Holding a large number of undergraduate and postgraduate degree holders struggling for a handful of jobs, especially in the government, has become a common sight in Punjab, painting a grim picture of the unemployment situation in Punjab. Last year, there was a queue of about 2.33 lakh for 1,152 posts in the district. Patwari,
Despite the tall claims of consistent governance regarding jobs, unemployment remains a major issue that plagues the state and is becoming severe with every passing year. The problem of unemployment in Punjab has increased due to lack of will to overcome it through multi-pronged policies.
According to a report compiled by the Center for Monitoring Indian Economy (CMIC), the state’s unemployment rate was recorded at 7.85% – 8.2% in urban and 7.7% in rural areas – by the end of 2021, against the national average of 7.31%. , Labor Force Participation Rate (LFPR) – the section of the working population in the age group of 16-64 currently employed or seeking employment – has fallen from 45.04% in 2016 to 39.99% in 2021. The unemployment rate among women in Punjab is more than four times higher (34.1%). of men (7.4%).
In a disturbing trend, the unemployment rate among highly educated youth has increased, posing a challenge to policy makers. The lack of employment opportunities commensurate with the aspirations and abilities of the youth is driving them to greener pastures outside the state, abroad and in other parts of the country.
The unemployment rate among job-seeking youth educated graduates or above has increased from 14% in 2016 to 15.8%. The age comparison showed that the unemployment rate was 88.78% in the 15-19 age group, 43.33% in the 20-24 age group and 10.72% in the 25-29 age group.
The service sector in Punjab dominates in terms of contribution to both Gross Value Added (GVA) as well as employment. However, despite industry having a higher share in the state’s GVA than agriculture and allied activities, its share in employment is low. In Punjab, holdings have shrunk and increased use of machines in agriculture has affected employment opportunities for youth, especially in rural areas. Most of the industries in the state are small which generate low wage employment with low productivity.
Contributing around 47% to the state’s GVA, the service sector employs 40% of the labor force in the state, while industry employs about 35% of the state’s workforce with a GVA of around 24%. The agriculture sector, with a share of about 29% in Punjab’s GVA, employs about 25% of the state’s labor.
The high unemployment rate points to the state of the economy of Punjab which has shown dismal performance. From 2013-14 onwards, the growth rate in Punjab was slower than the national average. The overall growth rate of Punjab in 2013-14 was 6.63 as against the all India rate of 6.4 which fell to 4 by the end of 2019-20.
The economist professor from Punjab explains the unemployment scenario of the state. Lakhwinder Singh | The said regional rates of growth vary greatly, affecting employment opportunities. “The agriculture sector is using both mechanical and chemical innovations which create employment opportunities only for a brief period of sowing and harvesting. Due to lack of agro-industry and non-linking of industry with agriculture, the dynamism required for both high value version and employment is missing,” he said. Prof Lakhwinder further said that the economy of Punjab is caught in the vicious cycle of low employment and low growth.
The state government passed an order to appoint new employees on basic pay without DA and increment, paving the way for lower pay hiring. “Low income results in lower expenses and discourages making new investments,” he said.