By Prerna Vaishnav
Unemployed means the situation of actively looking for employment but not being currently employed. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. One of the reasons for higher unemployment among the educated is that the educated are not willing to join in low-grade informal jobs, but at the same time, sufficient regular salaried jobs are also not available for them.
The unemployment rate among the educated is not only higher compared to the uneducated. it also increases with higher levels of education. This article explores whether the factors responsible for unemployment among the educated differ from the uneducated based on a multinomial profit model. Results indicate that youth, both educated and uneducated, are more likely to be unemployed than older age groups. One of the reasons for higher unemployment among the educated is that the educated are not willing to join in low-grade informal jobs, but at the same time, sufficient regular salaried jobs are also not available for them. Both educated and uneducated individuals with vocational training (formal or informal) are more likely to find jobs. Besides promoting skills through technical and vocational education, creation of jobs through enhancing capital formation is important to reduce both educated and uneducated unemployment. Education has always been visualized as one of the most efficient vehicles for economic emancipation, social mobility and political stability. Being educated means having greater access to certain levels of employment, salary, responsibility, prestige and social capital. Presumably, the higher the educational attainment, the greater will be the chance to access the just- mentioned opportunities. Education, whether formal, non-formal or informal, is the central pillar for a decent work. Unfortunately, past impressions would tell us that education has attended mainly to the formal education sector along general subject areas. There has been much preference for intellectual activities over manual work, white collar over blue collar jobs and academic education over training for work. With the emerging issues of globalization, advancement in technology, mobility of workforce, etc. however, the situation was drastically changed bringing vocational and technical education to the forefront. The high rate of unemployment among the educated is both due to the lack of sufficient jobs and poor schooling as well as the mediocre quality of education on at most colleges. This makes large numbers of graduates unsuitable for employment that is commensurate with their degrees.