About INgene blog : First ever Indian Youth trend Insights blog

About INgene : First ever Indian Youth trend Insights blog:
This blog explores the detailed characteristics of Young-India and explains the finer & crucial differences they have with their global peers. The blog also establishes the theory of “adopted differentiation” (Copyright Kaustav SG,2007) and how the Indian & Inglodian youth are using this as a tool to differentiate themselves from the “aam aadmi” (mass population of India) to establish their new found identity.

The term youth refers to persons who are no longer children and not yet adults. Used colloquially, however the term generally refers to a broader, more ambiguous field of reference- from the physically adolescent to those in their late twenties.
Though superficially the youth all over the world exhibits similar [degree of] attitude, [traits of] interests & [deliverance of] opinion but a detailed observation reveals the finer differential characteristics which are crucial and often ignored while targeting this group as a valued consumer base. India is one of the youngest countries in the world with 60% of its population less then 24 years of age and is charted as the most prospective destination for the retail investment in the A. T. Kearney’s Global Retail Opportunity Report, 2007. With the first ever non-socialistic generation’s thriving aspiration & new found money power combined with steadily growing GDP, bubbling IT industry and increasing list of confident young entrepreneurs, the scenario appears very lucrative for the global and local retailers to target the “Youngisthan” (young-India). But, the secret remains in the understanding of the finer AIOs of this generation. The Indian youth segment roughly estimates close to 250million (between the ages of fifteen and twenty-five) and can be broadly divided (socio-psychologically) into three categories: the Bharatiyas, the Indians & the Inglodians (copyright Kaustav SG 2008). The Bharatiyas estimating 67% of the young population lives in the rural (R1, R2 to R4 SEC) areas with least influence of globalization, high traditional values. They are least economically privileged, most family oriented Bollywood influenced generation. The Indians constitute 31.5% (A, B,C, D & E SEC) and have moderate global influence. They are well aware of the global trends but rooted to the Indian family values, customs and ethos. The Inglodians are basically the creamy layers (A1,A SEC) and marginal (1.5% or roughly three million) in number though they are strongly growing (70% growth rate). Inglodians are affluent and consume most of the trendy & luxury items. They are internet savvy & the believers of global-village (a place where there is no difference between east & west, developing & developed countries etc.), highly influenced by the western music, food, fashion & culture yet Indian at heart.

Monday, November 26, 2012

Youth & Unemployment in India

Youth unemployment remains high in India, and it hasn’t been helped by the global crisis. The latest World Development Report by the World Bank says India’s youth unemployment — as a percentage of the youth work force — was 9.9% for males and 11.3% for females in 2010. In 1985, the figures were 8.3% and 8%, respectively. Youth unemployment in India, like most countries, has consistently been above the national average. But of late, the data indicate rising youth unemployment, now virtually 50% more than the national average, or total unemployment rate.
The National Sample Survey Organisation found that India’s unemployment rate fell to 6.6% in 2009-10 from 8.2% in 2004-05. The general perception is that unemployment in India is high, but the actual numbers seem reasonable. That’s because self-employment accounts for about 60% of India’s employed population.
Given the lack of viable employment opportunities, a large number of Indians opt for self-employment. And a big chunk of this includes low-paying activities like hawking magazines and flowers at traffic signals. Casual workers — who get jobs at times and remain unpaid at other times — account for 30%, while only 10% of the working population are regular employees. Given the scarcity of opportunities, higher youth unemployment shouldn’t come as a surprise.

But rising youth unemployment in a country that is expected to reap the demographic dividend is a concern. The latest NSSO survey shows there has been a drop in the labor force participation rates – as in, those who are willing to work – among the youth. Many young people are delaying their entry into the workforce, partly because they are extending their years of education. This at least is positive as it indicates a higher degree of skill formation in the young laborforce.
The desire to acquire better skills is reflected in a substantial spurt in education loans in India. Reserve Bank of India data show that outstanding educational loans (in the personal loan category) more than doubled in the past four years. And a growing number of educational loans are turning into non-performing assets, particularly in the last few years. According to the Indian Banks’ Association, education loan NPA accounted for 6% of outstanding education loans as of March 2012, sharply up from 2% in March 2008. The spurt in defaults can to a large extent be attributed to the difficult employment environment in India, especially for students looking to enter the job market as the economy slows.

The rising demand for education clearly shows that young people are looking to move away from menial and low paying work to jobs that require comparatively higher skill sets. When distinguishing between levels of literacy and youth unemployment, various NSSO surveys reveal one common thread: Unemployment is lowest among the illiterate population. That’s because this segment is more willing to work as laborers and in low paid menial jobs.  Not surprisingly, youth unemployment is the highest among young graduates, which is a clear indication of the lack of employment opportunities for educated youth.

Although India’s manufacturing and service sectors have been growing faster than agriculture for many years, they failed to wean people from agriculture at the necessary pace, leading to lopsided employment distribution. As of 2007, just over 50% of total employment in India was associated with agriculture, while industry accounted for around 20% and services 30%.

The number of people still engaged in agriculture in India doesn’t compare too favourably with its emerging market peers. To raise industry’s contribution to GDP and move the disproportionately large number of people engaged in agriculture to industry requires a greater focus on manufacturing. It also requires reforms in the labor market, greater transparency in land acquisition and realistic environmental policies, as well as availability of quality education. It would be easier to move people from agriculture to industry through appropriate skill development programs, rather than to the service sector directly.

The challenge for the government is to ensure that appropriate policies are framed and meticulously implemented to meet the future aspirations of India’s youth. The adverse impact of the global crisis sends out a strong message. India has its work cut out.

Source : http://blogs.wsj.com/indiarealtime/2012/11/23/young-jobless-and-indian/ 

No comments: