Unemployment rates among highly educated Indians continued to remain high, a recent report from Kotak Institutional Equities revealed. The report stated that unemployment rates among individuals qualified with a degree or diploma continued to remain high.
The survey, however, also stated that there has been some progress in the last five years, as reported by Moneycontrol. There remains a noticeable gap between job opportunities and individuals looking for employment, which could take some time to improve, the survey noted.
Notably, the unemployment rate among diploma holders stands at 12.1 per cent, as of June 2023, while for graduates, the unemployment rate is at 13.4 per cent, and for post-graduates, it stands at 12.1 per cent, the report stated.
The annual labour force survey found that the unemployment rate dipped sharply from 2018 to 2023, however, the majority of the new jobs created were for self-employed people. There was also a visible decline seen in the number of salaried employees, which means that the job quality failed to improve substantially.
The survey further revealed that self-employed individuals in the country displayed a 510 basis point increase, and this growth was attributed to an increase in household helpers by 470 basis points during the pandemic.
Kotak brokerage also noted that the agriculture, trade, and transport sectors showed a major increase in self-employed individuals in the last five years. Rural females also displayed an increase in participation and employment.
Further, the real wage growth remained irregular across segments, leading to a negative impact on consumption. The annual wages for salaried workers climbed at a 3.4 per cent compound annual growth rate (CAGR), whereas self-employed individuals reported an increase of 1.8 per cent CAGR in gross earnings from 2018 to 2023.
Kotak noted that the real income growth stayed inconsistent for both, salaried and self-employed individuals, but in recent times, turned positive after a long time. The report further stated that it expects the salaried sector to face challenges in the upcoming quarters, specifically due to cost reductions in the IT industry that could impact growth.
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