Abstract
The issue of youth employment is a global challenge. In India it has emerged increasingly as a daunting challenge over the years. This paper looks into various dimensions of the youth employment and unemployment in terms of their labour market characteristics. The challenge is particularly analysed in terms of ongoing demographic transition, regional diversities and changing pattern of labour markets. It also provides some policy pointers to address the challenge.
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Source: Report of the Technical Group on Population Projections, 2020, Ministry of Health and Family Welfare, Government of India
Source: PLFS, 2019–20, NSSO
Source: EUS and PLFS, NSSO, 1983, 1993–94, 2011–12 and 2019–20
Source: EUS and PLFS, NSSO, 2011–12 and 2019–20
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Notes
: Occupation/skill level is divided into four broad categories using NCO (National Classification of Occupations) at one digit:
I: Typically involves the performance of simple and routine physical or manual tasks (NCO code 9- Elementary Occupations or unskilled such as domestic helpers, cleaners, street vendors and garbage collectors etc.).
II: Typically involves the performance of tasks such as operating a machinery and electronic equipment, driving vehicles, maintenance and repair of electrical and mechanical equipment and manipulation, ordering and storage information (NCO code 4-8, low skilled as clerical jobs, service workers, shop and market sales workers, craft and related trade workers, etc.).
III: Typically involves performance of complex technical and practical tasks that require an extensive body of factual, technical and procedural knowledge in a specialized field (NCO code 3, as professional and technical associates); and.
IV: Typically involves the performance of tasks that require complex problem solving, decision making and creativity based on an extensive body of theoretical and factual knowledge in a specialised field (NCO 2 as professional and Technicians).
The concept of skill level was not applied in the case of NCO code 1 as legislators and managers as skills for executing task and duties of these occupations varied to such an extent that it was not feasible to link them with any of the four broad skill levels. (OECD. OECD Employment Outlook 2014; National Classification of Occupations, 2015, Ministry of Labour and Employment, Government of India 1.).
The skills are defined based on two classifications, one by using number of years of formal education, and another, based on occupations (1 digit NCO – 04) in India.
(i) Skill based on formal years of schooling: In the Indian context, the skills necessary to perform the tasks and duties of a given job can be acquired not only through formal education but also through informal training and experience. The four skill levels thus defined for NCO – 04 vis-à-vis the skill levels defined in ISCO – 88 are as.
I: Up to 10 years of formal education and/or informal skills;
II: 11–13 years of formal education;
III: 14–15 years of formal education; and.
IV: More than 15 years of formal education.,
(ii) Skill based on occupations or task performed: In keeping with the skill levels defined above to suit the Indian conditions, the following four divisions are classified in tune with the defined skill levels to accommodate occupations (NCO code 1 digit) same as given in Table 6 as.
I: Typically involves the performance of simple and routine physical or manual tasks (NCO code 9- Elementary Occupations or unskilled such as such as domestic helpers, cleaners, street vendors and garbage collectors etc.); II: Typically involves the performance of tasks such as operating a machinery and electronic equipment, driving vehicles, maintenance and repair of electrical and mechanical equipment and manipulation, ordering and storage information (NCO code 4-8, low skilled as clerical jobs, service workers, shop and market sales workers, craft and related trade workers etc.);
III: Typically involves performance of complex technical and practical tasks that require an extensive body of factual, technical and procedural knowledge in a specialised field (NCO code 3, as professional and technical associates); and.
IV: Typically involves the performance of tasks that require complex problem solving, decision making and creativity based on an extensive body of theoretical and factual knowledge in a specialised field (NCO 2 as professional and technicians).
Skill Mismatch: The skill-mismatch arises by the difference between type (i) and type (ii), when workers skill level based on education is higher than skill level based on occupation (workers are overeducated); when workers skill level based on education is lower than the skill level based on occupation (workers are undereducated), and if no difference in both level of skills (workers have matching skill). Source: (OECD. OECD Employment Outlook 2014; National Classification of Occupations, 2015, Ministry of Labour and Employment, Government of India).
This is shown by India Skill Report 2021, prepared by Wheebox, in partnership with Tagged, CII, AICTI, AIU and UNDP.
Informal employment consists of those working in the informal enterprises or households, excluding regular workers with social security benefits, and the workers in the formal sector without any employment/social security benefits provided by the employers (NCEUS 2007).
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Appendix
See Tables 1A, 1B, 2A, 2B and 3A
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Sharma, A.N. Youth Employment and Unemployment in India: Issues and Challenges. Ind. J. Labour Econ. 65, 237–267 (2022). https://doi.org/10.1007/s41027-022-00387-5
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DOI: https://doi.org/10.1007/s41027-022-00387-5