UNEMPLOYMENT CRISIS IN INDIA

Amidst all the problems that exist in India, the unemployment crisis is at the topmost position. A report by Center for Monitoring Indian Economy (CMIE) reveals India’s unexpected increased unemployment rate to 24% in April 2020, then decreasing to 9.1% in December 2020 and 6% in January 2021. Thus impacted as many as around 90 lakh people losing jobs during the worldwide COVID-19 lockdown. The number of unemployed people might have deceased over the period, but unemployment still remains an unsolved problem in India.

Problems caused due to unemployment

Unemployment and poverty goes side by side. The problem of unemployment gives rise to the problem of poverty. Young people after a long time of unemployment find the wrong way to earn money. To get rid from the unemployment stress, they accept alcohol or drugs. The personal and social costs of unemployment include severe financial hardship and poverty, debt, homeless and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence an self-esteem, the atrophying of work skills and ill-health.

Haryana- The highest unemployment rate in India.

Haryana recorded the highest unemployment rate in India, as per the data released by the Center for Monitoring Indian Economy for February 2021. With a 26.4% unemployment rate. Haryana’s unemployment is nearly four times the national average. The spike in the unemployment rate comes after the state saw a considerable dip in the jobless figures in January 2021. In January, the unemployment came down to 17.7% from over 32% in December 2020. Economists and industries have attributed this to extreme volatility in the market.

Types of unemployment crisis in India:

  • Disguised unemployment: When organizations hire employees more than they need.
  • Structural unemployment: When employees skill set mismatch with their jobs roles due to the unavailability of jobs in the market.
  • Seasonal unemployment: When people do not have work during certain seasons of the year, like labourer in India rarely earn through daily wage jobs throughout the year.
  • Technological unemployment: It is when people lose their jobs due to technological advancements. Example- manual processes replaced by digital and automation.
  • Cyclical unemployment: When a massive number of employees are removed from the organization during recessions.
  • Frictional unemployment: When people are unemployed for a short period while searching for a new job or switching between jobs. The reason for this type of unemployment is not a shortage of jobs, instead the employees themselves quit their jobs in search of better job opportunities.

Major causes and impact of unemployment

  • Large population-India has crossed 1,389,456,823 population already with only $1,877 per capital income.
  • Low or no educational levels-As per NSO’s report, India’s average literacy rate is 77.7%. The sad part is, almost 2 million graduates and half a million postgraduates are still unemployed in India.
  • Low employment skills.Around 47% of graduates in India are not suitable for any kind of job role.
  • Job opportunity and skills mismatch-According to a report, 48% of urban youth face the problem of landing a suitable job, 38% of those who are employed are dissatisfied with their current job.
  • Societal responsibilities for women-Only 19.9% of educated women in India are employed, as many of them are graduates but have to get married right after their graduation, others quit jobs due to family responsibilities or pregnancy and maternity gap.

Solutions to unemployment

  • Education-For every problem in the world,education stands as the strongest solution. Education is the basic right of any citizen and it should be provided with minimum fees. Right from equal educational facilities, to skill-based and computer knowledge, the educational system can and should be improved.
  • Career guidance-Job seekers who are educated but could not figure the right career path should consult a career guidance expert. Every industry has numerous career opportunities but Indian workers lack complete awareness about the same. A career guidance expert can help job seekers understand the industry know-how, zero down on the best career option and choose the right career path for them.
  • Skill-based training-Every job role requires a specific skill set and every job seeker should get trained in those skills. Many EdTech startups provide career guidance with industry, job or company-specific training to hone organizational skills. These skills training sessions also include resume through mock interviews and everything that can help job seekers become employable.