Answer: 

Introduction:

A jobless growth is an economic phenomenon in which a macro economy experiences growth while maintaining or decreasing its level of employment. The Indian growth experience of the last decade can be called jobless growth as the rate of employment growth is less than the growth experienced by the economy.

Body:

The following aspects can be highlighted in support of this view:

• While the share of employment has largely declined in the Agriculture sector, Service and Manufacturing sector have failed to absorb all the people shifting from the agriculture sector as they lack skill sets.
• Demographic dividend: During 2005-10, only 1 million net jobs per annum were generated in the organized sector, whereas 60 million people entered into the labour market of India.
• Rapid rise of the informal or unorganized sector in recent years is another aspect of employment generation in India. This further marginalizes labour.
• High qualification: Large scale unemployment among graduates and post graduates.

Government Interventions:

• Make in India initiative and production-linked incentive schemes for manufacturers.
• Pradhan Mantri Mudra Yojana (PMMY) under which banks provide collateral-free loans up to Rs 10 lakh.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): It is a flagship program of the Ministry of Skill Development and Entrepreneurship (MSDE) implemented by the National Skill Development Corporation (NSDC).

Way Forward:

• Addressing joblessness requires generating sustainable growth, besides labour reform and incentivising Indian industries to invest more to generate employment.
• The government needs to ensure there’s a trained workforce for industry to draw on.
• For an emerging economy, the path to higher incomes, productivity and growth must lead workers away from farms towards jobs in factories and offices.
• Joblessness cannot be addressed without imparting skills that industry or the government requires.
• Reforms in labour laws, provision of infrastructure, encouragement of small-scale industries and promotion of export-oriented light industries that are manpower intensive are some of the policy initiatives that are required.

Conclusion:

The experiences of developed countries have demonstrated that the growth of smaller businesses can drive employment generation. Further education and skill development is the need of hour to increase employment with economic growth by harnessing the potential of demographic dividend.

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