Employment Potential Of A Developing Nation

Employment Potential Of A Developing Nation

Youth is the backbone of any nation and their progress is the indicator of the economic prosperity of nation. Global studies have indicated that number of jobless has increased by 30% after 2007. Thus signalling rise in global unemployed youth. It is really astounding to have a look at the real figures. They are really very discouraging. In South Africa it is almost 55% and in European countries like Greece and Spain the figures are intimidating. ILO predicted that nearly 6% of youth in the age of 15-24 are jobless accounting to 75 million. When it comes to the youth who are inactive referred to as NEETS (not in employment, education and training), constitute 260 million. Youth unemployment would be issue of major concern as the stability and progress of the society as well as country largely depends on the youth.

In India the rate stands at staggering 9.5%. The numbers are really huge in terms of numbers as India contributes to nearly one-fifth of global youth. Though India lags behind several other countries in utilising its natural resources to its advantage, the huge demographic dividend if tapped properly can change the contour of the country. Even highly populated country like China is now experiencing a rise in its aged population. But unfortunately, Government has miserably failed in utilising its great demographic advantage to its benefit and progress.

It is worth noting at this juncture that unemployment is much lower in illiterate population as they are ready to take up any kind of menial jobs. The sudden surge in unemployment is more visible among the educated. The graduates who aim for white collar jobs and are reluctant to take up low paid jobs. India hasn’t developed sufficiently to accommodate the growing number of the graduates in its either manufacturing or the industrial sector which accommodates only 20% and services constitute to 30%. Most of the people seem to depend vastly on the agriculture and its allied activities for bountiful employment which constitutes to nearly 50%. While the NSSO studies puts that nearly 60% of the youth are self-employed. Only 16% youth get regular income, jobs in informal sector account to 85% and in formal sector they are to the tune of 11%.  But in general there is a great concern as 125 million people get added every decade. Further nearly double the number of young graduates strikes the job market than can be placed. Increasing despondency on the part of the educated due to lack of the jobs would result in major unrest and would have an undesirable effect on the social fabric as well.

The educated youth in India are further beset with problem of required skill set needed for immediate placement. The problem is aggravated by the slow growth, which failed to create jobs. Hardly any new jobs have been created during the period 2004-5 to 2009-10, whereas in the previous five years nearly 60million jobs were created. Whereas the economic boom in China has created 130 million jobs. The industrial output in India is at mere 27% while in other big Asian countries it is to the tune of 40-44%. The biggest handicap is our government instead of being proactive in creating new jobs are still depending on the palliatives like the NREGA and other subsidies offered to the villages for their development.

Indian manufacturing giants are keen on foreign direct investment than establishing new firms in India due to the rigid labour laws. Nearly 200 odd labour laws have to be followed to fire the troublesome elements. Moreover, the largest foreign manufacture units in India prefer to use robots, thus the FDI failed to generate new jobs. Hence the answer lies in encouraging the manufacturing sector that can provide more number of jobs. Thus India should concentrate more on making new products than simply squandering this demographic advantage. Though there is great demand for our labour in other countries, it would be realistic to grab the opportunity in developing our infrastructure. Moreover with a concurrent increase of wages in China, foreign giants are keen on shifting their businesses to other South Asian countries. It would greatly benefit an economy like India if it can divert those investments into our country.

Situation in villages is still worse as they lack proper infrastructure thus no scope for industrial growth and hence employment opportunities are bleak. The frustrated youth from villages are now moving to the cities thus adding to the burgeoning woes of the already overpopulated cities. Even in the industrial sector nearly quarter of the jobs are in construction as opposed to the manufacturing sector. Manufacturing units not only contribute to the national income generation but provides an opportunity for exposure to the modern equipment. Thus they enhance the existing skill set and also increase the scope for further training and learning new techniques.

Youth are simmering with anger and their energies are simply getting wasted by their overt presence in protests and agitations. On the other hand, though the youth seem to be more politically active than the previous generation. But hardly any new change can be expected as their political affiliations seem to be same as their parents. Most of them seem to lack the nerve and the objective to envision a new India. The geriatric ruling the country seem to hardly sense the urgent need to arrest the anger among the youth.

The omnipotent and omnipresent corruption, red-tape and crony politics seem to dampen the spirit of the youth. Further, leaders lack the conviction and the single-minded intention to bring about any change in the progress in nation. Especially in terms of creating more manufacturing firms that can engage large number of the skilled as well as semi and under-skilled youth. India is at the verge of simply frittering away its great demographic dividend. Thanks to the lack of vision and commitment on the part of leaders at the top who are busy in constant blitzkrieg and stalling the parliament sessions.

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