India Employment Report 2024 and Unemployment in India

India Employment Report 2024 and Unemployment in India

Source – The Hindu and PIB.


General Studies – Growth of Indian Economy, Unemployment, India Employment Report 2024, National Sample Survey, Periodic Labor Force Survey.


Why in the News ?



  • Recently on 26 March 2024, the International Labor Organization (ILO) and the Institute for Human Development (IHD) have jointly published a report named India Employment Report 2024.
  • According to this report, a total of 83% of the unemployed youth looking for work in India are unemployed.
  • According to the report, overall labor force participation, workforce participation and employment rates in India have improved in recent years after a long-term decline during 2000-2019.
  • India’s youth population was 27% in 2021, which will reduce to 21% by 2036 and 70 to 80 lakh more youth will join the workforce every year.
  • The report states that youth employment in India is largely of poor quality compared to adult employment.
  • Youth in India are most likely to be employed in vulnerable occupations or informal sectors.
  • According to this report, India has the highest youth unemployment rate among youth with graduate degrees and it is higher among women than men.
  • The proportion of women who are not engaged in employment, education or training is almost 5 times higher than their male counterparts (48.4% vs. 9.8%).


Introduction to Human Development Institute :


  • The Institute of Human Development (IHD) was established in the year 1998 under the aegis of the Indian Society of Labor Economics (ISLE).
  • Its objective is to contribute to the building of a society that promotes and values ​​an inclusive social, economic and political system that is free from poverty and deprivation.
  • It conducts research in the areas of labor and employment, livelihoods, gender, health, education and other aspects of human development.


Important facts of India Employment Report 2024 :




  • The India Employment Report 2024 is the third edition in a series of regular publications by the Human Development Institute on labor and employment issues, jointly released in partnership with the International Labor Organization (ILO).
  • This report examines the emerging economic labor market, educational and skill scenarios in India and the challenges facing youth employment in the context of the changes witnessed over the last two decades.
  • The report also highlights recent trends in the Indian labor market, indicating the challenges that currently exist with respect to youth unemployment and new challenges that may arise in the future, as well as improvements in some outcomes, including COVID-19. Challenges arising from the 19 pandemic are also included.


Highlights of India Employment Report 2024 :


  • The India Employment Report 2024 is based primarily on the analysis of data from the National Sample Survey and Periodic Labor Force Survey between the year 2000 and the year 2022..


Employment scenario and current trends in India :



  • The female labor market participation rate in India, especially in rural areas, has increased rapidly by 2019 after a significant decline in earlier years.
  • One of the most important features of the Indian labor market is the slow and steady transition of the workforce from agricultural to non-agricultural sectors.
  • The main areas of employment available in India are self-employment and casual employment.
  • In India, about 90 percent of the workforce is employed informally while about 82 percent of the workforce is engaged in the informal sector.
  • There was a slight upward trend in wages of casual workers during 2012–22, while real wages of regular workers either remained stable or declined.
  • Migration levels in India have not been adequately recorded through official surveys.
  • Rates of urbanization and migration are expected to increase significantly in the future.
  • The migration rate in India is expected to be around 40 percent in 2030 and the urban population will be around 607 million.


Major challenges related to youth employment in India :


  • A large portion of India’s population is of working age, which is expected to remain in the potential demographic dividend zone for at least another decade.
  • Every year in India, about 7-8 million youth join the labor force whose productive utilization could yield a demographic dividend for India.
  • Labor market participation of youth in India has been much lower than that of adults and was on a long-term (2000–19) declining trend, mainly due to greater participation in education.
  • At present, youth unemployment in India has increased almost three times, from 5.7 percent in the year 2000 to 17.5 percent in 2019, but it is expected to reduce to 12.1 percent in the year 2022.


Major suggestions of India Employment Report 2024 to improve the employment sector :


The report recommends focusing on five key policy areas for action to tackle unemployment in India. Which is an important suggestion especially related to youth unemployment in India –

  1. To promote employment creation.
  2. To improve the quality of employment.
  3. Addressing labor market inequalities and making changes at the policy level.
  4. strengthening skills and active labor market policies, and
  5. Bridging the knowledge gap on labor market patterns and youth employment.


Path to solution :




  • ‘The India Employment Report 2024’ The employment sector in India presents a disappointing scenario.
  • Focusing on the current state of youth employment in India, the report paints a sobering picture of the widely publicized ‘demographic dividend’ in the country, calling for prompt and targeted policy interventions to tackle it and for India’s technologically growing economy. There is a need to give priority to the training of youth.
  • A large number of educated youth are still unable to meet the job criteria due to unavailability of jobs and deficiencies in the quality of education relative to the participation of educated youth in better paying jobs in India. On which there is a great need to pay attention to the policy makers of India.
  • India has high rates of youth deprived of employment, education or training, and working conditions among the majority of employed youth are poor, with large groups of youth taking advantage of broader socio-economic benefits. Wages in India have either stagnated or seen a decline due to inflation, even though India’s economy is growing at a high rate.
  • As the process of 2024 general elections to the Lok Sabha in India begins, politicians have focused on creating employment and improving the quality of education and training for a technologically growing economy, not only in their election campaigns but also in their policy making. There is an urgent need to consider the causes by giving priority.

Download Yojna daily current affairs eng med 29th March 2024


Practice Questions for Preliminary Exam :

Q.1. Consider the following statements regarding India Employment Report 2024.

  1. According to this report, A total of 83% of youth in India are unemployed.
  2. The Human Development Institute was established in the year 1998 by the Indian Society of Labor Economics.
  3. This report is jointly published by the International Labor Organization and the Institute of Human Development.
  4. There is a slow and steady transition of the workforce from agricultural to non-agricultural sectors in the Indian labor market.

Which of the above statement / statements is/are correct ?

(A). Only 1, 2 and 3

(B). Only 2, 3 and 4

(C). None of these.

(D). All of these.


Answer – (D)


Practice Questions for Main Exam :

Q.1. Underlining the important facts of India Employment Report 2024, Discuss in detail the major challenges related to youth employment in India and its solutions.


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