Mains Paper 3: Economy | Development and employment
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Declining jobs in India- reasons and way forward
- According to of Economic Survey for 2016-17, Employment in India poses a great challenge in terms of its structure, with it being dominated by informal, unorganised and seasonal workers.
- It also highlighted the deceleration in hiring being faced by the IT-BPM (business process management) sector.
- The Survey said that misconstruing mobility of skilled people as an immigration issue is a “deterrent to the growth of this global business” resulting in many barriers to free movement of skill and data.
IT sector Jobs
- Job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years.
- Due to under-preparedness in adapting to newer technologies
- Nearly half of the workforce in the IT services firms will be “irrelevant” over the next 3-4 years and the bigger challenge will be to retrain 50-60 per cent of the workforce with a significant shift in technologies.
- Skills profile is set to undergo a rapid change as demand for skills around digital technologies grows exponentially
- Growth in digital tech like cloud-based services is happening at a much faster pace
Reasons behind declining Jobs in India
- Automation threatens 69 per cent of the jobs in India, while it threatens 77 per cent in China.
- Labour markets are impacted by rigid labour laws
- The emergence of contract labour.
- Higher budgetary allocation for anti-poverty programmes
- Employment generation schemes.
- Public employment generation programmes have continued to be a major tool for creating additional jobs and promoting inclusiveness.
- Survey said that the current measures of outcome in skill training are only uni-dimensional and need to made multi-dimensional.
- Skilled labour force is essential to meet diversified demands of a growing economy, to tap the benefit of demographic dividend
- Quoting the India Skill Report 2016, the present demographic advantage of India is predicted to last only till 2040.
- A sector wise study, commissioned by National Skill Development Corporation, has estimated the incremental human resource requirement of 103.4 million across 24 high priority sectors by 2022.