Internal

Unemployment problem in India

With the apprehension of the upcoming COVID wave and increasing population, the
unemployment rate will further increase  due to the current global state of affairs, population,
lack of government policies, and pre-COVID trend of a declining economy which will impact
the social structure of the country with the economic inequality, increased social unrest, suicides
and corruption.
In the pre-COVID era, the rate of unemployment was already on a declining trend with the lack
of any major economic reforms. which further got hit by the COVID outbreak. We saw a falling
trend of GDP in the pre-COVID era from the year 2016. This may be due to demonetization and
GST implementation, which impacted the medium and small-scale industries.
During the pandemic year due to the negative GDP trend, Indian unemployment problem
increased further. The expected recovery post-COVID year is not promising. Indicating that the
problem of unemployment is not going to end soon, it will further be going to increase with
upcoming COVID challenges.
The international labour organization acknowledged that the global unemployment rate did not
show an expected improvement rate and it remained at the lower level and is expected to remain
for a few more years to come as the recovery is happening at a very slow rate.

The lack of government willingness to create a futuristic pro employment policy is one of the
major reason for the continued weakening trend of the economy.
The current global situation like war and other political situation is aggravating the situation.

People cannot be jobless for a long period, which will increase the impact on the financial
condition and will lead to social unrest, poverty, crime rates, corruption, mental health, etc.

There is a strong link between the suicide rate and unemployment. Suicide rates are the
indicators of the unemployment problems in India. To support this argument the recent data
showing the highest rate of suicide in the pandemic year makes it clear.

There is large demand and supply gap in the Indian Job market. To support this argument the
recent news shows the millions of applications for a few thousands of clerical jobs in railways.
Considering this trend, the future years are not easy to give employment for most of the youths
of India.
On the other hand, corruption issue in the government sector is aggravating the problem of
youths who are not finding suitable jobs according to their qualification.

Unorganized labour sector on other hand faces the issue of job guarantees, low wages, and poor
working conditions due to the casualization of labour laws by the government. Most of the
welfare schemes are burdening the government without meeting the entire long-term demands of
the youth of India.

To conclude the problem of unemployment is going to become worse due to social and
economic issues and further the threat of COVID fourth wave is a challenging situation in India
with a growing population. Effective long-term economic measures are the only way forward to
tackle this issue effectively.
Reference: Book by S.N Mishra on Labor and Industrial law
National Crime Records Bureau (NCRB) data presented in Rajya sabha : published by Times of India
Link between suicide and unemployment rate published by World economic forum
Centre for Monitoring Indian Economy data for unemployment rate