The graduate unemployment crisis in India has emerged as a significant socio-economic challenge. With a soaring unemployment rate among young graduates, particularly those under 25, the nation faces the dual task of managing immediate distress and paving the way for sustainable long-term employment solutions.
Current Scenario Recent data from the State of Working India 2023 report by Azim Premji University reveals a staggering unemployment rate of 42% among graduates under 25 years old. This rate is alarmingly higher than the general unemployment rate for graduates, which remains above 15%. Such figures highlight a critical disconnect between educational achievements and job market readiness, underscoring the need for urgent and effective intervention.
Trends and Observations Despite the grim current scenario, there is a silver lining. The Periodic Labour Force Survey (PLFS) indicates a declining trend in graduate unemployment rates. Between July 2022 and June 2023, the rate dropped to 13.4%, continuing a downward trajectory from 17.2% in 2019-20 to 14.9% in 2021-22. This trend suggests that efforts towards addressing the issue are beginning to bear fruit, albeit gradually.
Government Initiatives The Indian government, recognizing the severity of the situation, has launched multiple initiatives. Key among these is the Ministry of Skill Development and Entrepreneurship’s (MSDE) National Apprenticeship Promotion Scheme (NAPS), which reimburses 25% of the stipend payable to apprentices. This scheme is part of a broader network of initiatives, including the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS) Scheme, and Craftsman Training Scheme (CTS) through Industrial Training Institutes (ITIs), aimed at enhancing the employability of the youth.
Additionally, programs like Make in India, Start-up India, Digital India, and Housing for All are also seen as vital contributors to job creation, expected to generate employment through their multiplier effects in the medium to long term.
Education Policy and Its Role The National Education Policy (NEP) 2020 plays a crucial role in bridging the gap between education and employment. It aims to integrate vocational education into mainstream education, ensuring that graduates are not only academically proficient but also equipped with the skills required in the modern job market. This policy is a step towards creating a more dynamic and job-ready workforce.
Challenges and the Road Ahead Despite these efforts, the disconnect between economic growth and job creation remains a significant concern. The lack of correlation between non-farm GDP growth and non-farm employment growth since the 1990s indicates systemic issues that require comprehensive strategies beyond short-term fixes.
Conclusion Addressing graduate unemployment in India is a complex challenge that requires a multi-faceted approach. While recent trends indicate some progress, there is a long road ahead. The government’s initiatives, combined with policy reforms and educational restructuring, are steps in the right direction. However, continuous monitoring, evaluation, and adaptation of these strategies are crucial to ensure they meet the evolving needs of India’s youth and the job market.