The 2017 Economic Survey of India by Organisation for Economic Cooperation and Development (OECD) presents a grim employment picture in the country. The report says that although the Indian economy is growing substantially, job creation and employment opportunities have not kept up with the same, and India’s rate of employment has actually declined.
The survey suggests that about 30% of youth aged between 15-29 years are not in employment, education or training (NEETs). Isabelle Joumard, senior economist and head of the Indian desk, OECD, explained the concept of NEETs in a report, “NEETs include all youth left outside paid employment and formal education and training systems. They are NEET because there are not enough quality jobs being created in the system and because they have little incentives or face too high constraints to be in the education and training systems.”
This Indian percentage for youth inactivity is more than double the OECD average and nearly thrice that of China (11.2%). While the OECD average is 14.56%, South Africa with 36.65% had the highest youth who were not in employment, education or training. Other nations were placed as follows: Russia (14.04%), Brazil (19.9%), Argentina (20.3%), Colombia (20.6%) and Indonesia (23.2%).
The Survey also lists out the potential problem areas that need correctional interventions, and suggests some practical steps to ensure job creation at par with the growth of the economy and the population. However, overall India seemed to be performing well on several indicators, and the survey discusses growth, taxes, macroeconomic indicators, exposure to external threats, internal challenges, and inclusive and sustainable development in the Indian context.