Indian economy is going through a rough phase and the unemployment rate is at 45-year high while its yearly growth rate is taking a back seat. From being one of the fastest-growing economies in the world to the present situation where economists are concerned if immediate measures are not put in place, India might see a massive economic meltdown.
Unemployment has been one of the biggest concerns for the Indian youths lately and that dilemma becomes even more grave given more than 50% of Indian population fall under the age of 25, while the percentage of population under 35 rises to 62%. Having such a high percentage of the population under the age of 25 should be an advantage for any country but only if they have jobs and they are contributing to the country’s economy.
According to the State of India’s Environment (SoE) In Figures, 2019 the youth (between 20 and 24 years), who constitute around 40 percent of India’s labor force, has an unemployment rate of 32 percent. The unemployment rate among the educated youths who (at the least) have a graduation degree has increased from 10.4% in May-August 2017 to 13.17% in September-December 2018. The overall unemployment rate stood at 8.3% in August 2019, the urban unemployment rate is at 9.4% while the rural unemployment rate stands at 7.8%.
The following graph shows the rising unemployment in the country and why it should be alarming for policymakers.
The state-wise unemployment data suggest the state of Tripura has the highest unemployment rate at 23.3%, followed by Himachal at 19.6% and Haryana at 19.5%. The capital Delhi also ranked among the highest unemployment rates with 14.6%.
Global power is seeing a gradual shift from the West towards East especially Asia and if India does not strategize their policies with long-term goals it might miss another economic revolution.