As the Lok Sabha elections 2024 conclude, India stands on the cusp of welcoming a new government. Over the past two months, the nation has witnessed numerous debates, discussions, and revelations about various issues. Among these, the rising unemployment rates and lack of job opportunities have affected me personally, as someone who’s just graduated from college and is navigating the job market. Despite my efforts in acquiring a degree and honing my skills, I find myself facing uncertainty about the future. The job market feels increasingly competitive, with limited opportunities matching my qualifications and aspirations. As I browse through job listings the prevailing sense of uncertainty weighs heavily on my mind, making me question if enough is being done to create meaningful job opportunities for young individuals like me.
For the past decade, the BJP has led India through achievements and challenges. One of the critical issues that has persisted is the high unemployment rate. Recent data from the Centre for Monitoring Indian Economy (CMIE) revealed that the unemployment rate in India stood at 6.8 percent in January 2024. This marked a significant decrease from 8.7 percent in December 2023, reflecting a 1.9 percent drop within a month. While this decline is encouraging, it merely scratches the surface of the deeper, more complex problems plaguing the labor market.
India’s economy has struggled with stagnating employment growth. The rate at which new jobs are created has not kept pace with the growing population. Employment elasticity, which measures how employment growth responds to economic growth, has weakened. Additionally, the country has experienced a slow structural transformation, which refers to the shift from agriculture-based employment to more diversified sectors such as manufacturing and services. The slow structural transformation in India, marked by the gradual shift from agriculture-based employment to more diversified sectors like manufacturing and services, worsens unemployment because the agricultural sector, though employing a large portion of the workforce, offers limited and often low-paying jobs. The manufacturing and service sectors, which provide more sustainable and higher-paying employment, have not expanded sufficiently to absorb the surplus labor.
Additionally, the rapid growth of the population and urbanization without corresponding job creation, coupled with a skills mismatch where workers lack the qualifications for non-agricultural jobs, further intensifies the unemployment issue. This imbalance hampers economic growth and fails to generate adequate employment opportunities, leading to rising unemployment rates. These issues indicate a fundamental need for policy interventions to spur job creation and economic diversification.
Moreover, the labor market faces brewing structural problems. One of the most concerning issues is the low participation rate of the female labor force. Despite progress in various fields, many women still find it challenging to enter and remain in the workforce. In a survey conducted by YKA and ORF titled “Women on the move” which detailed the impact of safety concerns on women’s mobility revealed that 52% of the women have turned down an education and/or work opportunity due to the commute being unsafe and 57% of the women reported that public transport in India is unsafe, with a similar number (56%) reporting that they have been sexually harassed while using public transport. These alarming statistics highlight that the fear and reality of harassment and unsafe travel environments severely restrict women’s mobility and access to education and employment. As a result, many women opt out of pursuing opportunities that could otherwise contribute to their professional and personal development, thereby reducing their participation in the labor force and perpetuating gender disparities in the workforce.
In the midst of this job uncertainty, I can’t help but reflect on the promises made during the election campaigns. While politicians vow to prioritize job creation and economic growth, the reality on the ground often paints a different picture. The gap between the number of job seekers and available opportunities seems to widen. As a young person eager to contribute to society and build a successful career, I can’t help but feel disheartened by the lack of concrete action and results. It’s not just about finding any job; it’s about finding one that aligns with my skills, interests, and aspirations – a job that offers growth opportunities and a sense of fulfillment.
Here are some steps I believe the new government should consider:
Boost the Manufacturing Sector:
Incentivizing manufacturing can create numerous jobs for both skilled and unskilled workers in India. The “Make in India” initiative has already attracted over $77 billion in FDI by 2020. McKinsey & Company estimates that manufacturing could generate 90 million domestic jobs by 2025, mainly for less skilled workers. Revitalizing and expanding initiatives like “Make in India” can further attract investments and drive job creation, addressing India’s employment challenges.
Encourage Startups and Entrepreneurship:
Supporting startups and small businesses is crucial for job creation. According to the World Bank, small and medium enterprises (SMEs) contribute up to 45% of total employment and 33% of GDP in developing economies. In India, SMEs account for about 30% of GDP and employ over 110 million people. Research by the International Finance Corporation (IFC) indicates that easier access to credit can significantly boost SME growth. Additionally, simplifying regulations and providing necessary infrastructure can enhance their productivity and capacity to create jobs as well.
Invest in Skill Development:
Aligning education with market demands is critical for India’s economic growth. A report by the National Skill Development Corporation (NSDC) highlights that 90% of jobs in India are skill-based, yet only 2.3% of the workforce has formal skill training. Additionally, the World Economic Forum notes that India needs to equip its youth with industry-relevant skills to meet the demands of a rapidly changing job market. Expanding vocational training and skill development programs can bridge this gap
Improve Female Labor Force Participation:
Policies aimed at supporting working women, such as providing better childcare facilities, ensuring workplace safety, and promoting gender equality, can help more women join and remain in the workforce.
Promote Technological and Digital Jobs:
With the growing digital economy, the government should invest in digital infrastructure and education to prepare the youth for jobs in technology and innovation sectors. Data from a report by the Internet and Mobile Association of India (IAMAI) indicates that India’s digital economy is set to reach $1 trillion by 2025, creating significant job opportunities in tech-related fields. Hence, the government investment in digital infrastructure and education is essential to equip youth with the necessary skills to thrive in this evolving job market.
As I await the formation of the new government, I hold on to the hope and expectation that the upcoming government will take decisive actions to address unemployment. Creating job opportunities is not just about economic growth; it is about providing a sense of purpose and stability to the youth, ensuring they can contribute to and benefit from the country’s progress.
The new government has a significant task ahead. By prioritizing job creation and addressing the structural issues in the labor market, they can harness the potential of India’s youth, drive economic growth, and aim at building a more inclusive future for all.