India's economic growth story is often overshadowed by the persistent challenges of unemployment. Analyze the concept of structural unemployment and discuss its relevance in the context of India's current economic situation. Suggest policy measures to promote inclusive job growth.

(1) neared $4 Tm economy, but >5% unemployment (PLFS, 2023-24) CWS data

(2) Jobless growth → 'Job-loss Growth' (R. Rajan)

(3) Poor Inclusive growth fueled by top 10% & more able ones.

Structural unemployment

Concept → Refers to a situation where there is a significant skill gap in job supply & demand profile: → Jobs are available, workers are available; but most workers lack the skill set required for the job.

Implications / Relevance

(1) youth unemployment has (>83% of total unempt) rapidly balloned (as per IMF) → waste of Demo. Potential (2) Amongst youth, educated youth saw more rapid rise in unempt. (3) This got reflected in poor performance of manufacturing sector (only 18% to GDP) (4) Quality of Employment suffers PLFS; 2024: [self Employed: >55% w/force] (5) This subdues our Eco. growth potential which is ~ 10-12% p.a. (Arvind Panagariya 16th CFC)

Required Policy measures

(1) Skilling & up skilling to youth (Shramodhai Panel → ITI level reforms, perf based remuneration)

(2) Promoting labour-intensive Industries (like Footwear, textile)

(3) Higher Education Reforms (Focus on Industry relevant skills) → NEP 2020 implement

(4) Improving Pedagogy, assessment + Enhanced Industry-collab; (Ex: Anand mahindra made chairman of Andhra Skills Univ.)