{"id":69357,"date":"2020-11-11T17:32:15","date_gmt":"2020-11-11T12:02:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=69357"},"modified":"2021-05-17T12:38:47","modified_gmt":"2021-05-17T07:08:47","slug":"unemployment-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/unemployment-in-india\/","title":{"rendered":"Unemployment in india"},"content":{"rendered":"<p><strong>Context:\u00a0<\/strong>It is for the first time that <a href=\"https:\/\/forumias.com\/blog\/answered-discuss-the-issue-of-unemployment-in-india-what-india-should-do-check-rising-unemployment\/\" target=\"_blank\" rel=\"noopener\">unemployment in india<\/a> has become a big issue in Bihar assembly elections.<\/p>\n<p><strong>What are the issues?<\/strong><\/p>\n<ul>\n<li><strong>Impact of lockdown:\u00a0<\/strong>The economy contracted severely, Bihar saw millions of poor migrant labours returning home as U.P. and Bihar have a disproportionately high number of out-migrants.<\/li>\n<li><strong>Joblessness an issue this election:<\/strong>\u00a0An opposition leader promised 10 lakh government jobs in his first Cabinet meeting, if made Chief Minister; the Janata Dal (United)\/BJP countered him by promising to create 19 lakh new jobs.<\/li>\n<li><strong>Labour force:<\/strong>\u00a0For nearly 10 years after 2003, GDP growth averaged more than 7% per annum. Non-agricultural jobs in India were generated at a rate of 7.5 million per annum. But only 2 million of the youth were joining the labour force (as enrolment in schools\/ colleges was increasing).<\/li>\n<li>New non-agricultural jobs pulled over 5 million per annum out of agriculture and into construction and other work, where Bihari and U.P. labour got absorbed in large numbers.<\/li>\n<li><strong>Demonetisation<\/strong>\u00a0and the reluctance to competently handle the non-performing assets crisis sent the economy into a downward spiral.<\/li>\n<li><strong>Unemployment rise:<\/strong>\u00a0The number of unemployed educated youth and a disheartened labour force (youth who completed education and training but were still neither in jobs nor searching for jobs actively) increased to unprecedented levels by 2018.<\/li>\n<li><strong>Self-employment decline:\u00a0<\/strong>It is clear that despite the government\u2019s measures (example, MUDRA) to promote self-employment, the number of youths engaged as self-employed declined from 81 million to 63 million between 2005 and 2012 and further to 49 million between 2012 and 2018.<\/li>\n<li>This is despite 95% of MUDRA loans being in the smallest Shishu category. The Ministry of Labour\u2019s MUDRA study in 2018 had already demonstrated this fact.<\/li>\n<li><strong>Actual government jobs<\/strong>: Only about 7% of the total employment is created in the government, including the public sector undertakings (NSS, 2017-18).<\/li>\n<li>Of the total 465 million jobs in India, about 260 million are created in non-farm (in the industry and services) sectors, of which only 34 million are created in the government sector.<\/li>\n<li>The Central government tried to create a myth that the self-employed can create enough jobs.<\/li>\n<\/ul>\n<p><strong>What are the steps to be taken?<\/strong><\/p>\n<ul>\n<li><strong>Private sector employment<\/strong>\u00a0through appropriate government policy is crucial.<\/li>\n<li><strong>Measures are needed to fill the vacant government posts.<\/strong>\u00a0There has been a massive decline of government sector job growth from 1.3 million per annum from 2005 to 2012 to only 0.4 million per annum from 2012 to 2018.<\/li>\n<li><strong>The National Education Policy 2020 is likely to increase the supply<\/strong>\u00a0of vocationally trained youth due to the expansion of vocational training curricula at the school level, it will have no impact on the labour demand conditions of the industries.<\/li>\n<li><strong>Supplementary measures<\/strong>\u00a0including development of infrastructure and local industrialisation are necessary.<\/li>\n<li><strong>The focus will have to be on two kinds of jobs<\/strong>. First, the health and education sectors and the police and the judiciary have too few government staff. These are sectors where the new government can expand government jobs.<\/li>\n<\/ul>\n<p><strong>Way forward<\/strong><\/p>\n<ul>\n<li>In all governments, State and Central, the share of Groups C and D jobs is an overwhelming 89%, leaving 11% of jobs for Groups A and B. With such few managerial or professional staff, it is impossible to run any government. Post-pandemic, most States will need to increase spending on public health.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Context:\u00a0It is for the first time that unemployment in india has become a big issue in Bihar assembly elections. What are the issues? Impact of lockdown:\u00a0The economy contracted severely, Bihar saw millions of poor migrant labours returning home as U.P. and Bihar have a disproportionately high number of out-migrants. Joblessness an issue this election:\u00a0An opposition&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/unemployment-in-india\/\">Continue reading <span class=\"screen-reader-text\">Unemployment in india<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1351,1310],"tags":[1303],"class_list":["post-69357","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-daily-news","category-daily-news-updates","tag-eco_8","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704835297},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/69357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=69357"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/69357\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=69357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=69357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=69357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}