Unemployment among educated youth: implications for India’s demographic dividend

Researchers claim that India is poised for reaping demographic dividend and leapfrog to a higher level of income-employment situation utlising the relatively larger share of youth or working age persons in total population. However, the outcome depends on the contribution of youth to national product. India at present suffers from remarkably high educated unemployment and questions are also raised about the employability of the youth because of their inadequate education, training, and market ready skill. Huge youth unemployment, especially educated unemployment is the surest way to social tension, unrest, and unlawful activities turning the demographic dividend into a demographic nightmare. In this paper we look at the issue of education, skill formation and unemployment among youth in India, focusing specially on educated unemployment. We find that current skill/training situation of youth in India is inadequate. Surplus and shortage coexists in the labour market indicating serious mismatch between supply and demand. There is an urgent need to relook at human resource development strategies in the country. Regional analysis suggests presence of both demand scarcity and excess supply of educated youth in the labour market.