Model Answer
0 min readIntroduction
The Indian economy, despite being one of the fastest-growing globally, faces a persistent challenge in generating ‘decent work’. The ‘quality of employment’ refers not merely to the availability of jobs, but also to the conditions under which work is performed – including job security, adequate wages, social protection, and opportunities for skill development. Recent reports, including those from the Periodic Labour Force Survey (PLFS) 2022-23, highlight alarming trends of high unemployment rates, particularly among youth, and a significant proportion of the workforce engaged in vulnerable employment. This situation necessitates a comprehensive analysis of the factors contributing to the poor quality of employment in India.
Understanding the Dimensions of Poor Employment Quality
The quality of employment in India is characterized by several interconnected issues:
1. High Levels of Unemployment and Underemployment
- Unemployment Rate: As per PLFS 2022-23, the unemployment rate was 3.2% but significantly higher among youth (18-29 years) at 8.8%. (Source: PLFS 2022-23, Ministry of Statistics and Programme Implementation)
- Underemployment: A substantial portion of the workforce is underemployed, meaning they are working fewer hours than they are capable of or are employed in jobs that do not fully utilize their skills. This is particularly prevalent in the agricultural sector.
- Disguised Unemployment: Excess labour in agriculture, where marginal productivity is low, represents disguised unemployment.
2. Dominance of the Informal Sector
- Share of Informal Sector: Approximately 90% of India’s workforce is employed in the informal sector (National Sample Survey Office, 2019-20).
- Characteristics of Informal Employment: Informal jobs are often characterized by low wages, lack of job security, absence of social security benefits (provident fund, health insurance, pension), and poor working conditions.
- Vulnerability: Workers in the informal sector are particularly vulnerable to economic shocks and exploitation.
3. Wage and Income Inequality
- Wage Stagnation: Real wage growth has been sluggish in recent years, particularly for unskilled and semi-skilled workers.
- Gender Wage Gap: A significant gender wage gap persists, with women earning less than men for similar work.
- Regional Disparities: Wage levels vary considerably across states, reflecting regional economic disparities.
4. Skill Gaps and Mismatch
- Skill Deficit: There is a significant gap between the skills possessed by the workforce and the skills demanded by employers.
- Vocational Training: The effectiveness of vocational training programs in bridging the skill gap is often limited.
- Industry-Academia Linkage: Weak linkages between educational institutions and industry contribute to the skill mismatch.
5. Impact of Technological Changes & Automation
- Job Displacement: Automation and technological advancements are leading to job displacement in certain sectors, particularly in manufacturing and routine tasks.
- Demand for New Skills: The demand for workers with digital skills and analytical abilities is increasing.
- Need for Reskilling and Upskilling: There is a growing need for reskilling and upskilling initiatives to prepare the workforce for the changing job market.
Government Initiatives and Their Limitations
| Scheme/Initiative | Objective | Limitations |
|---|---|---|
| Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) (2005) | Provides guaranteed wage employment to rural households. | Limited to 100 days of employment, wage rates often below market rates, implementation challenges. |
| Pradhan Mantri Kaushal Vikas Yojana (PMKVY) | Skill development and certification of youth. | Quality of training varies, placement rates often low, lack of industry relevance. |
| Atal Pension Yojana (APY) | Provides a pension scheme for workers in the unorganized sector. | Low awareness and enrollment rates, limited coverage. |
| e-Shram Portal (2021) | National database of unorganized workers. | Data accuracy and completeness are concerns, effective utilization of data for policy making is still evolving. |
While these initiatives aim to improve the employment situation, their impact has been limited by factors such as inadequate funding, implementation challenges, and a lack of coordination between different government departments.
Conclusion
The alarming quality of employment in India is a complex issue rooted in structural factors such as the dominance of the informal sector, skill gaps, and technological changes. Addressing this requires a multi-pronged strategy focusing on promoting formalization of the economy, investing in quality education and skill development, strengthening social security nets, and fostering inclusive growth. Furthermore, proactive policies are needed to manage the impact of automation and ensure that the benefits of technological progress are shared equitably. A sustained commitment to these measures is crucial for creating a more productive, equitable, and sustainable employment landscape in India.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.