Millions exit Indian workforce disappointed at lack of right jobs: report
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India has had a job creation problem for a long time but it is starting to change people's mindset now. Disappointed at not being able to find the right kind of jobs, millions are exiting the labour force.
A recent report from the Centre for Monitoring Indian Economy Pvt says more than half of the 900 million Indians of legal working age do not want a job. The new attitude is stemming from the lack of desire to be trapped in the wrong job. Frustrated at the lack of suitable jobs, millions are exiting the industry and most of them are women, reported Bloomberg.
Many youngsters are quitting because of meagre pay and irregular hours. If the trend continues, it can affect India's journey to being a developed country.
Two-thirds of India's population is in the age group 15-64 which makes competition for jobs high. A 2020 report by McKinsey Global Institute says the country needs at least 90 million new non-farm jobs by 2030 to keep up with the pace. This demands an annual GDP growth of 8% to 8.5%.
Between 2017 and 2022, labour participation in the country has dropped from 46% to 40%. Around 21 million women have disappeared from the workforce and only 9% of the eligible population are looking for positions, says the new data from the private research firm.
Mahesh Vyas of CMIE says women are quitting the labour force because most jobs are not kind to them. Women represent 49% of India's population but contribute 18% of economic output. Cultural norms and lack of safety are major reasons for this trend.
Kunal Kundu, an economist with Societe Generale GSC Pvt, told Bloomberg that the large share of discouraged workers suggests that India is unlikely to reap the dividend that its young population has to offer. The K-shaped growth path in the country is fuelling inequality and will cause the nation to remain in a middle-income trap.
Economists think that India is going to miss a chance to put its youth bulge to good use which will lead to a situation where people are only becoming older, not richer.