India’s recent graduates have high unemployment rates, despite strong economy

A growing economy usually offers more job opportunities. India, despite its booming economy, is struggling to create desirable jobs for young workers.

Where in the world? India’s unemployment rate has been falling since the pandemic, according to the State of Working India 2023 report from the Center for Sustainable Employment at Azim Premji University. However, the unemployment rate for recent graduates under 25 remains high, with 42% unemployed. That number drops to 21% for people who have completed some level of higher education, and indicates that people with higher levels of education are more likely to land salaried roles.

Rosa Abraham, a coauthor of the report, told the Indian Express that people may choose to remain unemployed either because the minimum wage isn’t what they’re looking for, or because they come from higher income families.

“For those kinds of young people, they have the luxury to stay unemployed. They don’t necessarily have to bring in money, which is why you see higher unemployment numbers for that category,” she said.

Abraham also pointed out that while the Indian economy has been growing, salaried, desirable jobs are becoming less available.