…know the reasons behind the crisis of jobs in India!
India has the world's largest young population. Every year 10 million people join workforce! This number is equal to the total population of the Czech Republic or Portugal! According to the study of CRISIL, in 2014 there will be creation of 3.8 million jobs in non-agricultural sector in India from 2011 to 2019! At the same time, the number of job seekers is much more than that!
The crisis of jobs in India’s IT sector is not the only reason behind unemployment. And in America, visa restrictions and automation can not be considered as the only reason. In addition to the global trends, it is also a problem within our economy. Technological change in the IT sector is being seen as a crisis of jobs, but this is not the complete truth. The crisis of jobs in India is a long term. Learn, for what reasons this crisis is a cause of worry for India’s economy!
Low demand over jobs supply
India has the world’s largest young population. Every year, 10 million people join workforce. This number is equal to the total population of the Czech Republic or Portugal. According to the study of CRISIL in 2014, there will be creation of 3.8 million jobs in non-agricultural sector in India from 2011 to 2019. At the same time, the number of job seekers is much more than that.
Unemployment or lack of skill?
With the unemployment in India, there is also a lack of skilled people. In our country, 10 lakh engineers are prepared in a year, of which 90% does not have enough skill for job. Apart from this, new technologies such as AI-VR, new techniques like machine learning and data science have also created a crisis.
Despite the protectionist policies of many countries, the levels of world trade remain almost the same. Taking advantage of this, China is giving employment to crores of people in its manufacturing sector. However, this option has not been developed in India.
Job crisis to those who have left the farm
According to the estimates of CRISIL, 12 million people will join the agriculture sector from 2011-12 to 2018-19. Between 2004-05 and 2011-12, there were 347 million people in this sector, in this case this figure is very weak. Agriculture sector contributes 15% of India’s GDP, but it has 45% workforce. The problem is that people who have left the sector are not getting enough job opportunities.
There is no shortage of economic growth in India, even in more than 7% growth in some years. But, compared to this, employment opportunities could not be created. According to CRISIL Research, in the last three years, financial services, real estate and professional services, public administration, defense and community services and trade, hotels and restaurants have grown even more than GDP growth. Except hotel and restaurant, then there are not many employment opportunities in other sectors. Apart from this, sectors like agriculture, construction and manufacturing, which give the highest number of jobs, have been behind the overall GDP in terms of growth. That is why some experts have called it ‘jobless’ growth.
Wages increase, companies drop out
At one time, the rate of pay-allowance was low compared to most developed countries in India. BPO’s business increased rapidly due to this. Ten or 15 years ago, companies such as General Electric and American Express were fast-growing in India, but with increments now, multinational companies have started migrating. As American Express has sent most of his back office to the Philippines.
Lack of sunrise sector
In the past decade, when one sector was in weakness, then there was a boom period in some new sector. But, there is a lack of such a sunrise sector in the current round. For example, after the IT sector, the telecom and retail boom got to see. However, no Sunrise sector is seen in the current period.