Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment
Q5. “The employment challenge facing the youth is increasingly one of changing job composition rather than merely inadequate job creation.” Explain the structural factors behind the shrinking of middle-skilled employment. Examine its implications for India’s demographic dividend. (15 M)
Difficulty Level: Medium
Reference: DTE
Why the question
The ILO’s 2026 concerns over shrinking middle-skilled jobs with India’s employment structure and the sustainability of its demographic dividend.
Key Demand of the question
Middle-skilled employment is shrinking, assess how this changing job composition affects India’s demographic dividend, and outline an appropriate way forward.
Structure of the Answer:
Introduction
The changing nature of employment due to technology, automation and structural transformation, supported by the recent ILO findings.Body
- Structural factors behind shrinking middle-skilled employment: Discuss the major technological, sectoral and skill-related forces changing the composition of jobs.
- Implications for India’s demographic dividend: Assess the consequences for youth employment, productive absorption, human capital and occupational mobility.
- Way forward: Suggest an employment strategy combining job-rich growth, adaptive skilling and smoother school-to-work transitions.
Conclusion
Conclude by emphasising the need to transform India’s demographic dividend into a productive and adaptable workforce advantage.
