Employment Finally an Election Issue

Context: It is for the first time that unemployment/joblessness has become a big issue in the recent Bihar election.

Rising Issue of unemployment in India

• The massive decline of government sector job growth: from 1.3 million per annum (2005 to 2012) to only 0.4 million per annum (2012 to 2018).
• Of the total 465 million jobs, only 34 million are created in the government sector. 
• Health and education sectors are understaffed along with police and the judiciary.
• State and Central, the share of Groups C and D jobs is an overwhelming 89%, leaving 11% of jobs for Groups A and B.
• Policy impacts: Demonetisation and pandemic induced lockdowns impacted the non-agricultural jobs like those in construction. 
• Decline in self-employed youth: from 81 million 2005 and further to 49 million 2018 despite measures like MUDRA (95% of loans are under Shishu category). 

Way Forward:

• Transform micro enterprises into small and then medium enterprises: with appropriate government policies for expanding employment opportunities.

• Implement supplementary measures: like providing incentives and developing infrastructure with local industrialization.
• For, E.g. Bihar saw girls’ secondary enrolment rising because the government provided bicycles to girls who got promoted from Class 8 to Class 9.
• Increase investment in public health: According to the World Health Organization, there should be one doctor per thousand population. However, in Bihar, one allopathic doctor serves 43,788 people.