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ILO Report: Employment scenario in India grim

Why is it in the news?

  • India Employment Report 2024 was released recently by the International Labour Organisation (ILO) and the Institute of Human Development (IHD). 

 Key findings of the Report

  • India’s youth comprise nearly 83% of the unemployed workforce, with the share of educated youth in total unemployment nearly doubling from 35.2% in 2000 to 7% in 2022.
  • Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) exhibited a long-term deterioration between 2000 and 2018, although there was an improvement post-2019, coinciding with economic distress periods.
  • Despite some improvements in labour market indicators, the primary employment challenge remains the insufficient growth of non-farm sectors and their ability to absorb workers from agriculture.
  • Around 90% of workers are engaged in informal work, with the share of regular work declining after 2018. Livelihood insecurities are widespread, with limited coverage under social protection measures, particularly in the non-agriculture, organized sector.
  • Despite being a demographic dividend, a significant portion of India’s young workforce lacks essential skills. A large percentage of youth struggle with basic computer tasks like sending emails or working with spreadsheets.
  • India faces a substantial gender gap in the labour market, with low rates of female labour force participation, especially among highly educated women. This contributes to high levels of joblessness among young women.
  • Despite affirmative action and targeted policies, Scheduled Castes and Scheduled Tribes still lag in accessing better jobs, engaging more in low-paid temporary casual wage work and informal employment.
  • Social hierarchy persists despite improvements in educational attainment across all groups.

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