- Mains – GS 2 (Governance)
Context: With the nationwide unemployment rate increasing, creating jobs will remain a key challenge for the government.
Status of job creation and recruitments in India: According to a recent report, about 2.25 lakh active jobs are open in the market as per hiring firms, about 1 lakh fewer than a year earlier.
- Specialised hiring firms claim that the white-collar workforce has taken a severe beating. This shows slower job growth as compared to growing unemployment rate.
No job security: The concept of job security has lost its relevance.
- In recent months, tech giants such as Google, Microsoft, IBM, Meta, Amazon, Cognizant, and big startups such as Byju’s and Ola have fired thousands of employees in India.
Demand for skills and IT professionals:
- In some sectors, tech talent continues to be in demand as non-tech industries undergo a digital transformation.
- Several companies in banking and non-banking, hospitality, automobiles, manufacturing, pharmaceuticals, and education are seeking skilled IT talent to drive their digital progress.
- On the flip side, there is still some hope for blue- and grey-collared employees, according to hiring firms.
Need for job creation in India:
- Because of high unemployment rate
- Female labour force participation is very low
- Poverty rate is high as per the Tendulkar committee
- Impact on socio-economic indicators like HDI, Gender Gap report
Reasons for low job growth in India:
- In the last year’s survey of the labour bureau, it found that in most of the eight biggest employment generation sectors – Textiles, leather, metals, automobiles, gems and jewellery, transport, information technology and the handloom sectors – jobs were shrinking.
- A general trend of shrinking export in the last three years has led to loss of hundreds of jobs.
- Domestic manufactures face high tariffs leading to higher raw material cost at home, emanating from the unfavourable inverted duty structure.
- The automobiles sector in India faced no inverted duty structure, and thrived.
- Electronics faced an inverted duty structure and slowly electronics manufacturing has grown.
- There are a number of labour intensive manufacturing sectors in India such as food processing, leather, and footwear, wood manufacturers and furniture, textiles and apparels and garments.
- Indian economy: Since Indian economy jumps from Primary sector to tertiary sector.
- Automation: Many small industries focus om automation to gain high productivity and profit. In Packing, Finishing and other such activity were required huge labor force
- Low skills: All companies wants to book maximum profit in this competitive economy. They need upgraded skills person with multipurpose activity
- Education System: The syllabus/curriculum is taught in higher education institute is not matched the required job industry skills.
National Career Service (NCS) Project: Project for transformation of the National Employment Service to provide a variety of career related services like job matching, career counselling, vocational guidance, information on skill development courses, apprenticeship, internships etc.
- It is under the aegis of Ministry of Labour and Employment.
Mudra loans: The facility of these loans to weaker and unserved sections of the society which aims to launch their business in form of small, micro and medium ventures.
- These will also help in serving the purpose for creating more jobs.
Skill India Mission: It deals with imparting skills to the unskilled labor force in India and as a result of this more skilled labor force at cheap cost will attract the foreign companies which will ultimately result in creation of jobs.
Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): DDU-GKY is a part of the National Rural Livelihood Mission (NRLM), tasked with the dual objectives of adding diversity to the incomes of rural poor families and cater to the career aspirations of rural youth.
PM- SVANidhi Scheme: Prime Minister Street Vendor’s Aatmanirbhar Nidhi (PM SVANidhi) Scheme aims to provide collateral free working capital loan to Street Vendors, vending in urban areas, to resume their businesses which were adversely affected due to COVID-1 induced lock-down.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE) implemented by National Skill Development Corporation.
Rural Self-Employment and Training Institutes (RSETIs): RSETIs are Rural Self Employment Training Institutes, an initiative of the Ministry of Rural Development (MoRD) to have dedicated infrastructure in each district of the country to impart training and skill upgradation of rural youth geared towards entrepreneurship development.
- RSETIs are managed by banks with active cooperation from the Government of India and State Governments.
Make in India: The Modi government has pushed several programs to catalyse employment opportunities including the ‘Make in India’.
- This initiative helped new entrepreneurs to give shape to their ideas and help in creating more job avenues in form of start-ups.
India needs to concentrate on enabling the creation of decent work and a sustainable labor market, to which India is committed as a member of the United Nations and the International Labour Organization.
The government should re-establish its role as the principal employment generator through jobs in its ministries and CPSEs and through assured employment generation programmes like MGNREGA and private sector as well plays a significant role in this regard.
Source: Indian Express