Skip to main content

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

By Our Representative
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 amongst the college-educated.” Against this, the data released in the study show, the unemployment rate is 4.7% in the age group 4.7%, 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 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

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Mental health: India's 95% patients "deprived" of medical care, treatment gap 70%

By Moin Qazi*
Among the many challenges India faces, the most underappreciated is the ongoing mental health crisis. Mental illness is actually India’s ticking bomb. An estimated 56 million Indians suffer from depression, and 38 million from anxiety disorders. For those who suffer from mental illness, life can seem like a terrible prison from which there is no hope of escape; they are left forlorn and abandoned, stigmatized, shunned and misunderstood.

Modi model? "Refusal" to build Narmada's micro canals, keep Kutch dry; help industry

By Medha Patkar*
This is the latest photograph of the Kutch Branch Canal (KBC) of the Sardar Sarovar, as of April 8! What does it show, expose, and what memories do you recall? Is it dry or dead? Is it a canal or a carcass of the same?

Bill Gates "promoting" GMO, Bt cotton, like cartels that have roots in Hitler's Germany

By Our Representative
World-renowned environmental leader and ecologist Dr Vandana Shiva has expressed concern that Bill Gates, founder of Microsoft Corporation, has joined the bandwagon of “a poison cartel of three" – Monsanto and Bayer, Syngenta and ChemChina, Dow and DuPont – all of whom allegedly have “roots in Hitler’s Germany and finding chemicals to kill people”.

Indian talc products contain "contaminated" asbestos structures, can cause cancer: Study

Counterview Desk
A recent study, using polarizing light microscopy, transmission electron microscopy (TEM), electron diffraction, and X-ray analysis on multiple over-the-counter Indian talc products for the presence of asbestos, has concluded that large quantities of body talc products are likely to pose a public health risk for asbestos-related diseases, especially for the cancers related to asbestos exposure.

Why are you silent on discrimination against Dalit jawans? Macwan questions Modi

By Rajiv Shah
Close on the heels of releasing his book in Gujarati, "Bhed Bharat", which lists 319 cases of atrocities against Dalits and Adivasis across the country over the last five years, well-known Gujarat Dalit rights leader Martin Macwan has shot an open letter to Prime Minister Narendra Modi, telling him the reasons why he does not want vote for the BJP.

Jharkhand Adivasi lynched to death by mob "chanting" Jai Shri Ram: Fact-finding team

Counterview Desk
On April 10, 2019, Prakash Lakda, a 50-year old Adivasi of Jurmu village of Gumla’s Dumri block, was lynched to death by a mob of men from the Sahu community of neighbouring Jairagi village. Three other victims from Jurmu – Peter Kerketta, Belarius Minj and Janerius Minj – sustained severe injuries due to the beating by the mob. A fact-finding team of Jharkhand Janadhikar Mahasabha (JJM), comprising of several activists and representatives of member organisations, conducted a fact-finding inquiry into the incident on April 14-15.

Investigation shows Narmada downstream "seriously" polluted. Reason: apathy, greed

By Rohit Prajapati, Krishnakant, Swati Desai*
Our investigation regarding quality of water flowing in the Narmada river downstream of the Sardar Sarovar Dam (SSD), dated April 6, 2019, between 11.00 a.m. to 4.00 p.m. reiterates, what is commonly known now, that the Sardar Sarovar Project (SSP) is planned without considering its impact on the downstream Narmada River stretch of 161 kilometres, its ecology, biodiversity and fishery, and lakhs of people living close to and dependent on the river directly or indirectly. This, in turn, has led to its present disastrous state.

Emergence of a rare Dalit teacher in IIT-Kanpur "disturbed" certain faculty members

By PS Krishnan, IAS (Retd)*
Dr Subrahmanyam Sadrela, a faculty member in the Department of Aerospace Engineering, Indian Institute of Technology (IIT)-Kanpur since January 1, 2018, and one of the rare Dalit members of the faculty in IIT group of institutions, is facing the threat of revocation of his PhD thesis, and thereby also jeopardizing his job and career.

RTE in remote areas? Govt of India "plans" to close down 2.4 lakh schools

By Srijita Majumder*
The Right to Education (RTE) Act, 2009, came into effect on April 1, 2010, for the first time made it obligatory on the part of the State to provide free and compulsory education to all children from 6-14 years of age in India. The Act, despite its limitations, had progressive elements like neighbourhood schools, community participation, ban on corporal punishment, no detention, continuous and comprehensive evaluation and it hence it appeared that India was not far from achieving universal elementary education.