QUE: “Structural unemployment in India is a reflection of developments in technology and the inadequate readiness of the workforce to adopt it.” Discuss.

Structural unemployment in India reflects the growing mismatch between the skills demanded by employers and the skilled workers available due to the continuous development of technology. It disrupts traditional jobs and reflects the inadequate readiness of the workforce to adapt to these changes.

• Structural unemployment and technological progress

• Automation and AI Disruption: The demand for low-skilled jobs is decreasing due to industries developing automated systems through automation in everyday tasks.
• Sectoral shift in employment: The shift from agriculture to services and high-tech manufacturing has led to the loss of unskilled labour. Eg: Services contribute 55% to GDP, but rural workers often lack skills.
• Digital Divide: Limited digital access in rural areas prevents workers from adapting to tech-based jobs. Only 33% of rural households have internet access (NSO, 2022).
• Digital Divide: Limited digital access in rural areas prevents workers from adapting to tech-based jobs. Only 33% of rural households have internet access (NSO, 2022).

• Inadequate staff preparation

• Skills gap: There is a significant lack of employable skills among the workforce. For example, according to the World Economic Forum (2023), 47% of Indian graduates report being unemployed.
• Poor vocational education: Low enrollment in vocational courses creates poor employment opportunities. For example, only 5.6% of India’s workforce has received formal training (PLFS, 2021).
• Outdated curriculum: Often, the courses run by universities are ineffective because they are not aligned with the needs of the modern industry. For example, an AICTE 2021 study found that many engineering programs lack subjects like AI and robotics.
• Low female workforce participation: Cultural barriers and restrictions on women’s participation in the workplace. For example, the World Bank estimates that female labor force participation in India is only 25%.
• Urban-Rural Disparity: Rural youth face significant barriers to education and employment compared to urban youth. For example, rural unemployment is 7.3% (CMIE, 2023) compared to 4.8% unemployment rate in urban areas.

• Remedy:

• Strengthening skill programmes: Expand initiatives like Skill India Mission with private sector collaboration to bridge the skill gap. For example: Programmes like NSDC-TCS iON collaboration focus on training on digital skills.
• Alignment of curriculum with industry needs: Update university curricula to include emerging technologies like AI, robotics and blockchain. For example, AICTE Amendments (2023) introduced industry-oriented courses in technical fields.
• Bridging the digital divide: Expand connectivity under BharatNet and provide affordable devices to underserved regions. E.g. PM ​​Gati Shakti links rural digitization with infrastructure development.
• Promoting lifelong learning: Encourage mid-career reskilling through subsidies through programs on platforms like SWAYAM and FutureSkills Prime.
• Local Skill Development Centers: Establish vocational centers tailored to region-specific local employment needs. For example, Kerala’s ASAP program trains youth for the tourism and IT industries.

• Conclusion

A multi-pronged approach is needed to reduce structural unemployment in India. One that aligns the needs of industries with the needs of the needy, through education, skills and technology, and ensures access to opportunities for the needy. One that prioritizes human capital development and transforms the demographic dividend into a driver of inclusive and sustainable growth, will contribute to enabling India.