Unemployment is defined as the phenomenon where a person who is actively searching for employment is unable to find suitable work. We don't really need to define unemployment when we see and experience it firsthand. It could be a violent protest or a casual rant we see as we scroll, nevertheless, we know it's one of the biggest problems our economy faces. Unemployment is one of those issues that our 'humble' leaders love to bring up right before an election but quite conveniently forget about when they're voted in. Unemployment isn't a problem for the 11 million+ educated young graduates trying to find a place in this economy, but for an entire generation of students that will soon enter the job market.
| Year | Male (%) | Female (%) |
|---|---|---|
| 2012-13 | 8.8 | 14.9 |
| 2013-14 | 7.5 | 14.3 |
| 2014-15 | 8.1 | 13.1 |
| 2015-16 | 7.9 | 5.8 |
| 2016-17 | 9.6 | 6.7 |
| 2017-18 | 18.7 | 27.2 |
Causes of Unemployment in India
Unemployment in India has been rising in both rural and urban areas over the years. This trend slows down economic growth and affects the country's overall development. Some of the major causes of unemployment are:
- High Population Growth: India's population has been increasing rapidly, which causes the number of young people entering the workforce to increase as well. But the current economy is quite far from providing stable jobs for this wave of new (skilled) workers.
- Poverty and Lack of Education: Many people do not receive proper education or skill training because of poverty and low living standards. Without the necessary skills, it becomes difficult to find stable jobs.
- Inflation: Rising prices reduce people's purchasing power (purchasing power is the real-world value of money, measured by the quantity of goods and services a single unit of currency can buy) and affect businesses as well. Since wages often do not increase at the same rate as prices, many workers remain dissatisfied or unemployed.
- Seasonal Agricultural Work: Many people in rural areas depend on agriculture, but farming provides work only during certain seasons. For the rest of the year, workers often remain unemployed.
- Growth of Informal Labour: Due to the shortage of secure jobs, many people work in the informal sector, where wages are low and irregular and jobs are unstable.
- Lack of Full Industrial Employment: Many industries are unable to operate at full capacity because of limited machinery, shortage of raw materials, or poor infrastructure. As a result, they cannot employ enough workers.
— Unemployment main problem of Indian society, Dr. Ashwani Kumar, Assistant Professor, Political Science, NIILM University Kaitthal, Haryana, India
These reasons can be considered quite universal. I would like to move a step forward and talk about the reasons our generation, Gen Z, faces unemployment.
So, let's talk about certain reasons that affect Gen Z:
1. Absence of meaningful specialization
A lot of young workers have generic qualifications (a basic degree), rather than the specific skills required for the job. This makes them very easy to replace in the eyes of the employer and less likely to be hired for technical or higher-value positions. The result is slower wage growth and under-employment as firms look for people who can immediately deliver specialised value.
2. Rise of AI
Due to the rise in AI and machine learning systems, entry-level jobs, along with careers that require doing repetitive tasks, are just irrelevant. The thought is simple: if a company can get a task done using AI they don't have to pay (hire) an employee to do so.
3. Lack of crucial real-world skills
Many young people lack the practical skills needed for the workplace, such as communication, teamwork, financial literacy, basic project tools and hands-on technical knowledge — skills required in the real world. We must understand that these skills aren't developed through classroom learning but by other factors; hence recent graduates have a hard time figuring out their place in this modern economy.
4. Sub-standard work ethic
From the perspective of a 16-year-old who worked in a few too many student-led initiatives, I cannot help but criticise Gen-Z's work ethic. The current generation thrives on initial motivation, trying to seem 'cool' amongst peers or build their college portfolios. This reflects the poor punctuality, low persistence, weak accountability, and transactional attitude toward work. Furthermore, the impact of social media (along with its easy gratification systems) is immense. Gen Z cannot really understand how to manage long-term commitments and plans.
Employment and the Government
Setting aside the reasons for unemployment, we must ask a crucial question—is youth unemployment really the government's fault?
1. Constitutional Mandate
The Constitution of India recognises the "right to livelihood" as an integral part of the fundamental right to life under Article 21. Additionally, Article 39(a) and Article 41 (Directive Principles of State Policy) obligate the State to secure adequate means of livelihood for citizens and to make effective provision for employment.
In simple terms, providing the youth with employment opportunities is part of the long list of responsibilities the state has been entrusted with.
— The "State" includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of India.
2. The Ministry of Labour and Employment is responsible for:
- Formulating and administering labour laws and welfare measures
- Implementing employment-generation schemes such as Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) to incentivise employers for creating new employment
- Promoting skill development and enhancing workforce employability
3. Governments Are Responsible for Raising Employment by:
- Policy Formulation — NITI Aayog, Ministry of Agriculture, Ministry of Women and Child Development, etc.
- Direct job creation through government departments and Public Sector Undertakings (PSUs), which will create lakhs of jobs in the State/Central government and public sector companies
- Public Infrastructure Investment — The government needs to invest in infrastructure projects (roads, railways, ports) that generate employment in construction and supply chains. This will mainly impact the people from a lower socio-economic background; empowering them by using their skill set and paying them, which, in turn, widens and strengthens the economy.
- Procure long-term FDI — Governments should focus on FDIs (foreign direct investments) as they create jobs, boost economic growth, and fund large infrastructure projects. FDI brings better-paying employment, makes local firms more competitive, and remains resilient during financial crises, making it essential for developing countries' long-term economic development and global competitiveness.
Conclusion
Considering all factors, it's safe to say that Gen Z has some glaring problems that might inevitably lead to a rise in youth unemployment in the coming years. The sociocultural factors I mentioned in the beginning have troubled India for years; factors like high population and the disproportionate reliance on the primary industry cannot be dealt with in a night or even in the span of an entire central government tenure. Slow progress has to be made, and yes, the government should be held accountable in this regard.
Nevertheless, at the end of the day, each one of our careers is in our very own hands. We can either take to the streets along with a politically biased organisation that lays special emphasis on a particular insect or we can empower ourselves with the knowledge and skills required. Take accountability for our decisions and choices, and advocate for better policies, not as students but as actual policymakers.
— Siddarth Somaiah (Founder of RouteED)