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Unemployment - A Growing Challenge in India

This is one of the biggest challenges that the government must tackle with great creativity. The rate of unemployment in the country is rising significantly.
The large number of people, especially young individuals, can be seen as a powerful asset that can take India to the next level. However, if not properly utilized, it could lead to a serious crisis for the nation in the future.
The government has implemented measures to address job losses and unemployment, but these actions seem to have fallen short in achieving the desired outcomes on the ground.
This issue needs to be examined from various angles and requires multiple actions, which will be discussed in the following paragraphs.

Major Reasons for Growing Unemployment Rate

• The fundamental reason for unemployment in India is that the country's economic growth is unable to keep up with the growing population.
• India has an economy that relies heavily on agriculture, and as a result, a majority of the population depends on this sector.
• Agriculture in India still heavily relies on rainfall, follows outdated and traditional practices, and provides employment only during certain seasons.
• Due to changes in the climate, the weather has become very unpredictable recently, causing distress among farmers.
• Another significant cause of unemployment in India is the lack of attention given to the industrial sector since the beginning.
• During the 1950s and 1960s, China and India embarked on their economic journeys at similar starting points.
• While India focused on implementing the 'green revolution', which was crucial at that time, China decided to give a boost to its manufacturing sector.
• Industrialization demands substantial investments in research and development, manpower training, raw material procurement, energy, and expensive machinery, which were insufficiently available in India.
• The development comparison between the two countries is evident to all.
• With the breakdown of the joint family system, the hidden employment that was previously masked, where many individuals relied on the joint family's earnings, is now being revealed as unemployment.

Recent Surge in Unemployment in India

The rate of unemployment in India has reached an unprecedented level, as reported by the Centre for Monitoring Indian Economy (CMIE) just before the general election, with a staggering 31 million individuals affected.
Several factors contribute to this situation:

• Education System:The focus of the Indian education system is primarily on generating jobs in white-collar professions. However, this approach results in graduates who lack the necessary skills for industry employment. It is crucial for our youth to possess practical skills that make them employable.
• Informal Sector: A significant portion of the Indian economy relies on the informal sector. The implementation of demonetization and the introduction of the Goods and Services Tax (GST) had a severe impact on cottage industries, small-scale informal workers, and entrepreneurs. Many jobs were lost, particularly in the real estate and service sectors, due to these factors.
• Political Aspect: The heightened polarization within the country has created an environment of insecurity that deters both domestic and foreign investors.
  Moreover, industries in which India previously held an international reputation, such as beef and leather production, are suffering due to a strong right-wing influence prevailing in the country. Consequently, millions of jobs have been lost as these industries have collapsed completely.
  All these factors contribute to the escalating employment deficit in the country.

Proposed Steps to Tackle Unemployment in India

Improve Education System

The current education system requires significant changes to meet the evolving job demands. We need to not only update the existing curriculums but also introduce a wider range of courses in different fields to meet the specific skill requirements of industries in modern India.

Enhance Education Delivery

We must closely examine the quality of education provided and the infrastructure of government-run educational institutions. Simply increasing the number of schools under the Right to Education Act, without addressing the issue of poor infrastructure and demotivated teachers, is counterproductive.
Teachers should receive the highest pay and benefits, elevating their status above other civil servants. The selection process for teachers should be rigorous, ensuring that only the best candidates are chosen for this crucial responsibility of shaping the nation's future.

Promote Rapid Industrialization

Boosting the manufacturing sector will create a significant number of jobs. The government's "Make in India" campaign, including the establishment of manufacturing hubs, should be implemented urgently. These hubs will also reduce the mass migration of rural populations to urban areas in search of employment.

Focus on Youth Skill Development

As manufacturing hubs are created, it is important to provide the youth with the necessary skills for specific jobs. The education system should align with this demand and identify students' aptitudes from an early age, directing them towards training in specific fields.
Existing skill development schemes like the Pradhan Mantri Kaushal Vikas Yojana need better implementation to be effective.

Empower Rural India for Better Workforce Management and Employment:

• Intensive farming using technology, improved irrigation facilities through river water linking and micro-irrigation, and the extension of community projects to rural areas can increase employment opportunities in the agrarian sector. Agro-infrastructure projects such as cold chains and food processing can be implemented.
• Cooperative farming can overcome the issue of decreasing land holdings, and vocational skill training can address farm distress caused by unpredictable weather and seasonal employment. Farmers should be trained for alternative employment opportunities available in the nearby manufacturing hubs.
• In addition to creating employment, the development of small-scale and cottage industries will reduce farmers' dependence solely on agriculture. These village industries should align with the products manufactured in the government's manufacturing hubs.

Labour-force Utilization during Lean Periods for Infrastructure Development under Government Schemes:

During lean periods, surplus labour can be engaged in public work programs such as afforestation, land reclamation, and the expansion of cottage industries. Existing schemes like MNERAGA should be closely monitored to ensure the necessity and quality of work carried out, as well as to prevent misappropriation of funds.

Opportunities for Self-employment: 

• Existing schemes like Start-up India and Stand-up India, aimed at encouraging entrepreneurship, have been poorly implemented. Despite being available since 2016, these schemes have received a low number of applications and approvals.
• The government should introduce more innovative and feasible self-employment schemes for unemployed youth, which can generate jobs for others as well.

Conclusion

• In conclusion, the government's efforts to tackle unemployment have been unsuccessful due to a fragmented approach. Different government departments are working independently and sometimes even conflicting with each other in their attempts to address the issue.
• A closer examination of unemployment solutions reveals that all proposed actions are closely interconnected. The quality of education and the skills acquired are directly related to the industry's requirements.
• Therefore, for education to be relevant, the Department of Education needs to align its curriculum with industry expectations and adequately prepare students for the workforce.
• Likewise, to prevent rural-to-urban migration, it is crucial to provide local communities with necessary infrastructure, diverse job opportunities beyond agriculture, and establish "manufacturing hubs" supported by local cottage industries.
• Consequently, various government departments must collaborate in a coordinated manner to effectively utilize our population's potential.