Union finance minister exclaimed drop joblessness by referring to drop in demand for work under MGNREGA, while simultaneously Rahul Gandhi addressing a public amass admonished the government telling that

“The nation’s youth are killing themselves due to unemployment, but a few tycoons have cornered the market”

Jobless growth as seen in reality

According to NCRB data, one person commits suicide every hour as a result of unemployment

After the colonial era, our country has just recently started to mature democratically, but there shouldn’t be any question that India would have a majestic stature if it hadn’t been colonized and pillaged.

Nevertheless, we are capable on a worldwide scale, thanks to the incredible work of our lead predecessors. In an effort to improve the country various administrative reforms were launched.

However, as the nature evolves over time, including the nature of the economy, it was crucial to implement adequate and appropriate reforms in order to address the current situation

Perhaps we currently have “sufficient administrative reforms,” but it is difficult to determine whether or not our efforts are “appropriate.”

The following mathematical graphs show how our GDP growth actually compares to employment.

For twenty years, the rate of employment creation has been negligible

How is the government shrouding the reality of jobless economy

• The following factors are taken into account while calculating unemployment:

     Number of persons seeking employment : Number of people hired

However, the government is falsifying the data and ignoring a huge number of people who are not even looking for a job.

• The most recent survey for estimating poverty was conducted by NSSO in 2017–2018, and it showed exacerbated unemployment following demonetization due to setbacks in several sectors. PLFS confirmed with this finding.
• The GDP contribution of the manufacturing sector has consistently decreased (17% in 2016 to 13% in 2020). Under the pretence of promoting domestic goods, the government celebrated the “Make in India campaign” in the meantime.
• Due to a decline in sales, 81,000 microbusiness units had to lay off 59% of their staff after COVID. Women employees were disproportionately impacted.

The government, however, views the number of new EPFO accounts that appear each year as the accounts of newly employed people, even though some of them may also be the result of shifting jobs.

• There is a decrease in funding for the “Social sector” (which includes employment, rural development, and health care) in the current union budget, and MGNREGA is given a budget of ₹73,000 crores from 2001 to 2021 (although the allocation for 2019–2020 was ₹1.11 lakh crores).

In addition, numerous states recently ran out of MGNREGA money to pay workers’ wages in the months of October and December 2021. Additionally, the process’s newly revised digital attendance system made it difficult for rural areas to comply with technological limitations, which prevents a number of workers from registering their IDs.

However, as was first mentioned, the Finance Minister asserts that there is currently a decline in the demand for MGNREGA jobs.

• Citing COVID-19 as an excuse, the Union government has not yet approved the GST compensation for all of the states, which has an impact on employment generation in each state.
• Due to the depreciation of Indian rupees (due to global inflation caused by the pandemic and Russia – Ukraine war) FPIs are constantly withdrawing out of India.

What are the flaws in policy planning

• Considering instances from countries like the U.S., where the expansion of capitalism and the creation of jobs were favored after the country collected high taxes in the 1970s, shows that either “Socialism / Capitalism” proved to be harmful in the long run.

• In the past, India concentrated on providing significant agricultural subsidies during the 1967 Green Revolution in states like Punjab, Haryana, and Uttar Pradesh, putting pressure on the availability of agricultural land.

This shot-up the use of resources like water, power, and chemical fertilizers, thereby increased government costs and denatured the soil. And eventually the bad effects started to show.

• The focus shifted to industrialization and the service sector after the LPG reforms, but the disabled farmers were unable to work in these fields because they lacked the necessary skills. This led to food inflation on the one hand and unemployment on the other, making it difficult for the poor to afford basic food.

• In addition, India had a disproportionate amount of government influence in all sectors until recently, when it dramatically privatized by weakening labor rules.

• The government is establishing contractual employment plans and eliminating permanent positions in order to avoid paying for pensions, which places a burden on the people once their tenure is over.

Solutions

As per the demographic dividend, by 2036, 65% of the population in our country will be in working age, which can only be tapped into with the right upbringing and seasoning of vital skills through schooling.

• Government spending on health and education must increase from the current level of 2% to 5% of GDP.
• Instead of formalizing the informal economy, enact labor-friendly legislation that is strictly enforced.
• Allow local bodies to set short-term goals and assess their success in place of the long-term SDG targets.
• Women’s involvement in the labor force is appalling (7%) and 95% of women work in the unorganized sector, which lacks amenities like creches, bathrooms, health insurance, etc. This issue needs to be addressed.
• Increase spending on research, technology, and R&D, which promotes greater capital formation and employment.

Can the job-hungry youth of India depend on initiatives like the freedom app, 4 years of contractual employment, the job recommendations on National Career service portal, etc.?

Comment your views below, thankyou

Read More –

1. Unemployment Rate In India Down To 6 Month Low, Report – Asiana Times
2. GDP at record high but unemployment continues to rise – Business News