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Q. Employment status in India: Even after the two decades of unprecedented economic growth, less than half of the Indians who sought jobs got them. In light of above statement, comment on the current status of employment in India.
May 04, 2016 Related to : GS Paper 3 and 2.

Ans :

Introduction-

Recently United Nations Development Programme (UNDP) has released the latest Asia-Pacific Human Development Report. According to its report only less than half of Indians who sought jobs between 1991 and 2013 actually got the job. Also it warns that India faces the serious challenge of finding jobs for a growing population over the next 35 years.

Similarly the Indian Labour Bureau has compiled statistics for job creation in labour intensive sectors of each quarter since the 2008 global financial crisis. According to its data only 1.35 lakh jobs were created in 2015 which lowest among the last 7 years. Though industries are creating few jobs, but most of them are in the informal sector, which accounts 84% of the current jobs.

Analysis-

About one crore Indians enter the work force annually, and the figure is getting increased every year, Whereas employment generation in eight key sectors has slowed down to a seven year low in 2015. It means the rate of unemployment is increasing year by year. This unemployment comes at a time when every sector is short of skilled workers, which is the reflection of an education system that is not imparting skills the economy needs.

Similarly there is one more issue of employment is growth in informal sector jobs. According to UNDP report the share informal sector jobs will rise from current 84% to 93% by 2017. This is again cause to worry that these informal jobs does not provides the formal monthly payments and other social security benefits.

Suggestions-

Government must be more focussed on new and formal sector job creation to utilise the democratic dividend. Many initiatives like skill development should be implemented more effectively. It can promote job creating industries with initiatives like economic reforms, tax incentives, interest subsidies etc. Also it must boost free trade pacts with major markets and focus on new sectors like improving the tourism.

Conclusion-

The average age in our country is well below 30 and every year more youths are entering into workforce. We needs to utilise this demographic dividend more effectively, else it may turn into demographic disaster. Hence we need holistic action plan to increase employments and skills required for creation of formal sector jobs.


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