Youths under 21 have better prospects for securing formal jobs in the manufacturing-driven economies of Haryana and Tamil Nadu than in other large states, a Moneycontrol analysis of social security data shows.
On the other hand, Kerala, Karnataka and Maharashtra prefer employees with higher education and a bit more experience, or those in the 22–28-year range. In addition, Kerala and Karnataka offer the fewest opportunities for locals over 29.
An analysis of preliminary Employees’ Provident Fund Scheme enrollment numbers, which serves as a proxy for formal job creation, shows that out of the 5.1 million who found employment in the first three months of the year, 40.9 percent were 29 and older, while 37.1 percent were in the 22-28 age bracket.
A state-wise comparison points out that those trends vary widely across states. Of the over half million people who were enrolled in formal work in Tamil Nadu in Q1FY25, 25.4 percent were below 21. The corresponding ratio for Haryana was 26.2 percent.
All other larger states had a lower ratio of young people employed as a proportion of people who found formal work in the first quarter of the year. The worst were Bihar and Jharkhand, with those below 21 accounting for just 13-14 percent share of formal workforce additions.
Karnataka and Kerala were favourable places for 22-28-year-olds, with over 40 percent of total people who found formal work in these states belonging to this category — the highest across the country. In the case of Kerala, nearly half of the people enrolled in formal jobs in the first quarter were in the 22-28-year age group.
In contrast, Punjab and Andhra Pradesh were the worst for the local population of 22-28-year-olds, with not even a third of this age cohort finding formal jobs.
But Bihar, Punjab and Jharkhand ranked relatively high when it came to providing work to those aged 29 and above, with over 50 percent of the total employed in first quarter belonging to this experienced age group.
No state for old job seekers
Further division of employment addition trends shows that the probability of employment went down further for people aged 35 and above in Kerala and Karnataka.
While 20.1 percent of those employed in the first quarter were aged 29-34 years for Karnataka, the share of 35+ in jobs in the state was just 15.2 percent. It was the lowest at 10.8 percent across larger states in Kerala.
Maharashtra employs most people across states
If a cross-country comparison is considered, then the formal jobs were largely concentrated in the top 10 states of the country.
A Moneycontrol analysis shows that the top 10 states accounted for 85 percent of the total formal employment created in the first quarter of the fiscal.
Maharashtra alone had a 20 percent share in total formal additions, followed by Karnataka and Tamil Nadu each at 10 percent and Gujarat at 8.8 percent.
Take the case of Karnataka, the state employed nearly 50 percent more people in its oldest age bracket of 35 and above than Bihar could employ across all its age categories.
So, despite not being the best place for the older population to work, it was still better than Bihar and Jharkhand.
Perhaps that is what explains widespread migration to these states as well.
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