Steve graduated as an MA student of politics this year from Delhi University of India says “I want to get a job in some transnational company. I have been finding jobs since this May, but I haven’t got any results.” He said. Steve was a civil servant before he started his post graduation study. However, he never thought that it would be difficult finding a job after his graduation.
Currently, it is a common problem for young people in India especially college students to find jobs. Nehru University is a well-known high institution for learning. Surprisingly, instead of bustling with job fairs, the campus is “very quiet” during the graduation season. A Chinese overseas student explained the situation of many graduates: “Finding jobs is so difficult. Many of my Indian schoolmates are not planning to find one. They just want to continue staying in school. The school accommodation and meals are cheap. The pressure is much low than living out of the campus. If they can be doctoral candidates, they may get the national subsidize, which is more than what they can get from working. So why rushing to find jobs?
In the meantime, the difficulty for young Indians to find jobs also reflects deeper problems in India’s economic structure. India’s economy has been in rapid development since 2000, and now its economic scale reached 2000 billion USD, attracting the world’s attention as an emerging market, thanks to the service sector with IT industry as a pillar. The service sector contributes 65% to the country’s GDP while basic industry has only 18%. However, the service sector absorbs limited labor forces. An economic research released by the Indian government this year shows that the service sector only absorbed 24.3% of the whole employed population, the lowest among the three industries. The number for the basic industry is 26.8%, just a few percentage points higher. The underdevelopment of labor-intensive industry is a weakness in the job market.
From the fiscal year of 2004-2005 to 2011-2012, the yearly growth rate of employment is only 0.5%. But from the fiscal year of 2005-2006 to 2012-2013, the high education admission rate doubled by 21.1%.The unbalanced economic structure has given rise to another strange phenomenon. A research released by India’s Ministry of Labor and Employment for the fiscal year of 2013-2014 shows, the unemployment rate of young people who have received high education reaches as high as 28%, while the number is only 4% for those who have only received education lower than primary school level, and 2% for illiterates. The idea of “Education is useless” again blows young Indians’ confidence.
Certainly, Indian government is not ignoring this problem. A Technology Development Department was founded last November to take over more than 70 technology training projects from over 20 ministries and commissions, aiming at ensuring young people who have received standard education to be equipped with skills to get jobs. Besides, India passed National Employment Security Law for Rural Areas in 2005, which was enforced in 2006. The law stipulates providing work force in every household in rural areas with at least 100 days paid non-technique jobs every year. Indian president Pranab Mukherjee said in a speech on June that by the year of 2030, India would provide 500 million people with training for technology development projects. However, the key to the problem for young Indians to find jobs is that lack of “places to apply their skills”. It may not ease the job-finding pressure in the first place with only technique training measures. Indian Prime Minister Modi brought forward the slogan of “Make in India” after he took office, hoping to change India into a center of manufacturing. If the slogan would be truly put into practice, and India’s manufacturing industry soars, the employment headaches for the young thus may be solved.