Job Creation Slumps To A 7 Year Low, Narendra Modi Could Face The Wrath Of The Youth
Whatever the ideology may be, whatever the promises may be, if there is one statistic which people guage a performance of a government, it is the creation of jobs. To put it in perspective why job creation is high in priority among the voters, it is because 12 million people in India adds to the list of job seekers every year. And there is barely any breathing space for the government when it comes to creating jobs or create an atmosphere where people could create jobs.
The recent government data shows that employment generation in eight sectors have hit seven-year low in 2015.
In 2014, which was the last year of UPA regime, 4,21,000 jobs were created in textiles, leather, metals, automobiles, gems and jewellery, transport, information technology and the handloom sectors together. Whereas, in 2015, these sectors created 1,35,000 jobs — a straight 67 per cent decline. Besides, over 20,000 people lost their jobs in these sectors bin October-December last year, partly because of shrinking exports.
Though India has been tagged as the world’s fastest growing economy, it has failed to create enough job opportunities for the young force or what you might call it as ‘jobless growth’.
IndiaSpend reports that the country need to generate at least 280 million jobs between now and 2050, the year when the working-age population (15 to 64) will peak.
Some of the major problems Indian job market is facing are:
- In 2015, India added the fewest organised-sector jobs—in large companies and factories—in seven years across eight important industries.
- The proportion of jobs in the unorganised sector—without formal monthly payment or social security benefits—is set to rise to 93% in 2017.
- Rural wages are at a decadal low, as agriculture—which accounts for 47% of jobs—contracted 0.2% in 2014-15, growing 1% in 2015-16.
- As many as 60% of those with jobs do not find employment for the entire year, indicating widespread ‘under-employment’ and temporary jobs.
- The formation of companies has slowed to 2009 levels, and existing companies are growing at 2%, the lowest in five years.
- With large corporations and public-sector banks financially stressed, the average size of companies in India is reducing, at a time when well-organised large companies are central to creating jobs.
The labour bureau survey found that 19,000 people lost jobs in the gems and jewellery sector in 2015, followed by followed by handloom/Powerloom at 11,000.
Employment fell by 8,000 each in leather and automobiles sectors while 4,000 people lost their jobs in the transport sector. IT and BPOs remain to be the highest number of jobs creators adding 76,000 employees during 2015.
The Logical Indian requests the government of India to put all their effort in ensuring the youth of India get into jobs and contribute to nation building. If we fail to create the jobs for the youth, we will fail to reap the benefits of demographic dividend.