Unemployment among educated youth at 16%: study

Unemployment among educated youth at 16%: study

News

1. Azim Premji University published “State of Working India Report “2018 highlighted India’s employment growth and growth in employee’s salary

Important fact

2. Report has recommended Government to formulate National Employment Policy in the wake of increasing unemployment rate
3. 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.

4. 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

5. 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.