Article writing about increasing number of unemployed youth in india
Answers
Unemployment is a situation where in the person willing to work fails to find a job that earns them living.
According to Labour Bureau data released in April 2016, textiles, leather, metals, automobiles, gems and jewellery, transport, information technology and the handloom sectors together created 135,000 jobs during 2015 which is 67% lower than 421,000 jobs that were added in 2014 .
Unemployment rate was 4.9 per cent in 2013-14, 4.7 per cent (2012-13), 3.8 per cent (2011-12) and 9.3 per cent (2009-10).
Labour Bureau did not bring out any such report for 2014-15.
GROWTH WITHOUT JOB
Many wonder why an economy supposedly growing at a rate of over 7 per cent is not creating enough jobs. Economists say this is because more work is now being done with fewer employees. "The economy is generating less jobs per unit of GDP," says D.K. Joshi, chief economist at ratings and research firm Crisil.
Illustratively, in manufacturing, if 11 people were needed to execute a piece of work that generated Rs 1 million worth of industrial GDP a decade ago, today only six are needed. Joshi's verdict: "The economy has become less labour-absorbent."
About 12 million people join the job seekers’ queue in India every year. While industry is creating jobs, too many such jobs are in the informal sector, which accounts for 84% of current jobs.
UNDP REPORT 2016
The United Nations Development Programme (UNDP) report said that while a vibrant informal economy keeps a large number of low-wage workers employed, such employment leads to many problems, including inadequate protection for workers.
For instance, in India 1 in every 10 workers is employed in the construction sector.
On the other hand, employment growth in services has been slow in recent years. India’s challenge is to create the conditions for faster growth of productive jobs outside of agriculture.
Worse, during October to December last year, 20,000 people lost jobs in these sectors, partly because of shrinking exports. Merchandise exports have shrunk for 15 successive months till February as orders continue to dry out from much of Europe.
This unemployment comes at a time when every sector is short of skilled workers — from masons to teachers to waiters to engineers — perhaps a reflection of an education system that is not imparting skills the economy needs.
Of India’s 1.2-billion population, 60% are of the working age. And of the 12 million individuals who join the queue of job seekers every year, only 4% undergo vocational training.
Image Source - India today
REASONS FOR THE FALL (refer picture above)
Increased automation of operations.
India’s growth model is capitalist intensive and less labour intensive.
Lack of ease in hiring and firing(pending labor reforms) has discouraged industries to hire more.
High interest rates and excess capacity have hurt expansion plans.
Falling exports for over a year due to global slowdown.