Answer:

Introduction:

The term “jobless growth” refers to an economic paradox wherein a country experiences GDP growth without a corresponding increase in employment opportunities. In India, recent economic trends have displayed symptoms of this phenomenon. Despite impressive growth rates, employment generation remains a significant concern, bringing into question the inclusivity and sustainability of the country’s growth model.

Body:

Jobless growth occurs when unemployment remains high even as the economy grows. This can happen due to various reasons including technological advancements, capital-intensive growth, or structural shifts in the economy.
For example, despite India’s services sector experiencing rapid growth, the manufacturing sector, traditionally a large employer, has not seen the same expansion, leading to limited job creation.

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Present Status of Jobless Growth in India:

• Unemployment Trends:
  • The unemployment rate has risen to around 7-8%, a jump from 5% five years prior.
  • The workforce shrank due to the combination of dejection over job prospects and the impacts of the Covid-19 lockdowns.
• Labour Force Participation:
  • Labour force participation rate fell to 40% from 46% within six years, indicating a substantial portion of the population not being engaged in productive employment.
• Data Discrepancy:
  • Official unemployment statistics often do not accurately reflect ground realities. 
  • For instance, the Periodic Labour Force Survey reported a 4.2% unemployment rate, which does not align with other assessments.

Challenges/Impacts of Jobless Growth:

• Social Implications:
  • Protests, like those seen over the Agnipath scheme, reflect the societal discontent arising from widespread joblessness.
• Women in Workforce:
  • There’s been a decline in the number of working women: From 26% in 2010 to 19% in 2020, with a sharp decline to 9% by 2022, as per CMIE.
• Demographic Dividend vs. Demographic Curse:
  • India’s young population, once seen as an advantage, risks turning into a liability if meaningful employment opportunities aren’t created.
• Sectoral Shifts:
  • While agriculture, traditionally a significant employer, has seen a decline in participation, those moving out primarily enter low-paying, unstable jobs.
  • Despite India’s labor abundance, capital intensity has risen in manufacturing, leading to fewer job opportunities.
• Skills Paradox:
  • India grapples with simultaneous skill shortages and labor surplus, exemplified by idle trucks due to a lack of drivers or the healthcare sector’s need for nurses.

Government Interventions:

• Data Collection:
  • Efforts are underway to gather more accurate employment data directly from businesses and focus on the informal sector.
• Employment Generation Schemes:
  • Make in India initiative transitioned into production-linked incentive schemes.
  • Pradhan Mantri Mudra Yojana (PMMY): Provides collateral-free loans up to Rs 10 lakh for income-generating activities.
  • Pradhan Mantri Kaushal VikasYojana (PMKVY): Offers skill development and training with fees borne by the government.

Conclusion: 

Jobless growth poses a formidable challenge to India’s vision of inclusive and sustainable development. The onus lies not just on achieving high GDP growth figures but ensuring that this growth translates into tangible improvements in employment and livelihoods for the masses. As India progresses, a multi-pronged strategy encompassing labor reforms, skilling initiatives, and industrial incentives will be essential. Only then can India transform its demographic potential into a genuine demographic dividend, turning economic growth into broad-based prosperity.