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Issues with job creation

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September 10, 2017

What is the issue?

India is lagging to use its demographic dividend, there are issues in job creation and skills missions.

What are the concerns of Indian job market?

  • Creating adequate jobs, and employable labour for those jobs, remains the biggest challenge of the economy.
  • India failed to create enough jobs for the estimated one million young men and women who enter the labour force every month.
  • There is no regulation to oversee that these people have the education, training, and skills to do those jobs.
  • Only 3.8 million jobs has been created over the past three years, which is enough to absorb four months’ worth of labour inflow.

What are the issues with government initiatives?

  • NSDC -The National Skill Development Corporation’s skilling targets constantly revised downwards and now practically dropped have missed milestone after milestone
  • Many of the skilling and training centres it helped fund have been beset by fraud and mismanagement.
  • Most of the loans it doled out initially have turned non-performing assets, and worryingly those getting skilled and certified are not getting jobs.
  • Skills are created in sectors where jobs are not being created.
  • PMKVY -The Pradhan Mantri Kaushal Vikas Yojana, against the target of over 10 lakh enrolments for 2017-18, it has already passed the 9 lakh.
  • But a mere 78,854 candidates have actually been placed in jobs.

What can be done?

  • Skills curriculum - Itneeds review and appropriate skilling programmes in areas where jobs are, or are likely to be created is required.
  • Skilling partners - Fraudsters needs to be eliminated and focus must be on building stable, long-term partnerships with the private sector.
  • Professionalism -Most of the workers in the informal sector have learnt their skills from traditional methods.
  • Their skills needs to be upgraded with a ‘train the trainers’ programme, and their pupils formally certified.
  • National tools bank - It should be created to equip the skilled with tools so that they can become self-employed rather than job-seekers.
  • The bank can microfinance tool purchase, and even lend from an inventory of tools on a daily or weekly basis at nominal sums.
  • Labour code -The new labour code, passed by the Cabinet, needs to become law.
  • It must ensure that a conducive environment and adequate opportunities are created in the sectors where skilled labour is being produced.

 

Source: The Hindu

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