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THE MISSING JOBS
What the article is about?
- Talks about the unemployment crisis in the light of recent incidents of protest over recruitment in UP and Bihar.
Syllabus: GS-III Issues relating growth and development, employment
Refer snippet on 20th Jan 2022
Unemployment crisis:
- Protestors flagged issues like allowing candidates with higher qualifications to compete for jobs meant for those with lower qualifications; glaring mismatch between the demand and supply (staggering 1.25 crore candidates appeared for 35281 vacancies)
- India’s unemployment rate hit a 4 month high of the 7.9% Dec 2021 (Data from CIME)
- Urban unemployment rising to 9.3%
- Youth unemployment rate risen steeply from 15.66%(2016-17) to 28.26%(2020-21)
- 9 million out 55 million graduate degree holders were unemployed in 2019
- Periodic Labour Force Survey (PLFS) results showed the historically high unemployment rate of 6.1 per cent for 2017-18 (July to June). It was at a 45-year high.
Concerns:
- The Labour force participation rate(LFPR) has declined sharply.
- CMIE’s estimates around 40% fall
- Unemployment rate has risen
- Along with this, the declined LFPR led to a steadily declining employment rate.
- As per CMIE, the employment rate at the all-India level has fallen from 43% in Dec 2016 to 37% in Dec 2021
- Shift away from regular salaried employment towards causal wage labour.
- This means workers are increasingly being employed in low-paying, less productive jobs.
Way Ahead:
- Changes in investment patterns: The early planning process focused on investment allocation patterns with a high capital-labor ratio. Therefore, a shift in focus to the consumer goods industry will create more jobs to absorb the unemployed.
- Promoting SMEs and Large Enterprises: Making large investments in SMEs rather than large enterprises can help you reach your employment and production goals.
- Skill development and re-skilling the youth to make them employable.
