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Acute shortage of jobs and the way forward

As per recent news reports, India is not able to create enough jobs for the youth. The situation will turn from bad to worse in the days ahead as more and more people are entering into the job market and there are not enough jobs. Now, we already have problems of underemployment in our economy. We have plenty of examples in our immediate circles as well, where people from top engineering colleges sit for clerical level exams just to get the "govt. job" tag. This hits the economy at various levels. One of them is that talented people do not perform to their fullest and this impacts the GDP negatively.

In a recent interview, a cabinet minister has vociferously put forward a fact that the nature of the job market is changing fast and we need more job creators than job seekers. Though this point is true, but can India with its present educational architecture churn out enough entrepreneurs? Also, this is a long term solution. What about the present working age population?

So what should the government do, specially at a time when private investment is not picking up for various reasons and people are getting pink slipped at their employers own sweet will. One of them is hardcore socialism. Government should create more government job vacancies and increase the age limit of present jobs as well. It should come up with more PSUs, akin to pre liberalization era and absorb as many "fit people" as possible. Simultaneously, the govt should try to change our education system holistically so that students get an entrepreneurial environment from a very early age. I believe our present educational architecture is fit to churn out good industrial workers, but not leaders/thinkers/entrepreneurs as risk taking is still a taboo in our culture. People are scared to drop out and start their own ventures, this is also the reason why so many people seek govt jobs.

I may be completely wrong in my analysis here. So I want to read some constructive comments/criticisms/analysis on this topic, which directly affects us all.

You'll float too!
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Comments

  • edited October 6
    I see my future self at billing counter, Domino's, Opp. Vajiram.
    I rebel; therefore I exist.
  • worst part is that most of us have sacrificed well paying secure jobs and jumped into prep with the belief that even if things dont work out, we will find s'thing to hang on.
    In private sector, who will hire us if there is an army of competent freshers sitting without jobs. Even the good college tags are not working now in the placement scenario.
  • I think there should be some short term course on entrepreneurship ...models etc ..by premier institutes of India which should be made accessible to all at minimum cost.
    Then there is a need to create an environment which minimizes cost for us if a business fails ..for eg ..making land available on rent ..regulating rents ..( this will enable lesser upfront costs) ..faster exit
    There is need to handhold some sectors in the beginning to help them flourish and face external competition ( this is most relevant in setting up of electronics industry in India) ...
    In the textile sector also ..our market is flooded by chinese products ..like blankets etc ...this should be dealt on war footing ..by addressing infrastructural and other concerns..to make Indian products cheaper and better in quality .



  • I think there should be some short term course on entrepreneurship ...models etc ..by premier institutes of India which should be made accessible to all at minimum cost.
    Then there is a need to create an environment which minimizes cost for us if a business fails ..for eg ..making land available on rent ..regulating rents ..( this will enable lesser upfront costs) ..faster exit
    There is need to handhold some sectors in the beginning to help them flourish and face external competition ( this is most relevant in setting up of electronics industry in India) ...
    In the textile sector also ..our market is flooded by chinese products ..like blankets etc ...this should be dealt on war footing ..by addressing infrastructural and other concerns..to make Indian products cheaper and better in quality .



    Many premier business schools are offering such courses, but there are not many takers as we dont have a culture of entrepreneurship. Indians are happier working for someone else. That's the predicament.
    You'll float too!
  • Also, some post graduate students from old IIMs and XLRI don't hesitate to get another MBA degree from abroad. So, this is not only about employment but employability. Our higher education institutions fall behind in terms of the skills that they impart to their students. This might be the reason why we lack entrepreneurship.
    Sweet Victory!
  • Exactly, people from local private colleges are going for management degrees abroad and are getting high positions in MNCs and iim grads are working under them inspite of being senior to them, it's a quick shortcut to success. There are many such cases. Basically, even a state University degree from US is considered better than iim degree by the MNCs.
  • nothing can be changed w/o political reforms in india.
    here every sector is surely being targeted to free it from govt regulations as much as possible but no emphasis is given from freeing sectors from politicians. Thus sectors maybe getting free from government but not from politicians.

    From schools at districts to countless colleges to ngo's to companies and industries to agriculture, everywhere are these people who use these institutes for their furthering their business interests thru friends and families and turning their black money into investments and use legal loopholes for the welfare of their near one's rather than the people.

    In india, even the teacher training institutes are under the control of legislatures thru various means at local levels to turn their money into legal currency and more than half are just like shell companies, providing no training on ground level. Use of cooperatives by them since the 70's is known to everyone.

    so, discussions on these issues will always remains discussions on any platform for the sake of just discussion on possible problems' identification. But the real problem will always be suppressed by confusing people by piling them thru various other problems added daily by our 'so-called-economists'..........
    We are all the same inside.........

    We just forget to see the reflection of someone else inside us........
  • edited October 11
    So what immediate measures should be taken to tackle this issue...

    You'll float too!
  • Hmmm. Facing the market presently, I am witnessing how it behaves. I'll think on this.
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  • One of them is that talented people do not perform to their fullest and this impacts the GDP negatively.

    I don't think the employers think like this. Talent is, more or less, demand driven. What if the country is churning out more talent than the market can currently absorb? There's an upper ceiling to everything. But will think on this. Hmmm.
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  • edited October 11

    One of them is that talented people do not perform to their fullest and this impacts the GDP negatively.

    I don't think the employers think like this. Talent is, more or less, demand driven. What if the country is churning out more talent than the market can currently absorb? There's an upper ceiling to everything. But will think on this. Hmmm.

    There is a subtle difference between talent and merit. Merit is a societal concept but talent is inherent. It is personal. It cant be cultivated via practice. Thus, merit may be demand driven, i.e hordes flocked to engineering and then an MBA degree in the late 90s and early 2000s as there were many jobs which demanded such skills. Post 2008, the scenario has changed drastically. We are paying the price of opening too many shops that offer engineering and MBA degrees only with zero value addition/skill addition.

    Anyways, I am more interested in immediate solutions. Instead of the prevailing school of thought of minimum governance, should the government create more vacancies by nationalizing more firms? Should it increase the age limit of all government entrances?

    I believe the sole purpose of a government is to ensure that its citizens are living happier and fuller lives. A person just cant be happy working for a firm where there is a constant possibility of getting a pink slip. A government should not force someone to work at a particular firm, but I think citizens should have enough freedom to switch over to a government enterprise whenever they want to, for some peace of mind and ofcourse for some personal value addition. Indians were never capitalists. We always had plenty. Capitalism sparked off in those areas, where there was shortage of land, labour capital etc. I guess this is a major reason for the rise in un-employment.

    So if there are not enough jobs in the private sector, what is the way out?
    You'll float too!
  • edited October 11
    I believe our present educational architecture is fit to churn out good industrial workers, but not leaders/thinkers/entrepreneurs as risk taking is still a taboo in our culture. People are scared to drop out and start their own ventures, this is also the reason why so many people seek govt jobs.

    This is true. But there are reasons behind it.
    The concept of "Family capital" works in most of India (metropolitans are exceptions, of course). And especially in B2B businesses, the number of leads and customers that you might attract may, to a large extent, depend upon this family capital. Read "lala ji ka dhandha" - the typical business class mindset in India is a bit different. But let's suppose you somehow manage to accumulate a significant base (capital) to build upon the foundations of your business. Factor in the real estate costs that our young budding entrepreneur has to bear up and take into account the purchasing capacity and tastes of the average Indian consumer, and you'll get very few avenues with the potential of a lifelong revenue generation capacity (breaking even is tough in most scenarios). The majority of the public is technology illiterate (some even -averse), so this rules out the scopes of technology intensive startups. Service sector, too, has few segments to cater to ( within India). The bigwigs (TCS, Infosys, Wipro) etc bag most of the big contracts - economies of scale at work here. The big fishes swallow the smaller ones in no time. Seed funding is erratic, and the ecosystem unfavourable. Risk averse people we Indians are, with only a few ambitions to serve to (talking about the average middle class Indian). The situation seems complex enough to me. But will think on this.
    Comfortably Numb
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  • pennywise said:

    One of them is that talented people do not perform to their fullest and this impacts the GDP negatively.

    I don't think the employers think like this. Talent is, more or less, demand driven. What if the country is churning out more talent than the market can currently absorb? There's an upper ceiling to everything. But will think on this. Hmmm.

    There is a subtle difference between talent and merit. Merit is a societal concept but talent is inherent. It is personal. It cant be cultivated via practice. Thus, merit may be demand driven, i.e hordes flocked to engineering and then an MBA degree in the late 90s and early 2000s as there were many jobs which demanded such skills. Post 2008, the scenario has changed drastically. We are paying the price of opening too many shops that offer engineering and MBA degrees only with zero value addition/skill addition.

    Anyways, I am more interested in immediate solutions. Instead of the prevailing school of thought of minimum governance, should the government create more vacancies by nationalizing more firms? Should it increase the age limit of all government entrances?

    I believe the sole purpose of a government is to ensure that its citizens are living happier and fuller lives. A person just cant be happy working for a firm where there is a constant possibility of getting a pink slip. A government should not force someone to work at a particular firm, but I think citizens should have enough freedom to switch over to a government enterprise whenever they want to, for some peace of mind and ofcourse for some personal value addition. Indians were never capitalists. We always had plenty. Capitalism sparked off in those areas, where there was shortage of land, labour capital etc. I guess this is a major reason for the rise in un-employment.

    So if there are not enough jobs in the private sector, what is the way out?
    Just read this. Will think upon it. Thanks.
    Comfortably Numb
    Blog name will be same.
  • edited October 11

    pennywise said:

    One of them is that talented people do not perform to their fullest and this impacts the GDP negatively.

    I don't think the employers think like this. Talent is, more or less, demand driven. What if the country is churning out more talent than the market can currently absorb? There's an upper ceiling to everything. But will think on this. Hmmm.

    There is a subtle difference between talent and merit. Merit is a societal concept but talent is inherent. It is personal. It cant be cultivated via practice. Thus, merit may be demand driven, i.e hordes flocked to engineering and then an MBA degree in the late 90s and early 2000s as there were many jobs which demanded such skills. Post 2008, the scenario has changed drastically. We are paying the price of opening too many shops that offer engineering and MBA degrees only with zero value addition/skill addition.

    Anyways, I am more interested in immediate solutions. Instead of the prevailing school of thought of minimum governance, should the government create more vacancies by nationalizing more firms? Should it increase the age limit of all government entrances?

    I believe the sole purpose of a government is to ensure that its citizens are living happier and fuller lives. A person just cant be happy working for a firm where there is a constant possibility of getting a pink slip. A government should not force someone to work at a particular firm, but I think citizens should have enough freedom to switch over to a government enterprise whenever they want to, for some peace of mind and ofcourse for some personal value addition. Indians were never capitalists. We always had plenty. Capitalism sparked off in those areas, where there was shortage of land, labour capital etc. I guess this is a major reason for the rise in un-employment.

    So if there are not enough jobs in the private sector, what is the way out?
    Just read this. Will think upon it. Thanks.
    Merit would've been the better term. Yup.

    I believe the sole purpose of a government is to ensure that its citizens are living happier and fuller lives.
    Of course! But it also tries to survive. A living organism it is. So, trade offs are a part and parcel of running a government. But, ideally, what you said is very very true.

    A person just can't be happy working for a firm where there is a constant possibility of getting a pink slip.
    Agreed to an extent. But employees ditch their employers, too. In my opinion, a safety net, of some sort, should be evolved. A bit of better labour laws for the proletariat. Will have to research on this. Hmmm.

    We've to remember that too much of a job security can drive you lethargic. See clerks employed at government offices. How happy they are! But, most are performing below what's required of them.

    I think citizens should have enough freedom to switch over to a government enterprise whenever they want to, for some peace of mind and ofcourse for some personal value addition.
    Mindblowing idea!

    should the government create more vacancies by nationalizing more firms
    This hasn't worked in India before. Won't work now, in "my" opinion.

    The question you pose is a very complex one. And, I am no economist, nor have I done a wide-scale market research on the prevailing job situation in India. So a bit of a research is the need of the hour, it seems. Will think and research and will share inputs, if any.
    Comfortably Numb
    Blog name will be same.
  • edited October 11

    pennywise said:

    One of them is that talented people do not perform to their fullest and this impacts the GDP negatively.

    I don't think the employers think like this. Talent is, more or less, demand driven. What if the country is churning out more talent than the market can currently absorb? There's an upper ceiling to everything. But will think on this. Hmmm.

    There is a subtle difference between talent and merit. Merit is a societal concept but talent is inherent. It is personal. It cant be cultivated via practice. Thus, merit may be demand driven, i.e hordes flocked to engineering and then an MBA degree in the late 90s and early 2000s as there were many jobs which demanded such skills. Post 2008, the scenario has changed drastically. We are paying the price of opening too many shops that offer engineering and MBA degrees only with zero value addition/skill addition.

    Anyways, I am more interested in immediate solutions. Instead of the prevailing school of thought of minimum governance, should the government create more vacancies by nationalizing more firms? Should it increase the age limit of all government entrances?

    I believe the sole purpose of a government is to ensure that its citizens are living happier and fuller lives. A person just cant be happy working for a firm where there is a constant possibility of getting a pink slip. A government should not force someone to work at a particular firm, but I think citizens should have enough freedom to switch over to a government enterprise whenever they want to, for some peace of mind and ofcourse for some personal value addition. Indians were never capitalists. We always had plenty. Capitalism sparked off in those areas, where there was shortage of land, labour capital etc. I guess this is a major reason for the rise in un-employment.

    So if there are not enough jobs in the private sector, what is the way out?
    Just read this. Will think upon it. Thanks.
    Merit would've been the better term. Yup.

    I believe the sole purpose of a government is to ensure that its citizens are living happier and fuller lives.
    Of course! But it also tries to survive. A living organism it is. So, trade offs are a part and parcel of running a government. But, ideally, what you said is very very true.

    A person just can't be happy working for a firm where there is a constant possibility of getting a pink slip.
    Agreed to an extent. But employees ditch their employers, too. In my opinion, a safety net, of some sort, should be evolved. A bit of better labour laws for the proletariat. Will have to research on this. Hmmm.

    We've to remember that too much of a job security can drive you lethargic. See clerks employed at government offices. How happy they are! But, most are performing below what's required of them.

    I think citizens should have enough freedom to switch over to a government enterprise whenever they want to, for some peace of mind and ofcourse for some personal value addition.
    Mindblowing idea!

    should the government create more vacancies by nationalizing more firms
    This hasn't worked in India before. Won't work now, in "my" opinion.

    The question you pose is a very complex one. And, I am no economist, nor have I done a wide-scale market research on the prevailing job situation in India. So a bit of a research is the need of the hour, it seems. Will think and research and will share inputs, if any.
    India is much more integrated with the world than ever before. Also, people are much more educated and much more aware than ever before. Thus, I dont think lethargy would creep in, as people are much more aware of their duties. Plus, there will exist a healthy private sector alongside a government sector. I am not hinting that India should move towards a hardcore USSR-esque economy.

    Secondly, if the government absorbs the willing and the able, it'll free up many jobs in the private sector as well, at all levels and people who want such jobs can then get accommodated easily. If there is some sort of healthy competition between the government and pvt sector jobs, citizen would benefit immensely. And in any case, post 1991, a lot of freedom has been given to the private sector, but still it is not able to create enough value or jobs, for a plethora of reasons.

    This should ease out the competition as well. For example, if two people apply for 1 post, and one gets selected as she has score 1 more mark than the other, this doesnt mean that the other person is unfit for that job. The other person will then have other similar options both in the government and the private sector. I believe job market should be secure. One should not worry about jobs or employment even if she is pink slipped. This will definitely help people develop other skills/ take interest in other issues, which will then benefit the nation as a whole.

    The thing is, ideally one should do a job which one loves i.e. the person should actually like the JD, and not just for sustenance. If one is doing it just for sustenance, then shes at the mercy of the employer. LIke many people sit for clerical level government jobs, while preparing for UPSC, just for "job security". Heck many Doctors take up SSC level jobs during preparation. They surely are overqualified for that job. Thus, they eat away seats for the deserving and then dont give their 100% to that job as well. This hurts the economy in the long run for sure.

    You'll float too!
  • edited October 11
    Hmm. Read the post.

    Also, people are much more educated and much more aware than ever before. Thus, I dont think lethargy would creep in, as people are much more aware of their duties.

    To this I can't agree in full, as this isn't really what's happening out there (the ground reality is not that pleasant, at least in the few government offices that I know of). A few friends posted at SSC as officers, a few in banks and a couple of relatives working for the Central Government have, time and again, corroborated this same fact. Hell, a few days ago a peon got fired upon an Additional CIT in Mumbai because his workload was increased (and justifyingly so). My uncle works at the same office. All hell broke lose. The guys in probation seem to fear the peons, too. Ha Ha. Too much of job security, and it induces a state of arrogance in all and sundry. Maybe, a new system of accountability has to be evolved while maintaining the job security that you talk about.

    I'll put my thoughts on your other pointers as well! Will think upon them and reply soon. Others can add.
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  • Secondly, if the government absorbs the willing and the able, it'll free up many jobs in the private sector as well, at all levels and people who want such jobs can then get accommodated easily. If there is some sort of healthy competition between the government and pvt sector jobs, citizen would benefit immensely. And in any case, post 1991, a lot of freedom has been given to the private sector, but still it is not able to create enough value or jobs, for a plethora of reasons.

    Hmmm. Makes sense. This accomodation would require creation of vacancies and posts and the government will have to devise a plan to bear this additional financial burden. The private sector was not able to create enough jobs - true enough. The utilisation of the over-hyped 'demographic dividend' seems a utopian dream in the current market scenario. How will the government manage to accomodate this additional load sharing is the question. Tax evasion is a thing untamed still, informal sector still being something that escapes the tax net. In an era of disinvestment and privatisation, would a govenment bet on creating long-term profitable ventures? Education and awareness will defintely help here, at least at officer levels and upwards. But then enters the manual labour vs automation (+IT) debate? Would it be a step backwards in the current global market scenario? Hmmm. Things to think upon.
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  • Too much commotion. Can't type. Others might add.
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  • edited October 12
    This should ease out the competition as well. For example, if two people apply for 1 post, and one gets selected as she has score 1 more mark than the other, this doesnt mean that the other person is unfit for that job. The other person will then have other similar options both in the government and the private sector. I believe job market should be secure. One should not worry about jobs or employment even if she is pink slipped. This will definitely help people develop other skills/ take interest in other issues, which will then benefit the nation as a whole.

    Agree. True. I think a bit of research on those parts of the world that have such abundance of jobs would reveal the factors that made this very possibilty (that we only dream about now) a reality in the first place. Unemployments rates are higher than the world's average, here.

    A slight digression, here. Talking about entrepreneurship, I don't think we Indians are that bad entrepreneurs, at all! Tech, service and manufacturing startups aren't the only venues that come under this domain. Each self-employed villager is an entrepreneur (in itself), if you look at him or her, with a different set of lenses. However small his/her enterprise might be, but that's a business, in itself, right? Now do these self-employed entrepreneurs face no worries, or taking a step further, do they 'really' like their JD? Something to think upon.
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  • The thing is, ideally one should do a job which one loves i.e. the person should actually like the JD, and not just for sustenance. If one is doing it just for sustenance, then shes at the mercy of the employer. LIke many people sit for clerical level government jobs, while preparing for UPSC, just for "job security". Heck many Doctors take up SSC level jobs during preparation. They surely are overqualified for that job. Thus, they eat away seats for the deserving and then dont give their 100% to that job as well. This hurts the economy in the long run for sure.

    Yup. A sad truth for middle class Indians, you see. :)
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  • edited October 12

    This should ease out the competition as well. For example, if two people apply for 1 post, and one gets selected as she has score 1 more mark than the other, this doesnt mean that the other person is unfit for that job. The other person will then have other similar options both in the government and the private sector. I believe job market should be secure. One should not worry about jobs or employment even if she is pink slipped. This will definitely help people develop other skills/ take interest in other issues, which will then benefit the nation as a whole.

    Agree. True. I think a bit of research on those parts of the world that have such abundance of jobs would reveal the factors that made this very possibilty (that we only dream about now) a reality in the first place. Unemployments rates are higher than the world's average, here.

    A slight digression, here. Talking about entrepreneurship, I don't think we Indians are that bad entrepreneurs, at all! Tech, service and manufacturing startups aren't the only venues that come under this domain. Each self-employed villager is an entrepreneur (in itself), if you look at him or her, with a different set of lenses. However small his/her enterprise might be, but that's a business, in itself, right? Now do these self-employed entrepreneurs face no worries, or taking a step further, do they 'really' like their JD? Something to think upon.

    There is a difference between a merchant and an entrepreneur. A merchant just sells stuffs, and doesnt generate much employment. Entrepreneur innovates and makes a dent on the market. He needs people to do the same. Thus employment is generated. For example, a lala ki dukaan cant be considered as an entrepreneurial marvel, however a small scale cotton mill may be. The cotton mill creates both value and employment.

    Anyways, coming back to the point, now the newly constituted Economic COuncil of the PM has also accepted the fact that employment generation has actually slowed down. However, globally, many economies are still going strong. I wonder what will the government do in this scenario? Creating more government jobs may be one of the options. Creating a culture of entrepreneurship will take several decades. What about the present "young population" then? Secondly many researches have recently come out, which clearly state that lifestyle diseases like diabetes and heart attacks are happening earlier now. The main reason I guess is the nature of jobs and a lack of job security. I am sure the government doesnt want unhealthy and unemployed youth in the system.
    You'll float too!
  • Yaar poora reply erase ho gaya. Damn! Ipad got discharged. What you say is true - the merchant vs entrepreneur difference (spot on). I should've been more explicit. Will elaborate later on.
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  • Bhai mai to chahta hu ki University professors ka bhi audit ho, they should also be responsible for not providing adequate guidance in this crucial time.
  • http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece

    Though this article assiduously tackles issues that plague the rural job market, it fails to throw light on issues of urban graduates who aspire for more than just mere sustenance.
    You'll float too!
  • Hmmm.
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  • edited October 14

    Hmmm.

    Thinking is your hobby I guess.
    You'll float too!
  • edited October 14
    pennywise said:

    Hmmm.

    Thinking is your hobby I guess.
    Nothing wrong in discussing such issues. I was thinking to pen down my thoughts but am busy. Weekends don't beget me any breathing space.
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  • kya hoga is desh ka ?
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