Job Crisis in India

Archaic Labour Law

1. Industrial Dispute Act, 1947

2. Factories Act, 1948

3. Contractual Labour (Abolition and Regulation) Act, 1970

These laws disguisly impose Liscence Raj, that limit growth in many ways.

Labour comes under concurrent list. Various States and central Laws are applicable. Thus, there is complexity with compliance of these laws.

Less approach to Labour court.

Contractual Labourers, without proper Enforcement of the contracts.

Low-Wage Economy

1. Poor Vocational Training/ Skill Development

2. Minimum Wage should be raised.

3. While having good GDP growth, it is not corresponding to Wage Growth, because the growth is coming from Capital Intensive, not Labour Intensive.

Youth Seeking Government Job

1. Permanancy

2. Social Security

3. Better than a low-wage bluecoller job.

Major Labour Force is having Low Productivity and working in Low Productive Areas

• Agriculture, Animal Husbandary, Fisheries

• Having disguised unemployment

Minimal Safety Protocol Missing in many Hazardous Sectors

1. Life Threatening Diseases, like posioning, Carcinogen Intraction

2. Manual Scavenging

   • Intestinal Problems, Skin Diseases, Pathogens

   • Supreme Court in Kamladhar Gupta Case, Manual Scavenging is a complete violation of Article 14, 17, 21, 47 of the Indian Constitution

   • Alanga, Gujrat Ship Breaking Dock

     • Labour Force comes in contact with Various Hazardous Chemicals.

Child Labourers

1. Low Wages

2. Economic Hardship of Family

3. Kailash Satyarthi's , Bachpan Bachao Mission

• Modern Day Slavery

• Walk-Free Foundation's Global Slavery Index also pointed this.

• Gurupad Swamy Community, pointed rehabilitaion after rescuing is inddispensable.

Other Problems

1. Multiplicity of Definition of Labour, Wages, Establishments in different Sectors.

2. Lack of Formalisation

3. Retrenchment and Hiring Policy.

4. Dwarfism of Companies

5. Lack of Institutional Governance

   • No Statuary or Constitutional Body

6. Lack of Lok Adalat and LAbour Court

Employment Data Factors

1. Total Population

2. Working Age Population

   • People belonging to an age group of 15 to 59 years old are known to be of working age.

   • Currently, 63% of the total population is in working age.

   • About 88 crore.

3. Work Population Rate WPR $$ WPR = \frac{\text}{\text} $$

   Source	WPR
   PLFS	56%

4. Employment Rate ER $$ ER = \frac{\text}{\text} $$

5. Labour Force Participation Rate LFPR $$ \text = \frac{\text}{\text} $$

   PLFS 53%

6. Unemployment Rate UR $$ UR = \frac{\text}{\text} $$

   Source	Unemployment Rate
   Periodic Labour-Force Survey	3.2%
   RBI's KLEMS	64 crore.
   Centre for Monitoring Indian Economy	9.2%
   India Unemployent Report	?

How is Employment Data Calculated?

National Sample Survey Organisation- MoSPI Employment Surveys

1. Household Surveys

2. Enterprise Survey- MSMEs

3. GST-Network Data

4. Labour Bureau Data

5. Adminstrative Data

   1. MCA21 Database

   2. EPFO Data

   3. Employee State Insurace Data

   4. NPS Data

6. Data from Governments Schemes

   1. MGNREGA

   2. PM Swanidhi

   3. MUDRA Scheme

Problems of Emploment Data

Doesn’t calculate dropouts of EPFO

1. Mismatch Between Education and Industry Needs

• Curriculum Irrelevance: Many educational institutions offer outdated curricula that don't align with current industry needs. This creates a gap between the skills that graduates possess and what employers are looking for.

• Lack of Practical Training: The focus in education often remains on theoretical knowledge, with insufficient emphasis on hands-on, practical skills that are directly applicable in the workplace.

2. Quality of Training

• Insufficient Infrastructure: Many training institutions, especially in rural areas, lack the necessary infrastructure, including modern equipment and qualified trainers.

• Trainer Quality: There is a shortage of well-trained instructors who can deliver high-quality training. Many trainers themselves may not be up to date with the latest industry trends.

3. Access and Inclusivity

• Urban-Rural Divide: Skill development opportunities are often concentrated in urban areas, leaving rural populations with limited access to quality training programs.

• Gender Disparity: Women often face cultural and societal barriers that limit their participation in skill development programs, leading to lower employment rates for women in skilled professions.

4. Awareness and Perception

• Low Awareness: Many people, especially in rural areas, are unaware of the various skill development programs available to them. This limits enrollment in such programs.

• Stigma Around Vocational Training: There is often a societal preference for traditional academic education over vocational training, which is seen as less prestigious.

5. Funding and Policy Implementation

• Insufficient Funding: Although the government has launched several initiatives for skill development, the funds allocated are often insufficient to meet the large-scale demand.

• Policy Gaps: While there are many policies in place, their implementation is often inconsistent, leading to inefficiencies and underutilisation of resources.

6. Technological Disruption

• Rapid Technological Changes: The pace of technological change is creating new job roles and making some skills obsolete. Training programs often struggle to keep up with these changes.

• Digital Divide: Limited access to technology and the internet in certain areas further exacerbates the challenge of updating skills relevant to new-age jobs.

7. Placement and Employment Issues

• Low Placement Rates: Even after completing skill development programs, many trainees find it difficult to secure jobs due to the mismatch between their training and the actual job market demands.

• Underemployment: Many skilled workers are underemployed, meaning they’re working in jobs that don’t fully use their skills or offer adequate compensation.

8. Lack of Soft Skills

• Communication and Interpersonal Skills: Many graduates lack soft skills like communication, teamwork, and problem-solving, which are increasingly important in the modern workplace.

• Workplace Readiness: Beyond technical skills, there is a gap in preparing individuals for the work environment, including understanding workplace culture and expectations.

9. Regional Disparities

• Variation Across States: The quality and availability of skill development programs vary significantly from state to state, leading to regional disparities in skilled workforce availability.

10. Private Sector Engagement

• Limited Private Sector Involvement: The private sector's involvement in skill development is often limited, despite being a key beneficiary of a skilled workforce. There is a need for stronger collaboration between the government, educational institutions, and industry.