The stark reality of the missing jobs for India’s Gen Z, Pg8

Key Highlights:

• India's Gen Z population (aged 15-26 years) is estimated at 29.94 crore, according to the Periodic Labour Force Survey (PLFS) 2023-24.
• The overall unemployment rate for Gen Z is 11.9%, significantly higher than the 2% observed among Millennials.
• Urban Gen Z women face a particularly high unemployment rate, reaching 22.6%.
• Among Gen Z graduates, unemployment stands at 29% for males and 36.9% for females, indicating a "graduate trap."
• Only 20.1% of Gen Z individuals are covered by social security, and a mere 17.3% have any form of contractual employment.

Gen Z.jpg

Detailed Insights:

• A substantial portion of Gen Z, 41.7% of males and 38.4% of females, remains engaged in education, contributing to their delayed entry into the labor market.
• Many young people entering the workforce are absorbed into non-salaried roles, with 15.8% of males and 10.7% of females working as unpaid family workers.
• Women disproportionately bear the burden of domestic duties, with 27.1% of Gen Z females engaged solely in such roles, compared to 0.32% of males.
• The labor force participation rate for Gen Z is 41.7%, considerably lower than the 75% for Millennials, with rural participation exceeding urban.
• High unemployment among educated youth suggests a significant mismatch between the education system and evolving labor market demands, partly due to automation and AI.
• The widespread prevalence of informal, insecure, and weakly protected work among Gen Z highlights a challenge beyond mere unemployment.
• The article emphasizes that India's demographic dividend remains a "promise deferred" as the economy struggles to adequately absorb its young workforce.
• Proposed solutions include expanding labor-intensive sectors, strengthening school-to-work pathways, and enhancing support for women's participation in paid work.

Key Concepts Involved:

• Demographic Dividend: The economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population is larger than the non-working-age share.
• Periodic Labour Force Survey (PLFS): A large-scale household survey conducted by the National Sample Survey Office (NSSO) in India to estimate employment and unemployment indicators.
• Labour Force Participation Rate (LFPR): The percentage of the population that is either employed or actively looking for work.
• Social Security: Government programs providing protection against economic risks like old age, unemployment, illness, and disability.