Why India’s youth compete fiercely for government jobs, Pg9

Key Highlights:

• India faces a significant challenge with youth unemployment and a scarcity of quality jobs, leading to intense competition for government positions.
• Only about 15 million of the 127 million employed youth (aged 15-29) hold regular salaried jobs with social security.
• Graduates experience the highest unemployment rate at 22.7%, accounting for 56% of all unemployed young people.
• In 2024, approximately 30 lakh candidates vied for around 17,700 government posts, indicating a ratio of about 170 applicants per vacancy.
• The economy's growth has largely favored capital and technology-intensive sectors, contributing to job stagnation and a shift towards low-productivity agricultural work.

Detailed Insights:

• India's expanded education system has generated high aspirations that the current labor market is struggling to meet.
• A substantial portion of the youth, particularly those with lower educational attainment, are engaged in informal, low-paid, or subsistence employment.
• The narrative of "choosy graduates" is largely contradicted by data showing high unemployment rates among educated youth.
• Government jobs are highly sought after due to their perceived security, fair remuneration, social protection, and merit-based selection processes.
• There is a notable wage-expectation mismatch, as entry-level private sector salaries often fall short of graduates' financial needs.
• Public investment has predominantly focused on physical infrastructure, with less emphasis on critical social sectors like health and education.
• India's spending on education (2.7% of GDP) and health (1.9% of GDP) remains below the national targets, including the 2.5% set by the National Health Policy 2025.
• The core structural issue is the economy's efficiency in generating output without creating a commensurate number of meaningful employment opportunities.

Key Concepts Involved:

• Unemployment Rate: The percentage of the total labor force that is unemployed but actively seeking employment.
• Labor Force Participation Rate: The proportion of the working-age population that is either employed or actively looking for work.
• Informal Sector: Economic activities that are not regulated or protected by the state, often characterized by low wages and lack of social security.
• Social Security: Government-provided or mandated benefits designed to protect individuals from economic risks like unemployment, old age, or illness.