Analysis of Educated unemployment Educated Unemployment is unemployment among people with an academic degree.

In India India's educated youths are facing some serious issues like educated unemployment and underemployment. Currently, in India, we have fairly low inflation but unemployment is high. In particular, educated unemployment is very high. It is around 20 % among graduates. One suspects that political instability in the country, lack of entrepreneurship, lack of quality education and quality students, for instance is the result of excessive unemployment. Bad education is hurting the economy. Recently Mr. Kapil Sibal has tried to de-affiliate some of the colleges. Colleges play a very vital role in making students. If colleges provide quality education, the scenario would be better. There are many private and old government colleges which fail to do this and hence provide a less skilled graduate. Opening of more private engineering colleges are fuel to the unemployment problem. Education has just become a profession. Colleges are being set up not to give quality education but to earn money. The step taken by our education minister to modernize our present education system is appreciable but still lot needs to be done Another factor for increased unemployment is the pressure from parents. Educated unemployment is due to a mismatch between the aspirations of graduates and employment opportunities available to them. It is seen in Indian community that parents put his son after getting 95% in science stream in view to make him an Engineer or a Doctor. Parents hardly think what his child wants to study, what are his wishes. According to a report by Employment and Unemployment Survey 2012 report by ministry of labor and employment, unemployment in India rises steadily with education level. While unemployment among the illiterate is 1.2%, unemployment among graduates is 9.4% and among post-graduates it is 10%. As stated in the report, the unemployment rate amongst the educated youths reportedly increased with increase in their education level. (Amongst all age group viz. 15-24 years, 18-29 years and 15-29 years) The bigger cause for concern according to the labor ministry data is: the unemployment rate among rural educated youths is higher as compared to their urban counterparts. It stands at 13.9% for rural areas against 7.6% in urban areas. Labor Ministry data indicates that higher education and degrees are not helping rural job aspirants to get their coveted jobs. Worst fears that there exist huge disparities in the quality of education between rural and urban India (aka Bharat and India) have finally come true While the country has added more literates in rural India from 58.7% in 2001 to 68.91% in 2011, the job market hasnt kept pace with the growing demands of job seekers from villages. The ministry data, released on July 18 this year confirms worst fears of expanding education sector not being able to deliver quality higher education and that there existed huge gaps in skill sets acquisition in rural India. Elaborating the rural-urban gap in job sector is further in the country, Ambarish Raghuvanshi, Chief Financial Officer (CFO) at Naukri.com says, There is less number of industries in rural areas thus fewer options are available for an educated person in rural areas. While the unemployment rate amongst illiterate populace rural India is just at 1.15% during 2011-2012, the percentage amongst rural populace is higher at 13.9% and 11.0% with post-graduate and graduate degrees in respectively. Unraveling the factors behind higher unemployment rate amongst educated rural Indians, Kris Laxmikant, Chief Executive Officer, Headhunters India, explained,

After facing lot of hardships when people staying in rural remote areas acquire educa tion, expectation for good jobs develops and restrictions occur. People who are either illiterate or less educated who could not afford education will take up any job as their family constraints are higher in comparison to those who are highly qualified. That economic slowdown is taking toll on job creation and disparity is not lost upon experts. Ambarish Raghuvanshi, Chief Financial Officer (CFO) at Naukri.com reckons, Many young professionals from rural areas earlier used to get jobs in sectors like insurance that usually had more jobs but unfortunately as the economy is not doing well; these sectors are low with opportunities. So, the educated aspirants who used to get a job easily in an insurance company not sits empty handed. If anything, it indicates not only the lack of quality in higher education in rural areas but huge gaps in requisite skill sets to fill the requirements of job market. Talking on the skill requirement, DK Joshi, Chief Economist at CRISIL says, Unemployment rate is higher amongst rural Indians with higher degrees because Indian education system is flooded with educational institutions with vast number of courses which mostly do not fit into the requirements of industry. We can say that the skill which is available doesnt match the required skill. Hitesh Oberoi, Chief Executive Officer, Managing Director at Naukri.com reckons, There are anyways less number of jobs because of the economy slowdown and on top of it many educated youth despite having higher degrees dont have required skill set for the job. As a result of this many youths are failing to get jobs. Economic slowdown pain is quite visible. The Labour Bureau survey further shows that every one person out of three persons who is holding a graduation degree and above in the age group 15-29 years is found to be unemployed. Blaming over capacity in educational institutions, Kris Laxmikant, Chief Executive Officer, Headhunters India, explained, Every year almost four lakh Engineering students pass out from their colleges, out of which only two lakh get jobs in industries and rest two lakh struggle for employment. This is because the number of institutions and students far outnumber available vacancies in the market. Similarly, in rural areas the unemployment rate among graduates and above for the age group 15-29 years, is estimated to be 36.6 per cent whereas in urban areas the same is 26.5 per cent. Reasoning migration as a reason for low employment in rural areas, Suryamani Roul, senior vice president at ACCESS development services said, Unemployment rate amongst rural youth is higher because most of the adequately skilled ones migrate to urban areas and successfully get a job and the rest get involved in anything available that is non permanent. The issue of growing unemployment amongst youth is also raised in another report named Global Employment Trends for Youth 2013: A generation at risk, released by International Labour Organization (ILO) on May 8th, 2013. In Gujarat: 7.69 L educated among those registered as jobless with government. More than 8.30 lakh youths including 7.69 lakh educated ones are registered as unemployed with employment exchanges in the state, shows data provided by Gujarat government It is a fact that the most basic degrees right up to the doctoral level is worthless in many universities across the country because of the poor quality of education. It is not for nothing that India has an entire army of the educated unemployed and the unemployable. They are the victims of a system which has forced them to spend their crucial formative years in getting a degree to become graduates.

Educated unemployment in U.S In June 2013, 11.8 million persons were unemployed, putting the unemployment rate at 7.6 percent. The economy is a large contributor to these numbers. After 9/11, the unemployment rate had even higher than it was in June

2013. The lack of jobs available and skills desired by employers are beginning to prove to be another major cause for graduate unemployment Unemployment refers to the state of being unemployed or not having a job i.e. joblessness. A person is said to be unemployed if he or she is looking for work or is willing to work at the prevailing wage but is unable to find the job. Today, we have both educated and uneducated unemployed people. We have skilled and unskilled unemployed youths both in the urban and the rural areas. Even degree holders are unemployed. The main cause of unemployment is the growing population. Other factors are Recessions, Inflation ,corruption, disability, and nepotism. Causes of Unemployment are as follows: Increasing Population i.e. High population growth, Recessions, Inflation, Corruption, Disability to do the job, Nepotism, Demand of highly skilled labor, Attitude towards employers, Undulations in the business cycles or agricultural sector comprising of the factors such as low production, natural calamities such as drought, famine or any natural disaster, Unsatisfied incomes or salaries of the employees, Willingness to work: Young people are not ready to take jobs which are considered to be socially degrading or lowly, Deterioration in Industry and business. Effects of Unemployment: Low economic growth Unemployment can lead to emotional and mental stress. A person can also get demoralized, he can do wrong things like he can indulge in the habits like alcohol and drug abuse or even may commit suicide. Higher income inequalities and disparities leading to nothing but poverty Remedies & Solutions to unemployment: The main remedy lies in the Rapid Industrialization. The need of faster economic growth to generate more jobs The need of improvements in the education and training provided to the youths with a greater focus on vocational skills and self employment. The Government support to struggling industries is necessary to try to save jobs. Cuts in real wages are also a way to help in reducing the problem of unemployment. Promoting education especially female education and motivating people to have small families.