Employment (DAMP)
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Contents
- Analyze the impact of technology on traditional job roles in India. How can the government ensure a smooth transition for workers affected by technological disruptions and promote reskilling and upskilling initiatives?
- Why is skill development essential in India. Highlight the challenges faced in the skilling and entrepreneurship landscape. Provide an overview of the government’s initiatives to address these challenges.
- The Gig economy represents a fundamentally regressive future for employment with modest pay, long working hours, ephemeral jobs, and no social security. Analyze.
- Discuss the main factors responsible for jobless growth in the Indian economy. How can these factors be addressed to promote inclusive and sustainable employment opportunities?
- Highlight the main factors contributing to unemployment in India. Explain the significance of generating gainful employment in India for achieving inclusive and sustainable economic growth.
02-08-2023
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Answer :
The impact of technology on traditional job roles in India has been profound and far-reaching. Advancements in automation, artificial intelligence, and digital technologies have disrupted various industries, leading to both job displacement and the emergence of new opportunities. Analyzing this impact is crucial to understand the challenges faced by the workforce and the measures needed to ensure a smooth transition and promote reskilling and upskilling initiatives.
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Impact of Technology on Traditional Job Roles: |
- Job Displacement: Automation and AI have replaced certain repetitive tasks, leading to job losses in industries like manufacturing and data entry.
- Skill Shifts: Technology has necessitated a shift in skill requirements, with a demand for digital literacy and technical expertise across sectors.
- Creation of New Roles: Technology has also led to the creation of new job roles in areas like data analysis, cybersecurity, software development, and digital marketing.
- Occupational Upgradation: Technology has upgraded traditional job roles, enabling professionals to work more efficiently through digital tools and platforms.
- Impact on Informal Sector: The informal sector, heavily reliant on manual labor, faces challenges in adopting technology, leading to disparities in job opportunities.
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Ensuring a Smooth Transition for Workers: |
- Targeted Reskilling Programs: The government should design and implement targeted reskilling programs to equip workers with in-demand skills for emerging industries.
- Collaboration with Industry: Public-private partnerships can facilitate industry-specific training programs to meet skill demands.
- Labor Market Intelligence: The government should use data and labor market intelligence to identify future skill requirements and plan training initiatives accordingly.
- Lifelong Learning: Promoting a culture of lifelong learning will encourage workers to continuously update their skills and adapt to changing technological landscapes.
- Support for Vulnerable Groups: Special focus should be given to vulnerable groups like women, youth, and workers in the informal sector to ensure inclusive growth.
- Skill Certification and Recognition: Standardizing skill certifications will enhance the value of reskilling efforts and improve workers’ employability.
- Financial Support: Providing financial incentives like subsidies for training programs can encourage workers to participate in upskilling initiatives.
- Worker-Centric Approach: Ensuring worker welfare during the transition is crucial, with measures like unemployment benefits and social protection schemes.
- Reemployment Assistance: Helping in finding new job opportunities and career counseling can aid workers in finding suitable roles after displacement.
- Technology Adoption Support: The government should assist small businesses and informal sector workers in adopting technology to sustain their livelihoods.
In conclusion, the impact of technology on traditional job roles in India requires proactive measures to facilitate a smooth transition for the workforce. The government plays a pivotal role in promoting reskilling and upskilling initiatives through targeted programs, collaborations with industries, and support for vulnerable groups. By fostering a worker-centric approach and embracing lifelong learning, India can navigate the challenges posed by technological disruptions and harness the potential of technology for inclusive and sustainable economic growth.
01-08-2023
Answer :
As per PLFS 2021-22 only 19.5% of workforce received training (3.4% in formal & 16.1% in informal). “Skill development of the new generation is a national need and is the foundation of Atmanirbhar Bharat”.
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Need for Skill Development |
1) Skills and knowledge are the driving forces of economic growth and social development for any country.
2) India currently faces a severe shortage of skilled workers It is estimated 2.3% of the work force in India has undergone formal skill training (South Korea 96%; Japan 80%; Germany 75%)
3) India is having world’s largest youngest population (Demographic Dividend)
a) More than 54 % of its total population is below 25 years of age and over 62 % of the population is in working age group (15 to 59 years).
4) To create more formal jobs.
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Challenges in the skilling and entrepreneurship landscape in the country |
1) Public perception that views skilling as the last option meant for those who have not been able to progress/opted out of the formal academic system.
2) Skill development programmes of the Central Government are spread across more than 20 Ministries/Departments without any robust coordination and monitoring mechanism to ensure convergence.
3) Multiplicity in assessment and certification systems that leads to inconsistent outcomes and causes confusion among employers.
4) Paucity of trainers, inability to attract practitioners from industry as faculty.
5) Mismatch between demand and supply at the sectoral and spatial levels.
6) Limited mobility between skill and higher education programs and vocational education.
7) Very low coverage of apprenticeship programs.
8) Narrow and often obsolete skill curricula.
9) Predominant non-farm, unorganised sector employment with low productivity but no premium for skilling.
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Government efforts |
1) Pradhan Mantri Kaushal Vikas Yojana
a) Short term training for unemployed youth / college dropouts
b) Recognition of prior learning
2) Skill Hub initiative to facilitate and make education more relevant and create industry skilled workforce
3) Re-energizing and Re-imagining the ITI’s (e.g Drone course)
4) Focus on Digital Skilling
5) Promoting Apprenticeship Training
The Indian government’s initiatives are aimed at fostering a skilled and entrepreneurial workforce, addressing the challenges faced in the skilling and entrepreneurship landscape and contributing to the country’s economic and social development.
28-07-2023
Answer :
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Approach to the answer: Decode the Question: This question expects the student to critically evaluate the gig economy as a future model of employment, examining its potential negative aspects including low wages, excessive working hours, unstable job nature, and lack of social security benefits. You should provide a thorough analysis of these factors within their response. Introduction: Briefly introduce the Gig economy, also try to provide some data. Body: Highlight why the Gig economy is regressive for employment, how it significantly contributes, and initiative taken by government to address the issues. Conclusion: Summarize the topic and conclude with a way forward. |
Answer: Gig economy is defined as a free-market system which is characterized by temporary, short-term contractual jobs and freelance work, on a project-to-project basis such as Uber, Ola, Swiggy, and Zomato.
The Global Gig Economy Index report ranked India among the top 10 countries with rapidly increasing number of freelancers.
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Gig economy is regressive for employment due to following reasons: |
- Low wages: Gig workers often receive modest pay, which can make it challenging to achieve financial stability and meet basic needs.
- Long working hours: Gig workers may need to work extended hours to earn a sufficient income, leading to potential burnout and work-life imbalance.
- Temporary jobs: Gig jobs are often temporary or project-based, lacking long-term stability and job security.
- Lack of social security: Gig workers typically lack access to benefits such as healthcare, retirement plans, and unemployment insurance, leaving them vulnerable.
- Limited worker rights: The gig economy may bypass labor laws and protections, leaving workers without legal safeguards or recourse.
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But gig economy also provides significant benefits: |
- Diverse income streams: Gig workers can tap into multiple gigs, diversifying their income sources and potentially increasing their earning potential.
- Flexibility: Gig work offers flexibility in terms of working hours and location, allowing individuals to balance work with personal commitments.
- Work-life balance: The flexibility of gig work can enable better work-life balance, giving individuals more control over their schedules and personal lives especially for women.
- Job opportunities for marginalized groups: Gig work can offer employment opportunities to individuals who face barriers in traditional job markets, promoting inclusivity.
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Initiatives taken by Government: |
- The Code on Wages, 2019, provides for universal minimum wage and floor wage across organized and unorganized sectors, including gig workers.
- The Code on Social Security, 2020, recognizes gig workers as a new occupational category. It asks employers to create funds to provide social security to Gig workers.
Though the Gig economy has led to the transformation of work culture, various issues need to be addressed. There are examples of collaboration between government and private which can be scaled up e.g., Uber partnered with Ayushman Bharat to facilitate free healthcare for its workers. In addition, explicit rules for gig workers should be formulated to provide them social security.
27-07-2023
Answer :
Jobless growth is defined as a phenomenon where the increase in employment opportunities and job creation takes place at a slower rate than that of economic growth. It is a situation characterized as low employment elasticity. It encompasses both the quantitative and qualitative aspect of employment where qualitative aspect refers to segregation into formal and casual work based on the terms of employment and working conditions.
Key Facts
• India experienced job growth of 3% p.a in the 70s at a time when our economy grew at 3-3.5% p.a but over the last 3 decades our economy grew at over 5-8% p.a but our job growth has been close to 1% p.a.
• Employment elasticity has fallen from close to unity in the 70s to 0.4 in the 90s to less than 0.1 today. Hence, the phenomenon of India’s jobless growth.
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Causes of Jobless Growth: |
- Focus on Capital Intensive Industries such as steel, automobiles, and inadequate focus on Labor Intensive Industries such as Textiles, Leather and footwear, apparel, handicrafts, sports goods, Agri/Food Processing, wood, and Furniture.
- Technological Advancements and Automation: As the Indian economy modernizes and adopts new technologies, certain sectors may witness job displacement due to automation. Traditional labor-intensive industries, such as agriculture and manufacturing, might see reduced employment opportunities as technology takes over certain tasks.
- Skill Mismatch: The education and skill development system in India often fail to keep pace with the changing demands of the job market. As a result, there is a significant gap between the skills possessed by the labor force and the skills required by industries, leading to unemployment or underemployment.
- Informal Sector Dominance: Most India’s labor force is engaged in the informal sector, which lacks job security, social security benefits, and access to formal channels of finance. The informal sector is less likely to contribute to inclusive growth and may not experience the same level of expansion as the formal sector.
- Slow Industrial Growth: Although India has experienced growth in various sectors, it has not seen substantial expansion in labor-intensive industries, which could generate more jobs. The slow growth in such sectors limits employment opportunities.
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To address the issue of jobless growth and promote inclusive and sustainable employment opportunities, several measures can be taken: |
- Skill Development and Education Reforms: Focusing on vocational training and skill development programs that align with industry needs can help bridge the skill gap. Reforms in the education system should emphasize practical knowledge and provide relevant skills to students.
- Promoting Labor-Intensive Industries: Encouraging investment in labor-intensive sectors, such as textiles, agro-processing, and construction, can lead to job creation. Special incentives and support can be provided to these industries to boost their growth.
- Supporting MSMEs: Micro, Small, and Medium Enterprises (MSMEs) are significant job creators in India. Facilitating easier access to credit, providing infrastructure support, and simplifying regulatory processes for MSMEs can help them thrive and generate more employment.
- Encouraging Entrepreneurship: Promoting entrepreneurship through various schemes and initiatives can lead to the creation of new businesses and job opportunities.
- Rural Development and Agriculture: Strengthening the agricultural sector and rural development can reduce the pressure on urban employment and promote inclusive growth.
- Investment and Infrastructure: Improving the investment climate by reducing bureaucratic hurdles and investing in infrastructure projects can attract more investments, leading to job creation.
Addressing jobless growth in the Indian economy requires a multi-faceted approach, involving cooperation between the government, private sector, and civil society. Sustainable and inclusive employment opportunities can be fostered by a combination of policy initiatives, investment strategies, and human capital development.
24-07-2023
Answer :
“Employment empowers people economically by giving them purchasing power for access to goods and services and socially by offering them a productive role that enhances their self- esteem and
dignity”. (Human Development Report – 1993-94)
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Key Facts: |
Periodic Labour Force Survey (PLFS) 2021-22:
- 12 million workers get added to labour force annually
- Labour Force Participation Rate – 41.3% (male 57.3; Female – 24.8%)
- Worker Population ratio – 39.6%
- Unemployment Rate – 4.1%
- Workforce employed in Informal Sectors (organized + unorganized sectors) – 90%
- Share of informal workers in the organised sector – 65%
- Slow growth in employment (1.4%) as compared to growth in labour force (2.2%)
- Between 2011-12 & 2017-18 – employment fell by around 9 millions
- Low Female Labour Force participation rate – 25% (men 82%)
- High Gender wage gap – Female receives 1/5th of male incomes.
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Reasons for unemployment: |
- Less Focus on Labour Intensive Sector: India’s capital-intensive industrialization policies neglect labor-intensive manufacturing, causing unemployment and inequality.
- Rigid Labor Laws: Complex regulations promote low-wage contractual labor, hindering growth of small enterprises and leading to underemployment.
- Jobless Growth: Employment elasticity decline and automation result in limited job creation despite economic growth.
- Data Deficiency: Lack of reliable data on unemployment and informal sector workforce impedes effective policy formulation.
- Stagnant Manufacturing: Skipped manufacturing sector development leads to economic stagnation.
- Agriculture’s Disguised Employment: Low-productivity and seasonal jobs in agriculture contribute to underutilization of labor.
- Skill Deficit: Half of India’s youth are unemployable due to inadequate skills, hampering job prospects.
- Infrastructure Constraints: Inefficient infrastructure lowers manufacturing productivity, affecting employment opportunities.
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Why creation of gainful employment is crucial for India: |
“To exploit its demographic dividend, India must create millions of “good- safe, productive, well paying
jobs.” [Economic Survey 2015-16]
- Demographic Dividend: Harnessing the potential of a young workforce for economic growth and productivity.
- Poverty Alleviation: Employment provides income opportunities to uplift impoverished families.
- Inclusive Development: Employment ensures equitable access to benefits for all segments of society.
- Women Empowerment: Employment opportunities enhance gender equality and women’s socio-economic status.
- Economic Growth: Gainful jobs boost income, stimulating demand, production, and overall economic expansion.
- India’s Development: Achieving employment targets is vital for India’s vision of becoming a developed nation by 2047.
- Social Stability: Reduces social tensions and unrest, fostering a harmonious and cohesive society.