The stark reality of the missing jobs for India’s Gen Z
India's large youth population, often called a demographic dividend, is struggling to transition into productive employment as many Gen Z individuals remain in education or enter the informal labor market. Data from the Periodic Labour Force Survey reveals that a significant portion of young people are engaged in unpaid family work or casual labor rather than regular wage employment.
Why it matters
The failure to integrate a massive youth cohort into the formal economy poses a long-term risk to India's economic growth and social stability.
India has one of the world’s largest youth populations (371 million, according to United Nations data of 2025), often described as a demographic dividend. But this demographic dividend is only a promise and does not guarantee an automatic outcome. It pays off only when the transition occurs, enabling young people to move from classrooms into decent, productive work with higher skills. Right now, that transition is faltering, and the evidence is visible in Gen Z’s employment patterns.
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