By ObuNilaPriya, Blog content writing Intern at Edumarz
Millions of Indians, particularly women, are totally leaving the labor field totally because they can’t find suitable employment.
Table of content
Introduction
India, one of the world’s fastest-growing economies, is counting on youthful employees to fuel growth. According to Bloomberg, “the overall workforce participation rate has declined from 46 percent to 40 percent between 2017 and 2022.” Around 21 million individuals have left the labor force, and just 9% of the eligible population is looking for jobs or vacancies.
“Currently, more than half of the 900 million Indians of legal working age (about comparable to the whole population of the United States plus Russia) do not seek a job,” the CMIE stated. According to the study, India has made great progress in liberalizing its economy. Apple and Amazon have their headquarters here.
What are the causes of the fall in labor-force participation?
According to the research, the reasons for the reduction in workforce participation may vary. Indians who are unemployed are either students or housewives. Many of them rely on rental income, pensions from older family members, or government assistance to make ends meet.
There are reasons for women’s limited labor-force involvement, such as security or time-consuming domestic duties. They do, however, constitute 49 percent of India’s population, although women produce only 18 percent of its economic production, which is about half the worldwide average.
What are the initiatives government took to help women with this issue?
The government took initiatives to help women.
It is also to be noted that the government has taken measures to address the issue, including suggestions to raise the legal marriage age for women to 21.
According to a recent State Bank of India analysis, this might increase labor participation by allowing women to pursue higher degrees and careers.
Effect on Economy
“India is unlikely to capture the reward that its youthful population has to give,” said Kunal Kundu, an economist at Societe Generale GSC Pvt in Bengaluru. “India will very certainly stay in the middle-income trap, with the K-shaped development path exacerbating inequality.”
Employee development challenges in India are widely known. Competition for anything other than menial jobs is fierce, with over two-thirds of the population aged 15 to 64. Stable government jobs often generate millions of applicants, while admission to elite engineering schools is almost a guessing game.
Although Prime Minister Narendra Modi’s focus on jobs and calls for India to aim for “Amrit Kaal,” or a golden time of prosperity, his administration has made very minor progress in tackling the intractable demographic issue. According to a 2020 McKinsey Global Institute research, India needs to produce at least 90 million additional nonfarm employment by 2030 to keep up with a growing young population. This would necessitate yearly GDP growth of 8% to 8.5 percent.
The pandemic was preceded by a workforce drop. In an attempt to weed out illegal money, the government abolished most currency notes in 2016. Another impediment was the establishment of a national sales tax about the same time.
It is also to be noted that the government has taken measures to address the issue, including suggestions to raise the legal marriage age for women to 21.
According to a recent State Bank of India analysis, this might increase labor participation by allowing women to pursue higher degrees and careers.
About the author
Hi! I am Obu Nilapriya, a Blog content writing intern at Edumarz. I write blogs and articles related to education and fitness. For any queries regarding your application for admission to colleges and the latest news regarding education, Do visit Edumarz for guidance.