Unemployment in India: Issues and Solutions

Introduction

• Current Issue: Unemployment is one of India's most significant challenges.
• Statistics:
  • 1 out of 3 Indian youths is unemployed.
  • Unemployment rate among graduates is 29.1%.
• Paradox: Despite a large market and growing economy, job opportunities are lacking.

Scale of the Problem

• India's Market: Huge demand for various products and services.
• Corporate Profits: Companies like PepsiCo and Coca-Cola have massive revenues but do not provide sufficient jobs.
• Economic Standing: India is the 5th largest economy with ambitions to become a $5 trillion economy, yet job scarcity persists.

Government Promises and Reality

• Promises by PM Modi: Striking contrast between promises during election campaigns and actual job creation.
• Media Reports: Varied narratives; some media claims Modi never promised specific job figures.
• Reality Check: Some states, like Haryana, show the highest unemployment rates despite promises.

Media Narratives on Employment

• Blaming Citizens: Claims that citizens prefer government jobs for bribes or are not skilled enough.
• Skill India Program: Questionable success given the skill gap highlighted in media reports.

Educational Infrastructure

• Higher Secondary and Dropouts:
  • 28.5 million students enrol in higher secondary schools yearly.
  • Dropout rates at various educational levels.
• Mismatch in Higher Education:
  • Insufficient college seats for medical and engineering aspirants.
  • High competition and high fees limit access.

Medical Education

• Seat Availability:
  • 108,000 MBBS seats and around 140,000 including BDS.
  • Over 2 million applicants for NEET UG.
• Private Colleges: High fees make education inaccessible for many.

Engineering Education

• Decline in Seats: Number of engineering seats is decreasing despite increasing population.
• Vacant Seats:
  • Significant portion of seats in engineering colleges remain un-filled.
  • Reasons include high fees, poor education quality, faculty shortage, and infrastructure issues.

Alternative Education and Job Training

• Industrial Training Institutes (ITIs):
  • Around 15,000 ITIs with 2.5 million seats.
  • High vacancy rates and low employability post-graduation.

Job Market and Employment Trends

• Manufacturing Sector: Jobs in the manufacturing sector fell by 30% from 2016 to 2023.
• Insecure Jobs: High job loss during and post-COVID.
• Tech Industry: Mass layoffs and reduced hiring in prominent IT companies.
• Employee Burnout: High levels of workplace exhaustion among employees.

Private Sector Employment

• Employment vs. Profit: Large companies show increasing profits but low employment rates.
• Examples: Coca-Cola, Twitter, ITC employ relatively few people compared to their market caps.

Employment Creation

• Handicrafts and Cooperatives:
  • Significant employment through small enterprises and cooperatives.
  • Example: Handicrafts sector employs millions with a modest market size compared to corporate giants.

Recommendations for Government Action

• Filling Vacancies:
  • Central and state government job vacancies need to be filled.
• Educational Improvements:
  • Building and enhancing schools, colleges, and institutes.
• Promoting Small Enterprises:
  • Support for cooperatives and small businesses through infrastructure and market access.
• Government Interventions: History of successful government interventions.

Self-Initiated Solutions

• Skill Acquisition: Focus on learning new skills and seeking internships or practical learning experiences.
• Entrepreneurial Efforts: Starting small businesses and local enterprises.

Conclusion

• Economic Reality: Large companies and economic growth do not directly translate to job creation.
• Action Required: Both government intervention and individual efforts are essential to address unemployment.

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Resources: Various courses and self-help audiobooks can aid in skill development and job readiness.