According to the International Labor Organization’s database, India’s unemployment rate rose to 7.11% in 2020 – the highest in at least three decades. India is undergoing tremendous growth but it’s jobless growth also it is a really tough thing to provide jobs to such a huge task force in the time of industrialization and artificial intelligence merged with robotics, but still various kind of factors are responsible for it, form grooming to education, as Most of the Indians are job seeker – We are told by our parents, ‘Padh Likh Kar Sarkari Naukari Karna‘ (Become a government servant after education), and then the youth keep saying why the government does this, why don’t they fill up vacancies, they didn’t fulfil their promise but you rarely find someone saying that I want to employ people than being employed.
The Center for Monitoring Indian Economy, a think tank, said India’s labour participation rate in May was 40%, with 15 million jobs lost in the month. May 2021 is also the fourth consecutive month of a fall in employment. The cumulative fall in employment since January 2021 is 25.3 million. Everyone wants a safe future so they keep trying for selection exams for many years, if they become unsuccessful, they get depressed and don’t want to settle for less and stay jobless.
Selection examinations like IAS have an age limit of up to 32 years, if someone is trying up to 32 years then it becomes really difficult to learn new skills at this age for employment if he doesn’t get success. Jobs are inadequate and doing business is Hercule’s task. It is really horrible to start manufacturing in India. Most “Made in India” products have very low-value addition in India itself. If we talk about Micromax, they have added only and only 7% value in their products mainly manufactured in China, although they are considered to be Indian manufacturers with pride.
Bureaucracy is more focused on their own personal GDP than the nation. They don’t care about entrepreneurs and their role in countries growth. There are few companies like Reliance, Tata, Birla and they are considered to be only serious businesses and the startup founders are considered to be garbage and demotivated by the system itself. Due to lack of basic infrastructures like transport, electricity and complicated tax system, most of the companies do not want to produce here which cut down a huge amount of jobs in India
High rates of unemployment are dangerous. If you have so many unemployed people, it means they are neither saving nor consuming. This has a direct impact on economic growth and the country’s economic potential. The youth are employed by the informal sector, where cash flows are unpredictable and erratic, no one can plan investments and other initiatives. It also impacts the level of consumption, on the future of the country. When these people are past their working age, they will have little money saved as a formal pension, forcing the government to provide social safety nets, the burden on the government will be enormous.
Unemployment was there even before the pandemic, but now the situation has turned from bad to worse. The government has acknowledged that virus lockdowns have affected economies across the globe, including that of India. Prime Minister Narendra Modi asked industry representatives to look at ways to increase exports, a move that could help boost employment. The priority and policy should be to give a basic income to everyone and give support to unemployed youth. The situation is serious. The government has to be more active because it hasn’t done anything significant.
When you have fewer options available in the market, you have to accept jobs with low salaries. The government needs to be more serious for the youth, they are the future. There are competing narratives about the significance of ‘official’ unemployment rates on the larger canvas. For example, everybody who wants a job has a job; they just don’t have the wages they want or need. However, it is also true that despite the government’s claims, there is a growing consensus that job creation has not kept pace with the numbers of those seeking employment.
There is widespread evidence from countries around the world that education benefits both individuals and nations in material terms. Most Indians believe in the benefits of education which is why one survey found 71% of them to be willing to even borrow money for the education of their children. In theory, college education, in particular, improves employment prospects. Many young people find jobs of their liking and when suitable employment is not immediately available, they are likely to remain patient if the economy is growing and if they see others like them benefiting from the nation’s economic growth in terms of employment or other opportunities.
The number of domestic MNCs are very low. Most of the MNCs will have headquarters and a base of operations in their home country. Apart from a few household names like Tata, Reliance and Infosys, the majority of the MNCs either belong from the USA, UK, Europe or China. India comes way behind.
Red tapes and inefficient administration. Our bureaucracy is so hospitable that by the time you are done visiting their office, you will probably get high blood pressure and hypertension. Innovation sucks. From the very beginning, we are trained to do the art of copy-paste by mugging up textbooks and churning the same answers. Also, there is no outlet to pursue your hobby. For example, if you are an RC plane enthusiast who likes to assemble and fly model planes, not only there are rules and regulations like height restriction, weight restriction etc. Also, you cannot import RC planes from other countries if they don’t meet the criteria of the ‘radio frequency’.
Remember the home-schooled Indian girl who won Olympiad medals but was rejected by IIT because she didn’t have an HSC degree only to get accepted by MIT. The Indian education system is so rigid and obsolete that having a degree matters. Even a smart guy with laurels will be rejected if he does not possess a degree. Such folly will kill any innovative and smart students.