E. Indian Economy and Issues Relating to Employment
Employment is a major challenge facing the Indian economy. Some of the key issues related to employment in India are:
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Unemployment |
India’s labor force is growing faster than the number of new jobs being created, which has led to rising unemployment. The unemployment rate in India was around 6% in 2020, according to the World Bank. |
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Underemployment: |
Many workers in India are underemployed, meaning they are working in jobs that do not fully utilize their skills or provide sufficient income. This is a particularly big problem in rural areas, where many people work in low-paying agriculture or informal sector jobs. |
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Skill shortages |
There are shortages of skilled workers in certain sectors of the economy, such as technology and manufacturing. This can make it difficult for businesses to find the workers they need to grow and compete in the global economy. |
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Lack of labor protections |
Many workers in India, particularly those in the informal sector, do not have access to basic labor protections such as minimum wage, overtime pay, and job security. This can lead to exploitation and poverty. |
To address these issues, the Indian government has implemented many initiatives to improve employment in the country. These include measures to improve education and training, promote entrepreneurship and small businesses, and increase access to credit for small and medium-sized enterprises (SMEs). However, more needs to be done to address the underlying challenges facing the labor market in India.