Rising Youth Unemployment in India

 Youth unemployment for ages 15-29 was 25.5% (April-June 2021, Periodic Labour Force
Survey).

 Overall unemployment surged to 12.6% in the same quarter from 9.3% previously.

 Employability crisis persists despite India’s large youth population (50% below age 25).

 Only a small fraction of professionals (e.g., engineers, management graduates) are

considered employable.

Challenges in Employability

1. Lack of Market-Relevant Skills:

o Education often lacks focus on future-ready, technology-driven skills.

o Need for training in 21st-century skills like programming, AI, data science, and
machine learning.

Lack of Market-Relevant Skills

 Misaligned education system: Schools train students in outdated skills that have little
relevance in today’s job market.

 Future job demands: Students are unprepared for rapidly evolving, technology-driven roles
requiring skills like programming, AI, data science, and machine learning.

2. Skill Gap and Delayed Implementation of NEP

 National Education Policy (NEP) 2020: While it focuses on vocational training from Class 6,
its implementation has faced setbacks due to the pandemic.

 Lack of hands-on experience: Workplace experiences like internships and industry projects
are often missing from skilling programs.

3. Societal Bias Towards White-Collar Jobs

 Preference for "honourable" jobs: High societal value placed on degrees and white-collar
roles discourages youth from pursuing vocational training or skilled trades.

 Dropout rates: Many leave vocational jobs within a few years, seeking perceived higher-
status roles.

Industry-Academia Collaboration

 Enhance Practical Training: Universities and industries must collaborate to provide students
with real-world experiences like internships, shop floor training, and mentorship.

 Focus on First-Day Productivity: Industry-academia partnerships can train young

professionals to be job-ready from the outset.

 Career Awareness: Industry experts should conduct career sessions to inform students about
emerging job trends and required skills.
2. Improved Infrastructure for Skill Development

 Skill Labs and Maker Spaces: Establish more training centers equipped with modern tools for
hands-on learning in technology, science, and skilled trades.

 Science Labs and Incubators: Promote innovation through better access to research facilities
and startup incubators.

 Metaverse and AR/VR for Training: Use advanced technologies to simulate work
environments, especially in sectors where physical infrastructure is limited.

Skills Gap in India's Workforce

1. Low Employability Rates:

o Out of 13 million annual workforce entrants, only:

 25% of management professionals,

 20% of engineers,

 10% of graduates are employable (WEF report).

o ILO Report 2023: 47% of Indian workers, including 62% of women, are
underqualified for their jobs.

Digital Literacy for Youth

1. Lack of Basic Skills:

o Many youths struggle with fundamental digital tasks (e.g., writing emails with
attachments).

2. Urgent Need:

o Bridging the digital divide is essential as India transitions to a digitized economy.

3. Integrating Digital Skills in Education:

o Teaching digital literacy in schools can prepare students for the growing tech sector.

Gender Disparity in Skilling

1. Challenges:

o Women face significant underrepresentation in skill development and employment

sectors.

2. Progress:

o Initiatives like PMKVY and JSS have increased female participation.

3. Need for Expansion:

o More programs are needed to empower and skill underqualified women.

Bridging the Theory-Practical Gap

1. Current Disconnect:

o Educational curricula often do not align with industry needs.

2. Solutions:

o Industry-academia partnerships to update curricula and provide hands-on training.

o Skill-based training integrated into school education to equip students with real-
world experience.

Innovation in Education

1. Technological Integration:

o AI, robotics, and digital tools enhance learning.

o Schools introduce co-scholastic subjects like AI, robotics, coding, and financial
literacy.

2. Importance:

o Preparing students with 21st-century skills for the evolving job market.

Global Megatrends and India's Workforce

1. Challenges:

o Global trends like digitization, automation, and technology integration require

education and employment systems to adapt.

2. Government Initiatives:

o Policies like NEP 2020 and NPSDE aim to address skilling needs.

o Effective implementation requires investments in infrastructure, teacher training,

and program expansion.

Future of India's Workforce

1. Educational Infrastructure:

o Expanding training facilities and digital learning platforms is crucial.

2. Strategic Advantage:

o India's young population can drive global workforce needs if appropriately skilled.

3. Integrated Solutions:
 o A balanced combination of technology, industry collaboration, and education reform
is vital to bridging the education-employment gap.

Call to Action

1. Investment and Collaboration:

o Greater investment in education infrastructure and teacher training.

o Partnerships between the government, industry, and educational institutions.

2. Policy Implementation:

o NEP and NPSDE must be implemented effectively to reshape the workforce.

3. Elevating Relevance:

o Education and skilling programs must continuously adapt to meet industry demands.

Analysis:

 Structural Issues: India's job market reflects deeper structural problems, including
inadequate reforms in land, labor, and education. Manufacturing, expected to drive
employment, struggles due to high compliance costs and policy inertia.

 Mismatch Between Growth and Jobs: High GDP growth, driven by the corporate sector, has
not translated into proportional job creation, especially in labor-intensive sectors.

 MSME Neglect: While MSMEs are touted as job creators, the sector faces challenges in
formalization and scaling, compounded by GST and demonetization impacts.

 Youth Disillusionment: The lack of robust social security systems and quality private-sector
jobs forces youth to chase limited government positions.

Future Threats:

 Untapped Demographic Dividend: India risks squandering its demographic advantage, with
workforce additions slowing post-2030.

 Social Instability: Rising unemployment could lead to unrest, drawing parallels with
Bangladesh's recent upheavals.

Recommendations:

1. Skill and Education Reforms:

o Overhaul vocational training and higher education to align with industry needs,
particularly in emerging fields like AI, renewable energy, and advanced
manufacturing.

2. Strengthen MSMEs:

o Provide targeted support, including easier credit access, technology upgradation,

and market linkages.

3. Comprehensive Labor Reforms:

 o Streamline labor laws to encourage formalization while protecting workers' rights.

4. Balanced Sectoral Growth:

o Invest equitably in manufacturing and services, with a focus on labor-intensive

industries.

5. Mindset Shift:

o Promote entrepreneurial and non-traditional career pathways, reducing over-

reliance on government jobs.

PPT Content:

Importance of Use of AI:

Lets suppose Ram is a young entrepreneur from Kozhikode Kerala, who wanted to launch a startup.
He wants to build energy efficient devices.

Let’s observe basic cost involved in the process of launching startup:

Logo making charges: 5k

Business Card design: 1k

Content design marketing campaign: 15k

Design of one pager: 2k

Design of poster: 5k

Design of Standee : 3k