Post-2013, employment graph in India has seen a significant (16 per cent) decline with the rate of unemployment among the youth at 16 per cent, says a report released on Tuesday. The report has also cited the country’s failure to convert high rates of economic growth into good jobs especially for its educated youth.
The State of Working India (SWI) report by the Centre for Sustainable Employment at Azim Premji University said there is an urgent need to think comprehensively about employment and for the government to formulate a focused National Employment Policy.
The report, released on Make in India anniversary, highlighted some key areas behind the grim situation of India’s job sector. The manufacturing sector like knitwear, plastics and footwear generated a huge employment from 1980s to 90s but it failed because workers are no longer replaced by machines. Amit Basole, lead author of the report said, “The unorganised manufacturing sector in India is in a bad shape which hampers the overall growth of this sector.”
The report said the increase in unemployment is clearly visible all across India but is particularly severe in the northern states.
Though India has significantly improved its economic growth, but it does not reflect in generating good jobs for the youth. Presently, a 10 per cent increase in GDP results in less than one per cent increase in employment.
The State of Working India Report 2018 also highlighted a hapless picture of caste and gender disparities in the country. “Women are 16 per cent of all service sector workers, but 60 per cent of domestic workers, while overall women earn 65 per cent of men’s earnings. Similarly, Scheduled Castes (SC) formed 18.5 per cent of all workers, but 46 per cent of total leather workers,” mentioned the report.
The ratio of male to female labour force participation rate varies from less than 0.2 in Uttar Pradesh and Punjab to 0.5 in Tamil Nadu as well as Andhra Pradesh, and to above 0.7 in Mizoram and Nagaland, it added.
The report shows that despite high economic growth in the past decade, far fewer jobs have been created than is desirable and there has been an increase in underemployment, unemployment, and informal employment,” said Uma Rani, Senio Economist, Research Department, International Labour Office, Geneva.
Considering India’s poor job structure, the union government should constitute a National Employment Policy in close collaboration with states, the report proposed.