Possible Solutions For Handling Job Crisis In India
- India should shift focus from capital-intensive to labor-intensive sectors that potentially contribute to industrialization and economic growth.
- There is more opportunity in the service sector that needs to be explored. For example, the tourism sector offers a huge opportunity to provide good quality jobs where you can export your services to foreign tourists and earn money.
- The informal occupations are the professions where India can create many jobs and should focus a lot on skill development activity around these jobs.
- The government should ensure that the employment-intensive industries get support from the government to create more jobs and follow the right kind of policy for employment.
- There is a need to create more job opportunities in small industries in the services and manufacturing fields.
- It is necessary to improve the employability of human resources that empowering them to acquire and improve marketable skills that can lead to more job opportunities, especially in sectors that experience rapid technological and organizational change.
India’s Unique Job Crisis
The job crisis in India has been a crucial factor for economic development because more employment contributes to economic growth by providing goods and services for consumption and infrastructure development. The job opportunities are shrinking considering the vast population and great socio-economic disparity between different levels of society. The major causes of unemployment in India can be attributed to a large population, lack of vocational skills, or low educational levels of the working population. The labor-intensive sectors suffering from the slowdown are also an important factor related to the job crisis. The demonetization of 2016 negatively impacted the informal sector, causing a crunch in industrial output and a lack of job opportunities. In 2020, the covid-19 pandemic caused a drastic setback in India’s job scenario, and the effects are still visible in the economy. The unemployment percentage was low in 2017 but rose and became highest in 2020. Organizations have used the pandemic to trim their workforce and reduce costs which mainly affected the salaried jobs in the private sector. The job crisis has been aggravated over the years and only gets a steep rise due to the impact of the pandemic on new job creation and the recruitment process. In April 2022, India’s overall unemployment rate is around 7.8% in which the unemployment rate in urban areas was 9.22% and 7.18% in rural areas. The state of Haryana has the highest unemployment of 34.5%.