India, world’s fastest-growing economy fails to create jobs due to mismatch between skills and good jobs

India, world’s fastest-growing economy fails to create jobs due to mismatch between skills and good jobs

NEW DELHI, OCTOBER 10: India which is regarded today as the world’s fastest-expanding economy and an ideal market for foreign investors but in reality the link between growth and job creation in the country is weakening.
According to a new research from the privately-run Azim Premji University shows that a growth rate of 7% is now leading to less than 1% improvement in employment. Whereas the same condition in 1970s and ’80s an expansion of 3% to 4% was resulting in a much higher 2% success in jobs.
As a consequence, the unemployment rate hit at 5% in 2015, considered the highest in at least 20 years.
As stated by the researchers led by Amit Basole the main reason for the augmenting correlation between growth and jobs was a mismatch between skills and “good jobs,” The goods jobs that broadly includes formal employment with regular pay attribute only 17% of the country’s 467 million workforces.
The report said that higher growth has raised aspirations but has failed to create jobs accordingly. Job creation is an absolute necessity in a country like India where the population is continuously expanding.
In the report, titled ‘State of Working India 2018’, researchers also recommended that the point of a growing economy is not only to show job creation but the “creation of decent and desirable jobs”.
The report further underlined that growth in the country has averaged 7% since the economic transformation since 1991. Giving recent economic figures recent the report said the GDP of India grew to 8.2% in 3 months through June from a year earlier, thus making India as the world’s fastest-growing major economy.
Even the International Monetary Fund retaining India’s growth forecast of 7.3% for the fiscal year through March 2019.
But still, unemployment remains a major problem for India, especially among educated and young Indians.
As per the study more than one-third of about 23 million people who were desperately searching for jobs are graduate or having higher levels of education. The researchers said, “India’s employment situation and the state of its labour statistics are both subjects of national news. The performance of the present Government on job creation is also expected to be a key issue in the upcoming general elections in 2019.”(Agencies)