To what extent do you agree that skill development, rather than welfarism, is the key to addressing India’s employment challenges in the current socio-economic context? (15M, 250 words) [GS-1: Social Issues]

Introduction:

• India faces a critical challenge in providing high-quality employment opportunities, particularly for its burgeoning youth population.
• Unemployment has persisted across various administrations for decades, highlighting the deep-rooted nature of this issue.
• The assumption that economic growth alone will solve the job crisis is flawed, as national surveys over the past 50 years reveal that job creation in India has not kept pace with economic growth.

Body:

Central Employment Schemes:

• The introduction of rural employment guarantee schemes in 2005 aimed to provide work for the poorest, often involving arduous labor under harsh conditions.
• Despite these efforts, workers frequently face delayed wages and limited job opportunities, with many receiving less than the promised 100 days of employment.
• These schemes primarily offer temporary relief, failing to address the need for sustainable, high-quality jobs.

Need for Sustainable Employment:

• India’s unemployment issue is deeply tied to the low skill levels and inadequate training of its workforce.
• Addressing this requires a large-scale vocational education initiative, closely linked to apprenticeships in the private sector.

Global Examples:

• In Germany, employers actively participate in vocational programs, reducing recruitment costs and ensuring a skilled workforce.
• The California community college-vocational system partners with local businesses to align training with industry needs.
• Developing nations, like Kenya and Colombia, have implemented successful youth employment programs that India could emulate.

Collaboration and Investment:

• Effective job creation necessitates collaboration between corporations, local governments, business groups, and civil organizations.
• In India, capital subsidies often promote labor-replacing, capital-intensive investments. These should be replaced by wage subsidies that incentivize large enterprises to create regular jobs.
• Additionally, providing technical support and management training to non-farm home enterprises can generate productive employment.

Addressing Demand Shortfalls:

• The debate on job promotion often overlooks the issue of demand shortfall in the mass consumer market, exacerbated by income and wealth inequality.
• The concentration of wealth at the top, coupled with stagnating earnings for the lower-income groups, hinders broad-based job creation.

Conclusion:

A basic income supplement could be funded by significantly reducing the subsidies currently provided to the wealthy.

The government’s goal should be to simultaneously increase employment and improve employability through various schemes like Atmanirbhar Bharat Rojgar Yojana (ABRY), MGNREGA, PM-SVANidhi Scheme, and Pradhan Mantri Kaushal Vikas Yojana (PMKVY).

A comprehensive approach that includes vocational training, wage subsidies, and demand stimulation is essential for addressing India’s employment challenges.