Future Imperfect: On unemployment

Synopsis: There is a huge pool of unemployed university graduates with unfulfilled aspirations. The present situation and the steps that can be taken to address this issue.

Introduction

There has been an increase in number of higher education institutions and enhanced rates of enrollment of students from diverse backgrounds. But a dearth of govt and pvt sector jobs is ultimately leading to large scale unemployment amongst these students.

This group of dissatisfied, disgruntled youth can lead to disastrous consequences for our society.

What has led to an increase in the enrollment?

Reservation: The enhanced enrollment of students from these socio-economic backgrounds is primarily a result of the extension of reservations to OBCs and EWS.

Number of Higher education institutions: The massive increase in the number of higher education institutions has led to an enlargement of the number of available seats. There are more than 45,000 universities and colleges in the country.

The Gross Enrollment Ratio for higher education, which is the percentage of the population between the ages of 18-23 who are enrolled, is now 27 per cent.

What are the associated concerns?

Huge mismatch between enrollment and jobs availability: A majority of the students are aiming to get some kind of a government job post their degree. Unfortunately, the increase in enrollment has not been matched by a concomitant increase in jobs.

Government jobs: Employment opportunities in the government have not increased proportionately and have decreased with increased contractualisation.

Private sector: Though the jobs have increased with economic growth, most of the jobs are contractual.

Gig workers: A student who has finished his college against all odds is not very keen to take up a job in a call centre or worse as a delivery agent for e-commerce or fast food.

What are the existing challenges with vocational institutions?

Poor quality of vocational institutions: They are poorly maintained and lacking in resources, both physical and human. The curriculum remains outdated and has not been upgraded to include some of the newer skills like maintaining networking and telecom equipment.

Huge competition for admission: it is harder to get into these than to get admission to the local government college. Manufacturing units prefer hiring them for blue-collar jobs since they at least have a modicum of training.

What is the way forward?

First, there is need of concurrent increase in the number of high-quality vocational institutions. There are upwards of 15,000 Industrial Training Institutes (ITIs) in the country currently.

Second, upgrading the existing ITIs, opening many more new ones with high-quality infrastructure and updated curriculum should be done urgently.

Third, uplift the standards of all vocational institutions besides adding many more new ones. Industries can bring funding (via the CSR route).

Source: This post is based on the article “Future Imperfect” published in Indian Express on 1st November 2021.