1991 Reforms: Not impressive on Employment

• From 1991 till 2012 , there has hardly been any increase in formal jobs for men. There has been a meagre increase in number from 22..7 million in 1991 to 23.5 million in 2012
• However, the share of women in formal jobs has shown an increase since liberalization (1991). The numbers stand at 3.78 million in 1991 to 6.05 million in 2012, almost double.
• But only the ratio of women has improved while, the number of women in organized sector is much less than men.
• The figures for total employment in formal sector stand at 26.73 million (1991) and 29.58 million (2012). A gain of just 2.85 millions in 21 years is a poor show.

Analysis:

• The main reason for the decline is the fall in public sector employment, but employment in the organized private sector has also been pathetic.
• Restrictive labour laws are the primary reason for lack of growth in organized sector jobs. But then companies need to work, so for this they have been employing contract labours to do the work. The share of contractual workers has increased because of this. Simplification of labour laws by the states can go a long way in creating good jobs.
• Unemployment is becoming very big issue now because of increasing demographic dividend. Without reforms, the unemployment levels in India will be extremely difficult to demolish.
• The very first solution for the unemployment is to control the rising population of our country. Government should motivate people to have small families. Indian government has started initiatives to control the population but still the population is rising.
• The quality of Indian education should be improved. The current education system is not upto the level. Government should keep a strict watch on the education system and try to implement new ways to generate skilled labour force.
• Government should encourage and develop the agriculture based industries in rural areas so that the rural candidates don’t migrate to the urban areas. More employment should be generated in rural areas for the seasonal unemployment people.
• Rapid Industrialization should be created.
• Government should allow more foreign companies to open their unit in India, so that more employment opportunities will be available.

By: Vishal