Despite skepticism over the volatility and reliability of the CMIE data, economists acknowledge the absence of alternative sources providing comprehensive unemployment figures in the country.
Team Clarion
NEW DELHI — In a recent report released by the Centre for Monitoring Indian Economy (CMIE) concerns have been raised over the escalating levels of youth unemployment in the country. The data, covering the October-December quarter, revealed a noteworthy surge in unemployment among the younger population.
The CMIE is a Mumbai-based economic think tank and a business information company.
Its report said India’s overall unemployment rate showed a decline in 2023 compared to the previous year. It also emphasised a growing challenge for the youth in the employment sector. The study delved into various age groups, shedding light on the grim situation.
For individuals aged 20 to 34, the unemployment rate witnessed a sharp increase in the third quarter of the fiscal year 2024. Specifically, the 20-24 age group experienced a rise from 43.65% in the previous quarter to 44.49% in October-December 2023. In the 25-29 age bracket, the unemployment rate reached a 14-quarter high, standing at 14.33% compared to the previous figure of 13.35%.
The concerning trend is more pronounced in rural areas, where unemployment levels have surged compared to urban counterparts. Breaking down the data, the unemployment rate in rural areas for the 20-24 age group peaked at 43.79%, followed by the 25-29 age group at 13.06%, and the 30-34 age group at 13.79%. The 2.24% unemployment rate was observed in the remaining age group.
Despite skepticism over volatility and reliability of the CMIE data, economists acknowledge the absence of alternative sources providing comprehensive unemployment figures in the country.
Madan Sabnavis, Chief Economist at Bank of Baroda, raised concerns over the inconsistency in CMIE data due to the informal nature of a significant portion of employment, where permanency is often elusive.
The rising trend in youth unemployment highlights a pressing issue that requires attention and strategic intervention to ensure a more inclusive and sustainable job market for India’s younger population.
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Photo used for illustration
