Why low unemployment rate hides the full picture
YouGov-Mint-CPR Millennial Survey held in June, nearly 40% Indians felt the country was doing worse than China on creating jobs, even as they voted favourably for governance and economic growth. In terms of economic growth, India is in a sweet spot, with its biggest Asian rival, China, slowing down and the benefits of demographic dividend potentially attracting more investments in the country.
However, the creation of high-quality jobs seems to be proving tricky especially at a time when the old farm-to-factory shift, which worked well for developed economies, may no longer work for India, say experts. The next generation of high-quality jobs, even for women, are likely to come from the services sector.
But with rapid changes in technology, it will require the education system to adapt quicker, and the labour force to show gumption for skilling and reskilling. That’s a task that will take a slew of structural reforms at the educational level as well as in the labour market.
For now, the Modi government has the latest PLFS report on its side. And for voters, despite their worries over lack of aspirational jobs, other factors may play a more pivotal role in electing the government.
This is the second part of a series that will run until May 2024, to cover the top election issues as well as the current government’s report card after nearly 10 years in power. Read the previous part on welfare versus freebies here)
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