Indian Youth Unemployment: Factors Driving Its Deepening

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Sheetal Mundra

Abstract

India has become the youngest country in an ageing world with its increasing working-age population, a demographic goldmine. India is fortunate that this opportunity is available for the next few decades. But, the Indian economy is passing through a critical phase of mounting youth unemployment in the age group of 15 to 29. This biggest future risk may downturn in the payback of its huge demographic dividend. Understanding the vulnerability of youth unemployment and its determinants in the right perspective is the need of the hour to ensure the golden future of India. This study aims first, to review the status of youth employment and unemployment and to explore the determinants causing the growth of youth unemployment in India. The secondary data is used for understanding the status of youth employment and unemployment in India. The study identifies the key determinants of youth unemployment rate such as Growth Rate, Female Labour Force Participation Rate, Labour Productivity growth and Employment Growth.  The multiple linear regression model is used to assess the impact of significant variables on the youth unemployment rate with the help of ‘R’. This study has highlighted that 59% of youth is not available for the labour force and Female Labour Force Participation Rate (FLFPR) is 33% of the men’s Labour Force Participation Rate (LFPR). Covid-19 has aggravated the female urban unemployment rate and continued even after the economic recovery. This study will help policymakers to plan area and gender-specific policies and arrangements to overcome the challenging issue of the Indian economy.

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How to Cite
Sheetal Mundra. (2024). Indian Youth Unemployment: Factors Driving Its Deepening. European Economic Letters (EEL), 14(3), 01–19. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/1741
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