Sign In
Learn bits
Economy
Mahesh

27/12/23 06:17 AM IST

Are graduates facing unemployment?

In News
  • The unemployment rate, which hit a high of 6.1% in 2017-18, has reduced to 3.2% in 2022-23, according to the latest data from the Periodic Labour Force Survey (PLFS).
Key Findings
  • The unemployment rates for the aggregate labour force of individuals aged 18 to 65.
  • Unemployment rates had always been low since the early 1990s, jumping to a historical high of 5.77% in 2017-18. By 2022-23, the unemployment rate showed signs of reducing, falling to 3.15% for this cohort.
  • While unemployment rates are currently higher than in previous decades, it has shown a reduction compared to 2017-18. 
  • Individuals with higher education have always faced higher unemployment rates than the rest of the population, a situation that has characterised the Indian economy since the 1990s.
  • The unemployment rates for those with graduate degrees. From roughly 9% in the 1990s, the rate fell to 7.66% in 2011-12, before rising to 17% in 2017-18 and then 13% in 2022-23.
  • From 1993-94 to 2004-05, almost a fifth to a quarter of all young individuals with graduate degrees faced long unemployment spells of 6 months or more.
  • The rate dropped to 20% in 2011-12, before rising to a staggering 36% in 2017-18. The rate has been reduced by 2022-23 with 27% of young graduates facing long spells of unemployment.
  • Earlier, these high rates of unemployment were concentrated amongst a relatively small section of the labour force.
  • Overall unemployment rates remain low even though graduates face high unemployment because the share of educated workers in the labour force is low.
  • As enrolment rates continue to rise, the share of graduates in the labour force will increase, leading to increases in the aggregate unemployment rate. The problems of young job-seekers are not an aberration, but a worrying feature of the Indian labour market.
Causes
  • The problem of youth unemployment is a serious issue.
  • Much more work is required to outline the exact factors causing unemployment amongst the highly educated - be it the inability of the education system to impart the requisite skills, or the inability of the growing economy to generate enough jobs for the increasing numbers of educated job-seekers entering the labour force each year - to ensure that the aspirations of the youth are not thwarted and the potential of the demographic dividend is properly harnessed.
Source- The Hindu

More Related Current Affairs View All

19 Nov

India’s road to net-zero

'Every year, climate action draws significant attention in the months leading up to the United Nations’ annual meeting of the Conference of the Parties (COPs).' An econo

Read More

18 Nov

AFSPA in Manipur

'The Manipur government has formally requested the Centre to reconsider and revoke the reimposition of the Armed Forces (Special Powers) Act (AFSPA) in six police station areas of

Read More

18 Nov

BS-III petrol and BS-IV diesel four-wheelers

'With high levels of pollution in Delhi and smog blanketing the city, the Delhi government has introduced measures to improve the air quality.' The Graded Response Action Plan (

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps