Demonetisation adversly impacted on Job Creation and hit the women- OXFAM India - Seeker's Thoughts

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Demonetisation adversly impacted on Job Creation and hit the women- OXFAM India

OXFAM India’s latest report mind the Gap 2019 – State of Employment in India makes the following observation.

According to the OXFAM lack of quality jobs and increasing wage disparity are key markers of inequality in the India labour market.

The report states regressive social norms continue to hamper women’s participation in the workforce on an average; women are paid 34% less than similarly qualified male workers for performing the same tasks.
Read More about-- Female Labour Participation

In 2015, 92% of women and 82% of men earned a monthly wage less than 10,000 in India.
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Despite the rhetoric of job creation and ensuring gender justice, ground reality is sobering. The reports highlight the question about India’s growth data and emphasizes that they do not reflect in the growth of jobs and the largest number of jobs were generated in unorganized sector.

Job generation was adversely impacted after demonetization and hit the women workforce most. Women were forced to move out the labour force to make way of men to get the few jobs that were available.

Demonetization period witnessed a drop in households with two or more persons employed. Between January and October 2016, the percentage of households where two or two or more persons were employed was 34.8% and this dropped to 31.8% post-demonetization, with women workers becoming the first causalities of job losses.

The report highlighted grim picture of ground realities the report states that caste and class continue to play crucial roles in determining the employment for men and women, especially in stigmata vocations like sanitation, rag-picking and jobs in the leather industry.

The report calls for a shift in development focus towards labour-intensive sectors to create more jobs and pushes for better work conditions to make jobs more inclusive. The report calls for substantially higher investments in health and education to improve productivity.
Unemployment in India 

According to the GDP, the Job creation is lesser in India

World Bank, in its publication South Asia Economic Focus, Spring 2018: jobless Growth, says that over the long-term, India has been creating 7,50,000 new jobs for every 1% rise in gross domestic product (GDP); at an average of 7% growth, India should be creating at least 5.25 million jobs.

The Agriculture and Job Connectivity 

According to Centre for Monitoring Indian Economy data the number of youth (15-29 years) employed in agriculture fell between 2004-5 and 2011-12. However, after 2012, as non-agricultural job growth slowed, the number of youths in agriculture increased significantly.

Manufacturing - Jobs reduced

Manufacturing jobs also reduced in absolute terms, from 58.9 million in 2011-12 to 48.3 million in 2015-16.

The leaked NSSO 2017-18 data have shown that while the open unemployment rate (which does not measure disguised unemployment and informal poor-quality jobs that abound in the economy) by the usual status has jumped to 6.1% in 2017 -18 that never went over 2.6% between 1977-78 and 2011-12.

Growth without Jobs

    Source - OXFAM India

India’s growth creates fewer jobs than before. Fixing India’s job crisis is impossible unless the government decides to increase investment in public services, education and health. Together these sectors can compensate for the bulk of the work demand in India. 

The challenge of fixing India’s job crisis is an unachievable task for any-term government. The country’s private sector has done well in battling the unemployment challenge so far, and improving the ease of doing business is step in right direction. The youth is getting more and more educated but the growth of employment is not satisfactory.  

People lost jobs because of cash crunch after demonetization. There is no correlation between GDP growth and employment rate.

Falling Female Participation

Female participation in workplace has been declining since 1977, and continued falling to 2015-16. According to Centre for Monitoring Indian Economy (CMIE), a think tank, only women suffer when there’s an employment problem, while jobs for men increased by 0.9 million, 2.4 million women fell off the employment map in first four months of 2017. 

The trend for this year points to a continuing story of Indian women increasingly clocking out of the workplace. It might not seem like it at first glance. You see Women employed everywhere, in ad agencies and start-ups, on construction sites and in fields, in shops and restaurants, in schools and anganwadis, flying airplanes and driving taxis. However, the data contradict about recruitment.

First, female enrolment at secondary level (15-16 years old) rose to 85% within matter of five years (to 2015). Second, as these older girls entered secondary school, younger siblings care in the family had to be now performed by adult women rather than the eldest girl. In the household income with rapid growth in agriculture, the demand for female women increased. 

A very important reason for rural female workforce falling 2004-05 was the decline in household level animal farming, which has rationally been performed by women.

Causes of unemployment among youth 

Large number of youths in India are unemployed, there several causes of staying unemployed. Doing job in foreign country is kind of craze among youth nowadays, young people don’t find India worthy to staying or doing job here, when it's about government jobs there is a huge competition due to population and to get government job, while in India government jobs are mostly occupied by older people. 

Other reason is youth are least concerned about get in job and more in art sectors – like singing, playing instruments, dancing etc. etc. Well skilled youth are not able to get skilled relevant job easily in the country, other reason is least savings Indian companies are very much hard to handle as they put extra work load on the employee with less salary with least incentives.

If India wants to absorb large number of labour force, it should be more focused to increase in expenditure to create more opportunities. 

There is a need to execute well planned schemes and a huge infrastructure has to be created. Economy cannot run on single engine that is on public sector alone, so private sectors should come forward. Agriculture sector have to sustain the growth of poor people.

Education system needs to be re-oriented towards vocational and practical teachings. Huge chunk of women participation in workforce is needed.

Government should give chance to youth in government jobs like judges, teachers, doctors etc. there is a need to generate more jobs in public sector. 
There should be cluster development to support job creation in micro, small and medium enterprises. 

The growth of population should be checked in order to solve unemployment problem. Family planning programme should be implemented widely and effectively. The link between good urbanization and jobs growth is positive, and unless India’s urbanization is concentrated in narrower areas and serviced by good infrastructure, job creation will be sub-optimal.

Indian government has failed to fix India’s job crisis, high unemployment and slow employment growth have been a historical reality of the country’s labour market. India’s jobless growth since the 1990s only made it worse. 
More than half of India’s population depends on the agriculture sector for work.

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