Latest news with #underemployment
Yahoo
22-07-2025
- Business
- Yahoo
Official India jobless data is not accurate, say top independent economists: Reuters poll
By Vivek Mishra BENGALURU (Reuters) -The Indian government's unemployment data is inaccurate and masks the severity of joblessness and underemployment, according to a Reuters poll of independent economists, several of whom said the true jobless rate is around twice the official figure. India is the world's fastest-growing major economy at an annual rate of 7.4% in the January-March quarter, but so far growth has failed to create enough well-paying jobs for the millions of young people entering the workforce each year. Prime Minister Narendra Modi's government is now more than one year into a third term after losing a commanding majority, partly blamed on discontent among youth over their future prospects. Over 70% of independent economists polled over the last month, 37 of 50, said the official unemployment rate, at 5.6% in June, is inaccurate. In a Reuters survey last year most economists flagged chronic joblessness as the government's biggest challenge. Experts say outdated definitions of what constitutes a job in a country of more than 1.4 billion people are distorting the true scale of unemployment and underemployment. "The whole thing to me is really throwing dust in your eyes. You say this is the unemployment rate, the growth rate — quite often, they don't make much sense. We have a massive employment problem and that is not reflected in the data," said Pranab Bardhan, professor emeritus of economics at the University of California, Berkeley. "Most Indian workers are underemployed. If you are able-bodied and you did not work for any time, not even one hour in the last six months, unless you are rich, how did you feed yourself?... So you scrounge around and do something. And then you are employed. Now what does that employment mean?" asked Bardhan. The Periodic Labour Force Survey (PLFS), which estimates India's official employment and unemployment data, counts anyone working even one hour a week as employed. The Ministry of Statistics and Programme Implementation defended the credibility of its labour force data and its representation of India's labour market dynamics, saying the PLFS uses Computer-Assisted Personal Interviews to improve data quality and reduce errors, and noted international agencies use its data in their reporting. While it is difficult to provide an alternate estimate of the jobless rate, 17 experts surveyed did, giving a median of 10%, ranging from 7% to as high as 35%. For years, India published official unemployment rates of around 4%, partly because statisticians counted unpaid family labour and subsistence work as employment. Experts argue this diverges from international norms and makes the jobless rate incomparable with other countries. And it is not just academics and career labour market experts who are concerned about data accuracy. "Unemployment is one of our big challenges and I don't believe the government data reflects the true ground situation," said Duvvuri Subbarao, Reserve Bank of India Governor from 2008-2013. Subbarao said the kind of jobs being created also matters. As high-growth sectors like finance and IT tend to be less labour-intensive, he called for a sharper policy focus on manufacturing, which holds greater potential for large-scale employment. About a quarter of experts polled had no problem with the accuracy of official jobless data. "No one in the world has perfect employment data. People assume the U.S. labour force survey is perfect. It's not. Our PLFS is very robust now. People just don't want to believe it," said Surjit Bhalla, former executive director for India at the International Monetary Fund. But several experts said even if methodologically sound, official figures fail to capture deeper challenges. On its current path, India will take at least two decades to match the female labour force participation rates of other G20 countries, the survey found. A lack of strong job creation is also showing up in stagnating wages. "We are home to some of the big dollar billionaires… the wealth of some of the elite has been growing dramatically over the past decade. But real wages are not growing. Half of the workers are getting less than they got even 10 years ago. To me, these are not signs of a healthy economy," said Jayati Ghosh, professor at the University of Massachusetts Amherst. "We should be prioritising good quality employment generation," she said. Asked what the government should prioritise to create more high-quality jobs, several said improving education and skills, promoting private investment and reducing regulatory hurdles. "Stop selling the narrative that farm jobs growth (is) to be read as jobs growth. Adopt an industrial policy, with a manufacturing strategy that is horizontal in nature, not a PLI type picking winners tactic, that is clearly failing," said Santosh Mehrotra, professor at the University of Bath. PLI (Production Linked Incentive) is a subsidy scheme to boost domestic manufacturing. The government scaled back the scheme just four years after its launch. (Additional reporting by Pranoy Krishna and Rahul Trivedi; Polling by Devayani Sathyan, Veronica Khongwir and Susobhan Sarkar; Editing by Ross Finley, Hari Kishan, Alexandra Hudson)
Reuters
22-07-2025
- Business
- Reuters
Official India jobless data is not accurate, say top independent economists: Reuters poll
BENGALURU, July 22 (Reuters) - The Indian government's unemployment data is inaccurate and masks the severity of joblessness and underemployment, according to a Reuters poll of independent economists, several of whom said the true jobless rate is around twice the official figure. India is the world's fastest-growing major economy at an annual rate of 7.4% in the January-March quarter, but so far growth has failed to create enough well-paying jobs for the millions of young people entering the workforce each year. Prime Minister Narendra Modi's government is now more than one year into a third term after losing a commanding majority, partly blamed on discontent among youth over their future prospects. Over 70% of independent economists polled over the last month, 37 of 50, said the official unemployment rate, at 5.6% in June, is inaccurate. In a Reuters survey last year most economists flagged chronic joblessness as the government's biggest challenge. Experts say outdated definitions of what constitutes a job in a country of more than 1.4 billion people are distorting the true scale of unemployment and underemployment. "The whole thing to me is really throwing dust in your eyes. You say this is the unemployment rate, the growth rate — quite often, they don't make much sense. We have a massive employment problem and that is not reflected in the data," said Pranab Bardhan, professor emeritus of economics at the University of California, Berkeley. "Most Indian workers are underemployed. If you are able-bodied and you did not work for any time, not even one hour in the last six months, unless you are rich, how did you feed yourself?... So you scrounge around and do something. And then you are employed. Now what does that employment mean?" asked Bardhan. The Periodic Labour Force Survey (PLFS), opens new tab, which estimates India's official employment and unemployment data, counts anyone working even one hour a week as employed. The Ministry of Statistics and Programme Implementation defended the credibility of its labour force data and its representation of India's labour market dynamics, saying the PLFS uses Computer-Assisted Personal Interviews to improve data quality and reduce errors, and noted international agencies use its data in their reporting. While it is difficult to provide an alternate estimate of the jobless rate, 17 experts surveyed did, giving a median of 10%, ranging from 7% to as high as 35%. For years, India published official unemployment rates of around 4%, partly because statisticians counted unpaid family labour and subsistence work as employment. Experts argue this diverges from international norms and makes the jobless rate incomparable with other countries. And it is not just academics and career labour market experts who are concerned about data accuracy. "Unemployment is one of our big challenges and I don't believe the government data reflects the true ground situation," said Duvvuri Subbarao, Reserve Bank of India Governor from 2008-2013. Subbarao said the kind of jobs being created also matters. As high-growth sectors like finance and IT tend to be less labour-intensive, he called for a sharper policy focus on manufacturing, which holds greater potential for large-scale employment. About a quarter of experts polled had no problem with the accuracy of official jobless data. "No one in the world has perfect employment data. People assume the U.S. labour force survey is perfect. It's not. Our PLFS is very robust now. People just don't want to believe it," said Surjit Bhalla, former executive director for India at the International Monetary Fund. But several experts said even if methodologically sound, official figures fail to capture deeper challenges. On its current path, India will take at least two decades to match the female labour force participation rates of other G20 countries, the survey found. A lack of strong job creation is also showing up in stagnating wages. "We are home to some of the big dollar billionaires… the wealth of some of the elite has been growing dramatically over the past decade. But real wages are not growing. Half of the workers are getting less than they got even 10 years ago. To me, these are not signs of a healthy economy," said Jayati Ghosh, professor at the University of Massachusetts Amherst. "We should be prioritising good quality employment generation," she said. Asked what the government should prioritise to create more high-quality jobs, several said improving education and skills, promoting private investment and reducing regulatory hurdles. "Stop selling the narrative that farm jobs growth (is) to be read as jobs growth. Adopt an industrial policy, with a manufacturing strategy that is horizontal in nature, not a PLI type picking winners tactic, that is clearly failing," said Santosh Mehrotra, professor at the University of Bath. PLI (Production Linked Incentive) is a subsidy scheme to boost domestic manufacturing. The government scaled back the scheme just four years after its launch.
Forbes
30-06-2025
- Automotive
- Forbes
Kettering University Aligns College And Work To Maximize ROI
Emphasizing light, transparency, and interconnected learning spaces, the Kettering University ... More Learning Commons building fosters creativity, community, and hands-on collaboration—skills that students rely upon for success in coursework and co-ops. A 2024 study from the Strada Institute for the Future of Work paints a bleak picture of college graduates. Over half are underemployed one year after college, and almost half remain in the same situation ten years later. Underemployment often arises because students graduate with theoretical knowledge but lack the practical skills directly relevant to employers' needs. For the past 100 years, Kettering University, through its unique co-op program, has had the solution to this problem, evidenced by the fact that 99% of its students are fully employed within one year after graduation. With the average student loan debt exceeding $38,000 and the average time to pay off student loans now exceeding 20 years, and with students increasingly questioning the notion that college is the best path to a secure future, the time has come to take a closer look at an alternative that works. Kettering University's Unique Approach Kettering University believes it has the answer in its co-op program. An engineering school founded in 1919 as 'General Motors Institute' to serve the budding automotive industry, Kettering has a unique 50% workplace/50% classroom model that provides clear answers to questions of return on investment and employability after college. Dr. Robert K. McMahan, President of Kettering University, describes their approach in his advice to undergraduates: 'Don't focus on the college experience. Focus instead on likely outcomes ten years out.' He goes on to stress that 'at Kettering, we partner with over 500 companies to coordinate highly rigorous academics with mentored, hands-on work in each student's area of professional interest.' The secret of Kettering's academic model is this commitment to 'hands-on work' enshrined in its co-op program, considered the most robust in the country. Kettering students begin co-oping with employers early in their first year and spend an equal amount of time over five years in the classroom and the workplace, graduating with a full two and a half years of meaningful job experience, and having earned as much as $100,000 during their studies. For instance, a mechanical engineering student at Kettering might alternate academic semesters with paid, hands-on roles at General Motors, acquiring direct experience in automotive design, manufacturing processes, and project management. By focusing on the long-term goal of creating future employees who are not just ready to work but ready to excel, Kettering has developed a model that produces graduates prepared to contribute as valuable employees on their first day of full-time work. In fact, by graduation, many have advanced beyond entry-level roles, finding themselves fast-tracked toward higher positions while their inexperienced peers from other schools face 12 to 18 months of training. 'It's a workforce supply-chain issue,' says McMahan, a successful venture capitalist as well as a renowned astrophysicist. 'We see industry as the client and students as the product, which may sound impersonal, but it's good for both parties. The extent to which higher education fails to understand itself as part of the workforce supply-chain is the extent to which it will continue to drift into irrelevance.' McMahan also emphasizes that Kettering's combination of rigorous academics and mentored employment focuses on a specific goal: mastery, meaning that students don't merely learn theory—they repeatedly apply skills in real-world settings until they demonstrate consistent, superior competence. 'Our graduates succeed because they have gained a level of mastery in their chosen professional discipline. Mastery is critical to their employability.' Kettering University Delivers Significant ROI Kettering is clearly meeting this goal. A 2017 study showed that Kettering University was having significant success in categories like economic mobility and starting salaries. Most intriguingly, it was the top performer among 71 highly selective private universities when it came to moving students entering university in the bottom quintile of household wealth to being in the top quintile at age 34. In regard to return on investment, the Georgetown University Center on Education and the Workforce ranked Kettering University 22nd among all private non-profit universities, placing it ahead of many more expensive, more highly selective institutions. According to Kettering University graduates realize an 8% annualized return on their educational investment. Kettering University Graduates Ascend The Ranks Not surprisingly, a remarkable number of Kettering graduates have reached positions in Fortune 500 C-suites, including some of the top executive roles. Kettering alumni have held president or CEO roles at General Motors, Yamaha Motor Corporation, Reuters, Valvoline, Caesars Entertainment, Inc., Climate Impact Partners, PHINIA, REC Foundation, Masco, SAE International, Singer Vehicle Design, Kuhmute, and CNext. In recent years, Kettering alumni have also led at Merrill-Lynch, Delphi, BorgWarner, Continental Airlines, Benchmark Capital (early investor in eBay, Snap, Red Hat, Jamba Juice, etc.), Gibson Guitars, Greyhound, LG Energy Solutions Michigan, and more. Significant results for a school with only 2,400 students. But Will Kettering University Ascend The Rankings? With such success, prospective students and their families should focus more on substantial ranking factors related to a student's academic experience or future success, rather than traditional ranking criteria that emphasize an institution's reputation or the publication and citation records of its faculty. If the goal of education is a successful career and a meaningful life, individual attention and hands-on mentoring will matter much more than the size of the endowment or the selectivity of admissions, which are often included in common ratings. As dissatisfaction with the current state of undergraduate education continues to grow, the need for new ranking systems with criteria more relevant to families will increase. Whether this results in changes to existing methodologies or the development of new ones remains to be seen. Kettering University Provides A Way Forward Kettering University has a proven model of success with a 100-year track record. As many begin to question the value of a college education, institutions like Kettering University clearly demonstrate that the value is there, but only if the goals are clear. By keeping the focus on developing students with actual skills and meaningful experience, Kettering University provides a clear model for how it can be done. Whether other institutions can shift to a true student orientation remains to be seen.
Yahoo
16-06-2025
- Business
- Yahoo
Youth unemployment needs more than MySTEP
Malaysia's growing youth unemployment rate is becoming a serious problem with significant ramifications for social cohesion and economic stability. Over 13 per cent of Malaysians between the ages of 15 and 24 are now unemployed, contributing to high rates of poverty and depriving an increasing number of young people of financial stability. While the national unemployment rate hovers around 3.5 per cent, the disproportionate impact on younger individuals underscores the difficulties specific to this group. Financial stress on young Malaysians Underdeveloped career pathways, a lack of industry-aligned skills, and limited job opportunities all contribute to the challenges faced by Malaysian youth transitioning from school to the workforce. The job market is highly competitive for fresh graduates, particularly in sectors with strong demand but few entry-level positions. According to data from the Department of Statistics Malaysia (DOSM), nearly half of recent graduates are employed in fields unrelated to their degrees and often earn below the national median wage – a situation known as underemployment. This trend stifles potential economic contributions and deepens financial hardship in young households, thereby prolonging poverty cycles. Rising living costs only add to the pressure. In urban areas especially, young people struggle to meet their basic needs due to soaring expenses in housing, transport, and food. The economic fragility of Malaysia's youth is evident. For instance, food prices alone have risen by 6 per cent in the past year. If left unaddressed, analysts warn this could result in a 'lost generation' trapped by unrealised potential, prolonged financial strain, and reduced social mobility. Comparisons: Gaining insight from international approaches Malaysia is not alone in its struggle with youth unemployment. While countries around the world face similar challenges, some have introduced innovative solutions that offer valuable lessons. Germany, for instance, places significant emphasis on vocational training to tackle youth unemployment. Its dual education system – which integrates classroom learning with hands-on apprenticeships – has helped it maintain one of the lowest youth unemployment rates globally. This model highlights the importance of government–industry collaboration in ensuring steady employment pathways for young people. South Korea has adopted a more targeted approach with initiatives such as the Youth Employment Support Programme, which equips job-seeking youth with relevant skills. The government-funded internships offered through this scheme give young people real-world experience in sectors like finance and technology. With a youth unemployment rate of 8.7 per cent, South Korea's success in empowering young professionals could inspire similar action in Malaysia. Australia's Teenagers Allowance programme, which supports unemployed youth enrolled in full-time study or training, seeks to reduce youth poverty. This safety net not only facilitates skill development but also ensures basic living needs are met. By addressing both educational and employment requirements, Australia has managed to build a skilled workforce while lowering poverty among young people. Malaysian government initiatives and policy suggestions The Malaysian government is attempting to tackle youth unemployment through initiatives like the Malaysian Short-Term Employment Programme (MySTEP), which offers internships and placement opportunities to young Malaysians. However, critics argue that while MySTEP and similar schemes are commendable starting points, their reach remains limited. They do not sufficiently tackle root issues such as the lack of diverse entry-level jobs and the mismatch between graduates' skill sets and industry demands. With the rapid pace of technological advancement and evolving industry needs, Prime Minister Datuk Seri Anwar Ibrahim has acknowledged the necessity for structural reform. 'We must give young Malaysians not just jobs, but the right jobs that will match their skills and improve their economic status,' he recently said. Call to action Malaysia's youth unemployment issue requires urgent and sustained attention. While some mechanisms are already in place, the mounting challenges faced by young Malaysians demand a more cohesive response involving public, private, and educational stakeholders. Global examples show that it is possible to empower youth and insulate them from the impacts of poverty through bold, youth-centric policies. For Malaysia, adapting these international models to its local context could yield positive outcomes. Therefore, a renewed commitment to smart policymaking and strong industry partnerships is vital, as youth unemployment poses a serious risk to the nation's economic resilience and future growth. Only through a collective and sustained effort can Malaysia unlock the full potential of its younger generations, reduce youth poverty, and shape a more promising economic future. Datin Seri Professor Dr Suhaiza Hanim Mohamad Zailani is the director of the Ungku Aziz Centre for Development Studies, Universiti Malaya. The views expressed here are the personal opinion of the writer and do not necessarily represent that of Twentytwo13.
Bloomberg
06-06-2025
- Business
- Bloomberg
Americans Are "Underemployed": Solo Funds Co-Founder
Solo Funds Co-Founder Rodney Williams says while he is pleased with the unemployment rate currently stands and Americans are working, he believes they are also 'underemployed' and the need for capital is at an 'all time high.' He speaks with Scarlet Fu on "Bloomberg Markets." (Source: Bloomberg)
