Despite Highest Wages In India, Kerala's Young Men Are Among Most Unemployed: Report

Kerala Edited by Updated: Apr 03, 2024, 5:02 pm
Despite Highest Wages In India, Kerala's Young Men Are Among Most Unemployed: Report

Kerala”s position in male employment conditions ranks significantly low among 22 states, with only Bihar and Odisha faring worse, as per a recent report jointly released by the International Labour Organization (ILO) and the Institute of Human Development (IHD).

The India Employment Report 2024 has devised an Index of Employment Conditions, consolidating seven key indicators of the labor market for both genders, thereby facilitating the ranking of Indian states accordingly.

A closer examination of the data exposes Kerala”s challenging employment landscape for males, characterised by two key factors: an unemployment rate significantly higher than the national average among educated males (aged 15-29), and a marked deficiency in male youth involvement in employment, education, or training endeavors.

According to the ILO report, Kerala”s standing is disheartening, ranking 19 out of 22 states in terms of employment among educated males (aged 15-29) with secondary or higher education. Alarmingly, 31.28 percent of educated males in Kerala are unemployed, contrasting with the national average of 20.28 percent.

The employment condition index factors in parameters such as the proportion of workers engaged in regular formal employment, the worker population ratio, the prevalence of casual labour, the proportion of self-employed individuals with incomes below the poverty line, the average monthly earnings of casual laborers, the unemployment rate among youths with secondary or higher education, and the proportion of youth not engaged in employment, education, or training.

Certain parameters, like formal employment, are deemed to positively influence the index, given that formal employment, whether in governmental or private enterprises with over 10 employees, typically guarantees better working conditions and pay compared to casual labor.

Although Kerala”s substantial percentage of male casual workers adversely impacts its male employment condition index, the higher wages associated with casual labour in the state indicate a relatively better quality of casual work compared to other regions.

The male workforce participation, which remains low, has significantly impacted Kerala”s male employment condition index. The report acknowledges that this diminished participation, particularly among younger male youths, is largely driven by their pursuit of education, seen as a pathway to better labor market outcomes in the future.

However, this observation is made within the broader Indian context and not specifically tailored to Kerala. In Kerala, concerns persist regarding the low employment rate among educated youths, with experts attributing it to deficiencies in education, a shortage of marketable skills, and a prevalent preference for white-collar occupations, among other factors.

Kerala”s young males rank lowest among 22 states in engagement with employment, education, or training. Approximately 19.26 percent of young males in Kerala fall under the category of Not in Employment, Education, or Training (NEET), signifying their lack of economic productivity.

The state also grapples with the second-highest unemployment rate among its educated youth population (aged 15-29). Merely 38.98 percent of educated youths are employed, compared to the national average of 21.84 percent. With 39.95 percent remaining unemployed, only Odisha fares worse.

The ILO report reveals Kerala”s position as the top-ranked state in terms of the average monthly wage for casual male workers (aged 15+). The average monthly wage in Kerala stands at Rs 14,427, surpassing the second-ranked Delhi, which records Rs 14,115. In contrast, the national average sits at Rs 9,086 per month.