Unemployment in India: Causes, Challenges, and Solutions for a Brighter Future

Hello, friends. Unemployment has become a major issue in our country. The India Employment Report 2024 states that one out of three young people in India is unemployed.

Unemployment

Table of contents

Unemployment Statistics

The unemployment rate has reached 29.1%, even among graduates. Why is this happening? Our country has a population of 1.4 billion. Many people need to buy essentials like lentils, rice, flour, sugar, soap, oil, shampoo, t-shirts, shoes, and more.

Market and Foreign Companies

India is a large market, attracting foreign companies that earn significant profits. Some of these companies sell only sugar and soda water." "For example, PepsiCo's latest ROC filing shows its annual revenue in India is ₹8,000 crores. Coca-Cola India's annual revenue exceeds ₹12,800 crores.

Youth Employment Issues

Yet, how is it possible that the youth in our country cannot find jobs even worth ₹12,800? India has become the fifth-largest economy, and there are talks of becoming a $5 trillion economy. However, there are no jobs for many in this growing economy. Who is responsible for this job scarcity?

Government Promises and Reality

In today's discussion, let's delve into the unemployment problem, its root causes, and potential solutions. We will look at both government actions and what individuals can do. Let's start with the government." "Prime Minister Modi had promised to create millions of jobs. Do you remember this, friends? However, some media channels claim he never made this promise." "ABP News conducted a fact-check, stating that PM Modi only mentioned Congress's failure to provide employment. They assert that BJP never promised to create 2 crore jobs per year. Therefore, the accusation of not delivering on this promise is deemed false." "ABP News, whose political campaign are you supporting? Those who keep the youth unemployed will not be forgiven by the public. The situation will change with a change in government.

Advertisement and Public Perception

The ad was run by BJP Haryana. My father always encouraged me to study, but I didn't get a job until I developed my skills." "Haryana has awakened. According to December 2022 CMI data, Haryana has the highest unemployment rate in the country at 37.4%.

Media and Government Accountability

It's not just about Haryana. PM Modi promised jobs in many places. Look at the you tube many of the clips you will get  which is 8-year-old ." "These news channels should watch this 7-year-old clip where the PM talks about creating 1 billion jobs." "Our goal is to create jobs for over a billion young people. TV news channels either discuss unemployment or work hard to protect the government's image.

Media Narratives on Unemployment

Look at Sudhir Chaudhary. A year ago, he did a program questioning why everyone wants a government job. He criticized the public, claiming that people want government jobs to earn more through bribes." "He suggested that the desire for government jobs stems from the opportunity to take bribes. Even with low government salaries, many employees take bribes to earn more. A 2019 survey showed that one in two Indians admitted to bribing a government employee." "According to Sudhir, PM Modi's slogan, 'I will neither take nor allow bribes,' is significant. But Sudhir also blamed the youth's lack of skills for unemployment.

Skills and Education

Who is responsible for this lack of skills? Can we assume that PM Modi's 'Skill India' slogan was also just a phrase? Many people want government jobs through exams, bribes, or political recommendations. The biggest reason for this is the limited working hours and holidays in government jobs." "Sudhir believes that the youth are lazy and unemployed. Let's understand the ground reality. How many jobs are needed in the country? According to the Ministry of Education report 2021-22, 2.85 crore students enroll in higher secondary schools every year." "Do we need this many jobs annually? We should also consider the dropout rate. The UDISC report shows a 12.61% dropout rate at the secondary level and 3% at the upper primary level. Approximately 35 lakh 10th-grade students do not reach 11th grade." "If we consider 12th pass, 12th fail, and dropouts, the overall number would be around 3.3-3.4 crores. Many 12th pass students aim for college. But are there enough college seats for these students? No.

Medical and Engineering Education

For instance, in July 2023, our Minister of Health and Family Welfare stated there are around 1,08,000 MBBS seats in the country, with some additional BDS seats. According to a Times of India report, the total MBBS plus BDS seats are around 1.4 lakh, but there were over 20 lakh applications for NEET UG in 2023." "Out of 15 aspiring doctors, only one gets a seat. The number of PG seats is even lower, with only 67,800 seats. Despite a high number of candidates and demand for doctors, the educational infrastructure is insufficient." "The government has not built enough colleges, universities, or educational institutes. There is another issue: half of the total medical seats are in private colleges with high fees. According to a Times of India report, the D.Y. Patil Medical College in Mumbai charges ₹1.4 crore for an MBBS degree." "In December 2022, the Minister of State for Education revealed that the median fees of private medical colleges are ₹11.5 lakh per year, making the total cost of the degree nearly ₹60 lakh. Deemed universities charge even more, with annual fees of ₹21 lakh, totaling over ₹1 crore." "How many families can afford this? According to the 2022 report 'State of Inequality in India,' 90% of Indian incomes are below ₹25,000 per month. Thus, 90% of the population cannot afford these fees.

Engineering Education Issues

Some news anchors may argue against everyone wanting to become doctors. So, let's discuss engineering. In December 2022, the Minister of State for Education stated that despite the growing population, engineering seats have decreased from 14.65 lakh in 2017-18 to 12.53 lakh in 2021-22." "However, half the seats were vacant in 2017-18, with 48.6% vacant in 2018-19 and 33% vacant in 2021-22. There is no shortage of aspiring engineers, but why are many seats vacant?" "There are four main reasons: high fees, low-quality education, faculty shortages, and lack of infrastructure. Private engineering colleges often have sub-standard faculties and insufficient infrastructure. Only 44.51% of faculty in engineering colleges have a PhD, and many teaching positions are vacant." "In December 2022, the education minister reported 4,500 vacant faculty posts in IITs, with 40.3% teaching positions vacant in 2021-2022. If this is the state of IITs, what about other engineering colleges? In 2019, AICTE reduced 40,000 seats in government engineering colleges due to lack of faculties and infrastructure." "In 2022, Anna University found that over 50% of engineering colleges in Tamil Nadu lacked adequate infrastructure. Many engineering graduates are unemployable due to sub-standard education. A 2019 Aspiring Minds report stated that 60% of engineering graduates lack internships, and only 3% have new-age technological skills." "As a result, over 80% of Indian engineers are not employable, not due to laziness, but because of poor education. Some may suggest other options like joining ITI (Industrial Training Institutes) for skills. While ITIs are a good option, there are only around 25 lakh seats available.

Vocational Training and Job Availability

With 1.5 lakh medical, 12.5 lakh engineering, and 25 lakh ITI seats, the total is less than 50 lakh. Yet, over 3 crore students need education each year. Where will the remaining students go?" "Even if all seats were filled with top-quality education, there is no guarantee of jobs. The manufacturing sector jobs have decreased from 5.1 crore in 2016 to 3.6 crore in 2023, a 30% drop. During the COVID-19 lockdown in April 2020, over 12 crore Indians lost their jobs, and in June 2021, another 1 crore lost their jobs during the second wave." "Post-COVID, in May 2023, 6% of contract workers in India's IT sector lost their jobs. In June 2023, over 11,000 start-up employees were laid off, and in August 2023, tech companies fired over 2 lakh employees. Engineering colleges are struggling as companies like TCS, Cognizant, and Wipro delay campus hiring.

Current Job Market and Employee Well-being

In October 2023, four of the top five IT companies reported negative hiring numbers, except for TCS with 523 new hires. Despite positive quarterly profits, these companies are not hiring. Employees are overworked, leading to burnout." "According to the McKinsey Health Institute 2023 survey, 62% of Indian employees report workplace exhaustion, the highest globally. The Asian Mental Health Index 2023 and the ILO report 2021 also highlight these issues." "Many companies, including Amazon and Meta, have fired thousands of employees. Twitter has reduced its Indian workforce to 80. When companies grow excessively, job growth rate falls. Adani Group, with a market capitalization of ₹11 lakh crores, employs only 43,000 people. Coca-Cola reduced its workforce.

Conclusion: 

In conclusion, the unemployment crisis in India stems from various deep-rooted issues, including overpopulation, inadequate education systems, and a mismatch between skills and market demands. Despite promises from the government, job creation has not kept pace with the growing workforce, leaving many young Indians unemployed or underemployed. The decline in the manufacturing sector and high competition further exacerbate the problem. Media narratives and political promises often mask the harsh reality of limited opportunities. To address this crisis, a comprehensive approach is needed, focusing on improving education quality, expanding vocational training, and creating a conducive environment for job growth. Bridging the skill gap and ensuring equitable access to education are crucial steps. Only through such holistic measures can India hope to secure a brighter future for its youth and effectively tackle the unemployment challenge.