The persistent challenge of unemployment in India remains a critical issue that demands urgent attention and comprehensive solutions. Despite the nation’s significant economic growth in recent years, job creation has not kept pace with the burgeoning population, exacerbating the employment conundrum. Structural issues within the labor market, coupled with inadequate skills development, further contribute to the problem. The COVID-19 pandemic has only intensified these challenges, leading to widespread job losses across various sectors. Policymakers must prioritize the creation of a conducive environment for job growth, focusing on both traditional and emerging industries. Additionally, investing in education and skill enhancement programs is crucial to align the workforce with the evolving demands of the job market. A holistic approach, incorporating economic, social, and educational reforms, is essential to address the complex layers of the unemployment conundrum in India.
Tag: GS-3 Employment Issues
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Unemployment Scenario in India
- The unemployment ratio is the proportion of unemployed individuals within the labour force.
- In the latest data, the unemployment rate stood at 6.6% for men and 9.4% for women, reflecting a change from 9.3% and 11.6% in the July-September 2021 period.
Types of Unemployment in India
Disguised Unemployment
- Definition: More individuals are employed than necessary.
- Commonly observed in agricultural and unorganized sectors in India.
Seasonal Unemployment
- Definition: Occurs during specific seasons of the year.
- Example: Agricultural laborers in India often face a lack of work throughout the year.
Structural Unemployment
- Definition: Arises from a mismatch between available jobs and workers’ skills.
- Cause: Lack of necessary skills and inadequate education hinder job placement.
Cyclical Unemployment
- Definition: Results from economic cycles, with unemployment increasing during recessions and decreasing during growth.
- Occurrence: More prevalent in capitalist economies.
Technological Unemployment
- Definition: Job loss due to technological advancements.
- Data: In 2016, the World Bank predicted a 69% year-on-year proportion of jobs threatened by automation in India.
Frictional Unemployment
- Also known as Search Unemployment.
- Refers to the time delay between jobs during a job search or job transition.
- Inevitable time lag causes frictional unemployment.
Vulnerable Employment
- Definition: Involves informal work without proper contracts and legal protection.
- Challenge: Records of their work are not maintained, contributing to the classification of these individuals as ‘unemployed.’
- Prominent in India’s employment landscape.
Factors contributing to unemployment in India
Impact of Caste System
- Presence of caste-based restrictions on certain jobs in specific regions.
Joint Family Dynamics
- In large joint families with significant business interests, some individuals may not actively contribute to work, relying on the family’s combined income.
Population Growth Challenges
- Persistent population growth poses a significant challenge to managing unemployment in India.
Agricultural Dependence
- Nearly half of India’s workforce relies on agriculture, which remains underdeveloped and provides seasonal employment.
Decline in Cottage Industries
- Industrial development adversely affected cottage and small industries, leading to a decline in production and unemployment among artisans.
Labour Immobility
- Limited labour mobility due to familial ties, language barriers, religious considerations, and climatic preferences.
Educational System Deficiencies
- Mismatch between specialized job requirements and the lack of corresponding training in India’s education system.
- Inability to meet the demands of specialized jobs results in unemployment for those lacking the required skills.
Government Initiatives to Address Unemployment
Support for Marginalized Individuals for Livelihood and Enterprise (SMILE)
- Aimed at providing support and opportunities for livelihood and entrepreneurship to marginalized individuals.
PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi)
- Focuses on enhancing skills and promoting excellence to empower individuals for sustainable employment.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
- Enacts a rural employment guarantee to provide livelihood security and generate employment opportunities in rural areas.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
- Aims to skill and upskill the Indian workforce to make them job-ready and enhance employability.
Start Up India Scheme
- Encourages entrepreneurship and supports the growth of startup ventures, fostering job creation and economic development.
National Career Service (NCS)
- Provides a platform for job seekers and employers to interact, facilitating career guidance, skill development, and job placement.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)
- Focuses on rural youth development by providing skill training and placement for sustainable livelihoods.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
- Encourages employers to generate new employment by contributing to the provident fund of eligible employees.
| 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) Exp: An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs. Marginal productivity refers to the additional output that is gained by addition of one unit of labour. Since, in disguised unemployment, a greater number of labour than required are already engaged in the work, the marginal productivity of labour is zero. Therefore, option (c) is the correct answer. |
Source: TH
Frequently Asked Questions (FAQs)
Q: What factors contribute to the employment conundrum and high levels of unemployment in India?
This question aims to explore the various underlying issues such as economic, structural, and skill-related factors that contribute to the persistent problem of unemployment in India.
Q: How has the COVID-19 pandemic impacted unemployment rates in India, and what measures have been taken to mitigate these effects?
This question delves into the specific challenges posed by the pandemic on the job market in India and seeks information on any governmental or institutional interventions implemented to address the resultant unemployment surge.
Q: What role do education and skill development play in tackling unemployment in India?
This question focuses on the importance of education and skill enhancement programs in aligning the workforce with the evolving demands of the job market and addressing the skills gap contributing to unemployment.
Q: Are there specific industries or sectors that are particularly affected by high unemployment rates in India?
This question explores whether certain industries or sectors are disproportionately impacted by unemployment, shedding light on the uneven distribution of job opportunities across different segments of the economy.
Q: What policy recommendations or reforms are being proposed to address the employment conundrum in India?
This question seeks insights into the proposed policy measures or reforms that policymakers are considering or implementing to alleviate the unemployment situation in India, providing a forward-looking perspective on potential solutions.
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