In India, Job losses and increasing unemployment have been a grave concern since the pandemic started. The slumping economic condition before the pandemic and lockdown result in an additional blow when the entire nation had to be locked at home.
The urban unemployment in India slumps down to 9.83% in August as against 9.15% in July, according to data released by the Center for Monitoring Indian Economy (CMIE). In other words, roughly one in every 10 people in urban areas cannot find work.
Likewise, the rural unemployment rate in August increased to 7.65% as against 6.66% recorded in July. The overall national unemployment rate was at 8.35% in August.
According to recent data of International Labour Organisation Report, says that in pandemic nearly 41 lakh youth have lost their jobs and forecasted that total around 61 lakh jobs will be lost by the end of the year.
Another report by McKinsey Global Institute said that India needs to create 9 crore jobs by the end of 2030 for the coming generations.
The rising concern of underemployment is due to the increasing number of intensive unemployment, people do not find jobs that they are trained for or meant to do.
“It’s not that you see job seekers thrown out on the road starving and begging, What is happening is that they might get jobs with lower salaries. It is not unemployment but underemployment — everyone will get a job but the salary will come down. Earlier, the colleges had placement cells which helped the freshers to get jobs but now they have to go out for jobs themselves. We have had cases were Rs. 4 lakh per annually offered as a sales job but he/she declined because he did not want a sales job. But later they ended up taking a sales job for Rs 2.5 lakh per annum,” said Dr Akhil Shahani, Managing Director, The Shahani Group.
“There have been job gains as well. There has been an uptake in employment in logistics, customer services, banking financial sectors in the ground level. There has been a shift in jobs also.” he added.
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India’s gross domestic product (GDP) also contracted with historic 23.9% in the June quarter, and according to official data. The construction sector contracted by 50%, manufacturing by 39.3%, and trade, hotel and transport segment fell by 47%.
“We know it’s a tough environment and has impacted most of us. But everyone —big corporate houses, entrepreneurs, employees and authorities—will have to show a strong commitment. Then it will have a positive impact on job creation and revival of the economy,” said Sachit Jain, vice-chairman of Vardhman Special Steel Ltd.
In conclusion, we can say that there will be rising competition for job seekers in future with more graduates turning out from College Institute. To improve the situation of employment, the individual needs to be self-employed or we can say Atma-Nirbhar to evolve as an employer rather than an employee.
