India’s current GDP growth rate is over 7% and the unemployment rate is 3.52 %blame. It is indeed surprising that how an economy can grow at this rate without creating sufficient jobs. Though our economy is one of the fastest growing in the world. But our major problem of unemployment remains static. Here I am only talking about growth, not development. Development is, I think, out of our reach.
India is facing an Unemployment crisis since last few years, cannot blame a specific government for that. The situation currently we exist may be termed as ‘Jobless Growth’. Where the economy grows and benefits only a section of people. And the common man doesn’t even take an interest.
The unemployment rate is increasing ever since the last few decades, as per 2011 Census data, the unemployment rate in 2011 was increased to 9.6 % from 6.8 in 2001.
So what’s the reason behind this unemployment situation? :
Lack of Opportunities :
There are different factors that are responsible for the prevailing unemployment situation in India. The situation when a government authority or a public entity hires someone to perform a task against some remuneration. So, for that situation, there should be an employer, a work, remuneration, and someone who can do the job perfectly. And this cycle is hardly found in India nowadays.
Sometimes, there’s a lack of opportunities, and sometimes there’s a lack of skills. Both are equally responsible. We have a large man force but lacks skill. And now we are in a process of making our men skilled through the Skill India Campaign. But still, the problem remains the same.
Use of Technology is also liable for rising unemployment:
The manufacturing Sector used to contribute a major share in employment generation, but the use of modern technology shrinks that opportunities for the unskilled workers.
Use of latest technology in production makes the lesser use of labor force which ultimately contributes a lot towards growing unemployment.
Use of Skilled labors:
A piece of work could be done by 10 worker’s is now can be done by 1 worker, in this way use of skilled labor is unhealthy for job growth. One skilled labor can eat the job of 9 more workers. I am not against the use of skilled labor but there should be adequate employment opportunities for the unskilled laborers also.
Generally, the unemployment causes due to lack of skills, there is a lot of qualified people but unskilled.
Defective industrial policy:
The industrial sector especially the manufacturing sector supposed to provide a large number of employment opportunities. But it fails to do so, this is due to our defective industrial policies. When India opened its economy to a liberalized one, it was to emphasize on the manufacturing sector. We have very poor manufacturing sector and this is one of the major causes of unemployment.
Proper steps should be taken by the govt to boost up the industrial sector especially the manufacturing sector to eradicate the burning issue of unemployment. Currently, there are some govt schemes working well in this regard like the Skill India, Digital India etc. But these are not sufficient at this point of our economy.
Unemployment is not an issue of only India, but the whole world. According to the International Labor Organization report, the global rate of unemployment for the year 2017 & 2018 would be at 5.8℅. The report further added, 192.3 Million people will remain jobless in 2018 which is slightly lower than last year 2017 which was 192.7 million.
Sector wise percentage of workforce:
The above table clearly reveals that the Agricultural sector provides highest number of employment opportunities in India, which is declining and the second largest one Service Sector which which is increasing and last one Industrial sector supposed to be in the 1st place placed in the 3rd. Though Agricultural sector topped in terms of employment opportunities, the service sector contributes highest in term of GDP growth, which clearly reveals that Agricultural employment is not a fornal one.
