India Need a Miracle to Absorb its Ever-increasing Work Force

Its a desperate situation that too many unemployed  are chasing too little work in Asia's third largest economy. Awe-struck officials of Uttar Pradesh govt learnt this the other day as   2.3 million applications were received for 368  peon posts carrying a monthly salary of Rs. 16000 ($243). The minimum educational qualifications for the post is a primary school pass and experience of bike-riding. Worrying sign is that doctors, engineers and Phd Degree holders were among applicants. It may take more than three years if all applicants are to be interviewed. Govt data shows that number of applicants this time is 16 times the level in 2006, the last time state govt made recruitment for similar jobs. The present case underlines how grim is unemployment in India. Last month, Chhattisgarh state government had to cancel the recruitment of  a handful of government jobs after being flooded with 75,000 applications. Last year, over 7000 dental doctors applied for just 17 posts on a consolidated salary of Rs. 26000 in Himachal Pradesh. The salary structure for a peon job in UP appears attractive than what HP govt is offering. The cash-strapped state govt is recruiting class one officers, professor  at a monthly salary of as low as  Rs. 15,000. Still the job security in state and central  services  is the main reason  for govt jobs' scramble . It  poses a bigger challenge to state as well as union governments. Prime Minister Narendra Modi has promised during parliament elections last year  to provide enough jobs if  his party was voted to power. At one time, there were more govt jobs and lesser applicants. The situation has drastically changed after economy was thrown open. With mushroom growth of educational shops, India is producing much higher number of skilled workers than the economy can absorb.Official data shows that  the unemployment Rate as percentage  to its population in India reached all time high of 9.40 percent in 2009 during UPA govt. It was at  record low of 4.90 percent in 2013. It decreased to 4.90 percent in 2013 from 5.20 percent in 2012. Unemployment Rate in averaged 7.32 percent from 1983 until 2013. It is still in the range of 5 percent. much lesser than Spain 26 percent, Italy 13 percent and Germany 12 percent.  However, if unemployment percentage to educated population is measured, it is much higher than Spain and Italy.  India is disproportionately young as half of the population is under the age of 25. Another 300 million people - the equivalent of almost the entire population of the United States -  is likely to be added to its workforce over the next two decades. Though, a young workforce is considered as an assets in an emerging market, but it can create serious problems if  matching jobs are not created. India need a miracle to absorb its ever-increasing workforce.