Highest concentration of unemployment among the highly educated people: State of Inequality in India report

The latest report on unemployment in India has reported that there occurred a rising income inequality in the country amid inflation. Recently, the Economic Advisory Council proposed an urban job guarantee scheme for the citizens of India. This latest report on inequality in India has raised an alarm over rising structural unemployment in the country, The Mint reported.

As per the report, the people with higher education degrees are the ones who fall under a higher concentration of unemployment. The lowest unemployment rate (up to 0.6% in 2019-20) is among the illiterate population. Diploma or certificate courses, both undergraduate and postgraduate degrees and above, have the highest concentration, ranging from 19% to 20% in all slabs, the report said.

The Institute of competitiveness released the report titled ‘State of Inequality in India’ in which it said that there is a need to focus more on the employment opportunities for the young generation of India. A 44.4% wealth concentration in the highest quintile in urban areas is contrasted with a meager 7.1% concentration in that in rural India, the report said.

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The report further explained that the labor force participation rate in the country was 51.5% in 2019-20, which was better than the 49% in 2017-18. However, the participation rate of those educated till higher secondary over three years from 2017-18 to 2019-20 was found to be low at 40-43%. 

The Economic Advisory Council to the Prime Minister recommended that measures be taken to increase the minimum income and introduce a universal basic income to reduce the income gap and facilitate equal distribution of income in the labor market.