Table of Contents
Did you know nearly 50% of India’s young graduates are currently jobless? This means that nearly half of the country’s youth with degrees are struggling to get jobs.
Indian-origin people are CEOs of some of the billion-dollar companies and are taking Silicon Valley by storm. The country has no dearth of talent and ambition. Yet, this staggering statistic highlights a critical and growing crisis—the unemployment problem in India.
Let’s explore the depth of the challenge and gain clarity about effective and innovative solutions that could potentially reduce unemployment and redefine the future of India’s workforce.
Delve in!
The reality of Unemployment in India
“The challenges are real, from tech sector shake-ups to competitive job markets.”
India is growing and so is the number of jobless people. Educated youth are unemployed as they are finding it harder to get jobs. If you check LinkedIn, don’t be surprised to find 500+ applicants for a single job and that too, within 24 hours of the posting. India’s current unemployment rate presents a grim picture.
“With the unemployment rates close to 9.2%, finding a job feels like finding water in a desert!”
While growing up, we are told that degrees will get us jobs. If you go for a master’s, chances will be much better. But how much of that is now true? Does a degree assure employment?
The causes of unemployment in India are complex and challenging. Be it economic fluctuations, technological advancements, or an education system struggling to keep up with the rapidly changing world. Do you know what is particularly concerning? The educated ones are not getting jobs.
This educated unemployment highlights a critical mismatch between skills taught and skills needed in the job market. Considering this, how do we tackle the unemployment problem in India?
ILO Claims: 83% Youth Unemployment
Did that sink in?
As per ILO, the International Labour Organization, 83% of youth in India are unemployed. But, on the contrary, the educational institutions in the country are increasing. Apart from the obvious lack of jobs, it could mean that job seekers and new graduates are unable to meet the demands of the job market. The critical and often ignored issue is the lack of employable skills that can help people secure meaningful employment.
Does this also mean that our education system has failed to provide students with job-related and relevant skills? Possibly.
Post-COVID Impact on Job Loss
We all know that the deadly COVID-19 pandemic led to unemployment.
The widespread job losses had a devastating impact on India’s job market and further exacerbated the unemployment problem in India. The lockdowns and other restrictions closed down numerous businesses and deprived people of their livelihoods.
Specifically, the impact on the informal sector which also employs a large chunk of the workforce was devastating. Overnight, people were jobless with no chance of re-employment. The resultant economic slowdown exposed the vulnerabilities in India’s job market.
Degrees vs. Less Education
India’s job market presents a paradox!
The ILO report also states that in India, individuals with higher degrees are often less likely to secure jobs. It is a case of demand and supply.
Research explains that in certain fields, the ‘oversupply’ of degree holders along with the lack of job-specific skills, has resulted in a saturated job market. Yes, we are again discussing the problem of educated unemployment in India.
While those with less formal or vocational education are faring better, the ‘highly educated’ folks are struggling to find suitable employment. Peculiar, isn’t it?
Are people settling for lesser jobs?
Unemployment is forcing people to settle for jobs which do not match their qualifications or skills. People are forced to settle for less-paying jobs. We have all come across or heard of such instances. Haven’t we?
Remember the story of a Zomato delivery boy with a postgraduate degree? He had to settle for a job below his qualifications. Individuals also take up short-term or low-paying gigs to make ends meet. This bleak reality also depicts the long-standing mismatch between the job market and education and highlights the magnitude of unemployment in India.
Due to the severe underutilization of skills, disguised unemployment is also increasing!
What is disguised unemployment?
Let’s discuss the less-talked-about issue of disguised unemployment!
It simply means that more individuals are employed for a job than needed. The true and shocking extent of joblessness remains hidden. This phenomenon distorts the economic data and hampers the workforce’s growth potential. Hence, the people at large remain unaware of the magnitude of unemployment in India.
If we were to remove the excess workforce, it would not affect the overall productivity. This means that a portion of the workforce is redundant. Disguised unemployment is commonly seen in agrarian economies or sectors. Here, the supply of labour is more and not efficiently utilized. The large number of people employed in farming or the surplus labour force could be employed in sectors where there is a greater need for workers.
Impact of Disguised Unemployment
- Economic Inefficiency: The underutilization of the surplus workers hampers economic growth as they are unable to meaningfully contribute to the economy.
- Low Income and Poverty: People who are part of the surplus workforce often earn lower incomes as there is no significant value addition. They are unable to invest in education, health, and other essential services. This creates a vicious cycle of poverty.
- Social Issues: People in this situation feel undervalued and dissatisfied. Lack of job opportunities results in migration from rural to urban areas and this leads to overpopulation and further strains the urban resources.
Overcoming Unemployment
In comparison with the large economies, India’s unemployment rate is one of the highest. It is certainly not the highest globally, but given the large youth population, the numbers are concerning. More so, due to the surmounting challenge of creating employment opportunities to keep up with the growing workforce.
Time to address the question on everybody’s mind. What can be done to tackle the unemployment problem in India?
Looking at the larger picture, India needs comprehensive strategies with a focus on education, and skill development. To tackle unemployment and create income-generating opportunities, both government policies and individual initiatives are important.
Here are some potential solutions
- By crafting and implementing vocational training programs catered to the job market, job seekers can be equipped with the skills required for jobs.
- Supporting and strengthening SMEs, small and medium-sized enterprises and entrepreneurial ventures can help generate employment opportunities for a growing workforce.
- Government policies should create a robust framework that promotes startups and provides grants for small businesses. The youth can be encouraged to join certified skill training programs and industries could be incentivized to hire more aggressively.
- Those with an entrepreneurial bent of mind can even consider starting their businesses. Youth can embrace flexible career paths and go for creative solutions like freelance projects, other gig economy roles and enhancing personal branding through social media.
- The job market is ever-evolving and our approach to employment must change as well. Jobseekers must update their skills! Apart from degrees, many online courses and certifications provide valuable skills which can help in getting the recruiters’ attention. Many in-demand courses are available for free. Upskill at no cost!
Conclusion
In the face of challenges, it’s crucial to remember: that with the right approach, every obstacle can be overcome. Yes, the picture seems bleak and people are repeating the mantra, ‘It is difficult to get a job!’ But, does it mean all is lost? A big NO. India’s unemployment crisis is complex and multifaceted. Yet, there are steps we can take to turn the tables.
Upskill, update, network, start small, and steadily find your way out of the unemployment situation. Believe in yourself and don’t give up.
To keep getting clarity on such interesting topics, please subscribe to Clarity Circuit.
Recommended Articles
If you found this topic interesting, you might also enjoy reading these articles:
