More than 30% of India’s youth not in employment, shows OECD report

More than 30% of India’s youth not in employment, shows OECD report

India News

India’s economy may be growing more than twice as fast as the rest of the world but the story on the jobs creation front is just the opposite. India’s economy will grow at 7% in the current fiscal year, according to the Organisation of Economic Cooperation and Development (OECD). But India’s rate of employment has declined and job creation has not kept up with the growing working-age population. Over 30% of youth aged 15-29 in India are not in employment, education or training (NEETs). This is more than double the OECD average and almost three times that of China. NEET is a relatively new concept. According to the OECD, youth inactivity presents the share of young people (age 15-29) not in employment, education or training (NEET) as a percentage of the total number of young people in the corresponding age group. The OECD 2017 survey also points out that for India, assessing labour market trends is made difficult by poor employment data, with information for total employment available only every five years. The last NSSO round was held in FY2011-12. More frequent data could help take policy actions in a timely manner. At 3.8% of GDP, public spending on education in India is lower than countries like Brazil and Malaysia. The focus of the government needs to shift to spending on enhancing the quality of education and vocational training. All these measures together could possibly improve India’s track record on job creation.