The stark reality of the missing jobs for India’s Gen Z
Celebrating India’s demographic dividend means little when Gen Z faces unemployment, insecurity and shrinking pathways to decent work
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Context
Analysis of the (PLFS) 2023-24 data reveals a significant jobs crisis for India's Gen Z (aged 15-26). Despite a large youth population often touted as a demographic dividend, high unemployment rates, particularly among educated youth and women, highlight a failure in transitioning from education to secure, formal employment. The data exposes widespread informality and a lack of social security among those who are employed.
UPSC Perspectives
Economic
The article highlights the stark contrast between the promise of a demographic dividend and the reality of the Indian labor market. The high unemployment rate among Gen Z (11.9%), particularly among graduates (29% for males, 36.9% for females), indicates a severe skill mismatch and an economy struggling to create adequate formal jobs. This phenomenon, often termed jobless growth, undermines the potential economic benefits of a young population. Furthermore, the prevalence of informal employment, with only 14.1% of Gen Z workers having formal contracts and 20.1% covered by social security, points to the informalisation of the workforce, even within formal sectors. This lack of social security (like or coverage) makes the workforce highly vulnerable to economic shocks. The through the releases the PLFS data, which is crucial for policymakers to understand employment trends. From a UPSC perspective, understanding the difference between structural, cyclical, and frictional unemployment is vital, as is analyzing the reasons behind India's low employment elasticity.
Social
The data exposes deeply entrenched gender disparities in the labor market. The significantly lower Labour Force Participation Rate (LFPR) for young women (28% rural, 21.1% urban) compared to men (59.3% rural, 51.3% urban) reflects structural barriers. A staggering 27.1% of Gen Z females are engaged solely in domestic duties, highlighting the burden of unpaid care work. This low female LFPR is a critical social issue, hindering women's economic empowerment and overall national development. The factors contributing to this include the lack of safe transport, childcare support, and prevailing patriarchal social norms. The concept of the 'motherhood penalty' often restricts women's career progression. The high unemployment among highly educated women (36.9%) suggests that higher education is not translating into employment opportunities, potentially leading to social frustration and a decline in family investments in girls' education. UPSC aspirants must analyze policies aimed at improving female labor force participation, such as maternity benefit amendments and the push for creche facilities.
Governance
The article underscores the urgent need for a shift in governance approach from merely skilling initiatives like the to active job creation and structural reforms. The 'bridge from education to work' is weak, indicating a failure in aligning the education system with industry needs. The government's role is crucial in creating an enabling environment for labor-intensive sectors, promoting apprenticeships (such as the ), and providing formal hiring incentives. The violent protests in Noida highlight the potential for social unrest when labor rights and social protection are ignored. The governance challenge lies in transitioning workers from the informal sector (where labor laws are weakly enforced) to the formal sector, thereby expanding the tax base and ensuring worker welfare. The needs to focus on implementing the new Labour Codes, which aim to simplify and consolidate previous labor laws while expanding social security to gig and platform workers. Aspirants should evaluate the effectiveness of these codes and various employment generation schemes like and .