Issue with India’s job market

Source: The post issue with India’s job market has been created, based on the article “The job crisis undermines state legitimacy” published in “The Hindu” on 23rd October 2024

UPSC Syllabus Topic: GS Paper 3– Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: The article discusses India’s lack of good-quality jobs, especially for the youth. It argues that the failure to address unemployment and inequality could lead to political instability and criticizes solutions like UBI for ignoring dignity and social participation.

For detailed information on Issues in Indian Labor Market read this article here

What is the main issue with India’s job market?

1. Lack of Good-Quality Jobs: Many jobs in India are informal, unpaid, or have no opportunities for growth. The unemployment rate seems low, but this is misleading because working just one month in a year counts as being employed.
2. Youth Unemployment: The shortage of quality jobs, especially for the youth, can lead to frustration and economic problems. This is a significant issue as young people need meaningful work to feel included in society.
3. Impact of Technology and Capital: Technological advances and the concentration of capital are displacing many workers. This increases inequality, as only the elite benefit from these changes, leaving a large part of the population without dignity or financial security.

For detailed information on The Employment Crisis in India read this article here

How Are Political Parties Responding?

1. Political responses have been inadequate, relying on market forces or short-term solutions.
2. The idea of ‘creative destruction’ assumes old jobs will naturally be replaced by better ones, which isn’t always true.
3. Universal Basic Income (UBI) has also been suggested, but it doesn’t address people’s need for dignity or contribution to society.
4. Political parties focus too much on winning elections and fail to address long-term structural problems like unemployment.
5. This makes people feel neglected and lose trust in democratic institutions. Globally, we see this through the rise of populism and authoritarianism.

Way forward

Political parties must lead by addressing structural issues such as unemployment, inequality, and dignity. The future of India’s democracy depends on restoring a sense of purpose and participation to all citizens. Without this, political parties may become irrelevant.

Question for practice:

Discuss how the lack of good-quality jobs in India contributes to political instability and the potential consequences for democratic institutions.