“Jobless Growth” – India is going to face huge Job Crisis.

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Under PM Narendra Modi, almost all of them commend the government efforts on the economic front. India has emerged as the fastest-growing country in the world. Low inflation, better ranking in ease of doing business, push for better infrastructure, increase in investors’ confidence, and rise in foreign direct investment are some other achievements of the government.

However, some sites are out blazing guns at PM Modi, blaming that the growth is ‘Jobless Growth’. According to them even though the economy is growing at 7% but there is unemployment factor that overshadows it.

According to Quint “At 1.35 lakh, 2015 recorded the lowest figure in terms of job creation in seven years, down from 4.19 lakh in 2013 and 9 lakh in 2011. Last year, job growth was only 1.1 percent as compared to the GDP growth of 7 percent.”

There are various causes for the decrease in Jobs in India in public as well as private sectors. India’s Population is 1330000000 (in short 1.33 Billion) which was very near to China’s 1.37 billion population.


Government Jobs:

Government Recruitment Board Vacancy No. of Applicants Competition for 1 Job
RRB Recruitment 2016 18525 92 Lakhs 496
SSC CGL 10000 (Odd) 38 Lakhs 380
SBI PO 2016 2000 20 Lakhs 2000

This is the heavy competition scenario for Government Jobs. There is 1 job for every 960 (approx.) applicants on an average.


IT Jobs:

The information technology (IT) sector, one of the worst hit, has seen major layoffs. The top seven IT firms in India including Infosys, Wipro and Cognizant will lay off at least 56,000 employees this year. The numbers were collated after extensive interviews with 22 former and current employees of the seven companies. Many employees have already been axed or have been asked to resign — Tech Mahindra and Wipro reportedly firing 1,000 and 600 employees respectively.

Core Jobs vs Automation:

It is not just the software engineers who are staring at a grimmer future but a similar situation exists in other sectors of engineering as well. Kamal Singh, former director-general, National HRD Network, an association of HR professionals, says, “Disruptive technology such as 3D printing or Internet of Things (IoT) is impacting the job scenario everywhere, be it mechanical or civil or any other engineering stream. It will move from bad to worse in time to come.” 3D printing is a manufacturing process that creates a physical object from a digital design while IoT is about connecting devices over the internet allowing them to be controlled over the internet.

With or without automation, some of India’s top manufacturing firms have been cutting jobs. In 2016, Larsen & Toubro (L&T), India’s largest engineering and infrastructure firm let go of 14,000 employees—one of the biggest layoffs in the 79-year-old company’s history. “The digitization and productivity enhancement initiatives taken by us boiled down to redundancies of roles and we have been able to shed as a group 14,000 in the six months to September (2016),” R Shankar Raman, L&T CFO, had said in November 2016.

L&T is not alone. On May 23, Tata Motors, India’s largest automaker, said it had cut 1,500 managerial jobs as part of a restructuring. While the exact reason for the move wasn’t mentioned, automation could be a reason. “We underwent a very detailed exercise in terms of the roles, the requirements and the fitment of the roles etc. It was a very comprehensive exercise which we rolled out over a 6-9 month period which also factored in performance and leadership qualities,” Tata Motors CFO C Ramakrishnan said.

In any case, automation is being rapidly adopted by the Indian auto sector. Maruti Suzuki, for instance, has already integrated robots—its factory in Manesar, Haryana, has 7,000 workers and 1,100 robots. Analysts have, however, said that workflows in the auto industry will always need human labour and that workers needn’t worry.


Placements in IITs:

According to a recent report by HT, campus recruitments at IITs have taken a beating too. The story reported on how campus hiring in the IITs had fallen to 66 percent this year from last year’s 79 percent, a reflection of the economic downturn in the country. In December last year, President Pranab Mukherjee had expressed concern over employment generation saying India is witnessing jobless growth, lowest in the past seven years.


56,000 IT professionals to lose jobs this year in 7 top IT firms. Headhunters India says that job cuts will be around 200,000 annually, for the next 3 years.


70% of H-1B visas went to Indians in 2015, mostly for technology jobs. ASSOCHAM estimates that the visa curb will reduce jobs by 40% or more.


1.5million engineers graduate every year, but only 500,000 get absorbed in the market. Campus placements are low; 40% in AICTE colleges and 66% in IITs.


3,288 engineering colleges exist under the AICTE, more than double from the 1,511 colleges ten years ago. There are also 23 IITs, 31 NITs and 20 IIITs.


80% of engineers in India are unemployable, says National Employability Report 2016, conducted by job skills matching platform Aspiring Minds.


806 MPhil/PhD seats were recently cut from 1000 seats in JNU. Other public universities fear that research in social sciences will be affected as well.



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