For India's workforce, underemployment and unemployment were both major issues. The Periodic Labour Force Survey (PLFS) and the NITI Aayog (National Institution for Transforming India) are important resources for understanding the employment situation in the nation.
is the condition in which individuals who are willing and able to work are unable to locate suitable employment opportunities. It may result in economic inefficiency and social problems.
Underemployment occurs when individuals are employed in jobs that do not fully utilize their talents and qualifications, resulting in suboptimal income and productivity.
The following are some of the key findings from NITI Aayog and PLFS:
- The labour market in India is struggling with not only unemployed people but also people who are underemployed.
- The youth, in particular, have been disproportionately affected by unemployment and underemployment, leading to what is being referred to as a "youth unemployment crisis."
- The pandemic (COVID-19) made the employment situation even worse, leading to the loss of jobs and causing disruptions in a number of different industries.
- Development of Skills Facilitate the implementation of intensive training programmes with the goal of raising the employability of the labour force. This will bring the abilities of those looking for work closer in line with the demands of the labour market.
- In order to stimulate economic expansion and the creation of additional employment possibilities, it is important to "encourage entrepreneurship" and "create an environment conducive to entrepreneurship and startups."
- Investment in Key Sectors: Promote investments in labour-intensive industries like manufacturing, construction, and agriculture, which have the potential to provide a significant number of employment opportunities.
- Boosting Micro, Small, and Medium Enterprises (MSMEs): Micro, Small, and Medium Enterprises (MSMEs) are responsible for a large amount of job creation.
- Reforms of the Labour Market It is important to carry out reforms of the labour market in order to achieve a balance between worker protection and flexibility in the labour market, in addition to attracting investment and creating jobs.
- Technology and Digitalization: If you want to boost productivity and create new jobs in the digital economy, adopt digitalization and new technologies as soon as they become available.
- Encourage Formal Employment: Encourage the formalisation of the economy, as formal occupations tend to give greater earnings, job security, and social security benefits. Formal jobs also tend to be more stable than informal jobs.
- Concentrate on Employment in Rural Areas To ease the burden placed on urban cores, efforts should be made to advance rural development and generate employment possibilities in rural regions.
- To achieve inclusive growth, it is necessary to make certain that the benefits of economic expansion and the creation of new jobs reach underserved and underprivileged segments of the population.
- Investing in Public Works Programmes In order to construct necessary infrastructure and create jobs in the short term, it is important to invest in public works programmes.
- Education Reforms: Improve the overall quality of education while also ensuring that it is in line with the requirements of the labour market in order to produce a workforce that is both skilled and competent.
The government, the commercial sector, civil society, and other stakeholders must all work together to effectively combat unemployment and underemployment. To overcome these obstacles and encourage long-term employment in India, constant monitoring, data-driven policies, and flexible methods are required. If you're looking for the most up-to-date information about the employment market, it's best to consult recent studies and updates from NITI Aayog and other reputable sources.
