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Source-This post on India risking ‘squandering’ demographic dividend: World Bank is based on the article “South Asia, India risk squandering demographic dividend: World Bank” published in “The Hindu” on 2nd February 2024.
Why in the News?
The World Bank, in its latest regional update titled “Jobs for Resilience”, has stated that the South Asia region, including India and its neighbours, is not generating sufficient jobs to support its youthful populations.
This puts the South Asia region demographic dividend at risk, despite experiencing the world’s fastest economic growth, which is projected at 6.0-6.1% for 2024-25.
What observations has the World Bank made?
1. Decline in employment ratio:
a. The World Bank has observed that India failed to match its job creation with the expanding working-age population from 2000 to 2023.
b. Consequently, India experienced a more significant decline in its employment rate compared to any other nation in the region, except Nepal, until 2022.
c. In 2023, South Asia’s employment ratio was 59%, compared to 70% in other emerging markets. The World Bank has highlighted that South Asia was the only region where the proportion of employed working-age men decreased over the past two decades.
2. Low female participation– The employment rates for women in several South Asian countries, including India, rank among the lowest globally, at less than 40%.
3. Affected sectors– The poor employment patterns in the area mainly affected non-agricultural sectors like manufacturing and services.
4. Recommended Actions– The Bank has suggested boosting job creation by promoting women’s participation in the economy, enhancing trade openness, and enhancing educational standards.
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