India is staring at one of its biggest crises: Unemployment of the educated | Current Affairs | Vision IAS

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India is staring at one of its biggest crises: Unemployment of the educated

2 min read

Unemployment Crisis in India

The article discusses the pressing issue of unemployment, particularly among the educated populace in India, highlighting the socio-economic implications and statistical insights.

Context and Background

  • Election Discussions: Unemployment is often overshadowed by issues like corruption and caste equations in electoral debates.
  • Personal Account: Gautam Sharma, a BTech graduate, finds higher earnings as a ride-hailing driver compared to his initial job in a firm.

Scale of the Problem

  • Unemployment Among Educated:
    • In 2017, over 12,000 candidates, including engineers and lawyers, applied for 18 peon positions in Rajasthan.
    • In 2024, 46,000 graduates applied for contractual sanitation jobs in Haryana.
    • Two out of five IIT graduates in 2024 did not receive placements.
  • Female Unemployment: One out of five educated women is unemployed.

Employment Trends and Statistics

  • Workforce Entry: 70-80 lakh youth join the workforce annually, facing job scarcity.
  • Corporate Job Cuts: Over 64,000 jobs cut by major IT firms in FY24.
  • Internship Shortfall: PM Internship Scheme's low success rate, with less than 5% securing internships.

Unemployment Data and Wage Stagnation

  • Unemployment Rate: Union government estimates a 4-6% rate; however, surveys suggest underreporting.
  • Discrepancy in Data: PLFS counting one hour of work per week as employment skews figures.
  • Stagnant Wages: Fresh graduate salaries remain at Rs 3-4 lakh per annum; sluggish growth in key sectors.
  • Sector-Wise Growth:
    • IT: 4% CAGR
    • Banking and Financial Services: 2.8% CAGR
    • Engineering and Manufacturing: 0.8% CAGR

Societal Impact

  • Suicide Rates: In 2023, daily suicides included 34 private sector employees and 39 unemployed persons.

Conclusion

The article underscores the severe unemployment crisis among educated Indians and its socio-economic repercussions, urging recognition and resolution of this crucial issue.

  • Tags :
  • Unemployment Crisis in India
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