Unemployment is one of the most important challenges facing India today. The causes and consequences of this unemployment should be discussed as a top priority.
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India is among the economically moderate countries in the world, with considerable challenges for improvement in Job Market situation. Providing employment opportunities to the unemployed will be a major political issue in the upcoming 2019 elections. According to the Center for Monitoring Indian Economy , India's unemployment rate was 6.9% in October . The number of unemployed was 14 crore in 2014, now it has gone up to 30 crore. This makes one wonder why the economy cannot accommodate the unemployed.
Unemployed people who want work, who are eager to work, are constantly being disillusioned. This has serious psychological consequences for them and is manifested in various ways. Unemployment steadily spiked for the past year. It was estimated that 397 crore people will be employed in 2018. However, with 407 crore jobs in 2017, this is 2.4% less than the estimated figure (the total number of jobs in India in 2012 was 487 crore).
There are a number of factors that contribute to the rise in unemployment. The main reason is that the growth rate of the Indian economy is not stable. Low growth rate of investment and slow growth rate of manufacturing sector which creates more employment opportunities. The industrial index of production also includes production growth. In the previous month, the growth rate was 4.2%. Due to the recession in the industrial and infrastructure sectors, especially in the construction sector, and the meager increase in exports in the IT sector, only 1.9 per cent of the people got job opportunities every year.
It is noticed that employment opportunities are being attracted in both public and private sectors. The corporate sector in India provides employment opportunities to a minimum of people as the rate of recovery is lower than expected. In the last 3 years, the year 2017-18 has witnessed the lowest increase in the number of workers in India. According to a report (Capitalline Company's annual report) at the end of 2018 BSE Of the 200 companies listed, 171 employed 3.5 crore people. Since most of these companies do not mention that these people work on a contract basis, it is safe to assume that these people have permanent employment. In the financial year 2017-18, about 64,380 people joined these companies. The number was 116,300 a year ago. In the year 2014, 183,707 people had joined these scheduled companies.
Out of the total 10 employment opportunities, 6 were in the industrial sector. However, due to the slow growth of large scale industries in the last three years, the number of these jobs has increased by only 0.5%. Moreover, non-bank finance companies and retail credit unions were the largest employers in the last three years, but due to lack of liquidity, they had restrictions on hiring workers.
Regarding public sector employment opportunities, Union Minister for Road Transport and Highways Nitin Gadkari himself acknowledged that employment opportunities in the sector have been frozen. In general, the sector has been plagued by the withdrawal of the public sector from many economic activities since liberalization. The development of information technology sector has frozen employment opportunities in credit unions. However, 82% of the youth in rural areas are inclined towards government jobs. As a result, they appear to be trying to get reservations for different communities in government jobs.
Countless youths also applied for Indian Railways recruitment. More than 24 crore applications have been received for about 120,000 seats. Ph.D. Holders are also applying for low-level government jobs. The above record shows how insistent people are to get government jobs due to higher levels of social security and minimum wage.
In the context of the agricultural sector, young people who have left the agricultural sector and gone to the cities for employment are constantly being disillusioned. Currently, about 16% of educated youth are unemployed. The situation is concerning in the northern states. Their skills are lacking in finding employment opportunities that will guarantee a decent lifestyle. On the other hand, sowing, reaping, weeding etc. Women in rural areas are also largely unemployed as machines are used for. As no state in MGNREGA provides employment to women for 100 days, more and more women in rural areas remain unemployed. The stagnation of real wages and the government's inability to pay on time has kept women in rural areas away from employment schemes.
In urban areas, the use of machinery in secretariats or other low-paying jobs is causing women to lag behind. According to the World Bank, the use of machinery will reduce employment opportunities in India by 69% in the future. The use of machinery has largely contributed to the rise in unemployment in India. The government needs to encourage labor-intensive industries. Prime Minister Narendra Modi has emphasized on self-employment and promotion of micro, small and medium enterprises. They have contributed in many ways to the growth of these sectors.
Such industries are included in the informal sector and many job seekers are included in this sector. However, there is no social security in this field and the working conditions are also inhumane. 94% of job seekers have to work in the informal sector due to lack of other options. Therefore, it is a challenge to create an economy affected by self-employment and small scale industries to absorb all this.
This may help to improve the employment situation. Two-thirds of the workers are working in the unorganized sector, while only 17% are working in the organized sector on a regular basis. The Fifth National Employment-Unemployment Survey found that while only 60% of people were employed throughout the year, 35% were employed for only 6-11 months. The report was released in September 2016. The employment picture is volatile and unorganized. Unfortunately, the National Employment-Unemployment Survey was postponed. Now the National Sample Survey Office will have to wait for the number of jobs to be announced in the future.
People in India need training to get good quality employment opportunities. Must have proof of their skills, precise industrial policy and national employment policy. It is also necessary to promote domestic competition. In addition, it is necessary to protect domestic industries from foreign competition. Many small scale industries have been destroyed due to numerous Chinese products. The government enjoys export promotion and import options.
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