In an environment of immense opportunities for economic growth, India requires more
national as well as international cooperation among different labour market actors (trade
unions, vocational training organisations, committees at the national level) to sustain it.
Despite its demographic dividend and increased literacy levels, India faces youth unemployment
as a major challenge for labour market policy. Young job seekers make up 49 per cent of the total
unemployed in India.
With 93 per cent of the available work provided by the informal sector, a significant
number of well-educated youth in India are either unemployed, underemployed,
seeking employment or between jobs, or coping with insecure work arrangements.
India’s main challenge regarding youth unemployment is the lack of any form of social security
system, as well as proper and adequate avenues for vocational Training.
Unemployment is a daunting problem for both the developed and developing countries. India
is one of those developing countries which continue to have the problem of unemployment
and underemployment despite continuous policy emphasis and programmes to eliminate the
One of the hardest hit segments of the world population is its youth, who are finding it
increasingly difficult to get jobs.
The National Sample Survey Organisation found that India’s unemployment rate fell to 3.8% in
2011-12 from 9.4% in 2009-10. The general perception is that unemployment in India is high,
but the actual numbers seem reasonable. That’s because self-employment accounts for about
60% of India’s employed population.
Government’s efforts for tackling youth
Formulation of national youth
policy in 1988 by Ministry of
Development, Government of
National Youth Policy 2003
was designed to galvanize
young people to rise up to new
The National Council for Skill
Development (NCSD) in 2005
was constituted under the
chairmanship of the Prime
A three tier institutional structure consisting of :
(i) the Prime Minister's National Council on Skill Development,
(ii) the National Skill Development Coordination Board
(iii) the National Skill Development Corporation,
has been set up to take forward the Skill development Mission.
Prime Minister's Rozgar
(Employment) Scheme (PMRY)
Training of Rural Youth for
Mahatma Gandhi National
Rural Employment Guarantee
Swarnjayanti Gram Swarozgar
Swarnjayanti Shahri Rozgar
Kaushal Vikas Yojana (KVY)
JAN'06 JAN'08 JAN'10 JAN'12
Reasons for unemployment in India:
I. Shortage of Jobs II. Decent Work Deficit
III. Women – Security and Social Restrictions IV. Skills Mismatch
V. Lack of training for work VI. Expansion of education
VII. Acceleration of population growth and mortality decline
VIII. Slow growth of the economy until the 1980s .
REMODELING SKILL-SETS IN YOUTH:
40 million people (in the working age of 15-59
years) are unemployed - survey conducted by the
Labour Bureau of the Government of India in 2010.
India's labour force is growing at a rate of 2.5 per
cent annually, but employment is growing at only
2.3 per cent.
Partnership of Govt. Of India with private
on Non profit basis.
BOOSTING SKILLSET BY CONVENTIONAL TRAINING PROGRAMMES:
Need based short term(6 months or below) skill development programs to be certified under DGET/NCVT
in Modular Employable Skills format.
Long term training programs be certified by the Institution providing the training and incentives provided
by Govt. only in case of successful placements.
Cost beared: 80 % by Institution willing to absorb and remaining by Govt. of India.
Cost beared: 30% by Implementing Agencies,50% by Govt. of India and 20 % by SPVs(Special Purpose
Implementing agencies may be certified Training Institutions or NGOs functional in the sector for
minimum 2 years .
Implementing agencies gain tax exemptions on the capital investment and further Govt. relaxations on
Evaluation be carried out by Independent Third Party on Quarterly basis and Govt. funding policies may
<DGET: Director General for Employment and Training > <NCVT: National Council for Vocational training>
E-learning an aggressive solution:
3.Using available EduSAT and
Direct To Home(DTH) platform.
1.“Talk to a teacher “segment for rural
infiltration of this methodology (E-
learning) tie ups with NIITs.
4.Extending the NPTEL videos for specific skill
training and screening them to solve
constraint of computers and infrastructure.
1.Cost benefit in terms of infrastructure
allocation and course material distribution
3.Time duration of course can be
shortened and adjusted on user end.
2.Cater to the masses easily in
comparison to the traditional courses
2.Educational Content access to all
government schools through PPP
model, by providing tablets for
1/ EDUCATION SYSTEM NEEDS TO BE IMPROVED. IT MUST INCLUDE ABOUT FIFTY PERCENT ON THE JOB
TRAINING OR PRACTICAL TRAINING AT EVERY LEVEL.
2/ EDUCATION SYSTEM MUST INCLUDE SPITITUAL OR ETHICAL OR NATIONAL VALUES AT EVERY LEVEL.
3/ THE STUDENTS NEED TO BE TAUGHT THE SPIRIT OF WORK IS WORSHIP AT EVERY LEVEL.
4/ THE POPULATION REDUCTION MAY INCREASE THE OPPORTUNITY OF EMPLOYMENT.
5/ DEVELOPMENT ACTIVITY MUST BE SHIFTED TO VILLAGES AND SMALL CITIES.
6/ MIGRATION OF PEOPLE TO FOREIGN COUNTRIES, METROS AND BIG CITIES SHOULD BE STOPPED.
7/ EXPORT OF EVERY ITEM NEED TO BE INCREASED BY INCREASING THE PRODUCTION.
8/ GOVERNMENTSUPPORT TO STRUGGLING INDUSTRIES IN ORDER TO TRY TO SAVE JOBS.
9/ UNEMPLOYMENT AGENCIES COULD TIGHTEN THEIR JOB SEARCH AND JOB ACCEPTANCE
10/ COUNTRIES NEED TO ENSURE THAT THEIR WELFARE SYSTEMS DO NOT PROVIDE DISINCENTIVES TO
THE RETIREMENT AGE(58 TO 60) SHOULD BE REDUCED(55 TO
58) SO THAT MORE AND MORE YOUTH GET OPPORTUNITIES
TO GET EMPLOYABILITY.
11/ Policies affect the labour market by reducing the supply of labour - For example, work sharing,
early retirement, and reduced migration.
12/ Cuts in real wages -Cuts in real wages are a reaction to the view that through their demands
for higher wages, some groups of workers have priced themselves out of a job
1. Fiscal Policy
Fiscal policy can decrease unemployment by
helping to increase aggregate demand and the
rate of economic growth. The government will
need to pursue expansionary fiscal policy; this
involves cutting taxes and increasing
2. Monetary Policy
Monetary policy would involve cutting interest
rates. Lower rates decrease the cost of
borrowing and encourage people to spend
and invest. This increases AD and should also
help to increase GDP and reduce demand
GOVERNMENT’S ECONOMY SHOULD BE HIGH ENOUGH TO CREATES
OPPORTUNITIES OF JOBS FOR YOUTH AND FOR THAT THERE SHOULD BE
CHANGE IN TWO MACRO POLICIES OF GOVERNMENT:
Supply Side Policies for Reducing Unemployment
Supply side policies deal with more micro-economic issues. They don’t aim to
boost overall Aggregate Demand, but seek to overcome imperfections in the
labour market. Hence some suggestions:
1. Education and Training
2. Reduce Power of trades unions
3. Employment Subsidies
4. Improve Labour Market
5. Stricter Benefit requirements.
Education is considered as a capstone for the
nation’s development. Despite a large number
of educated youth, there is a shortage of skilled
manpower. This is the dilemma.
They are mainly lacking three
types of skills in employed youth
1. Communication Skills
2. Analytical skill and problem solving
Ninety per cent of educated youth force are
lacking in one of these three main skills
required for job and employment. Hence
the problem lies in our education system
and it can be improved so that every
employed youth have these 3 basic skills
which is required by any organization.
There must be radical change in our
There must be an interface among
Government bodies looking after
education, Universities, all India
committee of technical education and
the representatives of the industries.
The institutes must educate as per
industries' needs. The syllabus
committees has to interface with the
There must be more focus on practical
aspects rather than theoretical.
It should more focus on vocational
To accumulate and disseminate of information on available jobs and workers in which job
centres have a nationwide or internationwide, integrated database of jobs, employers, and
We are proposing new model (Employment
Commission of India) to be established in
This type of database could reduce the time spent by an average worker on the
unemployment roll and ultimately it reduce the unemployment rate.
It is not only going to focus on
reducing unemployment rate of India
but it is also focusing to produce
1.Educated people 2.Skilled people
branches of ECI at
every district at
Which will handle
the district issue
and report to state
branch after every
sub branches of
ECI at every
handle the state
level issue and
report to central
after every 6
Start subsequent braches(“job centre plus”) for integrated database of jobs, employers,
and available employees, Which collects data and send it to the district main ECI branch.
It works for the smaller area as like taluka levels.
It collects the data from the youth(16 to 26 yrs.) from that
particular area as like academic qualification, job
preferences, area of interests ,E-mail id, contact no. and link
all these details with “AADHAR CARD”.
It ties up with many industries which seeks employers and
note down the industries requirements.
Than it will inform appropriate job-seeker youth .
Main Functions of “Job Centre Plus(+)”:
Most advantage of it that industries get man force which works with maximum efforts and it
increase industries' efficiency and ultimately it effects country’s economy positively as there is
no mismatch between industries and employers .
It helps the students to get the jobs.
Newspapers, periodicals ,magazines and books which may be helpful to the youth are available in
Computers with internet connections enable the students to access the employment related
information and help them to boosting their basic skills.
Professional counselling services are also made available.
The placement advisory documents after every week.
Assist students to apply for jobs.
The government should recruit a person by targeting various streets or areas
within a city ,who has an authority to take specified fine from people and
60% it, he or she have to submit to the government, if they do as like
Polluting the region
Spitting in the streets
Parking in non-restricted area
Hence, it leads towards “Nirmal India” and provides opportunities of
II. articles.economictimes.indiatimes.com /Collections
III. The Economist
IV. National Employability Servey-2012
V. (2011) Economic Survey 2010–2011, Department of Economic Affairs, Ministry of Finance.
New Delhi: Government
VI. (2012) Economic Survey 2011–2012, Department of Economic Affairs, Ministry of Finance.
New Delhi: Government
VII. Planning Commission (2008) Eleventh Five Year Plan, 2007–2012. Vol. 1, Inclusive Growth.
New Delhi: Planning Commission,
Government of India.
VIII. World Bank (2010) India’s Employment Challenge – Creating Jobs, Helping Workers. New
Delhi: Oxford University Press.