IAS Gyan

Daily News Analysis


1st September, 2023 Economy

Copyright infringement not intended

Picture Courtesy: www.orissapost.com

Context: The Ministry of Home Affairs organised a Rozgar mela at 45 places in India to give jobs to new members of the central armed police forces. The Minister said the mela helps the youth to contribute to the country's development.


Will Rozgar Mela solve India’s unemployment crisis?

  • Rozgar Melas can certainly play a role in addressing unemployment by creating a platform for job seekers and employers to interact directly. These events provide an opportunity for job seekers to explore various employment options, submit resumes, attend interviews, and possibly secure job offers. This can lead to quicker placements and reduce the time individuals spend searching for suitable job opportunities.
  • However, there are several reasons why Rozgar Melas alone may not completely solve India's unemployment crisis.

Structural Unemployment

  • Structural unemployment occurs when there is a mismatch between the skills possessed by job seekers and the skills demanded by employers. Even though Rozgar Melas can help connect job seekers and employers, they cannot address the underlying issue of skills mismatch.
  • To address structural unemployment, there needs to be a focus on improving education and training systems to align them with industry needs.

Economic Growth and Industrial Development

  • Unemployment is closely linked to the overall economic health of a country. A lack of economic growth and insufficient industrial development can limit the number of job opportunities available. While Rozgar Melas can facilitate job placements, they cannot create jobs out of thin air.
  • Sustainable job creation requires a conducive business environment, investment, and economic policies that promote growth.

Labor Market Dynamics

  • Unemployment is influenced by factors such as job turnover, job mobility, and wage levels. Even with Rozgar Melas, some job seekers might struggle to find suitable positions due to these dynamics.
  • Improving the labour market involves policies that support labour mobility, fair wages, and worker protection.

Informal Sector

  • A significant portion of employment in India is in the informal sector, which often does not participate in formal job fairs.
  • Many informal jobs are in sectors like agriculture, small businesses, and domestic work, and these jobs may not be directly addressed by Rozgar Melas.

Geographical Disparities

  • Unemployment rates can vary significantly across different regions of India. Some areas might have a shortage of jobs, while others might have a surplus of job seekers.
  • Rozgar Melas might not be equally effective in all regions due to these geographical disparities.

Government Policies

  • Government policies play a crucial role in influencing unemployment rates. Strategies beyond job fairs, such as industrial policies, skill development initiatives, and labour market reforms, are essential for creating a more conducive environment for job creation.

In conclusion, while Rozgar Melas can be a helpful initiative in connecting job seekers with employers, it cannot be the sole solution to India's unemployment crisis. A comprehensive approach is required, addressing factors like education and skills development, economic growth, labour market dynamics, and policy reforms to effectively tackle the multifaceted issue of unemployment.

Factors contributing to the lack of fast job creation in India

  • Unemployment is not a new problem; it has existed in various forms throughout history. However, the degree and nature of unemployment can vary over time due to economic, technological, and societal changes.
  • In recent times, unemployment in India has become a pressing issue due to rapid population growth, inadequate job creation, and shifts in industries and technology.

Population Growth

  • India's population is one of the largest in the world and continues to grow. This demographic challenge places immense pressure on the economy to create a significant number of jobs to absorb new entrants into the labour market. Rapid population growth can outpace job creation efforts, leading to high levels of unemployment and underemployment.

Skill Mismatch

  • There is often a mismatch between the skills possessed by the workforce and the skills demanded by industries. Rapid technological advancements require a workforce with up-to-date skills, but the education and training systems might not always align with industry needs. This leads to a paradox where industries face a shortage of skilled workers while job seekers struggle to find suitable employment.

Industrial Transformation

  • Industries are constantly evolving due to technological advancements and globalization. While this transformation can create new opportunities, it can also lead to job losses in traditional sectors that are no longer competitive. The shift to automation and digitalization can displace workers before new roles emerge, contributing to short-term unemployment.

Informal Sector Dominance

  • The informal sector, which includes jobs in agriculture, small businesses, and domestic work, dominates India's employment landscape. However, these jobs often lack stability, formal contracts, job security, and benefits such as social security and health insurance. The prevalence of the informal sector can limit overall job quality and hinder efforts to improve employment conditions.

Economic Growth Rate

  • The rate of economic growth is closely linked to job creation. Slow economic growth can result in fewer new businesses being established and fewer investments being made, leading to a reduced number of job opportunities. Economic downturns can exacerbate unemployment rates as companies cut costs.

Investment and Infrastructure

  • Insufficient investment in key sectors like manufacturing, infrastructure, and technology can hinder the creation of jobs that these sectors have the potential to provide. Lack of modern infrastructure can deter foreign investments and limit the growth of domestic industries.

Government Policies

  • Government policies related to labour laws, taxation, and regulations play a significant role in job creation. Stringent labour laws and complex regulations can discourage businesses from expanding and hiring new employees. Unclear taxation policies and high compliance costs can also deter investments.

Steps taken by India to curb unemployment

Skill Development Programs

  • The Skill India Mission was launched to bridge the gap between the skills possessed by the workforce and the demands of various industries. The National Skill Development Corporation (NSDC) played a key role in coordinating skill development initiatives.
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY) provided skill training and certification to youth across diverse sectors. It aimed to make the workforce more job-ready by aligning their skills with the specific needs of industries. The program offered training in both traditional and emerging sectors.

Start-Up and Entrepreneurship Support

  • The Start-Up India Initiative aimed to foster an ecosystem conducive to entrepreneurship. It offered benefits such as tax exemptions, relaxed compliance requirements, and a dedicated fund of funds for start-ups. The initiative aimed to encourage innovation and job creation through new ventures.

Rural Employment Schemes

  • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) guaranteed at least 100 days of wage employment per household in rural areas. It aimed to provide a safety net for rural households while creating public assets like roads, water bodies, and infrastructure. This also helped prevent distress migration and unemployment.

Digital Initiatives

  • The Digital India Campaign focused on leveraging technology to empower citizens and improve digital infrastructure. The push for digitalization created jobs in IT services, software development, e-commerce, digital marketing, and other technology-driven sectors.

Make in India

  • The Make in India Initiative aimed to boost domestic manufacturing and attract foreign direct investment (FDI) by improving the ease of doing business and offering incentives to investors. This initiative aimed to create jobs in industries such as textiles, electronics, automotive, and more.

Infrastructure Development

  • Investment in infrastructure projects aimed to enhance connectivity, mobility, and economic growth. Projects related to roadways, railways, airports, and ports not only created jobs in construction but also in operation and maintenance.

Education and Research

  • Investment in education was crucial for building a skilled workforce. The emphasis was on improving the quality of education, providing vocational training, and promoting research and innovation. Institutions of higher learning and research received support to produce a knowledge-driven workforce.

Labor Reforms

  • Labour reforms aimed to streamline and simplify complex labour laws, making it easier for businesses to comply with regulations. This aimed to encourage job creation while maintaining a balance between labour rights and economic growth.

Foreign Direct Investment (FDI)

  • India progressively liberalized its FDI policies in sectors like defence, retail, aviation, and more. By allowing higher foreign investment, the government aimed to attract capital inflow, stimulate economic growth, and create jobs.

Tourism Promotion

  • The Incredible India Campaign promoted India as a tourist destination. This initiative aimed to create jobs in the hospitality industry, travel agencies, transportation services, and related sectors.

Export Promotion

  • Initiatives like the Export Promotion Capital Goods (EPCG) Scheme aimed to boost exports by providing concessional rates on capital goods. Increased exports can lead to job creation in manufacturing and associated supply chains.

Micro, Small, and Medium Enterprises (MSMEs)

  • Support to MSMEs through various schemes aimed to encourage entrepreneurship and small-scale industries. MSMEs play a significant role in job creation and overall economic growth.

These steps collectively aimed to address unemployment by fostering skill development, entrepreneurship, infrastructure growth, and economic diversification.

Steps need to be taken

Skill Development

  • Establish vocational training programs that provide relevant skills for various industries.
  • Collaborate with industries to design curriculum and training programs to address skill gaps.
  • Promote lifelong learning to ensure the workforce stays updated with changing industry requirements.

Entrepreneurship Promotion

  • Provide financial incentives and support for startups and Small and Medium Enterprises (SMEs).
  • Create incubation centres and accelerators to nurture new business ideas.
  • Simplify regulations and procedures for starting and running businesses.

Labor Market Reforms

  • Introduce flexible labour laws that make it easier for businesses to hire and fire, while ensuring basic worker rights.
  • Establish mechanisms for resolving labour disputes quickly and fairly.

Infrastructure Development

  • Invest in infrastructure projects such as transportation, energy, and telecommunications, which create jobs during the construction and operation phases.
  • Develop rural and urban infrastructure to stimulate employment across regions.

Industry Diversification

  • Identify sectors with growth potential, such as technology, e-commerce, healthcare, and renewable energy, and promote investment and innovation within these sectors.
  • Encourage the integration of technology and automation to enhance productivity and competitiveness.

Government Initiatives

  • Introduce policies that incentivize companies to hire more employees, such as tax benefits or subsidies for job creation.
  • Simplify bureaucratic processes and reduce red tape to improve the ease of doing business.

Public-Private Partnerships

  • Collaborate with the private sector to develop training programs, infrastructure projects, and initiatives that create jobs in a sustainable manner.
  • Leverage private sector expertise to identify growth opportunities and develop employment-focused strategies.

Rozgar Melas and Skill Fairs

  • Enhance the effectiveness of Rozgar Melas by incorporating skill development workshops and training sessions alongside job placements.
  • Ensure that Rozgar Melas targets a wide range of industries and regions to cater to diverse job seekers.

Rural Employment Schemes

  • Strengthen and expand existing rural employment schemes that provide temporary work opportunities for rural communities.
  • These schemes can help alleviate unemployment in rural areas while contributing to local infrastructure development.

Education Reforms

  • Modernize the education system to equip students with practical skills and knowledge relevant to current job market demands.
  • Encourage collaboration between educational institutions and industries to align curriculum with industry needs.

Youth Empowerment

  • Focus on programs that empower and support young individuals to become job creators rather than just job seekers.
  • Promote initiatives that encourage innovation, creativity, and entrepreneurship among the youth.

Social Safety Nets

  • Establish and strengthen social safety nets to provide financial support to those who are unemployed or underemployed.
  • These safety nets can act as a temporary buffer during economic downturns and job transitions.


  • Rozgar Melas are not a magic bullet for solving India's unemployment problems. They are only one component of a broader approach that should tackle the root causes of unemployment. To achieve lasting results, India needs to invest in education, skills development, economic growth, and policy reforms that can create a more dynamic and inclusive job market. Rozgar Melas can help connect job seekers and employers, but they cannot substitute for a holistic strategy that addresses the structural issues of unemployment.

Must Read Articles:

PERIODIC LABOUR FORCE SURVEY (PLFS): https://www.iasgyan.in/daily-current-affairs/periodic-labour-force-survey-plfs-8

JOB CRISIS: https://www.iasgyan.in/daily-current-affairs/job-crisis

UNEMPLOYMENT: https://www.iasgyan.in/daily-current-affairs/unemployment

UNEMPLOYMENT RATE IN INDIA: https://www.iasgyan.in/daily-current-affairs/unemployment-rate-in-india


Q. What are the key factors contributing to the increasing unemployment rate in India? How is this trend impacting the economy and society? What challenges does the country face in addressing this issue? What strategies and measures can be implemented to chart a way forward and effectively tackle the rising unemployment rate?