By Prof D Mukherjee
India is at a critical demographic juncture, with one of the world’s youngest populations and the potential to benefit from a demographic dividend. However, this opportunity is threatened by a growing trend of young men aged 15–24 leaving education early to enter the labour force, often to support family income. Data from the Periodic Labour Force Survey conducted by the National Statistical Office shows that financial constraints, family responsibilities, and weak links between education and employment are major reasons for early exit from education. Many young men who leave education enter informal sectors such as construction, agriculture, retail, and transport, where wages are low and job security is minimal. Over time, this leads to low productivity, low-income growth, and persistent economic inequality. Studies by the World Bank and the International Labour Organization warn that if young people enter the workforce without education and skills, the demographic dividend may turn into a demographic burden.
Compared to advanced economies such as Germany, Japan, and South Korea, India has weaker vocational training systems, lower secondary education completion rates, and limited apprenticeship opportunities. These countries successfully linked education with industry and ensured that students acquired skills before entering the labour market. India must therefore expand vocational education, apprenticeship programmes, student financial support, and industry-linked education systems. Retaining young people in education and skill development is essential for productivity, employment, and long-term economic growth. Without urgent policy intervention, India risks losing its demographic advantage and slowing its journey towards becoming a developed economy by 2047 India’s most important source of labour market and employment statistics is the Periodic Labour Force Survey, introduced in 2017 to replace the earlier quinquennial employment surveys. The survey now provides annual and quarterly estimates on employment, unemployment, labour force participation, and the educational status of the population, making it a crucial tool for understanding India’s workforce dynamics.
The survey follows a stratified multi-stage sampling method covering both rural and urban regions across all states and union territories. Villages are selected as primary sampling units in rural areas, while urban blocks are selected in towns and cities. Selected households are then surveyed to collect detailed information on employment, education, wages, migration, industry of work, and reasons for discontinuing education. The survey measures employment and education status using three approaches: Usual Status, Usual Principal and Subsidiary Status, and Current Weekly Status. These methods help determine whether young people are studying, working, combining both, or have permanently left education. Data from the survey is widely used by institutions such as NITI Aayog and the International Labour Organization to analyse youth employment and education trends in India.
The main objective of the Periodic Labour Force Survey is to provide reliable and timely data on labour force participation, employment, unemployment, wages, education levels, and labour market transitions in India. Beyond statistical measurement, the survey is important for understanding how young people move from education into employment and whether they are entering the labour market too early without adequate skills. A key purpose of the survey is to measure indicators such as the Labour Force Participation Rate, Worker Population Ratio, and Unemployment Rate across different age groups, genders, and regions. It also examines 2 employment patterns across sectors such as agriculture, manufacturing, construction, and services, and studies how education levels influence employment opportunities and wages. The survey also identifies reasons why young people leave education before completion, helping policymakers design scholarships, vocational education, apprenticeships, and employment policies. Research by the World Economic Forum and UNESCO shows that education and skills are essential for long-term economic development and workforce productivity.
The periodic agenda of the Periodic Labour Force Survey is to continuously monitor India’s labour market, education participation, and employment trends so that government policies are based on current and reliable data. The survey is conducted annually for rural and urban areas and quarterly for urban employment indicators, helping policymakers track changes in employment and education over time. The survey monitors youth employment, school and college attendance, informal sector employment, wage levels, migration, family enterprise participation, vocational training, and dropout patterns. A major focus is the transition of youth aged 15–24 from education to employment. International comparisons by the Organisation for Economic Co-operation and Development show that countries with higher secondary education completion rates generally have higher productivity and lower unemployment. The survey is also linked to national programmes like ‘Skill India Mission, Make in India, and Digital India’, making it an important strategic planning tool.
Recent labour and education studies point to a worrying trend in India: an increasing number of young men aged 15–24 are leaving education to support their families financially. Estimates from labour survey data suggest that the share of young men leaving education for economic reasons has risen from about 58% to nearly 72% in recent years. This change reflects not just a temporary issue but a deeper structural socio-economic problem linked to poverty, unstable incomes, and limited educational support. The trend is especially visible in rural areas, low-income households, and families dependent on informal sector employment where earnings are uncertain and young members are expected to start earning early. In many households, particularly in rural India, the eldest son is often expected to contribute to family income, even if it means discontinuing education. Studies by the World Bank show that children from poorer households are far more likely to drop out of school than those from wealthier families. Research by the International Labour Organization also indicates that most early school leavers enter informal jobs with low wages, little job security, and limited opportunities for skill development. As a result, leaving education early reduces lifetime earnings, limits career mobility, and contributes to long-term economic inequality and lower national productivity.
The reasons why young men leave education between the ages of 15 and 24 are complex and linked to economic, social, educational, and labour market conditions. Data from the Periodic Labour Force Survey and research by Azim Premji University show that the most important factor is financial pressure and the need to support family income. Many families cannot afford the costs of secondary and higher education, including transport, books, digital devices, and accommodation. Even when tuition fees are low, indirect expenses remain high, especially for rural students. Another major reason is the growing perception that education does not guarantee employment. Many young people see educated graduates unemployed or working in low-paid jobs, which reduces the perceived value of education. Poor quality schooling, outdated curriculum, lack of vocational education, exam failure, migration for work, family business responsibilities, and the digital divide have also contributed to dropout rates. Many leave education due to uncertain economic returns rather than lack of interest in learning.
India’s long-term vision of becoming a developed nation by 2047, often called Mission Viksit Bharat, depends largely on education, skills, productivity, and innovation. Institutions such as NITI Aayog and the World Bank stress that development is driven by strong human capital, not just economic growth. If young men continue leaving education early, India risks low productivity, high informal employment, weak manufacturing, and rising inequality. Countries like South Korea and China achieved growth through strong education and skill systems. Retaining youth in education is therefore a critical national economic priority.
Education may be compared to fuel in an engine: just as fuel powers movement, education drives productivity, innovation, and economic growth. Without education, an economy cannot function efficiently or compete globally. Research by the World Bank shows that each additional year of schooling can raise individual earnings by about 8–10 percent, while countries with higher secondary and technical education completion rates generally achieve higher productivity and income levels. Education also improves health, social mobility, entrepreneurship, and technological progress. Therefore, education should be treated as an investment in national development rather than mere expenditure. India must expand vocational education, scholarships, technical institutes, and industry-linked training so that education leads directly to employment and economic growth.
One of the most serious structural problems in India is the disconnect between education policy, employment policy, and socioeconomic conditions. Education policy often focuses on enrollment and infrastructure, while employment policy focuses on job creation, but the transition between education and employment remains weak. The education curriculum is often not aligned with industry requirements, vocational education is still underdeveloped compared to advanced countries, apprenticeship opportunities are limited, and labour-intensive manufacturing sectors have not grown fast enough to absorb the large number of young workers entering the labour market. Reports from the International Labour Organization and UNESCO emphasise that countries succeed economically when education policy, industrial policy, and labour policy are integrated. India’s challenge is therefore not only education reform but education-employment integration reform.
A comparison between India and advanced economies such as Japan, South Korea, China, United States, United Kingdom, Germany, France, Canada, Switzerland, Sweden, Belgium, and Norway reveals major differences in education retention, vocational training, and the transition from school to employment. Countries such as Germany and Switzerland follow a dual education system that combines classroom learning with apprenticeships, allowing students to gain practical skills while studying. In Japan and South Korea, secondary education completion rates are very high and technical education is closely connected with industry employment. Scandinavian countries provide financial aid, career counselling, and vocational pathways so students rarely leave education due to economic reasons. In contrast, India still has lower secondary education completion rates and a large informal labour market that absorbs young workers without formal education or skills. This comparison shows that India must urgently strengthen secondary education retention, vocational training, apprenticeships, and industry-linked education through coordinated national policy action.
The increasing number of young men leaving education is not only a social concern but also a serious economic warning for India’s future. If large numbers of youth enter the workforce without adequate education and skills, it may weaken the quality of the workforce and slow long-term economic growth. Therefore, policymakers need to treat this issue as a national priority requiring urgent and coordinated action. The government should provide financial assistance to students from low-income families so that poverty does not force them to leave education.
Conditional cash transfer schemes linked to completion of secondary education can help reduce dropout rates. Vocational education should be expanded at the secondary level so that students can acquire practical and employable skills even if they do not pursue higher academic education. The apprenticeship system must be strengthened to promote earn-while-learn opportunities, reducing the financial burden on families. Rural school and college infrastructure, along with digital education facilities, must also be improved to ensure access to education. Greater collaboration between industry and educational institutions is necessary so that education leads to employment opportunities. As India moves into an era of automation, artificial intelligence, and digital transformation, unskilled workers will be most vulnerable. Retaining youth in education and skill development is therefore essential for India’s future growth.
(The author is Chief Education Officer & Principal Secretary-Office of the Chairman, the International Institute of Medical Science and Technology Council (IIMSTC), Bengaluru, Karnataka, India)
