[Challenge:Future] Youth Empowerment- Making Indias Future Bright
Project Title: Youth Empowerment- Making India’s Future Bright Team Name: IIMB_IITD Country: India Mentor: Punit Asthana
Youth Unemployment in India Youth unemployment is the lack of job opportunities for people typically in the age group of 15–24 12 100 1010 80 8 10 10.48 60 6 8.36 4 1993-94 404 20 2 2007-082 0 00 0 5 10 15 15 to 20 to 25 to 35 to 45+ 1994 2000 2005 Females Males 19 24 34 44 Unemployment rate as no. of education Age distribution of unemployment Youth unemployment rate in India  years increases  rate in India 160140120100 80 60 40 Males 20 Females 0 State-wise distribution of youth unemployment rate in India 
Consequences of Youth unemploymentFiscal challenges to nations: Youth unemployment costs the UK economy more than £155 million per week inbenefits payments and lost productivity. Lifetime cost of educational underachievement for today’s 17-24 year oldswill be £22 billion ($35 billion). Cost of Exclusion: Every 3 months of unemployment at age 22 is associated with an additional 1.3 months betweenage 28 & 33. Persons who experience 26 months of unemployment before age 22 typically earn $1400-1650 lessthan their peers at age 26, and $1050-1150 less at age 30. Resource wasted for developing economies: Limit inputs available urgently needed growth and makes it harder fordeveloping countries to realize the benefits of labor-intensive growth strategies. Failure in realizing economicpotential of young people; difference between sustained & faltering long term development . Increased risk for social pathologies: direct poverty effects on unemployed young people’s families includeconsiderable “cognitive, health, nutrition and psychological deficits” for children raised in poverty. Chronic unemployment is associated with increased incidence of criminal behavior . Increased crime: Periods of unemployment often means vulnerability to crime, drugs, and disease. Most crimescommitted by youth are committed during the afterschool hours. Lack of involvement in meaningful activities oremployment often leads to criminal activity for disadvantaged youths.  • Direct loss, of trained experts, to under-developed & developing countries. • India loses $2 bn a year because of the emigration of computer experts to the U.S Problem of • Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually.Brain Drain • Loss due to brain drain around 3% of the total skilled personnel available in India.  • Average age of migrants between 20 & 40 – crucial from the youths perspective.  in India • Major reason is the wages paid in public & private sector: With exception of ICICI none of the public sector finance companies have done a serious job of revamping their pay scales. Similar is the case with private firms.
Causes of Youth unemployment Education skill High population Socio economic Miscellaneous mismatch & growth rate causes causes -Increased cost of - Less Jobs as - Low literacy rate -Rigid labor laws education especially compared to - Slow economic - Technology change technical. population growth growth resulting less forcing shift from - High number of - Inadequate export demands labor to machines students of Education - Lack of awareness - Macro economic graduating with - Low rate of about new job factor like recession inadequate skills. Economic Growth policies & low investmentRural Unemployment in India – A major concern?• Characterized by seasonal unemployment and huge levels of migrant labor.• Lack of subsidiary and other village industries; limited land & thus great pressure on land.• Over dependence on nature as undeveloped and traditional methods of agriculture.• Lack of education and ignorance about scientific and modern means of agriculture.Why Youth fare worse than adults?• Lack of information, networks, social capital and connections among youth.• Lack of experience & credentials that address employers’ risk in making hiring commitments.• Lack of available jobs suited to entry-level skills, demographic mismatch b/w seekers & employers.• Lack of skills relevant to the workplace – lack of “21st century workplace skills” and focus.
Solution 1 - Financial Inclusion of YouthFinancial inclusion reduces the prevailing unemployment rate and the financial exclusion would mean people not using the banking products of the financial sector. Current Status In India – Some statistics• Number of deposit accounts per 1000 persons : Rural India -325 ; Urban India – 724 • Number of bank branches per 1000 km: India - 22.57 ; UK – 45.16 ; Korea – 65.02 ; USA – 9.81 • Number of bank branches per 1,00,000 people: India - 6.30 ; USA – 30.86 ; UK – 18.30 ; Korea – 13.40 Solution to the problem: Banking-correspondent is the only model to increase financial inclusion′ BC Model in India:Introduced in 2006. Outsourced representative of bank in remoteareas. Work as the single person bank for the area. Key role is toaccept deposits and remit money.Problems faced by the BC Model• Operational Issues – cash handling and gullible client profile.• Regulatory concerns – Interest capping & cash settlement issues.• Social issues – Lack of financial literacy, awareness, exclusion.Current Status of the initiative• Around 40% of 72,000 villages have a BC model working.• In Delhi, out of 113 unbanked villages have working BC model.• In Haryana, of 1843 unbanked villages, 1100 unbanked villageshas already been provided banking facility as of March 2011.Solution to the problems – Banking Correspondent Communication Architecture• Local shop-owners appointed as BCs. Deposits specific amount of money in the bank. Each time transaction happens inthe village, pay/receive cash and credit/debit from their account. Solve the operational issues regarding BC model.• Figure on the right shows the diffusion of innovation curve , depicting how the target segment needs to be decided forthis innovation. Currently it can be said to be in the innovator & early adopter stage.
Solution 2 - Access to work experience Prior work experience is positively associated with an individual’s ability to obtain permanent work at a later date.  • Temporary work is an especially effective tool in improving labor market outcomes for long-term unemployed persons and others seen by employers as ‘bad risks’.  • 10-13% improvement in long-term employment outcomes after 2 years for people who acceptedPast research short-term jobs as a ‘stepping’ stone out of unemployment.  • Impact of temporary work experience: Before engaging in agency work, 34% of applicants in Sweden had prior full time work experience; after completion of agency work 85% obtained full time jobs.  • In Switzerland, the pre- and post- agency work employment numbers were 47% and 71% respectively. And in France, the experience of agency work raised participation in full time work from 11% to 66%  • Series of internships, project work, temporary work, etc., structured in a low risk, low-stakes way so as to give young people easy access to new opportunities without requiring long-termHow to achieve? commitments from employers or creating full time or dead-end jobs. • Role of private employment services firm in finding initial work experiences for young people with limited skills and experience. These services can broker a series of short term work experiences that increase young people’s chance of finding a full time job. • Short term experiences also fit well into summer or semester-long intervals in a young person’s ongoing education, so that work experience can be combined with or alternate with education, and can influence study and training choices. • Firm can also help young people build a portfolio of progressively challenging work experiences. Thus a highly effective way of building their skills and employability over time.
Solution 3– Access to training programs for youthWhat? Training programs focusing on training narrowly & intensively on the requirements ofspecific, available jobs, and including a post-training placement component based on priorhiring commitments from employers.How? Training programs can be organized & managed by workforce intermediaries governmentsor NGOs, or by employers themselves.- Vocational training should be designed around the informal economy, where most youngworking people are found in developing countries.Key Features? Must be demand driven i.e. oriented to filling specific needs and actual vacanciesfor local employers, and must prepare individuals for those specific, available jobs.- Must be based on a firm employer commitment to articulate its skills requirements to trainersand to work with program graduates. Post-employment counseling important.- Repeated engagement with experienced employer partners who participate in programdesign & the specification of skills requirements & have confidence in this process.Employer’s benefits? Can help build capacity for organizations managing training programs, bysharing executive experience and advice.- Can contribute their own training and other resources, and improve the alignment oftraining with their own specific job requirements.- Can provide clear, skills-based specifications of the requirements and of their availablepositions, and information on the number and timing of available openings
Solution 4 - Government initiatives State and central government has brought many schemes to provide employment opportunities to the unemployed. Measures implemented by Indian government to overcome unemployment Prime Minister’s Integrated Rural Drought Prone Training for Self- Jawahar Rozgar Employment in Nehru Rozgar Integrated Urban Development Area Program Employment Yojana Foreign Countries Yojana (NRY) Poverty Eradication Program (IRDP) (DPAP) Program Pradhan Mantri Pradhan Mantri Jai Prakash Rozgar The SwarnaJayanti Pradhana Mantri Jawahar Gram Autyodya Anna Gramodaya Yojana Gram Sadak Yojana Guarantee Yojana Gram Swarozgar Gramodaya Samridhi Yojana Yojana. (Gramin Awas) (PMGSY) (JPRGY). Yojana YojanadProblem: There are many good schemes implemented by the Government still the rate of unemploymentis very high in India.Solutions for Government Initiatives• Improvement of the employment exchange by granting more additional funds and more powers which would helpthem to coordinate with private companies to provide maximum job opportunities.• Providing improved educational facilities to citizens which would help in creating more employment• Elimination of child labor as that will enable the right implementation of the “Education for all” campaign• Create a network solution that will bridge the gap between opportunities made available and those opportunitiesreaching to the individuals who require them.• Increasing government funds to public sector companies would imply better functioning which will eventually helppeople who are unemployed and thus decreasing the unemployment rate• Increasing pay scales for employees who are working in government and public sectors will give less chance for peopleto stay unemployed as they prefer to be unemployed instead of working for low pay scales• Creating an independent ministry of employment and better tax transitions Implementing these steps strictly willdefinitely help to decrease unemployment to maximum extent
Solution 5 - Youth Entrepreneurship Small scale entrepreneurs (5-19 employees) are the primary engines of job growth in developing countries. Importance of Youth Entrepreneurship: Problems:1. Turn Job seekers into job providers 1. Lack of motivation programs for parents2. Help in creating sustainable employment to promote youth entrepreneurship. opportunities 2. Lack of orientation programs for teachers3. Raise a developing country to the rank of to educate the teachers on youth developed country entrepreneurship education needsPromoting Youth Entrepreneurship1. Transforming educational system: Embedding entrepreneurship and innovation, cross- disciplinary approaches and interactive teaching methods in education.2. Mentorship program: Collaborate with corporates and successful entrepreneurs to mentor individuals and help them convert their ideas into real products/services.3. Build policy commitment: Policies should send a strong signal of support for entrepreneurship and also set the strategic framework in which schools and universities can work to implement programs and activities within their institutions.Support from Industry/employers1. Commit to purchasing from small-medium sized enterprises including youth-owned businesses.2. Provide mentoring services and business advice to guide & support youth-owned businesses.3. Endorse entrepreneurial initiatives by their own employees when their career development makes them ready to go out on their own & provide marketing opportunities as appropriate.
Planned results & outcomes Financial Access to Access to Government Entrepreneur- Inclusion work- ex Training Initiatives ship High. Biggest Very high. Directly link Very high. Will directly Very High. Can affect all High. Will directly helpPotential target the most problems faced by employers with the individuals & youth the individuals giving Impact disadvantaged youth & youth today. Help potential employees suffering from them an opportunity to neutralize risks of and make them ready as give them the capital. unemployment. become independent. employers per the requirements. High. Youth are highly High. Done through the Average. Indian Average. Limited due to Vey high. Will be enthusiastic and this will nation wide spread BC industrial sector the lack of directly reaching to all Reach model already in its have network effects, largely unorganized. infrastructure & the population of the helping to increase early adopter stage. Difficult to approach. facilities in rural India. country. reach. High. Many young Very high. BC model Very high. Firms High. If the model High. Due to the red people today have their currently in process. willing to adopt this developed properly, can tape & coalition govt., own ideas butFeasibility Problems needs to be model. Win-win be scaled up very diff to enforce policy incubation remains a corrected. situation for all readily. changes. problem. High. Engagement with Very High. Requires Very high. Need High. Partnerships Very high. RequiresResources RBI & state govt. to with corporates and professional people/ public support, political trainers, mentors, enforce BC Model. support and thus very capital, infrastructure required industry houses trainers & adequate Can be integrated with difficult to gather. and most importantly required. infrastructure. UID. innovative ideas. Average. Need to Low. Need to chalk out High. Will need to Very high. Need to chalk Very high. As the Time design internship & finer details regarding develop a sustainable out correct policy resources required arerequired short term programs the solutions to the model that integrates changes and then get very high, collecting on the that can help the the requirements of the current problems faced them enforced in the them will require goodsolution youth to get a small by the model. youth & corporates. Indian system. amount of time. experience.
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