Since the past years, the employment structure has been completely transformed not only in the context of employment opportunities but also in the context of technology and infrastructure as well. However, if we see the employment growth trends for the last two years, there is a gradual downfall in the hiring rate. Also, a number of surveys have been conducted in order to figure out the reasons for such a downward trend.
In a developing country like India, the problem of unemployment is considered one of the most discussed topics in the run. The rate of employment has declined not only for rural people but for the urban people as well.
Reasons for the decline in the employment rate
Well, there are several reasons for the decline in the employment rate in the country. Let’s have a glance at some of them:
Lack of physical capital in the country
Countries like the US, are going well in employment and so their economy is doing well. The main reason behind this is the availability of physical capital in every area. In our country, there’s an immense lack of physical capital and it hampers productivity and employment anyway.
Lack of infrastructure in the industrial area
This is the other reason for unemployment in the country. There is a lack of infrastructural facilities in the nation, and the quality of the existing ones is not satisfactory.
Mechanization of the agricultural operations
Nowadays, almost every single operation is mechanized and this mechanization has got applied to the agricultural sector as well. It has hampered labor employment because things have now become machine-intensive.
Existence of geographical immobility
People are not able to migrate to the cities due to geographical immobility and they do not get the desired job opportunities in their residing cities.
This kind of unemployment is quite common in developing countries like India. When more than the required workforce is employed in the same task, it is known as disguised unemployment.
Measures to improve the employment rate in the country
Well, every problem comes with a solution, we just have to navigate the things in detail to find the best measure. The problem of unemployment has been a very crucial matter that needs a proper strategy to deal with. Below, are given some of the measures that can help the economy to deal with the declining rate of employment:
Establishment of quality education and training centers
The government should take incentives in establishing quality education and training centers all over the country so that the youth can get quality education and their employing chances can go high.
Required changes in fiscal and monetary policy
The other important tool that can be used to encourage employment is adjusting the fiscal and monetary policy of the country. The policy reforms are considered one of the most strong tools to adjust the employment level in the nation.
Incentivizing the businesses
The government can boost the businesses by offering them incentives and subsidies, which will enhance their productivity and in this way the employment level will ultimately get improved.
Government incentives for establishing industries in backward areas
Most of the industries don’t find it interesting to establish the industries in the backward areas because this will hamper their productivity, but here the government can play a major role. The government can provide various incentives to the industries to establish their factories in backward areas. This will boost the employment opportunities for the people residing in the backward areas.
Assisting job seekers in finding jobs as per their skills
There are several job portals connecting job seekers with matching skill jobs. Worknrby is one such emerging online job portal connecting the right people at right place. The platform works on the vision of serving people building their careers and boosting the employment opportunities bringing the best talents to the businesses nearby. The job seekers can get connected with such portals to get better chances of employment.
This way, the problem of unemployment can be treated well without hampering other developmental activities. Also, the increase in the employment rate will not only improve the standard of living of people but it will also encourage economic stability in the country. Hope this article met your reading desires. Feel free to share your feedback.