Day 2 – Q 5. In India, 12 million young people enter the labour force each year, and millions transfer out of low productivity agricultural jobs. To ensure that such individuals get gainful employment is a mammoth challenge. Discuss the measures to tackle this challenge.
5. In India, 12 million young people enter the labour force each year, and millions transfer out of low productivity agricultural jobs. To ensure that such individuals get gainful employment is a mammoth challenge. Discuss the measures to tackle this challenge.
5.भारत में, 12 मिलियन युवा लोग हर साल श्रम बल में प्रवेश करते हैं, और लाखों उत्पादकता काम उत्पादकता वाले कृषि क्षेत्र से लाखों स्थानांतरित होते हैं। यह सुनिश्चित करना कि ऐसे व्यक्ति लाभकारी रोजगार प्राप्त करें, एक बड़ी चुनौती है। इस चुनौती से निपटने के उपायों पर चर्चा करें।
India’s strong growth in recent years has outstripped job creation and poverty remains a key challenge. Unemployment is the greatest economic challenge facing India. Virtually all major economic policy issues derive from this central challenge. The India Labour and Employment Report 2016 of the Institute for Human Development presents compelling evidence of how the employment situation has improved during the 21st century. But it also emphasizes the awesome challenge of unemployment that still faces us.
- Not all people in the working age population are in the labour force, i.e., available for work. The labour force participation rate measures the proportion of people in the working-age group who are actually available for work.
- India’s sustained average growth rate of 7% over the last decade has not been accompanied by sufficient growth in employment.
- While half of India’s population is below the age of 26, the increasing demand for jobs is not being met by the creation of sufficient new economic opportunities. The annual demand for new jobs in India is estimated at 12-15 million, leaving India with a shortage of between 4-7 million jobs each year.
- This is further compounded by the 300 million people of working age outside of the labour force. India’s official unemployment rate of 3.5% masks the magnitude of the jobs crunch.
- The immensity of this challenge is compounded by the lack of a formal education among large parts of the population.
Measures to tackle the problem:
To tackle the problem we need to provide formal education, skills and high-end technical training. Private sector along with government need to invest money to provide better outcomes to the youth and should fill the gap between the passing out graduates and the job requirement.
- The service sector is providing immense opportunities for job creation in traditional and emerging sub-sectors.
- Currently, this sector accounts for 68% of GDP and 30% of employment. Continued growth in domestic and export services is expected and will be increasingly important in the face of uncertainty in the manufacturing sector, where employment has stagnated at 22%.
- Changes in manufacturing processes, especially the potential for increased automation, will limit the benefits of labour-intensive growth.
- Structural shifts in the economy due to digitalisation are altering the kinds of jobs being created, and the skills required for individuals to remain competitive.
- In order to help workers adapt to changing demand, India must develop an enhanced skills development framework.
- Such a framework should be accessible, driven by demand, linked to employment opportunities and enable individuals to quickly up-skill and re-skill, Atal tinkering labs, research in premier as well as all the university levels.
- The adoption of digital technologies and emergence of digital platforms, such as in e-commerce and digital financial systems, are improving the business viability of microenterprises in India.
- Additionally, India’s micro firms create direct employment and should be an essential part of its employment strategy. In order to support inclusive growth among micro and small-sized firms, India must improve financial connectivity and reorient its skills development strategy.
- Further, in order to take full advantage of the employment potential of the digital economy, it is essential to improve and secure digital infrastructure to enable equal access to digital technologies and reduce the digital divide.
India has the opportunity to drive growth from the informal sector, while simultaneously creating stronger linkages between the state and individuals through new, digitally-enabled social protection mechanisms. This opportunity will be accompanied by a major challenge: to effectively skill, up-skill and re-skill India’s workforce. Now the time has come to India to focus on net job providing rather than job seeking, in the recent SALARY SURGE report it is said that by 2030 India will have enough high skilled population.
Best Answer: Priya Saini