Inequality in Workforce

Why in news?

IMF released Fiscal Monitor in terms of tackling inequality.

What is IMF?

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C.
It is an organization of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
It now plays a central role in the management of balance of payments difficulties and international financial crises.
Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money.

What is the recent release discusses about?

The Fiscal Monitor observes that inclusive growth is receiving attention because of rising inequalities and slowing economic growth.
Further, excessive inequality can erode “social cohesion, lead to political polarization, and ultimately lower economic growth”.
It states that in general, inequality of opportunity is higher in emerging countries.
It also recommends Public policies on education, can help address this inequality which can lead to enhancing human capital and productivity.

What is the status of Inequality in Indian workforce?

India is pursuing an important priority, namely, to find jobs for the 12 million people entering the workforce annually.
This is a challenge, as there are already nearly 800 million people below the age of 34 years, who also need to be productively engaged in education and employability.
In India inequality of opportunity is higher in workforce, where North-Eastern population is most affected as unemployment, and there poverty rates are generally higher than that of All-India.
In emerging economies, as well as advanced countries, female participation is significantly higher than that of India.
In India attendance ratios dropped sharply from primary to secondary education and inequality in access to education is large.
Nearly 60 per cent of employers had reported difficulties in recruitment because of talent shortages.

What measures needs to be taken?

Union Government had earlier mooted the idea of Second Green Revolution in the North-East to usher prosperity and achieve better integration with rest of country.
Union government has launched special schemes like Ishan Uday and Ishan Vikas to encourage undergraduate students.
Along with this government could also consider region-based reservation in employment in government educational institutions and public sector enterprises.

It would be useful to consider having more women through gender-based reservations in educational and vocational institutions, and in work places.

Quick Fact

Union government’s education initiatives for North-East

Union government is making efforts in spreading quality education in north-eastern states by opening institutions of excellence like AIIMS, IIT’s and IIM’s.
Ishan Uday - It is a special scholarship scheme by UGC, Ministry of Human Resource Development, and Government of India.
It has a provision to grant 10,000 scholarships to students from the Northeast, whose parental income is below Rs 4.5 lakh per annum.
The scholarship ranges from Rs 3,500 to 5,000 per month for studying at undergraduate level in colleges and universities in India.
Ishan Vikas -Visit of Class IX and Class XI students to 22 premier institutes [IITs, NITs and Indian Institutes of Science Education and Research(IISERs)] with two groups in summer and one group in winter, consisting of 32 students
Each group of 32 can be formed by taking 4 students from one single school ineach of the eight North East states. Each school will send one teacher to accompany thestudents of that school,
Summer Internship for Engineering College students of the North-East for a duration ofseven weeks at the Premier Institutes like IITs, NITs and IISERs.

Source: Business Line