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The Changing Landscape of Employment
1. Rising Graduates, Fewer Jobs
Every year, lakhs of students graduate from colleges, universities, ITIs, and skill programs.
But the system struggles to give them suitable jobs.
Every year, lakhs of students graduate from colleges, universities, ITIs, and skill programs.
But the system struggles to give them suitable jobs.
2. EPFO and Formal Employment
EPFO manages retirement savings for workers in the organised sector.
Has over 7 crore members, making it one of the world’s largest social security systems.
EPFO data shows trends in formal jobs.
After 2019, new EPFO enrolments dropped due to the pandemic.
But March 2025 data shows a steady rise in formal workforce numbers.
EPFO manages retirement savings for workers in the organised sector.
Has over 7 crore members, making it one of the world’s largest social security systems.
EPFO data shows trends in formal jobs.
After 2019, new EPFO enrolments dropped due to the pandemic.
But March 2025 data shows a steady rise in formal workforce numbers.
3. Youth in EPFO Enrolments
Fresh graduates (18–25 age group) form a major share of new EPFO subscribers.
Within that, the 18–21 group accounts for 18%–22% of new members.
Indicates progress in formalisation, but raises concerns about job stability, wages, and future security.
Fresh graduates (18–25 age group) form a major share of new EPFO subscribers.
Within that, the 18–21 group accounts for 18%–22% of new members.
Indicates progress in formalisation, but raises concerns about job stability, wages, and future security.
4. Youth Unemployment
India Employment Report 2024 (by ILO and IHD):
83% of India’s unemployed are youth.
Youth with secondary or higher education are increasingly jobless — their share has nearly doubled in 20 years.
India Employment Report 2024 (by ILO and IHD):
83% of India’s unemployed are youth.
Youth with secondary or higher education are increasingly jobless — their share has nearly doubled in 20 years.
5. The Problem: Unemployability
Economic Survey 2023–24:
Only half of graduates are considered job-ready.
1 in 2 youth lacks digital and professional skills.
India's fast-changing tech economy demands new skills.
Economic Survey 2023–24:
Only half of graduates are considered job-ready.
1 in 2 youth lacks digital and professional skills.
India's fast-changing tech economy demands new skills.
6. AI and Job Displacement
AI could replace many traditional tech jobs.
Without reskilling and upskilling, many graduates may not find suitable work.
AI could replace many traditional tech jobs.
Without reskilling and upskilling, many graduates may not find suitable work.
7. Informal Employment Still Dominates
90% of jobs in India are still informal.
Since 2018, salaried regular jobs have decreased.
Contractual jobs have increased, but job security and social benefits are still lacking.
90% of jobs in India are still informal.
Since 2018, salaried regular jobs have decreased.
Contractual jobs have increased, but job security and social benefits are still lacking.
8. Youth Lack Basic Digital Skills
75% can’t send an email with an attachment.
60%+ can’t copy and paste files.
90% don’t know how to use formulas in spreadsheets.
75% can’t send an email with an attachment.
60%+ can’t copy and paste files.
90% don’t know how to use formulas in spreadsheets.
9. Future Job Market: Gains and Losses
World Economic Forum’s Future of Jobs Report 2025:
By 2030, 170 million new jobs (14%) will be created.
But 92 million current jobs (8%) will be lost.
Net gain: 78 million jobs (7% growth).
Shows opportunity but also the need to close the skill gap quickly.
World Economic Forum’s Future of Jobs Report 2025:
By 2030, 170 million new jobs (14%) will be created.
But 92 million current jobs (8%) will be lost.
Net gain: 78 million jobs (7% growth).
Shows opportunity but also the need to close the skill gap quickly.
What India Must Do
10. Invest in Skills and Education
Improve education, vocational training, and digital literacy.
Align learning with future job needs.
Improve education, vocational training, and digital literacy.
Align learning with future job needs.
11. Bring Urgent Structural Reforms
a. Industry–Academia Collaboration
Must be mandatory by law.
Each college should have at least one formal tie-up with industry.
b. Accountability for Placements
Colleges should be judged by student job placements, not just degrees.
Create accreditation systems based on placement records.
Make Idea Labs and Tinker Labs compulsory in schools and colleges.
c. Add Humanities and Soft Skills
Humanities, foreign languages, and soft skills should be mandatory in all education levels.
d. Prepare for Global Jobs
Train youth for jobs in ageing Western countries where demand is growing.
Supports India’s aim to increase skilled worker migration.
The International Institute of Migration and Development is working on the EU’s Link4Skills project to match Indian skills to global labour needs.
e. Create Indian Education Services
Build a new system like IAS, called Indian Education Services, to attract top talent into education.
f. Involve Industry Experts in Teaching
Allow professionals from industries to teach in educational institutions.
This will connect theory with practical skills.
Must be mandatory by law.
Each college should have at least one formal tie-up with industry.
Colleges should be judged by student job placements, not just degrees.
Create accreditation systems based on placement records.
Make Idea Labs and Tinker Labs compulsory in schools and colleges.
Humanities, foreign languages, and soft skills should be mandatory in all education levels.
Train youth for jobs in ageing Western countries where demand is growing.
Supports India’s aim to increase skilled worker migration.
The International Institute of Migration and Development is working on the EU’s Link4Skills project to match Indian skills to global labour needs.
Build a new system like IAS, called Indian Education Services, to attract top talent into education.
Allow professionals from industries to teach in educational institutions.
This will connect theory with practical skills.
Relevance for CBSE (Classes 10, 11, 12):
Economics, Political Science, Geography, and Business Studies.
Labour markets and employment types (formal/informal)
Role of education and skills in job readiness
Government policy, digital literacy, and demographic shifts
Social security systems like EPFO and youth employment trends
Useful in themes like: Sustainable Development Goals (SDG-8), Economic Planning, and Skill India Mission.
Labour markets and employment types (formal/informal)
Role of education and skills in job readiness
Government policy, digital literacy, and demographic shifts
Social security systems like EPFO and youth employment trends
Useful in themes like: Sustainable Development Goals (SDG-8), Economic Planning, and Skill India Mission.
Vocabulary:
Word/Phrase Meaning EPFO Employees' Provident Fund Organisation; manages worker retirement funds Formalisation Process of shifting jobs into structured, legal employment Unemployability Being unfit for work due to lack of required skills Digital Literacy Ability to use computers, internet, and digital tools effectively Reskilling/Upskilling Learning new or advanced skills to stay employable Informal Sector Jobs without formal contracts, social benefits, or legal protection Migration Corridor Pathways through which workers move between countries for jobs
| Word/Phrase | Meaning |
|---|---|
| EPFO | Employees' Provident Fund Organisation; manages worker retirement funds |
| Formalisation | Process of shifting jobs into structured, legal employment |
| Unemployability | Being unfit for work due to lack of required skills |
| Digital Literacy | Ability to use computers, internet, and digital tools effectively |
| Reskilling/Upskilling | Learning new or advanced skills to stay employable |
| Informal Sector | Jobs without formal contracts, social benefits, or legal protection |
| Migration Corridor | Pathways through which workers move between countries for jobs |
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