India's Employment Landscape: Challenges and Opportunities

According to the India Employment Report 2024 by the International Labour Organization and the Institute for Human Development, a significant portion of India's unemployed population, 83%, consists of youth. This highlights a critical challenge in integrating graduates into meaningful employment despite the annual increase in graduates from universities and skill programs.

Role of EPFO

• The Employees’ Provident Fund Organisation (EPFO) is pivotal in India's social security, managing retirement savings for over 7 crore members in the organised sector.
• Recent data shows an increase in formal workforce participation, with young professionals, particularly in the 18-25 age group, making up a significant portion of new enrolments.

Unemployment and Skill Gaps

• Youth unemployment is exacerbated by a lack of employability, with 50% of graduates not job-ready due to insufficient digital and professional skills.
• Economic Survey 2023-24 highlights that technological transformations demand reskilling to bridge the gap between education and employment.

Informal Employment

• Nearly 90% of employment is informal, with a decline in salaried jobs since 2018, raising concerns about job security and social welfare.
• A significant portion of young people lack basic digital skills, which is critical as the Future of Jobs Report 2025 predicts shifts in employment dynamics.

Projected Employment Changes

• By 2030, 170 million new jobs are expected while 92 million jobs might be displaced, necessitating urgent skill development to prepare the workforce.

Policy Recommendations

• Stronger collaboration between industry and academia, with mandatory formal partnerships.
• Accountability of educational institutions for student placements.
• Mandatory inclusion of Idea Labs, Tinker Labs, and integration of humanities and soft skills in education.
• Focus on skilling programs to meet global demands, particularly in ageing societies in the West.
• Establishment of an Indian Education Services to attract top talent into education.
• Incorporating industry professionals into the educational framework to bridge theory and application gaps.

India stands at a critical juncture, requiring strategic interventions to enhance workforce readiness and align with future job markets.