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Last updated: 16 May, 2017  

Industry.9.4.Thmb.jpg Jobless growth

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Bikky Khosla | 16 May, 2017
Jobless growth has, for quite some time now, been pointed out as a major challenge facing India. Our economy is powering ahead, but without creating enough jobs, and this widening gap clearly indicates that our policy makers' focus only on increasing the GDP growth rate is not enough. They have a tougher task ahead: to create gainful employment opportunities for our unemployed youths. More than 12 million people join the Indian job market annually, but in contrast, employment generation has remained pathetically poor and this situation must change if we want to make sure that the benefits of growth reach the masses.

Following PM Modi's recent directions, the Centre has last week set up a high-level task force to recommend how to collect reliable and timely data on employment. Better late than never. It is a no-brainer so say that our employment data collection system needs a radical overhaul. Currently, the quarterly employment survey by the labour bureau covers just eight sectors of the economy while the National Sample Survey Organisation releases employment data only once in five years. Most of the times data released by different official sources is outdated or incomplete. This needs to change. Reliable data is a must for effective policy making, and so, first of all, we need to reform the jobs data ecosystem.

Critics view that our economic growth during the recent boom years was largely driven by less labour-intensive sectors. The Economic Survey 2016-17 also stressed the need to focus on labour-intensive sectors, and on the same line the Centre later came out with an apparel package and declared that such benefits may be extended to other labour-intensive sectors such as leather, but unfortunately not much positive has come out yet. In fact, the apparel plan has failed to attract many due to bureaucratic and other hurdles while the leather sector is facing the heat of the anti-abattoir movement. Similarly, some labour-intensive sectors like mobile manufacturing are facing uncertainty as the Centre has yet to come out with a post GST plan for them. This situation is not encouraging.   

No doubt that the Government's push to ease of doing business and investment in infrastructure, housing and tourism will help employment generation. Also, large multinationals with their impressive investment commitments can contribute to the cause. But these efforts alone are not sufficient. The main focus should be on SMEs spreading in every nook and cranny of the country. They are in a better position to create jobs. Also, our skill ecosystem needs a complete overhaul. We need to help our students to transform into workers, for which the curriculum has to be fine-tuned so that our education system can lead to employability.

I invite your opinions.
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Dangerous status of job-loass or jobless
Prasad | Fri Jun 2 07:27:26 2017
Sir, Your article has touched upon core issue of society,I know many students who happened to attended campus interviews are in waiting for appointments ,those who have been appointed have lost their jobs, as you rightly mentioned ,each summer is adding to this another set of 12 million students ,due to social stigma ,many are actually not coming out openly to say that they don't have job ,fearing that if news reaches parent at home , they will be heartbroken,hence living like fools in city , if this continues , we will have multi dimensional effect on businesses and society , I am sure government is aware of situation , job creation and consumption is like egg and chicken story , all of us know that core strength of job creation is consumption , if consumption increases , jobs gets created , to create both , one need to pump money into market , Government must facilitate top business with enough money and make sure SME s gets their share of it at ease by deleting all hurdles of CIBIL and other protection-systems, if money made available part of joblessness will get resolved.

Jobless Growth
Sujay Bhattacharya | Fri May 19 12:02:03 2017
Our MSMEs provide 45% of India's manufacturing outputs and 40% of export. It is highly labor intensive and provides a major chunk of employment. However, many of these industries are not very organized and depend on investments from non-Banking Financers. Since 2009 there has been a slow down€“ in line with other manufacturing units. MSMEs suffered a major jolt since November 2016 as Govt. of India declared the demonetization policy. These unorganized sectors were not prepared for the overnight decision and suffered huge losses from which they are yet to recover. Now, a major thrust is needed for the survival of the MSMEs – in terms of Financing, Ease of Operation, promoting Export.

Jobless growth
Sujay Bhattacharya | Thu May 18 20:32:14 2017
Something like HAIR GROWTH INDUSTRY ? The industry is growing (@ 3.0% CAGR) but HAIR IS NOT GROWING!

Jobless growth
Deepak, Laptop World, Bangalore | Thu May 18 07:46:06 2017
Hi, I found your article very interesting and the last line highlighting "employability" of fresh graduates should find the basis of a brain storming. As an SMB owner and in the current competitive environment, its not viable for us to hire freshers and await to reap returns of the imparted training. This is a chicken and egg story where there is an urgent need for a concerted focus from the government, educational institutions and trade bodies.

No automation
Raju L kanchibhotla | Wed May 17 17:08:22 2017
India is a people centric country and automation is not a solution. We need simple solutions to add value to the existing products. As an example in AP and Telangana this years Mirchi is grown in abundance, and we do not have space to store, can we crush Mirchi and store them to make farmers gain, this can be done by SME diversified at different places. Many such things can be made making people to work, if we fail we are creating educated anti social elements who are frustrated for no job and can destroy India Let us be careful to make economy to create more jobs. India needs more Jobs at less GDP and lesser stock indexes.

Jobless growth
Govind Ram | Wed May 17 06:07:41 2017
What the situation we are facing is having multiple paradox/conflicting or confusing policies and if not acted upon , situation will worsen further. Just for example, Maruti, a JV, has started using Robots in assembly lines at Manesar/Gurgaon and fill proud of it. But is it not counter to employment generation. Driver less cars are being experimented and may come to our country also, in name of Pseudo Safety etc. Need is well trained driver come travel assistant/guide for our Indian condition. Less manpower in Manufacturing units delays the detection/emergency handling and results in higher consequential losses, which an Inquiry Report should point out, but suppressed by the management. Government must examine use of automation/Robotics only in area Humanely not feasible/leading to loss of life etc. This issue is to have open debate/policy for future well in time.

Manufacturing sector
Sujay Bhattacharya | Wed May 17 05:26:52 2017
India's manufacturing sector took a beating since 2009. It is not recovered, rather going worse. With no significant investment, foreign or domestic, this MAJOR JOB CREATOR became very weak. The "Make in India"€ policy is yet to pick up steam. The investors'€™ confidence is missing. Yes, those data showing optimistic data on GDP growth rate has no meaning if you have no job, food price inflation is sky rocketing, our cost of electricity is one of the highest in the world. Even that GDP data is disputed as many globally acclaimed economists have expressed their disagreement regarding how it is being calculated.

Jars | Wed May 17 04:28:04 2017
Excellent points. Kudos. Government should look simplifying ESI and PF laws. I know many owners who don't want to grow or show everything in books simply because of these two departments. Very unfriendly departments.

Establish Industry
S Chakraborty | Wed May 17 04:20:18 2017
Only solution I feel to establish Industry, whether it is large scale or MSME, in all the states and UT especially, in J&K and north east states. Then more jobs will be generated as well as economy will see its spring.

Jobless growth
Kunnakkattu.J | Wed May 17 04:12:01 2017
It is certain than all not welcome criticism. The main drawback of India is there is no structure for all system. Bureaucrats don't want them as they don't want more headaches.There is no good database with Government to control. No politician will agree but poor will agree to have a Aseet Card for each entity, with UID. This data will give who deserve help and who to be taxed. Since we now have good computers and software it can be started. All entity have to register its assets with IT linked to PAN,Registration No,Biometric identity. This will stop benami transactions. This UID a mandatory to quote in all transactions. Self declaration by the entity is OK for granted and they have to declare foreign assets also. This data base if segregated can provide who is rich who need assistance. Give loan to poor educated to start the start ups and no big loan to corporates for expansion. Corporates are allowed to take money from market based on their credibility by FD, MF, etc. Every year income be compared for growth and standard growth ok, high growth means corruption. There should also be restriction to form as many as firms by corporate body or individual as it can make unwanted money transactions. Is this not possible. Yes, but the rich industrialists, the politicians do not like this because this stop their growth. So none is interested in development of India but all are interested for their own development.

SHIRISH AWATE | Wed May 17 03:22:23 2017
Labour law reforms are necessary -Competency levels are to be enhanced by providing more skill development program, training. - govt schemes are not properly implemented at root level. - Money is not free.

Revive sick MSMEs
Growth Idea Labs | Wed May 17 01:31:03 2017
About 5 crores jobs are in danger in sick MSME and the attitude of banks at bottom level is worrisome.if we revive sick MSMEs not only jobs will be saved but government will earn taxes out of this.

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