Skip to main content

India's 7% GDP growth leads to less than 1% job growth: 14-16% youth, highly educated are unemployed

By Rajiv Shah
A just-released study “State of Working India 2018”, prepared by the Centre for Sustainable Employment of the Azim Premji University, has said that if in 1970s and 1980s, when GDP growth was around 3-4%, employment growth was around 2%, but “since the 1990s, and particularly in the 2000s, GDP growth has accelerated to 7% but employment growth has slowed to 1% or even less.”
Pointing out that today the situation has reached a point where a 10% increase in GDP would lead to “less than 1% increase in employment”, the study says, it calculates unemployment rate as “the share of the labour force that is not part of the workforce” – the reason being that “those above the age of 15 may be looking for work but are unable to find it for at least six months of employment.”
Calculated thus, the study says, in 2015 the unemployment rate was 5%, and stood at 5.7% in June 2018.
However, according to this study, “The unemployed are disproportionately young”, adding, “More than 60% of them are in the 15-25 year age group. In contrast, this group constitutes only 30% of the total working age population.”
“In fact”, according to the study, “If we look at the unemployment rate in just the 15-25 year group, it is much higher at 16.5%, similar to the rate among the college-educated.” Against this, the data released in the study show, the unemployment rate is 4.7% in the age 26-35, falling to 1.4% in the age group 36-45, and 0.8% in the age group 46-55.
Further, the study shows that among the higher educated sections, unemployment rate is very high – it is 16.3% among the graduates, 14.2% among the post-graduates and above, 11.1% among the diploma-level undergraduates, 11.3% among those with the certified course at undergraduate level, 4.2% among those who are only secondary educated, 3% among middle-educated, 2.4% among the primary educated, and 1.8-2% among the illiterate or semi-illiterate.
The study states, “Highly educated unemployed people overwhelmingly report that the reason for unemployment is that they did not find a job that matched their skills”, adding, “This obviously points to the issue being not only one of job creation, but of the creation of decent and desirable jobs.”
According to the study, “This phenomenon of mass unemployment among educated, young men is manifested in various ways. Consider the fact that almost every public sector recruitment drive is massively over-subscribed.”
“For example”, it says, “In early 2017, the West Bengal government held an examination for 6,000 jobs in the Class IV or Group D category, the lowest category of permanent employment in government service. 2.5 million appeared for the exam, many of them holders of graduate and postgraduate degrees.”
Similarly, the study says, “In 2015, 2.3 million applied for around 400 Class IV jobs in Uttar Pradesh, of them 150,000 graduates”, adding, “Such examples may be multiplied.”
The study further says, “Another way the clamour for jobs has manifested is in mass youth rallies across the country demanding reservations in government jobs. Strikingly, these have been mostly led by youth from traditionally dominant agricultural castes such as Patels, Marathas, Jats, and so on.”
It adds, “Even a relatively better performing state such as Karnataka saw a major political campaign on the jobs issue in the lead up to its 2018 assembly elections.”
Thus, the study reveals that workers receiving a regular salary account were less than 20% of all workers. “A household earning over Rs 1 lakh per month is in the top 0.2% of income earners in the country, while 67% of households report monthly earnings of Rs 10,000 or less” – at a time when “the lowest government salary under the Seventh Central Pay Commission is much higher at Rs 18,000.”

Comments

TRENDING

India reaches 8th of 10 stage genocide: US Muslim advocacy group raises 'alert'

By Hena Zuberi* India has reached the 8th stage of genocide with the persecution of the Muslim community. Stating this, Professor Greg Stanton, who heads Genocide Watch, declared a Genocide Emergency Alert for India today at Justice For All online briefing.

Mayawati's 'success' depends on how BSP taps new crop of young Amdekarite leaders

By Vidya Bhushan Rawat*  Whatever be the election results in Uttar Pradesh on March 10, it is extremely important to understand: that the Bahujan Samaj Party (BSP) and its leader Mayawati have the potential to rise like a Phoenix any time.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Anti-poor? 'Cumbersome' to link aadhaar, voter ID for people sans internet access

By Prashant Kumar Chaudhary, Ajit Kumar Jaiswal*  At present, technology plays an increasingly crucial part in modelling human existence by offering a variety of solutions to many of the challenges individuals confront in the real world. As a result, every branch of research works to provides means to solve these difficulties precisely and efficiently. The Central government works along the same lines as well.

India's actual Covid death rate about 2500 per million, third highest in world: Study

By Rajiv Shah  There is now well-researched proof, if it can be called that, indicating that the Government of India may have fudged data to show lower Covid death rate. A new paper, published in “Science”, has said that while officially the Government of India’s Covid-related death estimates as of January 1, 2022 – 345 per million population – are one-seventh of the US death rate, the actual analysis of crude death rate in India suggests, this may be a gross underestimation. 

Democratic leaders silently greeting Modi's 'increasingly autocratic' rule: HRW

Counterview Desk The Human Rights Watch (HRW)’s new “World Report 2022: Events of 2021”, claiming to “investigate abuses, expose facts widely, and pressure those with power to respect rights and secure justice”, has identified India as one of the countries where “autocracy is ascendant and democracy on the decline” because of emergence of leaders with autocratic tendencies.

Barbaric, inhuman attack on Odisha villagers to implement JSW project: NGO networks

Counterview Desk  A “solidarity statement" issued by three top civil society networks, Friends of the Earth India (FoE India), Delhi Solidarity Group (DSG) and the National Alliance of People’s Movements (NAPM), has asked the Odisha chief minister to ensure that the “inhumane barbaric attack on the villagers of Dhinkia, Odisha” in order to implement a corporate project.

Gender insensitive? Model Gujarat's cyclone relief package ignores 40,000 fisherwomen

CSJ volunteers talking to fisherwomen By Rajiv Shah  A Centre for Social Justice (CSJ) note on the Gujarat government’s compensation package to the victims of the devastating Tauktae cyclone, which hit the coastal belt of Saurashtra's Amerli, Rajula, Una, and Gir-Somnath districts in May 2021, has said, the relief offered was so terribly inadequate that many of the fisherfolk were not able to fish for the rest of the year.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Haridwar call for genocide direct result of Modi 'tolerating' Islamophobic policies

By Our Representative  A high-level briefing organised in Washington DC, in which as many as 17 human rights and interfaith organizations -- including Amnesty International USA, Genocide Watch and Hindus for Human Rights, apart from several persons in their individual capacity -- participated, has come down heavily on what they called "Prime Minister Narendra Modi’s Islamophobic policies and tolerance of open incitement by Hindu extremists for a genocide of Muslims."