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 thenon-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.
Conclusion: Private sector employment through appropriate government policy is crucial for sustaining employment growth.