A seismic event transformed the world in 2020. People’s lives turned upside down within weeks. Many lost their health, jobs, and livelihoods, with the uber-rich also impacted by the devastation of the pandemic. Businesses were not immune either; many, including those that existed for decades, shut down for good, leaving thousands employed.
Fortunately, many things have changed as we approach the third anniversary of the pandemic. Thanks to the vaccine, many lives have been saved, and businesses have slowly regained some of their much-needed vigour. However, the problem of unemployment lingers on, especially in India.
Unemployment in India
Unemployment in India has been around for a while. It has been a problem for governments for decades. The country’s massive population makes it difficult for everyone to find work, but the pandemic magnified the issue. As Micro, Small & Medium Enterprises (MSMEs) and local businesses suffered from lockdown, people found work hard to come by.
The data published by the Centre for Monitoring Indian Economy (CMIE) shows the unemployment problem is only worsening. India’s unemployment rate has increased substantially since September 2022. It crossed 9% on a 30-day moving average basis on December 19, marking the highest unemployment rate in India since the pandemic.
Data from the Employees’ Provident Fund Organisation (EPFO) makes for similar grim reading. After hitting the 1.15 million mark in July 2022, the new member additions have steadily declined. It dropped to 0.98 million in September and fell further to 0.73 new members in October 2022.
Are there Other Factors?
While the pandemic has undoubtedly accelerated the unemployment issues in India, it isn’t the sole reason.
For years, Indians have struggled with skill development. The problem is especially pronounced in the youth and has played a central role in increasing unemployment in India. The country boasts the world’s largest and youngest population, but only 5% of the workforce is formally skilled. It is an alarming number that highlights the difficulty the Indian youth face when transitioning from the academic to the professional world.
Why Youngsters in India Lack Skills?
The highest unemployment rate in India issue among the Indian youth stem mainly due to following:
1. Lack of information
Many youngsters are unaware of the opportunities on offer in various industries. There’s an information mismatch, which results in unrealistic professional expectations.
2. Lack of training opportunities
Compared to their foreign counterparts, university students in India rarely have access to training opportunities and short-term professional experience. Geographical and financial obstacles get in their way, despite numerous offers on the table.
3. Existing social norms
Some jobs and professions in India have suffered due to social norms and stereotypes. They’re looked down upon and, therefore, subconsciously affect the youth. They do not fancy these jobs, limiting the number of options they have.
Skilling the Youth is the Answer to Unemployment
Youngsters in India are the hope of the country as well as the world. In the next three decades, around 183 million people will join the working age group in India. That is equal to a massive 22 percent of the incremental global workforce, signifying the importance of the great Indian youth to the global economy. The highest unemployment rate in India should become a thing of the past for our nation’s better world positioning.
However, skill development is vital for Indian youngsters to lead the world. Educational institutions can lead the revolution, helping students gain experience whilst studying.
India needs better, more flexible, and modern degree and professional education colleges. Currently, the environment offered by local universities and institutes leaves much to be desired, as they keep students away from the industry.
More focus on training opportunities could be helpful, as students can gain professional insight whilst still in college. Experience from their time in a professional setup could prove a game-changer, allowing them to focus on industry-specific skills academically.
Industry experience also helps reduce information mismatch among the youth. Many are aware of the opportunities and pathways to succeed in the field of their choice. First-hand experience in a company can clear that up, showing them the path to corporate life and the industry of their choice.
Focus on Life Skills
Life skills come in handy throughout life. Indian youngsters are rarely trained in the essential skills needed in life, which indirectly affects their employability. Some of these soft skills include:
1. Problem-solving ability
Running away from problems instead of facing them is an alarming trait in several Indian youngsters. Problem-solving ability, whether at work or in personal life, should be refined and encouraged in schools and colleges.
From an employment viewpoint, it is safe to say youngsters with a problem-solving mindset are more likely to land a job than those lacking the skill. They can also quickly rise through the ranks professionally and help their companies succeed.
2. Strong mindset
Similarly, educational and professional skill-building institutions can train youngsters to control their emotions and build strong mindsets. Failure is a natural step forwards and not backward. With the right attitude, youngsters can tackle employment challenges and improve themselves to increase their employability.
3. More awareness
Youngsters with more knowledge and awareness about what’s happening around them are likely to perform better in interviews. Hiring managers appreciate candidates with an insight into various industries, their current outlook, different markets, and how they might look in a few years. Youngsters can stand out against their competition by keeping themselves updated with the economy and industry.
Closing Note
With the youth population in India increasing every day, governments and educational institutions face the challenge of arming them with the necessary skills. Fortunately, the government identified the importance of skill-building in youth sometime back and took steps to address the problem.
Programs like Make in India and the Pradhan Mantri Kaushal Vikas, launched to skill the youth and increase their participation in India’s push towards a $5 trillion economy, have shown promise. The National Skill Development Corporation (NSDC) and the Ministry of Skill Development and Entrepreneurship are a couple of other government initiatives focused on Indian youngsters.
While significant work is still needed, these initiatives should bear fruit in some years. But whether these moves address the highest unemployment rate in India and guide the country closer to the $5 economy goal remains to be seen.
Smile Foundation, CSR and Skilling The Youth
Smile Foundation realised that with a little hand-holding, youth can become the backbone of the Indian economy. If they are shown the right direction, they prosper, their family prospers and so does the country! And thus STeP or the Smile Twin e-Learning Programme was launched in 2007. The aim is to help as many youth as possible in getting gainful employment.
This e-learning programme is creating a pool of young and independent people through skill enhancement in tandem with market requirements providing training in soft skills, basic computer use, spoken English and the basic communication tools. This initiative is a perfect avenue for CSR interests with many corporates of different sizes investing in its potential. Learn more here!