In India, the world’s fastest-expanding economy, the link between growth and job creation is weakening. According to the research the main reason for the worsening correlation between growth and jobs was a mismatch between skills and “good jobs”.
“Simply put, higher growth has raised aspirations but has failed to generate the kind of jobs that will allow people to fulfill those aspirations,” the researchers wrote in the report, called State of Working India 2018.
Data suggests that India's unemployed youngsters are not looking for jobs. In 2017, there were 408.4 million employed people in the country. The number of unemployed and seeking jobs was 25.9 million. Seven months later the number of employed fell to 405.4 million. But the number of those who are looking for jobs also fell to 13.7 million.
While India is one of the world’s fastest-growing economies, employment creation in eight sectors, including textiles and automobiles, was the slowest in seven years, according to a 2016 Ministry of Labour report. More than 12 million Indians enter the workforce every year is showed by government data. Between 2011 and 2015, the number of agricultural jobs reduced by 26 million while other than farming ones rose 33 million. One reason could be they no longer want jobs and want to be entrepreneurs. The government has launched several schemes to promote entrepreneurship. Maybe, the youth increasingly prefer to be their own bosses.
Besides finding a job, another challenge is matching salary expectations.. The survey reveals that most of those aged 21 years or below, and not yet working, expect a salary of at least ₹ 30,000 per month.
An examination of various data sources suggests that the pace at which salaried jobs were being added in the economy is much slower than the pace at which such jobs were being generated five year ago from now.