Unemployment is a critical issue that continues to challenge India’s economic landscape. As one of the most populous nations, fluctuations in the unemployment rate have far-reaching implications for the country’s growth and development. According to the National Sample Survey Organisation (NSSO), the unemployment rate for individuals aged 15 years and above in urban areas decreased to 6.8 percent during January-March 2023 from 8.2 per cent a year ago. This positive development suggests a potential turnaround in the job market amidst the prevailing economic complexities.
The unemployment rate witnessed a sharp decrease in January 2024. According to the latest data from the Centre for Monitoring Indian Economy (CMIE), an independent think-tank, the unemployment rate in India saw a decrease of 1.9 per cent in a month, as it was 8.7 per cent in December last year.
Hence there is a misconception, that we have mostly recited about the unemployment rate in India, that there's always more unemployment among highly qualified people.
However, there can be situations that make it seem that way. Here's a breakdown of why this might happen:
- Skill mismatch: Sometimes, the education system might not be perfectly aligned with the current job market needs. This can lead to a situation where there are many graduates with qualifications that aren't in high demand.
- Job Expectations: Highly skilled people might have higher salary expectations or be looking for specific job roles that match their qualifications. This can make it harder for them to find a job that meets their needs, especially if there aren't enough of those positions available.
- Focus on degrees over skills: In some cases, the emphasis might be on getting a degree rather than developing specific job-related skills. This can leave graduates unprepared for the practical demands of the workforce.
- Global competition: The job market can be increasingly global. This means highly skilled people might face competition from qualified individuals from other countries, especially for remote work opportunities.
- Population: India has a population of 1.44 billion which India has overtaken China in terms of population. So, it is also a reason for the higher unemployment rate in India.
Several policies have been initiated by the government to reduce the problem of unemployment in India. They are: -
- MNREGA – Mahatma Gandhi National Rural Employment Guarantee Act launched in 2005 providing the right to work to people. An employment scheme of MGNREGA aimed to provide social security by guaranteeing a minimum of 100 days paid work per year to all the families whose adult members opt for unskilled labour-intensive work. .
- PMKVY – Pradhan Mantri Kaushal Vikas Yojana was launched in 2015. The objective of PMKVY was to enable the youth of the country to take up industry-relevant skill training to acquire a secured better livelihood.
- The government launched the Start-Up India Scheme in 2016. Startup India programmes aimed to develop an ecosystem that nurtures and promotes entrepreneurship across the nation
- Stand Up India Scheme also launched in 2016 aimed to facilitate bank loans to women and SC/ST borrowers between Rs 10 lakh and Rs. 1 crore for setting up a greenfield enterprise.
- National Skill Development Mission was set up in November 2014 to drive the ‘Skill India’ agenda in a ‘Mission Mode’ to converge the existing skill training initiatives and combine scale and quality of skilling efforts, with speed.
It's important to remember that these are just some possibilities, and the unemployment situation can vary depending on the specific qualifications, location, and economic conditions. It's just we have to work together to reduce unemployment for the growth and development of our country.