Youth Employment and Employability
Indian Economy
- PYQs8
- Articles1
Background
Directly impacts economic growth, social stability, poverty reduction, and the realization of India's demographic potential. It is a key socio-economic challenge and a major focus area for government policy.
Youth employment and employability refer to the challenges and opportunities associated with integrating young people into the workforce, ensuring they possess the necessary skills and access to jobs. Addressing these issues is critical for harnessing India's demographic dividend and ensuring inclusive economic growth.
Facts & tables
- Demographic Dividend
- India has a large young population, presenting an opportunity if adequately skilled and employed.
- Skill Gap
- Mismatch between skills possessed by youth and those demanded by industries.
- Informal Sector
- A significant portion of youth employment is in the informal sector, often with lower wages and job security.
- Government Focus
- Initiatives like Kaushal Mahotsav aim to bridge the gap between skilled youth and industry demand.
| Type | Reference |
|---|---|
| Conceptual area | Social Justice & Development |
| Body | Role |
|---|---|
| Ministry of Skill Development and Entrepreneurship (MSDE) | Implements programmes to enhance employability |
| National Skill Development Corporation (NSDC) | Facilitates industry-linkages for employment |
Prelims angle
Prelims angle: Statement-based questions
Prelims angle: Factual recall
- Challenge: Skill gap, informal sector dominance.
- Opportunity: Demographic dividend.
- Government role: Skill development, job fairs (Kaushal Mahotsav).
- Impact: Economic growth, social stability.
- Goal: Productive participation of youth in economy.
| Year | Framing tags |
|---|---|
| 2022 | Multi-statement analysis, Factual recall |
| 2022 | Factual recall, Institutional roles and functions |
| 2021 | Multi-statement analysis, Factual recall |
| 2020 | Multi-statement analysis, Conceptual understanding |
| 2018 | Conceptual understanding, Multi-statement analysis |
| 2017 | Statement-based questions, Factual recall |
| 2013 | Definition-based questions, Conceptual understanding |
| 2013 | Policy measures, Conceptual understanding |
Timeline
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Social Justice & Development
Conceptual area
-
Prelims 2013
Definition-based questions, Conceptual understanding
-
Prelims 2013
Policy measures, Conceptual understanding
-
Prelims 2017
Statement-based questions, Factual recall
-
Prelims 2018
Conceptual understanding, Multi-statement analysis
-
Prelims 2020
Multi-statement analysis, Conceptual understanding
-
Prelims 2021
Multi-statement analysis, Factual recall
-
Prelims 2022
Multi-statement analysis, Factual recall
-
Prelims 2022
Factual recall, Institutional roles and functions
-
Over 1,000 Telangana Youth Receive Job Offers at Kaushal Mahotsav – Warangal 2026
Youth employment and employability are critical for India's development, focusing on ensuring young people have the skills and opportunities to participate productively in the economy, thereby leveraging the demographic dividend and fostering inclusive growth.
See also
Past papers
2013–2022 · 8 questions
In the news
Over 1,000 Telangana Youth Receive Job Offers at Kaushal Mahotsav – Warangal 2026
Youth employment and employability are critical for India's development, focusing on ensuring young people have the skills and opportunities to participate productively in the economy, thereby leveraging the demographic dividend and fostering inclusive growth.
Try these PYQs
Consider the following in respect of ‘National Career Service’:
1. National Career Service is an initiative of the Department of Personnel and Training, Government of India.
2. National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.
Which of the above statements is/are correct?
Statement 1 is incorrect. The National Career Service is not an initiative of the Department of Personnel and Training, Government of India. It is actually implemented by the Directorate General of Employment, Ministry of Labour & Employment. Statement 2 is incorrect. The National Career Service has indeed been launched in a Mission Mode, but it is not specifically targeted at improving the employment opportunities for uneducated youth of the country. It is a comprehensive platform providing a wide array of employment and career related services to all citizens of India, aiming to bridge the gap between jobseekers and employers, candidates seeking training and career guidance, and agencies providing training and career counselling.
With reference of the Indian economy after the 1991 economic liberalization, consider the following statements:
1. Worker productivity (per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct?
Statement 1 is incorrect. After the 1991 economic liberalization, worker productivity increased both in urban and rural areas. While urban areas experienced higher growth, rural areas also saw improvements, especially with the rise in non-farm activities. Statement 2 is incorrect. The percentage share of rural areas in the workforce has steadily decreased since liberalization. This is because more people have moved to urban areas for employment in the industrial and service sectors, contributing to the growing urban workforce. Statement 3 is correct. In rural areas, the growth of the non-farm economy increased significantly. With liberalization, the diversification of rural economies into sectors like manufacturing, construction, and services grew, reducing the dependency on agriculture. Statement 4 is correct. The growth rate in rural employment decreased after 1991. While the rural economy diversified, the agricultural sector did not provide enough employment opportunities to absorb all the labor, leading to lower growth in rural employment. Hence, option B is the correct answer.
Consider the following statements: Human capital formation as a concept is better explained in terms of a process, which enables
1. individuals of a country to accumulate more capital.
2. increasing the knowledge, skill levels and capacities of the people of the country.
3. accumulation of tangible wealth.
4. accumulation of intangible wealth.
Which of the statements given above is/are correct?
Human capital formation refers to the process of increasing the stock of knowledge, skills, and experiences that people in a country possess. This intangible wealth is what makes a workforce productive and adaptable.
Therefore, statement 2 and 4 are correct.
To obtain full benefits of demographic dividend, what should India do?
To rip the maximum demographic dividend, India has to promote skill development. This is what the Economic Survey and 12th FYP have been advocating.
Disguised unemployment generally means
Disguised unemployment, means that more people are engaged in a job that can be done with fewer people, normally seen in agriculture where the whole family is involved. It means extra people can be removed without affecting the productivity, i.e. their marginal productivity is zero.
Show 3 more PYQs
Consider the following statements:
1. Vietnam has been one of the fastest growing economies in the world in recent years.
2. Vietnam is led by a multi-party political system.
3. Vietnam's economic growth is linked to its integration with global supply chains and focus on exports.
4. For a long time, Vietnam's low labor costs and stable exchange rates have attracted global manufacturers.
5. Vietnam has the most productive e-service sector in the Indo-Pacific region.
Which of the statements given above are correct?
Statements 1 and 3 are correct. Vietnam’s open economic policy of recent years integrating into global supply chains has made the growth success story possible. Vietnam's export-led growth strategy and global integration are among the key factors behind the country's remarkable achievements in growth and poverty. Vietnam was one among the few countries to post GDP growth rate figures in 2020 when the pandemic hit. Vietnam is projected to be the fastest-growing internet economy in Southeast Asia in the next 10 years. Statement 2 is not correct. Vietnam is a one-party communist state, not a multi-party parliamentary democracy. Statement 4 is correct. Thanks to an abundance of low-wage labour, Vietnam's manufacturing sector grew at a compound annual growth in the last decade. As the rest of East Asia developed and wages there rose, global manufacturers were lured by Vietnam's low labour costs and stable exchange rate. Hence, Statement 5 is not correct. According to the Asian Development Bank Report, e-services including digital financial services are at a very nascent stage in Vietnam.
With reference to the casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
Statement 1 is not correct: The Government had launched a scheme viz Casual Labourers (Grant of Temporary Status and Regularization) Scheme of Government of India, 1993. As per the scheme, Temporary status would be conferred on all casual labourers who were in employment and who have rendered a continuous service of at least one year, which means that they must have been engaged for at least 240 days (206 days in case of offices observing 5 days week). Statement 2 is correct: The Supreme Court has decreed that casual workers are also entitled to social security benefits as stipulated in the Employees Provident Funds and Miscellaneous Provisions Act. The Court's ruling stemmed from its interpretation of Section 2(f) of the EPF Act, wherein the definition of an "employee" encompasses a broad scope, including any individual engaged directly or indirectly in connection with an establishment's work and receiving wages. A bench of the Supreme Court affirmed this viewpoint. Statement 3 is correct: The government has the authority to specify through a notification that an establishment or industry is obligated to disburse wages exclusively via its bank account.
In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers?
In India, the primary agency responsible for compiling information on industrial disputes, closures, retrenchments, and lay-offs in factories employing workers is the Labour Bureau The Labour Bureau is an attached office of the Ministry of Labour and Employment, Government of India. It plays a crucial role in collecting, compiling, and disseminating labor statistics across various aspects, including industrial relations.