Youth aged 15 to 29 account for 83% of all unemployed people in India.
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India’s startup ecosystem is poised for promising growth as the country strives to promote economic growth and entrepreneurship, but more employment opportunities are needed to combat high unemployment.
The CEO of one of the largest recruiting firms in the United States said he warned that overall unemployment continues to climb.
India’s unemployment rate rose to 8.1% in April from 7.4% in the previous month. center for monitoring indian economy.
In April, the number of new start-ups in India increased by 37% year-on-year, driving a 14% increase in employment opportunities in new start-ups. Latest employment trend data from Foundit show.
The report emphasizes that the IT service industry is the industry with the most employment opportunities, and more than 50% of new job opportunities are for fresh college graduates.
Foundit CEO Chandra Garisa told CNBC: “The number of new startups coming out of India has exploded in the past few years, and now there are many startups in various fields.”
India has always had “quality of talent,” he said.
“Access to capital and building an ecosystem between government agencies and investors creates a flywheel in itself,” Garissa said, referring to the flow of investments into the country that has boosted India’s startup space.
Garissa said that while India’s push for self-sufficiency in manufacturing and information technology has provided more career paths and options for young people, more needs to be done to combat the high unemployment rate among India’s young people.
India’s youth unemployment rate is high
India is the most populous country in the world and has the largest youth population in the world.
The “India Employment Report 2024” shows that young people aged 15 to 29 account for a shocking 83% of all unemployed people in India.
According to the latest government dataCollege enrollment in the fiscal year ending March 2022 is 43.3 million.
“In the last year, due to pressures on hiring and profitability, companies have not invested in entry-level talent and have tended to look for easy-to-use talent,” Garissa told CNBC.
“I don’t think entry-level hiring is where it was two or three years ago,” he added. He explained that companies won’t “invest in growth … as long as the macro picture remains a little calm.”
Foundit data shows that employment in the Internet industry fell by 3%, employment in the financial technology industry decreased by 10%, and employment in the education industry decreased by 8%.
The recruitment firm said this showed that despite an increase in startups and other companies, funding, regulatory challenges and skills mismatches remain obstacles that need to be overcome.
Manufacturing job opportunities increase
The survey showed that across India, manufacturing employment saw the largest increase at 31%, mainly due to higher investment inflows in the automotive, chemical, pharmaceutical and food processing industries.
“There is a lot of activity and production in the manufacturing and production space, whether it’s automotive, electronics or consumer goods, and more and more global companies are adopting the China plus one strategy,” said Foundit’s Garisa.
The Biden administration is encouraging U.S. companies to shift electronics and technology manufacturing operations away from China to friendlier countries in the Asia-Pacific region such as India.
“Before, every company would blindly go to China for manufacturing, but in the post-pandemic world… India usually happens to be one of the strategic advantages for most organizations,” Garissa said.
Foundit data also showed that employment in the information technology industry, which includes hardware and software, grew by 9% due to increased investment to overcome the country’s IT talent shortage.
“Regardless of the industry, there is definitely a layer of technology in manufacturing that is driving all of this innovation,” Garissa noted.
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