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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