WAKE UP INDIA!
The last two years have been particularly challenging in terms of employment for India. Unemployment has risen. Thousands of people have already left their jobs and are unemployed, and a large number of youth in India are out of work. It’s a worrying situation because, in any country, the youth is considered an asset for the country’s growth. Without full-time jobs, the youth will become a demographic liability for the country.
As per the India Employment Report 2024 released by the International Labour Organization (ILO) –
The total unemployed youth has almost doubled from 35.2% in 2000 to 65.7% in 2022. According to the above observation, the unemployment rate has almost doubled in two years. ILO has projected global employment to rise by only 1.1 % in 2024.
Also, unfortunately, among the unemployed people, 83% of them are under the age of 34 years.
The decline in job opportunities is not only observed in the uneducated sector but also among well-educated youth. For instance, a recent viral video depicted a situation where a single engineering position in Pune attracted a queue of 3000 applicants. The situation has worsened to such an extent that engineers are even lining up to apply for peon jobs in Kerala. It’s disheartening to witness the condition of the youth and the stress they are experiencing.
THE MAJOR REASONS BEHIND THE RISE IN THE UNEMPLOYMENT RATE IN INDIA
- From the year 2020 to 2022, India’s population has surged dramatically, while job creation has not kept pace at the same rate.
- The pandemic has made the situation worse. Until 2019, an upward trend in the employment sector was observed, but after the pandemic, it has declined significantly. Job creation took a hit, and our country is yet to recover.
- Government jobs offer a high level of security, leading 65% of youth to aspire for them. Unfortunately, out of 22 crore people who applied for government jobs in the past 8 years, only 7.2 lakh people were hired. Moreover, where vacancies do exist, the government is not actively attempting to fill them due to financial constraints, resulting in suffering for the youth.
- Unemployment refers to the situation where individuals who are willing and able to work are unable to find suitable employment opportunities. It also encompasses those who have become discouraged and stopped actively seeking work, as well as those who have settled for jobs that are below their qualifications or expertise. The focus on quantity rather than quality of employment can lead to an underestimation of the true impact of unemployment, which may not be adequately recognized as a major issue by the government. Additionally, some individuals secure employment but become disengaged from their jobs after only a few months, leading to high turnover rates in certain sectors. Hence, relying solely on unemployment data may not accurately reflect the true extent of job market challenges.
- Disguised employment is prevalent across many sectors, with low salaries often failing to cover the cost of education per child. A recent example from IIT Bombay highlights this issue: out of 2000 students who registered for placements, 721 were unable to secure jobs. The placement cell attributes this struggle to difficulties in attracting companies due to salary package mismatches, leading to extensive negotiations. Even students from highly sought-after branches like computer science and engineering are facing challenges in securing placements this year. Also, the emergence of AI has been affecting employment. This situation underscores the seriousness of the employment problem, especially when graduates from prestigious institutions struggle to find employment opportunities.
- The ‘Make in India‘ initiative has been extensively publicized and promoted, yet there seems to be a lack of focus on building the necessary foundation to support it. It’s disheartening to note that 46% of users in India spend 6 hours daily on social media, which may contribute to a lack of concern about their career prospects. Additionally, reports suggest that 45 crore Indians are not actively seeking employment, highlighting a concerning trend in the workforce.
- Every year, a significant number of hardworking, skilled, and talented Indians choose to migrate abroad in search of better opportunities, higher incomes, and improved lifestyles, where their skills are highly valued. This exodus has a substantial impact, as these individuals, if they had stayed in India and launched their startups, could have potentially created thousands of job opportunities domestically. Their tax contributions benefit the economies of other countries rather than our own.
Unemployment is an alarming situation that needs to be addressed. It not only leads to financial instability but also creates mental breakdowns and stress among the people of our country. According to government data, suicides due to unemployment more than doubled between 2012 and 2020. Additionally, the consumption of alcohol is rising due to unemployment, leading to a significant increase in cases of domestic violence.
IS THERE A SOLUTION?
The root problem is that the issue of unemployment is being hidden. The country is not accepting the fact that unemployment is growing significantly. Whether it’s agricultural income or urban jobs, there is a slowdown in incomes. In the private sector, more jobs are offering contractual positions over permanent employment, leading to a loss of stability.
Household savings are deteriorating. The situation can be improved if the government takes decisive action, followed by the private sector, in creating jobs. Simultaneously, they need to establish a fair wage structure across all sectors. We need to transition the agricultural workforce to other sectors to become a developed nation.
According to the RBI Bulletin, India needs to grow at 7.6% annually for 25 years to achieve developed nation status. Meanwhile, according to the World Bank, every 1% increase in employment leads to a 0.6% increase in GDP growth.
This is a massive issue that needs to be addressed for the growth of youth and the country. Wake up, India!
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