Solutions to India’s jobs problem lie in creating better regulatory conditions for private sector while protecting rights of workers

Source: The post is based on an article “Solutions to India’s jobs problem lie in creating better regulatory conditions for the private sector while protecting rights of workers” published in the Indian Express on 18^th August 2022.

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

Relevance: Jobless Growth in India; Job Creation Prospects

News: In the recent past, the prime minister’s office (PMO) had instructed that the recruitment of 10 lakh people be done by the government in a mission mode in the next year and a half. Further, the new Bihar government has also promised its people to create 10 lakh jobs within the government fold.

Some findings related to job creation in the Financial Year 2021-22

Private Sector

Most of the job creation that happened in India in the FY was in the private sector. For example, eight out of the top ten private sector firms by market capitalisation added to their workforce in this financial year. In terms of number, together these firms added 3 lakh new jobs in the last financial year.

Public sector undertakings (PSUs)

The government-owned enterprises or public sector understanding saw a decline in the total number of people they employed during this FY. The top 15 listed PSUs by market capitalisation like State Bank of India, Coal India, ONGC, NTPC, BPCL, and HAL, saw a reduction in the number of people employed.

Challenges in Job Creation

The PSUs are not able to solve India’s joblessness. These firms failed to create jobs, even when India’s GDP was growing at almost 9% (last year).

The Way Forward

As per analysis, the private sector has a greater role to play in the creation of jobs in the Indian Economy.