Educated youth more likely to be unemployed
Educated youth are less likely to accept informal work even when the market has limited capacity to offer regular, salaried jobs
Mumbai: Unemployment rate among educated youth in India is higher than their uneducated counterparts and the situation only worsens with increase in education level, according to a new Economic and Political Weekly paper by Indrajit Bairagya, assistant professor at the Institute for Social and Economic Change. One key reason is that educated people are less likely to accept informal work even when there is limited supply of regular, salaried jobs. Also, educated people in relatively developed states are more likely to remain out of work as they often have to compete among a larger pool of educated youth for limited jobs. The study also finds that the unemployment rate among youth from large households tends to be higher, possibly because they can afford to not work while they search for a better job.