India’s job market is gaining international attention: and not for a good reason.
Recently, nearly 2,000 applicants showed up at a hotel for a job with Thermax, a company that expected only 150-200 applicants for their software engineering position as it only had 10 spots available. The situation turned chaotic, with people fighting their way in and causing the metal railing to break due to the crowd’s pressure.
This alarming incident is not the first of its kind and at current rates it probably won’t be the last either. A report by BBC from April 2023 states that mass migration in India was driven by a lack of stable income in villages, forcing people to seek better opportunities in cities.
In Mumbai, the competition for police force positions was fierce, with 650,000 applicants vying for just 8,000 positions, drawn by the promise of a stable income which led to the many that didn’t get the position to struggle in the cities after gambling themselves because they had no other choice.
Economic anxiety is gripping many Indians as rising unemployment rates create fierce competition for scarce jobs. This growing insecurity is worsening living conditions for countless families, making the struggle to find stable employment increasingly difficult in a rapidly changing economy.
Unemployment has been a persistent issue in India since its independence, but recent years have brought the problem into sharper focus. Despite the Indian economy expanding by 7.8% in the 2023-2024 fiscal year—outpacing many global economies—the unemployment crisis has only deepened. This paradox raises crucial questions about how economic growth can better translate into job creation for the burgeoning workforce.
Consider these statistics: According to the Harvard Business Review, less than half of India’s 950 million working-age population (nearly three times the U.S. population) are employed. This figure starkly contrasts with global employment standards. The bigger issue comes that the number of actually economically productive members of the workforce is actually even smaller as many of those classified as “employed” are in “self-employed” roles, including unpaid workers in family enterprises.
A significant problem is the mismatch between industry expansion and the skills of today’s workforce. Indian political leaders are pushing for growth in agricultural and labor-intensive sectors, even as the global economy increasingly shifts towards technology. This disarrangement leaves many many young people, educated in tech-related fields, struggling to find suitable job opportunities and creates a broader economic imbalance.
Moreover, there is a growing education-employment mismatch. Many Indian colleges fail to equip students with the skills needed for the modern job market. A study by Wheebox, an educational testing services firm, revealed that only about 50% of 388,000 Indian graduates surveyed meet the employability standards required in their industries. These issues have contributed to youth unemployment rates in India reaching levels higher than the global average, as highlighted in the 2024 India Employment Report by the International Labour Organization.
How can India Maintain its economic momentum and facilitate more employment?
India needs to produce more jobs and move a greater portion of its workforce into a higher productivity sector so we can reinvest back into the economy. Failure to achieve such a goal would only cause overall social and civil unrest as well as more depressed incomes for the people. Problems that are very significant for a country that has nearly half its population younger than 25 and for a country that mainly depends on domestic consumption and production.
The government needs to prioritize tackling joblessness, which is a major driver of the economic, social, and political challenges facing India today. To address this, government policy and business priorities must be realigned.
Education reform and targeted economic initiatives are essential starting points. Increasing investment in urban development and infrastructure, as well as providing greater support for startups through seed funding and other means, could help mitigate future unemployment struggles.
Ultimately, the government must recognize the severity of the issue. The BJP(the party in power) in particular, needs to ensure that while the economy continues to grow, substantial improvements are made in the employment sector. This will be crucial in realizing India’s potential and fostering a more prosperous future.
Written by Aniruddh Sajan
