How Employment Is Calculated In India? Why India Has More Unemployment?
In today’s modern world where everyone is getting success and making money, nations are also ranking above than before in terms of employment. However, there is no doubt that any country’s employment ratio is the main factor that tells the world about a certain nation’s growth. Now, when it comes to talking about the emp rate in India then no doubt that people often criticize govt for their own deeds. Although, the fact can not be denied that there are still many people who are well-qualified but, are out of jobs. So, today, we are talking about, how the calculation of employment is done in India. If you are keen to know about this topic then stick around.
Employment is one of the most critical issues in India today. Despite being one of the fastest-growing economies in the world, the country still struggles with a high unemployment rate. In recent years, there have been several debates on how the employment ratio is being counted in India and why people hardly get jobs. Shooting your excitement down we would like to tell you about the methods that are used to calculate the employment ratio in India and the factors contributing to the low job opportunities in the country.
Calculation of Employment Ratio in India
The employment ratio is the percentage of people who are employed out of the total population. In India, the employment ratio is calculated using the National Sample Survey (NSS) data. The NSS is a large-scale survey conducted by the Ministry of Statistics and Programme Implementation (MoSPI) to collect information on various aspects of the Indian economy. The survey is conducted every five years and covers various aspects of employment, including unemployment, informal employment, and self-employment.
The NSS data is used to calculate the two primary employment indicators in India – the labor force participation rate (LFPR) and the unemployment rate. The LFPR is the percentage of the working-age population (15-59 years) that is either employed or actively seeking employment. The unemployment rate is the percentage of the labor force that is unemployed and actively seeking employment.
Why do People Hardly Get Jobs in India?
Now, as we are talking about employment and jobs then how can we forget to discuss the most arguable topic which is, why people are not getting jobs in the nation? So, despite being the fastest-growing economy globally, India still has a high unemployment rate. There are several factors contributing to this issue.
Lack of Education and Skillset
One of the primary reasons why people in India struggle to get jobs is the lack of education and skillset. Many individuals in India do not have access to quality education, which makes it challenging for them to acquire the necessary skills and knowledge required for employment. Additionally, many industries require specialized skills, which many individuals in India lack, leading to a lack of job opportunities.
Slow Economic Growth
The slow economic growth of the country is another contributing factor to the high unemployment rate in India. Economic growth leads to the creation of new jobs, but if the growth is slow, there will be fewer job opportunities available for individuals seeking employment.
India’s population growth is another factor contributing to the high unemployment rate. With a population of over 1.3 billion, there is intense competition for available job opportunities, leading to high levels of unemployment.
A large proportion of the workforce in India is engaged in informal employment. Informal employment is not recognized by the government and lacks job security, employee benefits, and formal contracts. This type of employment contributes to the high unemployment rate in India, as individuals in informal employment do not count towards the formal employment ratio.
Lack Of Investment In The Manufacturing Sector
The manufacturing sector is an essential contributor to employment in any economy. However, India’s manufacturing sector has not seen significant investments in recent years. This has resulted in a lack of job opportunities in the sector, leading to high unemployment rates.
Why The Unemployment Rate Is High In India?
The high unemployment rate in India is a critical issue that requires urgent attention. While the government has launched several initiatives to address the issue, such as Skill India, Make in India, and Startup India, more needs to be done. The government must focus on providing quality education and investing in the manufacturing sector to create job opportunities for the workforce.
Additionally, the informal employment sector must be recognized and formalized to provide job security and employee benefits to the workforce. By addressing these issues, India can reduce its unemployment rate and promote economic growth. Ending the article we would like to tell you that the above information is based on online sources that change as per the time and situation, therefore if you have any other points then do share them in the comment box and let us know. Stay tuned with us to read more news.