Railway Recruitment Protests expose the state of Joblessness in India
- Over the past few days, protests broke out against the Ministry of Railways’ recruitment process in the states of Uttar Pradesh and Bihar from where a sizeable portion of candidates appear for the common test for the non-technical popular categories posts.
- The protesters have flagged issues in the recruitment procedure, such as allowing candidates with higher qualifications to compete for jobs meant for those with lower qualifications.
- But at their core, the protests are about the lack of jobs, they illustrate the toll it is taking on the young.
Growing gap in demand and supply of jobs
- Over the years, there have been numerous reports of the number of candidates applying for even entry-level government jobs far exceeding the vacancies available.
- The growing clamour for increasing reservation in public sector jobs by various caste groups, as well as for widening the ambit of reservation to encompass the private sector, also point to the same malaise of inadequate employment creation in the country.
- The pandemic has only exacerbated India’s job crisis.
Worrying trends
Decline in labour force participation rate
- According to CMIE’s estimates, it has fallen to around 40 per cent, much lower than levels observed in comparable countries.
- This implies that even in a “young” population, many are dispirited by the lack of jobs, and are opting out of the labour force.
Rise in Unemeployment rate
- There is a rise in unemployment rate meaning that among those looking for jobs, many are unable to find them.
- It is a matter of concern that the unemployment rate remains elevated among the youth and the more educated.
- As per CMIE, the employment rate at the all-India level has fallen from 43 per cent in December 2016 to 37 per cent in December 2021.
- In Uttar Pradesh, it has fallen from 38.5 per cent during September-December 2016 to 32.8 per cent during September-December 2021.
Rise in casual wage labour
- There is the shift away from regular salaried employment towards casual wage labour.
- This means that workers are increasingly being employed in low-paying, less productive jobs.
Steps taken by government to promote employment
- Aatmanirbhar Bharat Rozgar Yojana (ABRY) which seeks to reduce the financial burden of the employers and encourages them to hire more worker.
- Prime Minister’s Employment Generation Programme (PMEGP)
- Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) under which the government is paying the “employer’s contribution i.e. 12% for a period of three years to the new employees earning up to ₹15,000 through EPFO.
- Other schemes including PM Street Vendor’s Aatmanirbhar Nidhi (SVANidhi) Scheme and Pradhan Mantri Mudra Yojana (PMMY) helping “businesses resume” after “Covid period” through collateral-free loans loan up to ₹10,000 through the former and ₹10 lakh through the latter.