Why in News?
World Bank President Ajay Banga has warned of a major global employment challenge: around 1.2 billion young people in the Global South are expected to enter working age over the coming decade, while only about 400 million jobs may be created.
Key Points
Potential job gap: Nearly 800 million employment opportunities could be lacking.
Demographic dividend: A large working-age population can boost savings, productivity and economic growth—but only when adequate jobs and skills exist.
Premature deindustrialisation: Developing countries are losing the traditional manufacturing-led pathway to mass employment because of automation, robotics and advanced technologies.
Skill mismatch: Lack of digital skills, vocational training and quality education limits youth employability.
India’s challenge:
Median age is below 30 years.
Persistent underemployment and skill mismatch.
Low female labour-force participation.
Agriculture continues to employ a large share of the workforce despite its relatively low contribution to GDP.
Potential Job-Rich Sectors
Agriculture & agro-processing
Healthcare and care economy
Tourism and culture
Green manufacturing
MSMEs
Digital and technology-enabled services
Way Forward
Promote labour-intensive manufacturing.
Strengthen MSMEs and entrepreneurship.
Improve physical and digital infrastructure.
Expand vocational and industry-linked skill training.
Increase women’s participation in the workforce.
Develop agro-processing and rural value chains.
Promote tourism and green industries.
Improve regulatory certainty and access to finance.
Practice Questions
Prelims Question
Q. Consider the following statements regarding demographic dividend:
It refers to the economic growth potential arising from a relatively larger working-age population.
It automatically results in higher economic growth whenever the working-age population increases.
Employment generation and human-capital development are important for converting demographic potential into an economic dividend.
Which of the statements given above are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Explanation: A demographic dividend is not automatic. Jobs, skills, health, education and productive opportunities are necessary to convert a large working-age population into economic growth.
Mains Question
Q. “A large young population can become either a demographic dividend or a demographic challenge depending on employment opportunities.” Discuss with special reference to India. (150 words | 10 marks)