How To Solve Unemployment?
Unemployment is one of the most concerning issues of the 21st century. As the population grows and job scarcity grows with it, we are left with an unbalanced system. While there can be many factors affecting unemployment rates, some are within our control.
“The Union Ministry for Labor and Employment declared national unemployment in India to be around 3.7 %, i.e. 40 million, in the year 2015-16. However, the data is based on Usual Principal Subsidiary Status (UPSS) approach that requires only 30 days of work in a year to call the person employed. About 77 % of the families reportedly have no regular wage earner. More than 67 % have income less than 10,000 per month.”
Vacant position Vs. Incompetent employee:
It is common that companies would rather leave a position unfilled than hiring someone who didn’t fit the job necessities. A new recruit must always be well equipped, and therefore he cannot expect much guidance from the employer. So, if there’s not an ideal match that can do everything stated in the job description, there won’t be a callback.
This, however, wasn’t the case at all times. Previously, organisations would allow a broader range of applicants after selection solely by ability, competence and basic intelligence. Companies would train their new employees upwards for several months. Only after efficiently completing their training, the new employees would be allowed to take up their places alongside fellow co-workers.
This training not only shaped better workforce, but it also created more loyalty. Employees could see the company invest time and money into perfecting their skills. This would reciprocate with their work efforts.
Quick to Re-hire:
Companies give employees short span of a few days to get accustomed to the company and its work. They immediately start the process of re-hiring if the results aren’t as fruitful. So instead of providing guidance and a helping hand to those lagging behind, companies are happy to leave those who are not up to the mark. This keeps unemployment at an all-time high.
Many corporate analysts cite Job mismatch as the reason why unemployment has persisted at the elevated levels. Workers who are skilled in one area are working in the other field. Many times employees are in over-abundance, and even though there are jobs in demand, they require a different set of skills. One way to resolve this dilemma is to have firms more agreeable to increase their applicant pool and train those they do appoint for those jobs.
According to the National Skill Development Mission Document, 97% of the workforce in India has not undergone any formal skill training. Around 58 % of unemployed graduates and 62 % of unemployed postgraduates cited non-availability of jobs as the main reason for unemployment.
Unemployment problems persist in every sector of the working society. One would think that politics is rather free or untouched of this very subject of skill gaps or job mismatch. Of course, that is untrue. The recent falling of the façade of a major political party that had its 20 political leaders removed was proof of our very concern.
Companies are rarely opting for employee training and development programs these days. This has proven to be dangerous for both the Employees and Companies. Read more on how companies can benefit from employee training.