Why is it in the News?

According to the India Employment Report 2024 by the ILO and IHD, nearly 83% of the unemployed workforce comprises youth, with the percentage of educated unemployed youth more than doubling from 35.2% in 2000 to 65.7% in 2022.

India Employment Report 2024:

• The India Employment Report 2024, the third installment in the series of publications by the Institute for Human Development focusing on labor and employment concerns, is conducted in collaboration with the International Labour Organization (ILO).
• This report delves into the issue of youth employment, analyzing the evolving economic, labor market, educational, and skills landscapes in India over the past twenty years.
• It sheds light on recent trends in the Indian labor market, showcasing both positive advancements and enduring challenges, including those exacerbated by the COVID-19 pandemic.

Key Insights from the India Employment Report 2024:

• Drawing from data sourced from National Sample Surveys and Periodic Labour Force Surveys spanning 2000 to 2022, the report offers a comprehensive analysis of employment trends and the present landscape.

Employment Trends & Current Scenario:

• Female labor market participation, after a notable decline in previous years, exhibited accelerated growth post-2019, particularly in rural regions.
• A noticeable trend in the Indian labor market is the gradual shift of the workforce from agriculture to non-farm sectors.
• Self-employment and casual employment dominate India's employment landscape, with approximately 82% of the workforce engaged in the informal sector, and nearly 90% informally employed.
• While wages for casual laborers saw modest growth from 2012 to 2022, real wages for regular workers stagnated or declined.
• Official surveys inadequately capture migration levels in India, expected to significantly rise along with urbanization in the future, reaching around 40% migration rate and a 607 million urban population by 2030.

Challenges of Youth Employment:

• Despite a sizable working-age population, India's youth demographic, accounting for 27% of the total population in 2021, is projected to decline to 23% by 2036.
• Each year, approximately 7-8 million youths join the labor force, presenting an opportunity for India to capitalize on the demographic dividend.
• Youth labor market participation has historically been lower than adults, primarily due to higher education enrollment rates.
• Youth unemployment witnessed a notable increase from 5.7% in 2000 to 17.5% in 2019, declining to 12.1% in 2022 post-lockdowns.

Recommendations:

• The report underscores five key policy domains for comprehensive action, focusing on both general employment enhancement and youth-specific interventions:
  • Promoting job creation
  • Enhancing employment quality
  • Addressing labor market disparities
  • Strengthening skills and active labor market policies
  • Bridging knowledge gaps on labor market dynamics and youth employment.

What is the International Labour Organization (ILO)?

• The International Labour Organization (ILO) is a United Nations (U.N.) agency.
• The goal of the ILO is to advance social and economic justice by setting international labor standards.
• The ILO has 187 member states and is headquartered in Geneva, Switzerland, with approximately 40 field offices around the world.
• The standards upheld by the ILO are broadly intended to ensure accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security, and dignity.

Understanding the ILO

• It was founded in 1919 under the League of Nations and incorporated into the U.N. as a specialized agency in 1946.
• The ILO is the first and oldest specialized agency of the U.N.
• The organization’s goal is to serve as a uniting force among governments, businesses, and workers.
• It emphasizes the need for workers to enjoy conditions of freedom, equity, security, and human dignity through their employment.
• The ILO promotes international labor standards through its field offices in Africa, Latin America, the Caribbean, the Arab States, Asia and the Pacific, and Europe and Central Asia.
• The organization provides training on fair employment standards, offers technical cooperation for projects in partner countries, analyzes labor statistics and publishes related research, and regularly holds events and conferences to examine critical social and labor issues.
• The ILO was awarded the Nobel Peace Prize in 1969.
  • The organization was recognized for improving fraternity and peace among nations, pursuing decent work and justice for workers, and providing technical assistance to developing nations.
• The labor standards set forth by the ILO have been published in 190 conventions and six protocols.
• These standards recognize the right to collective bargaining, attempt to eliminate forced or compulsory labor abolish child labor, and eliminate acts of discrimination concerning employment and occupation.
•  As a result, the protocols and conventions of the ILO are a major contributor to international labor law.

Structure:

• A unique feature of the ILO is its tripartite character.
• The membership of the ILO ensures the growth of the tripartite system in the Member countries.
• At every level in the Organization, Governments are associated with the two other social partners, namely the workers and employers.
• All three groups are represented in almost all the deliberative organs of the ILO and share responsibility for conducting its work.
• The work of the Conference and the Governing Body is supplemented by Regional Conferences, Regional Advisory Committees, Industrial and Analogous Committees, Committee of Experts, Panels of Consultants, Special Conference and meetings, etc.

The three organs of the ILO are:

• International Labour Conferences: General Assembly of the ILO – Meets every year in June.
• Governing Body: Executive Council of the ILO. Meets three times a year in March, June, and November.
• International Labour Office:  A permanent secretariat.

India & ILO:

• India is a founder member of the International Labour Organization, which came into existence in 1919.
• At present the ILO has 187 Members.

About the Institute of Human Development (IHD):

• Founded in 1998 under the patronage of the Indian Society of Labour Economics (ISLE), the Institute of Human Development (IHD) is dedicated to fostering a society that embraces an inclusive social, economic, and political framework, devoid of poverty and deprivation.
• IHD's core mission revolves around conducting research in diverse domains such as labor and employment, livelihood, gender, health, education, and various facets of human development.
• Through its endeavors, IHD seeks to generate knowledge and insights that contribute to the advancement of human welfare and societal well-being.