Problem of unemployement in India

Posted by Navin Pandi on October 29th, 2019

Unemployement in India in 2019

In 2019 India the biggest problems the country is facing is the growing unemployment.

Apparently the famed demographic dividend which is supposed to make India a powerful economy, is wasted through lack of proper education system where the focus is on equipping the the youth with skills suited for employability.

What we are seeing is, lots of youth who have completed qualifications like 10th pass, 12th pass, under-graduation, post-graduation etc find themselves unable to find a job that will cater to their aspirations. As a result, the youth are getting restless and it might soon become headache for the society where large number of young persons have no job and no money.

Demographic Dividend

Demographic dividend refers to the boost in an economy that results from a change in the age structure of a country’s population. The change in age structure is usually brought on by a decline in fertility and mortality rates.

While most countries have seen an improvement in child survival rates, birth rates remain high in many of them, especially in lesser developed countries. These countries, therefore, rarely enjoy an economic benefit known as the demographic dividend.

Demographic dividends are occurrences in a country that enjoys accelerated economic growth caused by the decline in fertility and mortality rates. A country that experiences low birth rates in combination with low death rates receives an economic dividend or benefit from the increase in productivity of the working population that follows. As fewer births are registered, the number of young dependents grows smaller relative to the working population. With fewer people to support and more people in the labor force, an economy’s resources are freed up and invested in other areas to accelerate a country's economic development and the future prosperity of its populace.

To enjoy a demographic dividend, a country must go through a demographic transition where it switches from a largely rural agrarian economy with high fertility and mortality rates to an urban industrial society characterized by low fertility and mortality rates. In the initial stages of this transition, fertility rates fall, leading to a labor force that is temporarily growing faster than the population dependent on it. All else being equal, per capita income grows more rapidly during this time too. This economic benefit is the first dividend received by a country that has gone through the demographic transition.