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The Employment Transition of India's Gen Z

Published 20 Jul 2026. Access the PDF directly or read the stored explanation below.

UPSC English 20 Jul 2026

The Employment Transition of India's Gen Z

Prelims:

Indian Economy, Social Security

Mains:

GS Paper II- Issues Relating to Development and Management of Social Services relating to Education and Human Resources,  GS Paper III- Indian Economy, Science and Technology

Current relevance:

Recent analysis based on the Periodic Labour Force Survey (PLFS) 2023–24 highlights rising unemployment, informality, and poor labour market transition among Generation Z (Gen Z), raising concerns over India's demographic dividend.


Highlights:

1.      Generation Z (Gen Z) refers to individuals born between 1997 and 2012. They represent the youngest generation entering India's workforce and are central to the country's demographic dividend.

2.      According to Periodic Labour Force Survey (PLFS) 2023–24, India's working-age Gen Z population (15–26 years) is estimated at 29.94 crore, making them a crucial component of India's demographic dividend.

3.      Employment Status of Gen Z:

A significant proportion of Gen Z remains engaged in education, while many who enter the labour market are employed as unpaid family workers, casual workers, or informal workers. Only a small proportion secure regular salaried employment, reflecting limited access to formal job opportunities.

4.      Gender Disparities:

Young women have lower labour force participation than men, with many engaged in unpaid domestic work due to social norms, childcare responsibilities, safety concerns, and mobility constraints.

5.      The Graduate Employment Trap:

Graduate unemployment is higher among Gen Z than Millennials due to skill mismatches and rapid technological changes, including automation and Artificial Intelligence, which have widened the gap between education and labour market demand.

6.      Measures to Address the Challenge:

        i.            Expand labour-intensive industries to create large-scale employment opportunities for the growing youth workforce.

      ii.            Strengthen school-to-work transition pathways by improving the linkage between education, vocational training, and employment.

    iii.            Align skill development programmes with evolving industry requirements to enhance youth employability.

    iv.            Promote apprenticeships and formal employment through incentives that encourage workforce participation and social security coverage.

      v.            Enhance women's workforce participation by providing childcare support, safe transportation, and flexible work arrangements.

    vi.            Expand urban employment opportunities to absorb the increasing number of educated young job seekers.

 

Source: THE HINDU -  https://www.thehindu.com/opinion/lead/the-stark-reality-of-the-missing-jobs-for-indias-gen-z/article71241905.ece

 

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