Unemployment In India

 

"Unemployment In India"

“The production of too many useful things results in too many useless people”  , Unemployment is the existence of those abled-bodied persons who are willing to work but have to do without a job that may field them some regular income. the nature of unemployment in India is different from that in developed countries. According to a Pew report, the vast majority of Indians see the lack of job opportunities as a "serious problem" in their country. "About 18.6 million Indians are unemployed & another 393.7 million are in low-level jobs and are at risk of displacement,". The Unemployment rate in India is increasing as prompt as the increasing population in India. This unemployment rate is the proportion of the unemployed. This ratio is expressed as a percentage. Also in India, most of the unemployment in developed countries is cyclical in contrast, it happens when there is a downturn in the business cycle whereas in India most unemployment is chronic where the individual is unemployed for a long term and results from the structural defect in the economy, as where there is a mismatch between the skills workers can provide in the economy and the skills employers demand from workers (also known as the skills gap). Structural unemployment is often caused by technological changes that have made the professional skills of many workers redundant.

 

The unemployment rate in recent times in India was 8.10 % in February 2022, which fell to 7.6 % in March. In April 2021, the overall unemployment rate was 7.97 % and shot up to 11.84 % in May last year , In India there are many principles that give rise to unemployment and make individuals unemployed like low employment elasticity of growth, the employment elasticity can be defined as the growth of employment per unit growth of output. employment elasticity is computed at the sectoral level with data on sectoral output growth and employment growth during a certain period. These employment elasticities are then used for computing overall employment elasticity. In India, the employment elasticity has declined universally in all three sectors of the economy; which are 1. the primary sector which includes agriculture, fishing 2. The secondary sector includes industries 3. The tertiary sector includes social work and service work. According to RBI, The Overall employment elasticity estimates for India have declined over the decades, ranging from 0.18 (arc elasticity) to 0.20 (point elasticity) in the post-reform period. Besides this Indian education system till now is Inappropriate,

 

The education system in India is defective. Indian education policy doesn’t aim at the development of human resources E.g., skill training. It is a more theoretical system that fails to develop human resources properly which results in not being able to provide employment to all those who have received an education here. If the problem of unemployment is to be solved in this country radical changes will have to be made in our education system. There is also evidence of the jobless growth rate; during the first 3 decades of economic planning the GDP growth rate was as low as 3.5% per annum (GDP is the monetary value of final goods and services during an accounting year) and during this period employment increased at a reasonable rate of 2 % per annum. However thereafter while the GDP growth rate picked up considerably employment growth rate registered a sharp fall and the country has witnessed a phenomenon of jobless growth rate since the 1990s., Even in the recent years, we can see as per according to National Accounts data, The GDP growth rate in India increases from 5.5% in 2012 to 8.9% in 2021  whereas on the other side employment growth rate also has increased from 5.6% in 2012 to 7.11% in 2021 (India unemployment rate 2012 to 2022, n.d.). So, when such problems occur government of India has to intervene.

 

The government has taken many steps to tackle the unemployment rate in India and to increase the employment opportunities and has introduced many schemes, and subsidies so that individuals can start up businesses or get employed in some sectors, such types of initials have been taken by govt. some examples like Make in India which was introduced in 2014, where The main aim of this scheme was to generate jobs in the manufacturing sector and also had claimed that by 2020 share of manufacturing should increase by 25% of GDP  from 15%  Even government introduce some Policy that recommendations to reduce structural unemployment include providing government training programs for the structurally unemployed, also paying subsidies to companies that train laid-off workers, helping the structurally unemployed move to areas with jobs, and incentivizing potential workers to continue or resume their education. Such efforts by Government have resulted in falling slightly in Unemployment in India. Even the make in India scheme where the parliamentary standing committee of commerce (2017) indicated that “the manufacturing sector has grown only by an average of 1.6% in the last 5 years , when we make some progress or economic growth or development, this small proportion of employment growth is not enough.

 

The high Unemployment rate in India is not been a concerning issue in recent years, as India is a developing country where every 2-4 years, we face structural unemployment so that individuals face a lack of opportunities due to changes in the requirement of skills. In my opinion In Indian government should more focus on the education system and human resource development so which will help in creating a more productive labour force with increased knowledge, and skills and will help an individual to adopt new skills promptly, which will help in providing widespread of employment opportunities in every sector in India for all who are able-bodied persons and are willing to work but have to do without a job. Also, every individual should be up-to-date with the current scenario of jobs and be ready to learn new skills by self, thus only depending on the government for unemployment to fall won’t work fully.