s earning is up to Rs.50,000.
- 59% of casual worker earn just up to rupees 5,000 in a month
- The average salary of unorganised sector employee is much below than Central government employees
- Caste gap is also big reason for earning of wages. Dalits and Adivasis earn only 55-56% of upper caste workers’ earnings
- Unemployment and growth rate
- Between 1970s and 80s GDP growth was around 3-4% with employment growth rate about 2%
- Between 2000 and 2015, real wages grew in every sector; the compounded annual growth rate (CAGR) was about 3%.
- Between 2013 and 2015, employment actually shrank by seven million
- The low wages creates extremely high demand for government employment
- In 2018, 10% increase in GDP rate resulted in less than 1% increase in employment.
