‘There Are 27 Graduates For One Job In India’
Job losses and unemployment have garnered much attention in recent months. A report by JM financial with data collected from labour ministry suggests there were 27 people with higher education degree applying for one job in 2016 compared to 9 people with higher education per one job in 2013.
The difference in demand for people and supply is widening. According to quarterly employment survey and Reserve Bank of India’s data on banking employment, a total of 2.5 million jobs had been created in nine labour intensive sectors that contribute to over 65 percent of the gross domestic product (GDP) in the three year period of fiscal 2011-13 while 22.7 million people earned higher education degrees in the same period.
In the next three years of financial year (FY) 13-15, only one million jobs were created and 25.9 million earned higher degrees, tripling the ratio of people to the number of jobs. The gap has further widened with 0.19 million being created in the first three quarter of FY16 and 8.8 million people graduating in the same period.
The private sector has taken over as the primary driver of job creation since 2000 with the ratio of organised public/private jobs falling from 2.4 times in FY 2001 to 1.6 times in FY 2012. The number of central government employees had declined at a Compound Annual Growth Rate (CAGR) of 2.3 per cent, while private sector jobs reported a CAGR of 3 percent during this period with finance, insurance and real estate generating employment at the fastest rate of 16 per cent.
The growing number of higher education pass-outs was 8.8 million in FY16 and growing at a 4.7 percent CAGR (FY12-16) resulting in a rising supply of professionals looking for job.
India is still in the process of devising reliable methods to maintain records of people engaged in different economic activities. Jobs creation has fallen rapidly and has been one of the main problems of the NDA government.
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