Colonel B S Nagial (Retd.)
Youth comes but once in a lifetime.
~Henry Wadsworth Longfellow
The youth are the backbone of any society. Youth is the time of life when one is young, and it often means the time between childhood and adulthood (maturity). Youth is an experience that may shape an individual’s level of dependency, which can be marked in various ways according to different cultural perspectives. When nourished, young people can grow like a giant tree but can erupt like a volcano if not adequately groomed or cared for. No country can afford to ignore this segment of the nation.
Estimates indicate that young people between 15 and 24 years of age, number 1.21 billion, accounting for 15.5 percent of the global population. Projections suggest that the youth cohort will reach 1.29 billion (15.1 percent of the world total) by 2030 and almost 1.34 billion (13.8 percent of the overall population) by 2050 (United Nations, 2019). As per the National Youth Policy, 2014, all young persons in the age group 15-29 years constitute the youth population which is a diverse group with varying needs, aspirations and requirements. As per 2011 Census, the youths comprise 28 per cent of the population contributing about 34 per cent of India’s Gross National Income (GNI). The contribution of youth to the GDP can be increased by increasing labour force participation and productivity. The need of the hour is to empower youth to achieve their full potential and enable India to be the leader in the supply of skilled labour force. This provides an excellent opportunity to a nation like India to reap the demographic dividend for making rapid economic growth.
The present-day youth in the age group of 15 to 24 years worldwide have witnessed the second significant global crisis within a decade. They entered their youth when there was a financial crisis and are exiting it now with the life-altering experience of the COVID-19 pandemic. Indeed, they will encounter severe challenges in education, economic prospects and mental well-being in the time to come.
Youth being enthusiastic, vibrant, innovative and dynamic in nature show strong passion, motivation, and will-power, making them a valuable human resource for fostering economic, cultural, and political growth. But they can transform the future only if they have skills, health, decision-making, and real choices in life. The potential economic gains would be realised through a “demographic dividend”, which can occur when a county’s working-age population is larger than the dependent population. But what is “demographic dividend”?
Demographic Dividend.
According to United Nations Population Fund (UNFPA), demographic dividend means, “the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older)”. With fewer births each year, a country’s working-age population grows more extensive than the young dependent population. With more people in the labour force and fewer children to support, a country has a window of economic growth opportunity if the right social and economic investments and policies are made in health, education, governance, and the economy.
India has one of the youngest populations in an ageing world. India’s median age will be 29 years, compared to 37 in China and the US, 45 in Western Europe, and 49 in Japan. Since 2018, India’s working-age population (people between 15 and 64 years of age) has grown more extensive than the dependent population. A study on India’s demographic dividend by the United Nations Population Fund (UNFPA) throws up two interesting facts. The window of demographic dividend opportunity in India is available for five decades from 2005-06 to 2055-56, longer than any other country in the world. This demographic dividend window is available at different times in different states because of the population parameters’ differential behaviour.
Challenges of youth in India
The 16th edition of the World Economic Forum’s Global Risks Report says that there are risks: to human health, rising unemployment, widening digital divides, youth disillusionment, and geopolitical fragmentation. In 2020, the threat of a pandemic became a reality. According to the Global Risks Perception Survey (GRPS), “youth disillusionment” is a top neglected risk that will become a critical threat to the world over the next two years or so. Hard-earned societal wins could be wasted if the young generation lacks acceptable alleys to educational and job opportunities. Today’s youth bear many scars such as decade-long financial debacle, outdated educational system, climate crisis, violence in different shapes and sizes, and terrorism. In India, youth is encountered with the following problems:
Lack of skills: Skilling and reskilling are vital because of the increasing new fields and opportunities. India may not be able to take advantage of the opportunities because of a low human capital base and less skilled labour force. Government initiatives like ‘Skill India’ did little to improve the country’s flawed education system.
Poor performance in human development parameters: India ranks 130 out of 189 countries in the Human Development Index published by the UN Development Programme (UNDP). Improvement in health and education is vital for India to utilise its demographic dividend.
The informal economy’s dominance: Most of India’s labour force is employed in the informal economy. This hinders India’s economic growth as the workforce does not get the government’s intended benefits. The other informal economy issues include labour exploitation, black money, money laundering, and other illegal activities.
Jobless growth: There is a growing concern about the jobless growth of the Indian economy because of the current trend of isolationism in the global economy, the emergence of the fourth industrial revolution and rapid technological progress. According to the NSSO Periodic Labour Force Survey 2017-18, India’s labour force participation rate for the age group 15-59 is about 53%. This means that about half of the working-age population is jobless.
What can be the way forward?
Improving Human Capital: Increasing investment in people’s welfare via quality health and education promoting jobs and skill development can improve the country’s human capital, which plays a vital role in the economic growth, poverty alleviation, and inclusive society.
Skilling: India, despite having the largest working population, lacks the necessary skills within the labour force. This does not allow it to utilise the benefit of the demographic dividend because youth are not employable due to a lack of essential skills or limited opportunities for the available skills. Taking the steps needed to promote skilling and reskilling on par with the growing job demands is a need of the hour.
Education: Currently, India’s illiteracy rate and low-quality education make the youth not employable. Improving the quality and access to education is vital to harness the advantage of demographic dividend. The New Education Policy of the Government will help youth in imparting employable education.
Creating jobs: India needs to create 10 million jobs per annum to absorb young people into the workforce. Promoting entrepreneurship and supporting businesses’ growth need to encourage job creation. In recent years, India has improved its ranking in the World Bank’s Ease of Doing Business Index. Startup India and Make in India are some Government initiatives that can create jobs.
Promoting the growth of labour-intensive sectors: These include agricultural sector and manufacturing sectors like food processing, textiles, apparel, leather, wood and furniture, handicrafts, etc. The farm industry is continuously facing issues due to lack of necessary Government support, and the manufacturing industry is on a decline since 2012.
Conclusion: To conclude, the rapid economic changes and future job scenario offers both a challenge and opportunity for youth to enhance their employability for a better life. The enhanced employability would ensure job security and career progression, thereby empowering youth to contribute to economic growth and benefit from the growth.
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