The Demographics of Employment point to a massive fall!

India grapples with mounting youth unemployment, exacerbated by a dwindling availability of white-collar positions in its technology sector. Recent data from the Centre for Monitoring the Indian Economy reveals a concerning trend: youth unemployment in the 20 to 24 age bracket escalated to 44.49%, while for 25 to 29-year-olds, it reached 14.33%. With a staggering 43.3 million university enrollments in the fiscal year ending March 2022, the issue looms large. CEO Chandra Garisa of Foundit, a recruitment agency, underscores the disparity between economic growth and job creation, particularly in IT. Historically, as a significant employer, this sector now grapples with diminished hiring due to automation and artificial intelligence adoption. The fallout is not unique to India, as global trends reflect a similar shift.

Consequently, online hiring in IT hardware and software sectors plummeted by 18% last year, with a 5% overall drop in job postings. This mismatch between job demand and supply poses a significant societal challenge, notes Suyash Rai of Carnegie India. Moreover, there’s a skills mismatch, with students equipped for IT roles facing job openings predominantly in manufacturing. As industries evolve, fresh graduates face changing demands. Manufacturing has witnessed a surge in AI-related job postings. However, lingering perceptions may deter youth from exploring these emerging opportunities, underscoring the need for a paradigm shift in employment outlooks.