Reasons For Job Crisis
Some of the most common factors that lead to skills mismatch and restrict job opportunities are mentioned as follows:
- Quality of education is becoming insufficient to match job requirements.
- Rapid technological development decreases the need for specific skills.
- Process automation makes specific skills obsolete.
- Lack of vocational training to develop skills required for industries.
- Demographic change leads to limited job opportunities.
- Lack of access to information about the requirements and responsibilities of a position.
- Preference for a specific type of job creates saturation and fewer opportunities.
- New forms of work culture affect employment stability and employee retention.
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%.