60% of young graduates/engineers are currently unemployed. The latest data by CMIE shows that
urban unemployment has now reached 9 per cent and only 2 out of 3 individuals of age 20-24 are
only able to get a job. Data indicates that while unemployment remains in all segments under 30 and
then slips to a 2.5 per cent as people take up whatever job they get.
While youngsters in the age group of 20-24 years reported an unemployment rate of 37 per cent,
graduates among them reported a much higher unemployment rate of over 60 per cent. 2019 was a
bad year for these young graduates. The average unemployment rate for them during 2019 was 63.4
per cent. This is much higher than the unemployment rate they faced in any of the preceding three
years. The unemployment rate they faced in 2016 was 47.1 per cent. In 2017, it was 42 per cent and
in 2018 it was 55.1 per cent. “2019, therefore saw a very severe worsening of conditions for the
young graduates,” the CMIE data proves.
The government’s job creation agenda has been caught in a vicious cycle. You cannot expect a
recovery in job growth unless there is recovery in consumption. The recovery in consumption cannot
happen unless there is more money at the bottom of the pyramid and that cannot happen unless
the government spends more on schemes which ensure that money reaches the average Indian.
In short terms, the unemployment is a huge problem in India currently and government clearly
knows about it, but is silent. It doesn’t mean this will be solved immediately. This is a big project
which will take a lot of patience and work to be done by government.