While a section and sector of India is busy enjoying its glooming lifestyle and increasing earning potential, job crisis in India is deepening. This is once again highlighted after Indian Railways received over two crore job applications for just one lakh vacancies – two hundred candidates competing with each other for each post. Apathy is, these figures are just initial indicators of the job crisis in India as there are still five more days to apply for these post.
Despite all the claims and statements, job crisis in India is apparently far from over. Most of the industries are going through a transitional phase and actively embracing technology-driven processes, which is resulting in the high demand for government jobs in India. However, the demand for skilled workforce and performance bases payout have forced many state government to look to outsourced model or hire people on contract for a short period.
The loss of existing jobs is only making the situation worse for government and people of India. Last year, between October 2016 and October 2017, 90 lakh jobs were lost. The increasing worrisome employment situation has tagged India with the “job-loss economy”. between 2011 and 2016, the population percentage of working professionally in India declined to 51% from 54%.
Government claim to provide a great push to entrepreneurship in the country has only helped the cause a bit. The real cause behind the deteriorating employment situation is the imbalance between the increasing working population and new jobs. Between 2012 and 2016, the working age population at the rate of 2.9% per year. In contrast, during the same period, the number of people with jobs increased at just 1.2% – half the required rate.
The increasing unemployable skill set is another concern, especially in private sectors, which requires an immediate attention. 95% of software engineers in India developers are tagged as unemployable, claims a recent study done by Aspiring Minds.
The bar of the quality talent we needed a decade ago, has gone up significantly. But the academia has not kept pace with it. What we were developing as talent probably five years ago was still matching the demand then in terms of quality level. Fast forward 2018, due to the advent of Article Intelligence, Machine Learning and IoT enabled devices the required talent pool is completely different, says Sachin Gupta, CEO – HackerEarth.
But, will improved quality talent pool in IT sector solve the employment problem? probably not. Analysts believe that government must focus on tech and non-tech sector equally to create an adequate number of job openings for people belonging to different sectors.
In the non-tech sector, the need of the hour is to improve manufacturing capabilities and capacity in India, feels Paul Krugman, a 2008 Nobel prize winner American economist. he strongly believes that India could overcome the job crisis only by having balanced offerings between services and local manufacturing.
By having the demographic population advantage – the majority of the young population – India could easily eat into the markets share of other manufacturing hubs, likes of China and Japan where a majority of the population is ageing. But if India fails to act now and makes no confident moves, the job crisis in India may only get worse in the years to come.