Over the last few years India has been experiencing a severe downfall with regard to unemployment rates. Each year, bunch of graduates are left hanging with no jobs in their hands. Not only they feel the lack of governmental attention but also start doubting as to how they will survive on a daily basis. Since childhood, students are bucked up for this rat race; yet all the hard work and so many years of acquiring knowledge goes in vain, as no job sector is ready to offer a job!
India’s job situation, at present, across most divisions seems to display a depressing picture, as perceived from the studies of CARE Ratings Ltd. Their reports manifest that banks, auto-makers and infrastructure companies are among those recruiting at a sluggish pace, leading to decreased gross domestic product (GDP) growth and development of our nation.
Jarring unemployment rates tend to make young individuals stressful, consequently causing a social and political turmoil in the country. Government on the other hand feels the pressure of such job uncertainties and hastily jumps to conclusions that might pose threat to economic downturn.
According to CARE reports, total employment rates improved from 5.44 million as of March 2017 to 5.78 million in 2018, which is an increase of 6.2%, still this increase, estimated in the year end March was lower at 4.3%with the total number of occupied personnel standing at 6.03 million.
CARE further stated although sectors like hospitality saw rising outsourcing, but iron and steel companies witnessed a thorough decline in the headcount due to reduced growth in production and increased indebtedness of banks.
Day after day reality is taking an ugly shape; people migrating from rural to urban cities in search of jobs are no less different than jobless people living in the crowded cities.
Opportunities in cities have equally faded, giving rise to irregularities in the job sector. Job crisis can be felt in every nook and corner of any city, as the pile of applications filled by expectant candidates is mounting up every day. On the contrary, companies are facing a shutdown due to lack of jobs to offer to people.
Besides, the concept of equal- pay- for -equal- work has long been forgotten, the sharp decline in both rural and urban wages are distinctly inducing a slump in the economy. On the other hand, working individuals are complaining about the huge wage disparity gap which not only exits between formal and informal job sectors but also across gender binaries. The wealth distribution mechanism in India has not always been receiving proper attention; neither the labour workfore nor the corporate employees are paid on time.
Due to unequal income levels, gross savings had fallen from 31.1% of GDP in 2015-16 to 30.5% in 2017-18, entirely imparted by household sector savings, which again reduced from 23.6% of GDP in 2011-12 to 17.2% of GDP in 2017-18. The Economic Survey of 2018-19 states the example of China, where higher wages led to increased saving rates. Following such policies will not only enhance wage growth, but also make way for investments and savings.
The issues of job crisis no longer lurks on the edge, this peril topic of discussion keeps popping up in conversations, social media, newspapers, college canteens etc. Still policy makers and rational thinkers seem to lack clarity on this; they are failing to create jobs, even when general Public Sector Units (PSUs) are rapidly declining.