India’s demographic dividend is facing fresh strain as job creation lags behind a young population. With over 65% under 35, unemployment is rising—youth make up 83% of the jobless. Even as the economy recovers, skills gaps and low employability are pushing many into gig work that often lacks long-term stability and growth, locking in short-term financial stress.
India is adding millions of graduates to the labour force each year, but job creation is not keeping pace. A new Azim Premji University report flags rising graduate unemployment, especially among young adults, even as gender earnings gaps narrow. The stubborn difficulty of moving from education to stable employment threatens the country’s demographic dividend by limiting productivity gains.
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