JOBLESS GROWTH

India’s unemployment rate has reached its highest level in 16 months, according to data from the Center for Monitoring Indian Economy. In December, the unemployment rate was 8.30%, up from 8.00% in November. Urban unemployment rose to 10.09%, while rural unemployment declined to 7.44%. The data shows that India is experiencing jobless growth, where unemployment remains high despite the economy growing. This can happen when a large number of people have lost their jobs and the recovery is not enough to accommodate them, as well as those first entering the workforce. There is growing concern that future growth may lead to unemployment due to factors such as de-industrialization, de-globalization, and technological progress. To address this, India must focus on generating gainful employment opportunities, particularly in high-skilled areas, and improving the standard of health and education to make the Indian workforce skilled and efficient. The government has set up the National Skill Development Corporation with the goal of skilling millions of people, and investments in primary, secondary, and higher education are also needed. Additionally, improving healthcare infrastructure will ensure that the young labour force is more productive, thereby increasing the productivity of the economy.

Jobless growth, also known as “growth without jobs,” is a phenomenon in which an economy experiences economic growth but no corresponding increase in employment opportunities. In recent years, this has become a major concern in India, where economic growth has been strong but job creation has lagged behind. One major contributor to jobless growth in India is automation and technological advancements. As automation and technology continue to advance, many jobs that were previously done by humans are now being done by machines, leading to a decrease in the demand for human labour. Additionally, the rapid growth of the service sector in India has led to a shift away from manufacturing and agriculture, which are typically more labour-intensive industries. Another contributing factor to jobless growth in India is the lack of proper education and training for workers. Many workers in India are not equipped with the necessary skills and knowledge to take advantage of the job opportunities that are available. This problem is exacerbated by the fact that many workers in India are not covered by social security and unemployment benefits, making it difficult for them to transition to new jobs.

The government of India has taken some steps to address the issue of jobless growth. For example, the Make in India initiative, which aims to promote manufacturing in India and create jobs, was launched in 2014. Additionally, the Skill India initiative, which aims to train and educate workers, was launched in 2015. However, these initiatives have not yet been fully implemented and their effectiveness has been questioned by some. Additionally, the low labour force participation rate also is an issue, especially among women and in rural areas, which further aggravates the issue of jobless growth. The jobless growth in India is a cause for concern not just for the individuals and families affected by it, but for the country as a whole. High unemployment can lead to social and political instability and can slow down the pace of economic growth. To address this issue, the government and private sector must work together to create more job opportunities and to equip workers with the skills and knowledge needed to take advantage of these opportunities. In order to address the issue of jobless growth at the local level, it is important for governments to take a proactive approach. One effective strategy for local governments would be to invest in programs that promote job creation and economic growth in their communities. This can include providing funding for small businesses, offering tax incentives for companies that create jobs, and investing in infrastructure projects that stimulate economic activity.

Therefore, the government can also play a key role in equipping workers with the skills and knowledge needed to take advantage of job opportunities. This can include investing more in vocational training programs, adult education programs, and apprenticeship programs. By working with local businesses and organizations, local governments can ensure that their training programs are tailored to the specific job opportunities that exist in their communities. In fact, there is a need to address the structural issues in the economy and create job opportunities for its citizens, ultimately reaping the benefits of India’s demographic dividend.