Open Forum

New Delhi, 25 October 2023

Providing Jobs

IS GOVT REALLY SERIOUS?

By Dhurjati Mukherjee 

It was indeed encouraging to hear that India’s impetus in the tech and digit manufacturing sector will create as many as 50 lakh jobs in the next three years. This was pointed out by Minister of State for IT and Electronics Rajeev Chandrasekhar, at the Right to Excellence Tech Summit 2023, held last month by The Times of India group. Dealing with the success of ‘Made in India’ programmes, he referred to the iPhone 15 unit and the Micron ground-breaking $2.8 billion semiconductor plant in Gujarat. 

“We are one of the fastest growing digital economies in the world and are encouraging companies to move supply chains to India,” he said and added the target is to hit $300 billion turnover in electronics by 2025.Companies such as Apple, Micron and others are looking for trustworthy partners and economies, he exuberated confidence. However, while it can’t be denied that the country has an edge in the tech sector, it is a fact that huge, automated plants cannot solve the problem of unemployment, as these are not in a position to provide jobs as per the increasing requirement. 

With State elections being announced and political parties announcing list of candidates, the Congress and members of INDIA bloc are focussing on unemployment in a big way. In fact, joblessness is a critical issue that continues to challenge the economic landscape of India. As one of the world’s most populous nations with a diverse workforce, fluctuations in the unemployment rate have far-reaching implications for the country’s growth and development. The question arises what is the current unemployment rate in India? Will the term ‘jobless growth’, which we have been hearing for quite a few years, continue and for how long? When will women become a significant part of the workforce? 

Though the latest data indicates a glimmer of hope, as India’s unemployment rate has recently declined. According to the National Sample Survey (NSSO), the unemployment rate for individuals aged 15 years and above in urban areas decreased to 6.8 percent during January-March 2023 from 8.2 percent a year ago, there is no need to be complacent. According to the recent Bloomberg report that references data from the Centre for Monitoring Indian Economy (CMIE) for July, the overall unemployment rate in India was 7.95 percent as of July this year and has been calculated at 8.44 percent in August. Thus, all talk of the economy strengthening has not been reflected in the creation of jobs. 

This apart, the recent weather patterns across the country have brought about significant changes in economic conditions. Given that rainfall has covered large parts of India, impacting nearly half of the agricultural land, expectations of higher farm production have risen. It is expected that this development has the potential to contribute to the overall economic growth. However, despite the boost in the agricultural sector due to improved rains, there has been a notable drop in demand for labour from the non-agricultural sector in rural areas during July. 

As a result, the number of rural labourers seeking employment has decreased, leading to a decline in the rural employment rate. The labour force in rural India experienced a reduction of approximately five million individuals. This decline was also witnessed in urban areas, indicating a broader economic weakness that demands attention. These changing trends in labour demand and employment rates call for thoughtful policy measures to address the prevailing economic challenges and ensure sustainable growth both in rural and urban areas. 

According to a recent study by Azim Premji University’s State of Working India, employment related data show that the resilience of the job market, particularly for women and young graduates, has lagged compared to the growth of the overall economy. The unemployment rate in 2021-22 was just 6.6 percent, which was just two percentage points lower than the same in 2019-20. However, an analysis by the SWI report revealed a structural deterioration in the nature of women’s employment, which has largely been driven by self-employment, particularly in the category of unpaid work. 

Therefore, it may be concluded that the job market for women hasworsened, and this trend has continued till the end-2022. The monthly earnings are higher than both 2019-20 and 2020-21. But these earnings of Rs 12.089 in 2021-22 was lower by 2 percent than the same in 2017-18, the year the government began to present annual employment data. It is thus not surprising that political parties are rushing to tailor fiscal policies to provide monthly income support to women in different States. Experts are unanimous in stating that India’s transformation in the job market has lagged the growth in GDP.  

Though the thrust on manufacturing may yield dividends for the economy, job creation may be a far cry. There has to be some special effort to identify the labour-intensive sectors and give special benefits considering the number of labour/employees they recruit. In fact, there needs to be a comprehensive plan with incentives, and this must be formulated by the Centre and sent to all the States for implementation. 

The other important thing is the need to fill up vacancies of teachers in schools and colleges spread across the country. Most States are financially distressed and, as such, do not want to fill up the vacant posts. Not just in education and health, in others as well like municipalities, village health centres and hospitals and even panchayats, there are huge vacancies in most States. Providing them jobs would surely bring down the unemployment rate.   

Another important area is with regard to MGNREGS where funds provided are hardly capable of providing employment for 35 days or so with the current wage prevailing in the respective States. Most State governments pay less than the minimum wage rate and try to provide employment for 40-45 days whereas the scheme is destined to generate employment for 100 days a year. When governments can beautify cities, build huge convention centres, modernise airports, should not allocation for this programme be enhanced on a priority basis?   

There have also been suggestions by a large section of economists and developmental experts on starting an urban employment scheme to bridge the huge gap here. Such a scheme would augur well as those given say 50 or 60 days of assured employment could be gainfully used in various areas – be it in the municipalities, electricity boards or in government offices. Though the ruling dispensation is yet to react to this proposal, it is necessary that a concentrated effort be made to put pressure on the government. 

Providing employment to our increasing workforce is crucial for socio-economic and political stability. Unless the young generation is gainfully engaged, there would be repercussions that may destabilise the social order. This sadly may happen and worse the political leadership is taking advantage of it. With Opposition parties harping on joblessness and hollow promises of the BJP at Centre during the upcoming assembly polls, it would be worthwhile to see what priority is given to it by those who come to power. Enough of talk and little action. ---INFA 

(Copyright, India News & Feature Alliance)