No takers for graduates below 25 years, notes SWI 2023 report

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It is no secret that India’s employment scenario remains a dismal affair. Data from Centre for Monitoring Indian Economy (CMIE) shows that the country is currently languishing with unemployment touching 7.8% as on 22nd  September. A recent report by Azim Premji University, titled “State of working in India 2023” highlighted that post-pandemic, India’s unemployment levels continue to remain worryingly high. While they certainly are below pre-Covid levels, unemployment amongst graduates has still touched 15% and a massive 42% for graduates aged below 25. 

Snail-like pace of new job creation As per the report, about 3 million regular wage jobs were annually created in India between 2004 and 2017. The figure jumped to 5 million per year between 2017 and 2019. However, Covid and subsequent slow economic growth have seriously hindered the rate at which new jobs are being created. 

EPFO payroll data for September noted that July 2023 saw 10,27,145 new subscribers added to the provident fund ecosystem. Out of this, 2,74,967 were women, while the remaining subscribers were men. 

In a somewhat reassuring development, women participation in India’s labor force has risen post Covid. According to EPFO data, which is an indicator of formal job creation, women subscribers rose from 19,45,016 in 2020-21 to 27,62,764 in 2021-22. In 2022-23, this figure rose even further to 29,92,163. 

Further bolstering their inclusion, as the report highlighted, has been the narrowing of gender based earning disparities. In 2004, salaried women workers only made 70% of what their male counterparts did. By 2017, women had begun making 76% of what men did. However, the pay disparity has not narrowed since.

Challenges galore for women 

However, the rise of women in the workforce is largely due to self-employment, as opposed to joining the workforce. Before Covid, about 50% women were self-employed, which rose to 60% post the pandemic. But this has not necessarily translated into high earnings. In fact, trends suggest that along with the rise of husband’s income, the chances of women working take a steep fall, in both rural and urban India. 

The report also highlights how societal norms continue to hamper upward mobility of women. There are higher chances of women working post marriage if her mother-in-law is employed as well. As per data, the median difference between marriage and childbirth for Indian women is about 2 years. But, contrary to the belief that motherhood overtakes employment for women, the year of child-birth saw 5% rise in female work participation.