Employment Prospects Remain Dismal
The India Commentary view
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By Our Editorial Team
First publised on 2022-04-29 07:15:11
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The India Commentary view
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The ministry of labour released the third Quarterly Employment Survey (QES) for the quarter ending December 2021 and informed the nation that 4 lakh new jobs were created in the formal sector in the quarter, with the manufacturing sector being the largest employer. It also reported that there were 1.8 lakh vacancies in 9 main sectors during the period. This, according to the ministry, shows that there is a rising trend in employment in the organized sector.
But the overall picture for employment in the country is dismal. Trends show that the participation of people in the work force is declining and it mainly because many are opting out from the job market due to unavailability of jobs. Significantly, the number of women opting out is much higher than men. Further, people looking for jobs under MNREGA is still very high, once again proving that organized sector jobs are hard to find. The overall unemployment rate, despite a falling labour participation rate, remains high showing that those looking for jobs are not finding one. The overall employment prospects, even for educated youth, are declining.
The Indian economy is showing signs of improved growth. But the problem is that jobs are not growing at a pace at which new workers are entering the labour force, even at the lower rate of participation. This is mainly because new and large projects are not being started. The government has not started investing in infrastructure and that has failed to kick start the economy in the way it is needed. The shrinking job pie has led to demands for reservations or laws to reserve jobs for locals. This is a dangerous trend which can be reversed only when jobs grow at a good pace.
Image courtesy: cropped from an image at thestreet.com
