Decline in Campus placements at Premier Institutions in India

Posted 05 Apr 2024

2 min read

Reasons for decline include global economic slowdown, lack of international firms coming to campuses, etc.
The decline in placement and increasing unemployment [8% in Feb 2024 (CMIE)] has also raised concerns regarding jobless growth in India.
Jobless growth is a phenomenon where increase in employment opportunities and job creation takes place at a slower rate than that of economic growth.

Reasons for jobless growth in India
- Increasing investments in capital equipment and automation: Automation is said to threaten 69% of the jobs in India (World Bank).
- Sectoral inefficiencies: Primary sector employs >50% of India’s workforce while contributing <20% to GDP.
- Labor market rigidity: Pushed employers towards more capital intensive modes of production than labor-intensive ones.
- Poor employability: Only 50.3% of country’s youth are considered employable. (India Skills Report, 2023)
- Poor participation in Global Value Chains (GVCs): India’s GVC participation declined to 41.3% by 2018.

National Skill Development Mission (NSDM) launched in 2015.
National Apprenticeship Promotion Scheme (NAPS).
Schemes to boost manufacturing sector: Make in India initiative; Industrial Corridor Development Programme; Production Linked Incentive scheme, etc.

Way Forward
- Skilling of labor force: To bridge the gap between demand and supply of skills and qualifications.
- Incentives to labor-intensive sectors: PLI schemes, employment subsidies, etc., to sectors such as textile, Auto sector, etc.
- Modernization and diversification of Agriculture sector: To address sectoral inefficiencies.

Watch News Today

Need to Login First !