Kriti Kalra explains that with higher literacy rates and more Indians opting for higher education and vocational training, today’s job seekers are not just looking for job but well-paying, decent jobs with provisions for career growth, social security, good working environment, etc, pointing out that the employment sector is transforming fast.
A rapidly increasing population puts pressure on infrastructure and resources. Economic resources are impacted too as there’s a constant need to generate employment opportunities for the youth and diversification for mid-level and senior-level professionals. The job market in a country is dynamic and global now with an array of variables, domestic and foreign, regulating it.
The employment sector is transforming fast, keeping up with the changing needs of a global society. The kind of jobs that were in demand and well-paying a decade ago are no more in the run. Several new channels of internal migration have opened in India as a result of development across states.
There’s also a lot of migration from smaller cities and town to metro cities for better employment opportunities and career growth. Now, people are working for more years and women who were only relegated to household work before are now competing for jobs at all levels. Economic policies must be made keeping in mind the growing needs of the nation, its changing demographics and with a futuristic approach.
Data speaks
The Ministry of Labour and Employment released a report last year to showcase trends and facts of the sector. The report of the third quarter of Quarterly Employment Survey (QES) for the period October-December 2021 detailed employment and related variables of establishments in organised and unorganised segments – these comprise the majority of the total employment in India in the non-farm establishments. It is a good indicator of the employment scenario in India.
The survey focuses on the following sectors and on establishments employing 10 or more workers – Education, Construction, Manufacturing, Transport, Trade, Health, Accommodation / Restaurants, IT / BPOs, and Financial Services. These nine sectors contribute about 85 per cent of the total employment opportunities in India. As per the report, there is an increasing employment trend in the organised segment with ten or more people in these nine sectors.
The largest employer which accounts for nearly 39 per cent of the total is the manufacturing sector followed by education sector which provides 22 per cent of employment of the kind defined above. Across these nine sectors, there were about 1.85 lakh vacancies available. And the workforce comprised around 83 per cent regular workers and almost nine per cent contract workers.
In India, the main sector of employment is agriculture. Even though the share is decreasing every year, it is still a prominent sector. In 2021, 43.96 per cent of India’s workforce was employed in agriculture. The remaining workforce was engaged in other sectors and services.
Presently, it’s the service sector that is generating the most economic opportunities and most of India’s GDP. GDP distribution across economic sectors reveals that agriculture contributes 15 per cent. Service industries that are ruling the roost are software, telecommunications, textiles, chemicals, etc.
In April 2023, the International Monetary Fund (IMF) released its latest World Economic Outlook report which projected that India’s economy will grow by 5.9 per cent in the current fiscal year, making it the fastest-growing economy in the world.
In June 2023, the World Bank stated that India will remain the fastest-growing major economy in terms of both aggregate and per capita GDP despite the slowdown in growth. It projected India’s growth for FY24 at 6.3 per cent, 6.4 per cent in FY25 and for FY26 a growth of 6.5 per cent. The World Bank is attributing India’s robust growth to resilience in private consumption and investment and robust growth in the services sector in India. India’s economic growth is set to positively affect all of South Asia.
Employment challenges
India’s employment landscape is changing fast. There are more women entering the workforce now. The gradual shift of more women working outside their homes now has, unfortunately, not translated into pay parity or gender pay gap, career growth, equal employment opportunity, etc. Employment opportunities and career growth avenues have been on the rise for women aided by more women seeking professional and higher education programmes, increase in technology and easy access to technology, government schemes and policies. To address the disparity, awareness and sensitisation is needed.
For decades, planners, policymakers and economists are working together to create an environment in India that is able to provide employment for all. Employment has remained one of their top challenges. With higher literacy rates and more Indians opting for higher education and vocational training, today job seekers are not just looking for job but well-paying, decent jobs with provisions for career growth, social security, good working environment, etc.
Another big challenge is availability of skilled workforce. There is a growing shortage of skilled workers in India. So, even if there are enough employment opportunities, there’s a skill gap that exists that disrupts the economy. It leads to unemployment and industries end up with unskilled worker or vacancy either of which will result in losses.
In this case, it is important to recognise workers with a basic level of skills and enhance those to be able to absorb them in the productive workforce. Alternatively, more awareness must be created and provisions must be made for training programmes, off and on job, in all kinds of industries – large, small, micro, medium-sized – to increase the skilled workforce.
According to the Periodic Labour Force Survey (PLFS) done by the National Statistical Office (NSO), unemployment rate in urban areas in India for persons aged above 15 eased to 7.2 per cent in July – September 2022 from 9.8 per cent in July – September 2021. The unemployment rate was 6.6 per cent for men and 9.4 per cent for women for the same period, as opposed to 9.3 per cent and 11.6 per cent in July – September 2021.
Government initiatives
Keeping in mind the needs of India’s growing population, government schemes and initiatives are focussing on generating employment or job opportunities at their end, providing opportunities for skill training and upgradation, and encouraging individuals to start business and enterprises that will further generate employment.
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) – a flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE) implemented by National Skill Development Corporation is a Skill Certification Scheme to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood.
Startup India is another flagship initiative of the Government of India that intends to catalyse start-up in India by building an all-encompassing and an inclusive ecosystem for innovation and entrepreneurship in India. It includes enhancing infrastructure like incubation centres; easier patent filing; providing a better regulatory environment including tax benefits, faster exit mechanisms, etc.; economic stimulus; and vast networking database for entrepreneurs.
The Aatmanirbhar Bharat Rojgar Yojana (ABRY) was launched in October 2020 as part of the Aatmanirbhar Bharat package 3.0. It aims to incentivise employers for generating new employment along with social security benefits. It also incentivised restoring employment for those who lost jobs during the COVID-19 pandemic.
National Career Service (NCS) Project provides a variety of career-related services like career counselling, job matching, skill development courses, internships, apprenticeship, etc.
Kriti Kalra is an activist and field researcher with www.thewomansurvivor.com – an initiative of DraftCraft International to protect and empower women by bringing on one platform the latest on rights and issues, strategic case studies, state initiatives and informed legal opinions.