Addressing the employment challenge in India requires a multi-faceted approach that addresses both short-term and long-term issues. In the short term, immediate measures such as skill development programs and job creation initiatives are essential to provide opportunities for the growing workforce. Additionally, there is a need for targeted policies that promote entrepreneurship and support small and medium-sized enterprises, as they are significant contributors to employment generation. In the long term, structural reforms in education and vocational training systems are crucial to equip the workforce with the skills demanded by evolving industries. Furthermore, fostering innovation and embracing technology can open up new sectors, creating a dynamic job market. Collaboration between the government, private sector, and educational institutions is vital to implement effective solutions and navigate the challenges posed by rapid demographic changes. Ultimately, a comprehensive strategy that combines immediate interventions with sustained efforts towards skill enhancement and economic diversification is essential to address the complex employment scenario in India.
Tag: GS- 3 Employment, Growth & Development, Education, Skill Development, Human Resource
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The article explores how India’s employment challenge stems not only from the pandemic but also from the government’s macroeconomic policies.
Types of Employment in India.
India’s prevailing economic landscape features two primary types of employment:
- Wage Employment
- Regular Wage Jobs
- Formal positions in government organizations, private companies, and multinational corporations with fixed salaries.
- Casual or Daily Wage Labor
- Often found in sectors like construction, agriculture, and unorganized labour markets, characterized by variable income and job insecurity.
- Self-Employment
- Entrepreneurship
- Engagement in entrepreneurial activities, running small businesses or enterprises.
- Farmers
- Significant self-employment source, involving ownership and operation of farms.
- Freelancing and Informal Work
- Increasingly common in the gig economy, covering freelancers, consultants, and part-time roles.
Reasons behind Unemployment in India:
- Stagnant Employment Growth Rate
- Limited expansion in formal employment opportunities over the last four decades.
- Disguised Unemployment
- High levels of informal employment, including self-employed and casual wage workers, leading to disguised unemployment.
- Labour Demand Determinants
- Influenced by output demand and technology, with the introduction of labour-saving technologies reducing formal sector job opportunities.
- Policy Focus on Output Growth
- Traditional economic policies emphasizing GDP growth may not effectively address employment generation challenges.
- Lack of Responsiveness of Employment Growth Rate
- Disconnect between formal employment growth and changes in output growth rate, indicating jobless growth.
Jobless Growth in India:
- Weak Responsiveness of Employment to GDP Growth
- Jobless growth driven by automation and labour-saving technology, with the potential for increased employment through higher GDP growth
- High Responsiveness of Employment to GDP Growth
- India experiences a pronounced form of jobless growth due to the significant impact of labour-saving technologies on employment.
- Kaldor-Verdoorn Coefficient
- India’s non-agricultural sector exhibits a higher Kaldor-Verdoorn coefficient, indicating a strong link between labour productivity and output growth.
Addressing Unemployment in India:
- Implement a National Employment Policy (NEP)
- Separate policy focus on employment alongside GDP growth, addressing both demand and supply components.
- Introduce an Urban Version of MGNREGA
- Urban employment safety net to create income security and public assets, modelled after the rural employment scheme.
- Increase Industrialization and Investment in Agriculture
- Rapid industrialization and increased agricultural investment to create more job opportunities.
- Diversify Agriculture and Promote Agro-Processing Industries
- Shift to horticulture, animal husbandry, and agro-processing for increased rural employment and income.
- Expand Education and Health Care
- Enhance human capital, generate employment, and improve competitiveness by expanding education and health care.
- Develop Rural Areas and Decentralize Development
- Rural development to reduce urban migration pressure, fostering more balanced growth and equitable distribution.
These measures aim to create a comprehensive strategy addressing various aspects of India’s complex employment challenges.
| UPSC Previous Year Questions Prelims (2013) Q. Disguised unemployment generally means (a) large number of people remain unemployed (b) alternative employment is not available (c) marginal productivity of labour is zero (d) productivity of workers is low Ans: (c) Mains (2023) Q. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. |
Source: TH
Frequently Asked Questions (FAQs)
1. FAQ: What are the immediate measures being taken to address the employment challenge in India?
Answer: To tackle the immediate employment challenge in India, the government has implemented various initiatives, including skill development programs and job creation schemes. These efforts aim to enhance the employability of the workforce and provide immediate opportunities, especially in sectors with high potential for growth.
2. FAQ: How can the private sector contribute to addressing unemployment in India?
Answer: The private sector can play a crucial role in addressing unemployment by actively participating in skill development initiatives, supporting entrepreneurship, and investing in job-intensive industries. Collaborations between the government and private enterprises are essential to create a conducive environment for sustainable job creation, fostering economic growth and reducing the unemployment rate.
3. FAQ: What role does education reform play in addressing the long-term employment challenges in India?
Answer: Education reform is pivotal in addressing long-term employment challenges in India. By aligning educational curricula with industry demands, introducing vocational training, and promoting research and innovation, the education system can produce a workforce equipped with the skills needed for emerging sectors. These reforms contribute to the creation of a robust and adaptable workforce that can meet the evolving demands of the job market.
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