The Indian economy is growing at a pace twice as fast as other major economies in the world but the jobs are not created at the same pace. India’s economy is expected to grow at the rate of 7 % in the current fiscal year as per the report of the Organisation of Economic Cooperation and Development (OECD), reports Livemint
The rate of employment in India has fallen and jobs are not created as fast as the growing working age population. Also Indian lags most other nations in creating quality jobs.
Over 30 % of youth between the age of 15 to 25 years age are unemployed or not engaged in any education or training (NEET). The figure is more than twice the OECD average and three times of that in China.
NEET is a new concept in India. As per the OECD report, youth inactivity presents the share of youth in the age group of 15 to 29 years who are not in employment, education or training (NEET) as a percentage of people in the Corresponding age group.
NEET include all youth that is not employed and not engaged in any education or training. These people are considered under NEET because they have fewer incentives and face constraints to be in the education and training systems due to lack of enough high-quality jobs.
Various factors are responsible for this condition of India which includes complex & strict labour laws and restrictive employment protection legislation. Therefore, in order to avoid strict labour laws, organizations in India employ temporary contract labour, stay small or substitute labour for capital.
The present government is trying to rectify the situation. It had brought down the administrative requirements for complying with existing labour laws to make the labour regulations good the creation of jobs. The labour laws also need to be streamlined.
The OECD survey also says that employment data is inadequate which makes it difficult for assessing the labour market trends. The last NSSO round was held in FY2011-12. Regular and frequent data could help take policy actions in the right time.
Despite the GDP is 3.8%, public spending on education in India is much less as compared to other countries like Malaysia and Brazil. The government needs to spend on enhancing the quality of education and vocational training.
All these measures taken collectively could possibly improve the situation of job creation in India.
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