The unemployment rate among the educated – defined as individuals with secondary and higher education – is already very high compared to those with lower educational qualifications. According to the latest PLFS data for 2023-24, the overall unemployment rate for individuals aged 15 years and above with secondary education or higher is 6.5%. This is in stark contrast to the unemployment rate of 0.2% for those who cannot read and 1.4% for those who have completed high school. Here is a summary of the MOSPI data.
This table clearly shows the disproportionate unemployment rate among different levels of education. It is evident that as the level of education increases, the unemployment rate also increases, which is highest among those with secondary and higher education.
Persistent gender inequality: Women bear the brunt
The gender disparity in educated unemployment is stark and persistent. Data from 2023-24 shows that the unemployment rate among women with secondary education or higher is higher than their male counterparts, especially in rural areas. The unemployment rate for educated rural women is 9.0%, compared to 5.6% for rural men. This disparity is even greater in urban areas, where the rate for women is 13.3%, more than double the 6.2% for men.
This gender disparity has been a consistent trend over the years. In 2022-23, the unemployment rate for urban educated women is 13.7%, while for men it is 6.8%. Also, in 2021-22, the rate is 14.3% for women compared to 8.2% for men. These figures show that despite obtaining an education, women face many obstacles to work, possibly due to socio-cultural factors, lack of suitable job opportunities, and discrimination in the workplace.
Summary of data on the Unemployment Rate from 2021 to 2024
The Urban-Rural Divide: A Contrast in Opportunity
PLFS data highlight a clear urban-rural divide in educated unemployment rates. In 2023-24, the unemployment rate for educated people in urban areas is 7.9%, compared to 6.5% in rural areas. This trend has been consistent over the years, with urban unemployment rates consistently exceeding rural rates.
For example, in 2022-23, the urban unemployment rate will be 8.4%, while rural unemployment will drop slightly to 6.6%. In addition, in 2021-22, the urban unemployment rate is 9.5%, compared to 8.0% in rural areas.
Urban areas typically have a higher concentration of educated individuals, which can lead to more competition for limited job opportunities. In addition, many educated people migrate to urban centers in search of better employment, further strengthening competition. The inability of the urban labor market to absorb this influx of educated job seekers may have contributed to higher unemployment rates.
Looking at Trends Over Time: Are We Seeing Improvements?
Analysis of the data over three years reveals a subtle but important trend. The overall unemployment rate for individuals with secondary and higher education fell slightly from 8.0% in 2021-22 to 6.6% in 2022-23, then to 6.5% in 2023-24. This decrease, although small, indicates a slow recovery or adjustment in the labor market. However, the level remains high compared to other levels of education, confirming that the problem cannot be solved.
Policy implications and ways forward
The persistently high unemployment rate among the educated indicates the need for targeted policy interventions. Below are some recommendations based on insights gained from data released by MOSPI.
Bridging the skill gap: There is a need for educational reform that aligns the academic curriculum with industry requirements. This may include expanding vocational training and skill development programs that equip students with practical and job-ready skills.
Promotion of entrepreneurship: Given the saturation of the traditional job market, encouraging entrepreneurship among educated youth can create new opportunities. Policies that provide funding, training, and mentorship to start-ups can help ease the pressure on conventional employment.
Promote gender inclusiveness: To address the gender disparity, it is crucial to create a more inclusive work environment for women. This includes implementing policies that ensure equal pay, preventing workplace harassment, and supporting work-life balance through flexible working conditions and childcare facilities.
Decentralization of job creation: To reduce the urban-rural divide, the government can focus on creating job opportunities in rural areas. Promoting rural industries, supporting agriculture-based enterprises, and improving digital infrastructure can create local job opportunities for educated individuals in the region.
Strengthen public-private partnerships: Collaboration between the government and the private sector can lead to the creation of internship and apprenticeship programs that provide on-the-job training and increase employment opportunities among educated youth.
While there has been a slight improvement in the unemployment rate of educated people over the past three years, the problem remains. Addressing educated unemployment in India requires addressing key issues, including skills mismatches, gender disparities, and regional imbalances in employment opportunities.
