India's Job Battlefield: Balancing Right to Work with the Right Work

India faces a complex challenge in balancing right to work with pursuit of right work. This dilemma is exacerbated by country’s labour force participation rate and growing number of youths entering job market annually. According to Centre for Monitoring Indian Economy (CMIE), India’s labour force participation rate has hovered around 40% recently, with a significant gender disparity—only about 20% of women participate compared to over 55% of men. Each year, over 12 million young Indians join workforce, eager to secure employment. However, mismatch between job availability and aspirations of se job seekers creates a significant employment battle.

Skill Gap Dilemma

A critical issue is growing number of gruates who possess degrees but lack necessary skills. A report by National Sample Survey Office (NSSO) found that 33% of India’s youth are unemployed despite having degrees. According to a study by Aspiring Minds, only 3.84% of engineers are employable in software-related jobs at start-ups. Indian education system often emphasizes oretical knowledge over practical skills, resulting in gruates who are not equately prepared for demands of modern job market. As Nandan Nilekani, co-founder of Infosys, notes, "Our education system needs to pivot towards skills-based learning to prepare students for real-world challenges."

Gig Economy: A Double-Edged Sword

gig economy has emerged as a double-edged sword in this scenario. On one hand, it offers flexibility and potential for higher earnings, making freelancing an attractive option for many. On or hand, gig economy can promote a sense of complacency and discourage individuals from pursuing more stable, long-term employment opportunities. This trend has led to a rise in number of freelancers, which, according to a report by PayPal, stands at over 15 million in India. Furrmore, gig economy is projected to grow to $455 billion by 2023, indicating its significant impact on employment landscape.

Declining Interest in Labor-Intensive Jobs

India’s labour-intensive sectors, such as agriculture and manufacturing, are experiencing a decline in interest from youth. Many young people are drawn to white-collar jobs and tech-driven industries, creating a significant mismatch between jobs available and jobs desired. This disconnect not only affects individuals seeking employment but also hampers growth of sectors that are crucial to nation’s economy. Rituparna Chakraborty, co-founder of TeamLease, states, "re is a pressing need to make blue-collar jobs more attractive through better wages and working conditions." Data from Ministry of Labour and Employment shows that employment in manufacturing sector declined by 3% between 2016 and 2020.

Political Freebies and Dependency Culture

political freebie culture prevalent in India has also contributed to employment challenge. Schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have provided short-term relief and income support to rural populations. However, y have also invertently discouraged active employment-seeking and skill development. "Such schemes, while well-intentioned, can sometimes create a dependency culture," according to economic analysts. ditionally, with over 8 million new Employees' Provident Fund Organisation (EPFO) accounts ded each year, formal sector is growing, but not fast enough to absorb increasing number of job seekers.

Lack of Skilled Training Institutes

lack of sufficient skilled training institutes in India has resulted in a shortage of skilled labour. While re are numerous educational institutions, very few focus on imparting practical, industry-specific skills. This gap has created a workforce that needs to be equipped to meet demands of job market, leing to high unemployment rates among educated individuals. Confederation of Indian Industry (CII) estimates that only 10% of workforce receives formal training. Moreover, a 2019 Ministry of Skill Development and Entrepreneurship report highlighted that only 2.3% of workforce has undergone formal skill training.

Perception of Labor Dignity

perception of dignity of labour in India also plays a role in employment battle. Manual and labour-intensive jobs are often viewed with less respect compared to white-collar positions. This societal attitude discourages many from pursuing careers in sectors that require physical labor, despite availability of jobs in se areas. According to a study by International Labour Organization (ILO), India’s informal sector, which includes many labour-intensive jobs, employs about 81% of workforce but is often stigmatized and undervalued.

“Quick Buck” Mentality

Moreover, “quick buck” mentality prevalent among many young Indians has led to a rise in activities such as stock market tring and gambling as sources of regular income. While se activities can provide short-term financial gains, y do not contribute to long-term career growth or stability. This focus on quick profits diverts attention from developing skills and seeking meaningful employment. A 2020 survey by Securities and Exchange Board of India (SEBI) revealed that over 50% of retail investors are under 30 years old, indicating a growing trend among youth to seek quick financial gains.

Global Solutions to Unemployment

Several countries have successfully dressed unemployment and job mismatch issues with innovative ideas. Germany’s dual education system, for instance, combines classroom learning with hands-on vocational training, ensuring that students gruate with practical skills. Denmark’s “flexicurity” model balances flexible hiring and firing practices with strong social security and active labour market policies. Singapore invests heavily in continuous education and training programs, ensuring that its workforce remains aptable and skilled. According to World Economic Forum, Singapore's SkillsFuture initiative has provided training subsidies to over 500,000 people since its inception in 2015.

Conclusion: Towards a Balanced Employment Strategy

Key Learnings:

Skill Gap: A significant number of Indian gruates lack practical skills, resulting in high unemployment despite holding degrees.

Gig Economy Impact: While freelancing offers flexibility, it can also le to complacency and avoidance of long-term employment.

Job Mismatch: re is a notable disconnect between jobs available and jobs desired by youth, particularly in labour-intensive sectors.

Political Freebies: Government schemes like MGNREGA, while beneficial in short term, may create dependency and discourage active job seeking.

Training Deficit: lack of skilled training institutes contributes to a shortage of industry-rey labour.

Labour Dignity: Societal attitudes toward manual labour need to change to make such jobs more appealing.

Quick Buck Mentality: A focus on short-term financial gains through tring and gambling detracts from long-term career development.

Way Forward:

Educational Reform: Shift education system towards skill-based learning to better prepare students for job market.

Enhancing Vocational Training: Increase number of skilled training institutes and align ir programs with industry needs.

Promoting Labor Dignity: Improve wages and working conditions in labour-intensive jobs to attract more workers.

Balanced Government Schemes: Design government employment schemes that encourage skill development and active job seeking.

Global Best Practices: Implement strategies from countries like Germany, Denmark, and Singapore, focusing on vocational training, labour market flexibility, and continuous education.

By dressing se key areas, India can achieve a balance between right to work and pursuit of right work, ensuring sustainable employment for its growing workforce.

With a year-on-year GDP growth of 7%, an increase in jobs is inevitable. However, this growth must be matched by effective solutions to bridge skills gap and align job availability with aspirations.