Take a look at this interesting fact. Two-thirds of India’s 1.2 Billion People are below 35 years of age. A study by the Organization for Economic Co-operation and Development (OECD) has shown that 30% of India’s youth are not in employment.
There’s talk of jobless growth and this brings up an interesting question? How can there be jobless growth if India’s GDP has grown at the fastest in seven quarters in the January-March period? India’s GDP has grown at 7.7% in Q4 and retains the fastest growing economy tag.
This begs the question. Are the youth in India searching for jobs? Are they skilled to work and hold jobs? Let’s find out. Want to know more on Investment Planning and Business Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
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1. Are the youth in India searching for jobs?
The youth in India are losing jobs and are not bothered to search for jobs, even if they are unemployed. Young people especially in urban areas are not actively looking for jobs. Yes, the youth in India who have lost their jobs are updating their resume, meeting consultants and even talking to prospective employers. When these youth don’t get the jobs they want or think they deserve, they just don’t work or bother turning up for jobs to get.
Many youth in India who do not get the jobs they want, follow a Wait-and-Watch policy. They wait for the Right Job and the Right Profile.
And how can they do this? Don’t they require money for day to day needs? Well, many of these youth belong to affluent families where parents are working and they can afford to sit it out.
Tech Mahindra CEO, C P Gurnani has said that 94% of IT Graduates are not fit for hiring. This is true even for other sectors. Rapid Automation is affecting the IT Sector and even the BPO Sector in India. IT and the BPO Sector have hired Lakhs of employees in the past and if they have to do so in the future, the young people who pass out of colleges need to have the skills to hold and retain jobs, if they can manage to get them in the first place.
What we are talking about is a Skill Gap. Though there are jobs, the youth in India cannot get them because of the skill gap. Companies are forced to train these youth and this means an additional expenditure.
Tech Mahindra has created a 5-acre Tech and Learning center to skill employees.
3. The growth of start-ups in India
There’s another big reason the youth in India are not searching for jobs. They want to enjoy independence and are looking to be entrepreneurs. Nasscom has said that more than 1,000 Tech Startups have been added in 2017. Manipal Global Education Chairman T V Mohandas Pai, has said that India will have close to 1 Lakh start-ups by 2025. India is now the third largest hub for start-ups behind the US and the UK.
Yes, the youth in India are pursuing goals close to their heart and are quitting jobs and starting their own businesses. Many of the youth in India are saying that if they lose their jobs, they will start their own businesses.
Can they do so? Funding is available from angel investors, venture capital funding and even private equity investors. The Government has also launched initiatives like Startup India and Skill India to promote entrepreneurship in India. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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