India's Demographic Dividend at Risk Due to Job and Skills Gap
India’s demographic dividend at risk as jobs, skills gap persist
The Economic Times
Image: The Economic Times
Context
India has a significant demographic advantage, with over 65% of its population under 35 years old. However, this potential is threatened by high unemployment rates and a mismatch between skills and job market demands.
What The Author Says
The author argues that India's demographic dividend is jeopardized by persistent job and skills gaps, leading to economic strain and short-term decision-making among youth.
Key Arguments
📗 Facts
- The median age in India is 28, with over 65% of the population under 35 years old.
- Urban youth unemployment stands at 18.8%, with young people constituting 83% of the unemployed.
- Economic Survey 2025-26 reported a 55% increase in gig workers from 7.7 million in FY21 to 12 million in FY25.
📕 Opinions
- The current approach to youth employment is insufficient and fails to create meaningful job opportunities.
- Short-term decision-making among young people is a rational response to economic pressures, not mere impatience.
Counterpoints
Some argue that gig work provides flexibility and autonomy.
While gig work can offer short-term benefits, it often lacks stability and long-term career growth, which are essential for economic health.
Others believe that the current educational system is adequate.
However, the mismatch between skills taught and market needs indicates that the education system requires significant reform to meet industry demands.
Some suggest that youth should adapt to the job market more effectively.
While adaptability is important, systemic barriers and economic pressures limit the ability of youth to make long-term career choices.
Bias Assessment
The author highlights systemic issues affecting youth employment but may overlook successful initiatives.
Why This Matters
With India's working-age population projected to reach 1 billion by 2047, addressing unemployment and skills development is crucial for sustaining economic growth.
🤔 Think About
- •How can India balance short-term job creation with long-term career development?
- •What role should educational institutions play in preparing youth for the current job market?
- •Are there successful models from other countries that India can learn from?
- •How can corporate practices shift to support youth development rather than hinder it?
Opens original article on The Economic Times
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