{"id":257084,"date":"2023-08-23T21:03:07","date_gmt":"2023-08-23T15:33:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=257084"},"modified":"2023-08-29T12:10:02","modified_gmt":"2023-08-29T06:40:02","slug":"how-india-is-becoming-a-young-country-but-with-an-ageing-workforce","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-india-is-becoming-a-young-country-but-with-an-ageing-workforce\/","title":{"rendered":"How India is becoming a young country but with an ageing workforce"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cHow India is becoming a young country but with an ageing workforce\u201d <\/strong>and \u201cExpress View on CMIE data: A dissonant note\u201d <\/strong>published in \u201cThe Indian Express\u201d <\/strong>on 23rd August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Indian economy and employment<\/p>\n

Relevance:<\/strong> Employment statisticss of Indian economy<\/p>\n

News<\/strong>– While addressing the nation on Independence Day, Prime Minister Modi made a special mention to India being a youthful nation and highlighted the opportunities that lay before India\u2019s youth.<\/p>\n

How India workforce is ageing?<\/strong><\/h2>\n

The proportion of India’s youth in workforce<\/strong> has declined from 25% in 2016-17 to a mere 17% by the end of the previous fiscal year in March.<\/p>\n

The percentage of individuals in workforce<\/strong> within the middle age group<\/strong> has decreased from 38% to 33% during the same timeframe. The oldest age bracket<\/strong> above 45 years has expanded its share from 37% to 49%.<\/p>\n

Just in the past seven years, the share of people 45 years and older<\/strong> has gone from one-third to almost one-half.<\/p>\n

The overall count of employed individuals<\/strong> has decreased from 41.27 crore to 40.58 crore. The most significant reduction has been observed in the engagement of young individuals.<\/p>\n

During 2016-17, the workforce included 10.34 crore people below the age of 30. However, by the end of 2022-23, this figure had declined by more than 3 crores. It is just 7.1 crore.<\/p>\n

The employment level <\/strong>of those aged 45 and above increased, despite an overall decline in employment levels.<\/strong><\/p>\n

Which factors explains the ageing workforce?<\/strong><\/h2>\n

The youth are being pushed out of the job market.<\/p>\n

An effective method to monitor this trend is by examining the metric known as the “Employment Rate.”<\/strong> The Employment Rate for any specific population or age group provides insight into the proportion of that age group or population that is employed.<\/p>\n

The population falling under the youth category<\/strong> saw an expansion from 35.49 crore in 2016-17 to 38.13 crore in 2022-23.<\/p>\n

While the “young” population<\/strong> grew by 2.64 crore, the count of employed youth<\/strong> declined by 3.24 crore. The youth of India encountered a significant 31% decrease in employmen<\/strong>t over the past seven years.<\/p>\n

This decline is evident in the considerable drop in the Employment Rate<\/strong> for this particular age group. It went from 29% to a mere 19%.<\/p>\n

The decrease in employment rates is the most modest among the oldest age category. <\/strong>Remarkably, this is the only age group where the total count of employed individuals<\/strong> has actually increased.<\/p>\n

In the age bracket of 25 to 29 years, the employment rate<\/strong> has seen an upward trajectory over the last seven years.<\/p>\n

However, this rise in the ER is not attributed to a greater number of individuals from this age group gaining employment. Instead, it is primarily due to a significant decline in the overall population<\/strong> within this cohort.<\/p>\n

Why this outcome is hardly unexpected?<\/strong><\/h2>\n

India has observed a surge in youth unemploymen<\/strong>t in recent times. This implies that a considerable proportion of the youth who enter the job market struggle to secure jobs. <\/strong><\/p>\n

India experiences a limited rate of labor force participation<\/strong>, particularly among women. India ranks among the countries with one of the lowest female labor force participation rates<\/strong> globally.<\/p>\n

The combined impact of a low labor force participation rate and elevated unemployment rates <\/strong>results in a deteriorating employment rate<\/strong> for India’s youth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cHow India is becoming a young country but with an ageing workforce\u201d and \u201cExpress View on CMIE data: A dissonant note\u201d published in \u201cThe Indian Express\u201d on 23rd August 2023. Syllabus: GS3- Indian economy and employment Relevance: Employment statisticss of Indian economy News– While addressing the nation… Continue reading How India is becoming a young country but with an ageing workforce<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-257084","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":{"total":7,"cached_at":"","cached_date":1698453499},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=257084"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257084\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=257084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=257084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=257084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}