Employment Crisis Among Graduated Youth in India

Introduction

Human resource development plays a crucial role in India’s economic growth. In particular, youth (Demographic Dividend) are considered the country’s greatest strength. However, recent studies reveal a growing employment crisis among educated youth.

1. Key Findings

Graduates aged 20–29: 6.3 crore
Unemployed: Around 1.1 crore

Unemployment Rate:
Below 25 years → 40%
25–29 years → 20%

👉 This highlights the major economic issue of “Educated Unemployment”.

2. Causes of Employment Crisis

✔ Low Job Creation
Every year 50 lakh graduates enter the workforce, but only 28 lakh get jobs

✔ Skill Mismatch
Education is not aligned with industry requirements

✔ High Informal Sector
Insecure and low-paying jobs

✔ Educational Dropout
2017: 58% → 2023: 72%
Family income pressure

3. Wage and Equality Status

Graduates earn → 2 times more than non-educated individuals

However:
Slow wage growth

Positive aspect:
Reduction in Gender Wage Gap

4. Economic and Social Impacts

✔ Increase in poverty and inequality
✔ Wastage of human resources
✔ Threat to social stability

👉 Risk of “Demographic Dividend → Demographic Disaster”

5. Government Role and Schemes (Static Link)

✔ Skill India Mission (2015)
✔ Make in India → Manufacturing employment
✔ Startup India (2016)
✔ PM Kaushal Vikas Yojana (PMKVY)
✔ MGNREGA (rural employment)

👉 TNPSC Syllabus – Indian Economy & Employment

Conclusion / Way Forward

Although education levels have increased in India, job creation has not grown at the same pace, which remains a major challenge. Through vocational training, industrial growth, and startup promotion, it is essential to create sustainable employment opportunities for youth.