Unemployment in India is projected to witness marginal increase between 2017 and 2018, signalling stagnation in job creation in the country. International Labour Organisation (ILO) released its 2017 World Employment and Social Outlook report, which finds economic growth trends lagging behind employment needs and predicts both rising unemployment and worsening social inequality throughout 2017.
Unemployment in India is projected to increase from 17.7 million last year to 17.8 million in 2017 and 18 million next year. In percentage terms, unemployment rate will remain at 3.4 per cent in 2017-18.
The Impact Of Technology On Unemployment
- Technological Change
There is no denying that technological change nowadays has accelerated, potentially leading to more advanced technologies. The pace of modern technological change is so rapid that many workers, unable to adjust, will simply become obsolete, like horses after the rise of the automobile.
Worldwide, technological change could easily lead to the loss of 5-10 million jobs each year. According to aspiring mind reports, out of 150,000 engineering student, barely 7 per cent suitable for core engineering jobs. As many as 97 per cent of graduating engineers want jobs either in software engineering or core engineering. However, only 3 per cent have suitable skills to be employed in software or product market, and only 7 per cent can handle core engineering tasks.
- Syllabus not updated regularly
The course contents do not focus on areas which will actually help in the job industry after employment. There is a big gap between what the market needs and what Indian education equips its future employees with.
The traditional education sector in India has not evolved at the same pace as the industry. The expectations that the companies have from their candidates and the skills that engineering graduates bring in, do not match.
- Lack of skill-based education
One of the major problems facing the fresh graduates is their insufficient understanding of basic concepts. The lack of in-depth understanding of technical information, lack of client-handling skills and insufficient knowledge across domains are the major skill gaps in the area.
- Lack of Communication skills
The lack of ability of the individual to deliver his views effectively at the interview leads to rejection of even the most brilliant candidates. Because institutes do not make an effort to ensure that the candidates develop their skills in a wholesome manner which can contribute towards client-handling and team communication skills.