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India's unemployment rate hits 4-month high of 7.9%. Explain factors responsible for high unemployment rate and suggest measures for tackling it.
Unemployment rate was already climbing before the pandemic struck. Since then, it has been growing due to loss of jobs in unorganised sector. The recent concerns about Omicron variant have put more question marks on improving the figures.
Reasons for high unemployment rate
- Structural problems
Such unemployment takes place when drastic changes are made in the country. This includes migration to automation from manual functioning.
- Ineffective policies
Many government policies for creation of jobs have failed to show results on the ground. This is because of lack of implementation on ground.
- Economic recession
Economic cycle will also have a bearing on job creation. During a recession, the GDP growth will be in negative and people lose jobs.
Improving unemployment rate
- Skill training
There should be more focus on developing skills so that knowledge can complement it. The government has already launched programme such as ‘Skill India’ in this regard.
- Learning based education system
Our education system is still reeling from colonial hangover. The demand of new world focuses on learning and not just reading and writing.
- Promote entrepreneurship
More efforts should be put to invoke entrepreneur mindset among new generation. New entrepreneurs will result in new jobs. This will reduce pressure on government resources.
Thus, unemployment is indeed a big worry for rapidly developing country such as India. Creation of new jobs will ensure that goal of $5 trillion economy is realized.
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