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Unemployment: the next crisis?
Wed, 29 Jan Pre-Open

The highest share of youth in India is often cited as one of the country's major strengths. Demographic dividend is something that the country has often prided on. However, if recent statistics are anything to go by, the country seems to be losing its core strength.

As per a report by International Labour Organization (ILO), the unemployment scenario in India over the last two years has been rising. As per ILO's estimates, this year, the country's jobless rate could stand at 3.8%.

The slowdown in the economy and deterioration in the fundamentals seem to have taken a toll on the country's rising population. Apart from the slowdown in expansion of business activities, a major cause of rising unemployment is that even where jobs are available, the youngsters are unlikely to get the opportunity due to the lack of the required skills

Hence, there is a gap between the demand and supply in the labour market that needs to be addressed with the adequate training skills. The responsibility of bridging this gap lies not just on Government, but educational institutions as well. The failure to do so will not only drag the economy by compounding the unemployment problem further; but it is likely to lead to far more serious consequences. While youth can be a biggest asset for a nation, the same if not given enough opportunities to keep itself productively engaged and financially secured can lead to anarchy and issues like Naxalism etc. It is time that the Government takes some serious steps to overhaul the education system and ensure enough training skills for the youth. Unless the long-term unemployment issue is addressed, all efforts for an economy recovery are likely to fail.

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