Near Jobless Growth In India : An anomaly or an outcome of economic reforms

We all are aware of unemployment. It is one of the major problems in our country and this problem is continuously increasing day by day. Amid the ongoing coronavirus pandemic, this problem has magnified in a large proportion but even before this there was huge unemployment in India and this is happening despite India being one of the rapidly growing economies in the world.

What actually does jobless growth mean?

· Jobless growth is a situation where the GDP of the country keeps growing faster than the job opening opportunities for the employees, which results in unemployment.

· As the technology in India is increasing at a rapid pace the GDP of the country increases through technology rather than employment.

· The economic survey of 2014- 15 stated that during the decade of 2001 to 2011 growth rate of the labor was twice the growth rate of employment.

· It was stated by “The India Exclusive report 2013-14 by the Centre of Equity Studies, Delhi” that only 27 million jobs were added in the field of 2004-10 compared with over 60 million between 1999 – 2004.

· There were nearly 43000 job losses in the first quarter of 2015-16, as stated by the Ministry of labor's 27th quarterly employment survey.

· As many as 1.5 million jobs have been lost between 2016-17 in India.

What do you think is the reason behind the jobless growth in our country?

The reason behind this is the large investment in labor-saving technologies as well as automation. Indian companies of IT sectors are also deploying robots as labor substitutes. According to a world bank, the search (2016) 69% of jobs in India may be depleted by automation.

Anomaly or outcome of economic reforms?

· Economic reforms are the changes introduced by the government of India to bring enhancement in the economy of the country through different reforms and policies.

· Many of the experts believe that the jobless growth is a result of economic reforms in which India has opened the upmarket for the foreign companies and adopted the liberal import policies, as a result of this many kinds of manufacturing is taking place outside the country and this results in less number of job openings in India.

· But this is only a partial representation of the actuality (reality). We cannot conclude that reforms are responsible for this, yes it has affected job opportunities in some sectors but it has created jobs in some other areas.

· Also some of the experts think that there could be an anomaly in the data collection process on the basis of which we conclude it is jobless growth. This is because almost 90% of the jobs in India in an organized sector and the data collected does not specify the jobs of the unorganized sector in the surveys conducted. The casual laborers or contract laborers, the roadside vendors who are not shown on the economy are not considered in the job data.

· In addition to the above, rapid increase in the stock market, evaluation of currency, growth in earning from exports could also be a reason for an anomaly in jobless growth.

How can we overcome this?

· Seeing the current scenario, time, and technology is changing. And so the definition of anomaly will also change. The future growth of India in terms of economies is expected to come from the latest technology-driven developments like artificial intelligence, machine learning, and automation. Thus the education quality should be improved involving all these factors.

· The focus should be on vocational courses as well.

· Self-employment should be encouraged.

· Incentives and financial support to new startups.

· More importance should be given to skill development in schools and colleges.

38 views0 comments