Youth Employment and Unemployment: An Indian Perspective

Creating jobs for young people is a major challenge around the world, which has ben further exacerbated by the global financial crisis that hit this group hard. In this broader global context, this paper presents a detailed profile of youth employment and unemployment in India, which has the world’s largest youth population. Young Indians face major barriers because of poverty and low levels of human capital. Though educational attainment has risen quickly in recent years, gaining a foothold in the labour market remains elusive for many young Indians. In rural and urban areas, young males are usually employed in casual jobs, while their female counterparts tend to be self- employed. Although a large proportion of young rural women are employed in agriculture, rural males are increasingly turning to the non-farm sector. In comparison, young urban males are largely working in the services sector. Among young women, social conditions play an important role: labour force participation, for example, is higher among scheduled castes, scheduled tribes and other backward castes, especially in rural areas. In response to these challenges, policies should address the lack of productive employment opportunities for youth both in rural and urban areas. While skills development is crucial, these initiatives should be supplemented by more comprehensive programmes that target the most vulnerable and disadvantaged youth.