INDIA’S EMPLOYMENT CHALLENGE

Jun 11, 2024

INDIA’S EMPLOYMENT CHALLENGE

India faces significant challenges in addressing employment, particularly among its youth and agricultural sectors.

EMPLOYMENT ISSUES:

Current Scenario:

• Youth unemployment remains alarmingly high, with a rate of 17% in the first quarter of 2024.
• The unemployment rate for young women is even higher at 22.7%.
• These figures highlight a significant waste of the country’s labor force and a bleak outlook for realizing the demographic dividend.

Informal Economy:

• Over 90% of the workforce is in the informal sector, lacking job security and social benefits.
• A comprehensive approach is needed to integrate informal workers into the formal economy and provide them with social security.

POLICY RECOMMENDATIONS:

National Employment Policy:

• Adopting a National Employment Policy could provide a structured approach to tackling unemployment.
• Direct interventions are needed to increase job opportunities, especially for the youth.

Private Sector Incentives:

• Recalibrating incentives for the private sector, linking them to job creation, can help stimulate employment.
• Fiscal and other incentives should be aligned with the goal of creating sustainable jobs.

Agriculture Sector:

• Agriculture remains a vital part of the Indian economy, with 47% of the population depending on it for livelihood.
• A National Agricultural Policy is needed to ensure comprehensive support for farmers and address the structural issues in the sector.
• Engaging all stakeholders, including farmers’ organizations and state governments, is crucial for effective policy formulation.

Youth Engagement:

• Engaging the young population in productive work can trigger a strong development cycle.
• Policies should focus on creating conditions of freedom, equity, security, and dignity for all workers, as emphasized by the International Labour Organization.

India’s employment challenge requires a multifaceted approach, addressing both the immediate needs of the workforce and the structural issues that hinder sustainable job creation.

SRIRAM’s