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Skill Drill: From Education To Employment
Context:
The companies working in the field of skill development and education are adopting innovative solutions for augmenting employability among undergraduates, graduates and informal workers.
Unemployment Status in India:
The unemployment rate is a key economic indicator that measures the percentage of people in the labour force who are currently unemployed but actively seeking work.
Source: CMIE
Impacts of High Unemployment Rate:
- Strain on public finances: High unemployment leads to reduced tax revenues and increased government spending on social welfare programs (increased fiscal deficit due to high revenue expenditure), putting a strain on public finances.
- Reduced consumer spending: Unemployed individuals have less disposable income, leading to lower consumer spending and hindering economic growth.
- Increased social unrest: High unemployment can lead to social unrest, as people struggle to meet their basic needs and may turn to illegal activities.
- When the global financial crisis hit Spain in 2010 and the real estate bubble burst, coupled with unemployment soaring, resulting in a budget deficit, massive protests and riots occurred.
- Loss of human capital and economic potential: Unemployment results in the underutilisation of skills and talents, leading to a loss of human capital and unrealized economic potential, leading to demographic disaster
- Negative impact on GDP growth: High unemployment reduces productivity and economic output, which in turn negatively impacts GDP growth.
- Exacerbation of poverty and inequality: Unemployment contributes to poverty and widens income inequality, as those without jobs struggle to make ends meet.
- Hampered skill development and innovation: High unemployment limits opportunities for skill development and entrepreneurship, hindering innovation and long-term economic progress.
Article 41 of the Indian Constitution, emphasises the state’s responsibility to ensure the right to work, education, and public assistance in cases of unemployment, old age, sickness, and disablement, as well as other cases of undeserved want.
Steps taken by Government:
- Aatmanirbhar Bharat package: It is to provide stimulus to business and to mitigate the adverse impact of Covid 19.
- Aatmanirbhar Bharat Rojgar Yojana (ABRY): This scheme being implemented through the Employees’ Provident Fund Organisation (EPFO), seeks to reduce the financial burden of the employers and encourages them to hire more workers.
- Garib Kalyan Rojgar Abhiyaan (GKRA): It is to boost employment and livelihood opportunities for returnee migrant workers and similarly affected persons including youth in rural areas.
- PM GatiShakti: This is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.
- Prime Minister’s Employment Generation Programme (PMEGP): Provides financial aid to individuals in rural and urban areas to start micro-enterprises, generating self-employment.
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Guarantees 100 days of wage employment in public works projects for rural households, focusing on manual labour.
- Deen Dayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM): Supports self-help groups and livelihood initiatives for women in urban areas, promoting their economic empowerment.
Steps taken by Companies:
- Work-Linked Degree Programmes:
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- TeamLease Edtech has started this program in partnership with universities, colleges and employers to provide the internships to the students.
- India Staffing Federation (ISF) has also taken the same steps in coordination with the National Skill Development Corporation (NSDC).
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- Corporate Social Responsibility (CSR) Programs: Companies often invest in skill development initiatives in communities, providing training in specific trades or digital skills, making individuals more employable.
- Incubation Centres: Private players set up incubation centres to provide budding entrepreneurs with workspace, mentorship, and funding opportunities, fostering the creation of new businesses and potential job opportunities.
- Angel Investors and Venture Capitalists: Private investors provide financial backing and guidance to promising startups, fueling innovation and potentially creating new jobs.
Conclusion:
Addressing unemployment in India requires a multifaceted approach involving government initiatives, corporate contributions, and educational reforms.