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Wednesday, September 9, 2015


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Demand for more jobs growing in different parts of the country, economy’s faultline getting exposed

Patels are among the most industrious and enterprising community in Gujarat and they have been demanding that the community be declared ‘backward’. That will include Patels among the ‘Other Backward Castes’ or OBC in India, making them eligible for reservation in government jobs.

Earlier this month, undergraduate students who had passed out and earned a degree in Physical Education in Lucknow clashed with the police. They were demanding jobs in primary and secondary schools. The group of students resorted to violence as they burnt government vehicles. At least 30 students were taken into custody in the police action.

In Manipur, rioters torched the homes of the state’s lawmakers in protest against a new legislation which defines who can claim to be from the state of Manipur. The law demands that people provide proof that they were staying in Manipur before 1951. The new provision in the law is apparently aimed at preventing settlers in the state from neighbouring areas and even those from neighbouring Myanmar. Locals are worried that jobs are being taken away by those settling into the state from outside.

Gujarat to Uttar Pradesh to Manipur – the battle for more jobs are being seen in different parts of the country. Earlier this week, the government released data that showed that India’s GDP growth for the April-June quarter – the first quarter of the current financial year – slowed down to 7 per cent against 7.5 per cent for the comparable quarter last month.

The hunt for a job is suddenly getting mainstream across the country as the economy slows down. Companies are not hiring at a pace that matches the numbers of students being churned out by the professional colleges. Some of the traditional industries like IT services, business process management (earlier called BPOs) textiles, gems and jewellery that would attract youth of different skills in big numbers are not growing fast enough.

Bankers are not lending to companies enough because of the fear of loans turning bad. With companies not committing to capital expenditure, there is lesser to suggest that there will be demand for more jobs in the domestic economy in the next 12-18 months. 

Gujarat, the hub of chemicals, pharmaceuticals and other industries, is often seen as one of India’s engines for industrial development and accounts for nearly 20 per cent of over $300 billion exports. 

Prime Minister Narendra Modi had promised ‘Maximum governance, minimum government’ repeatedly during his rallies leading to the 2014 election, where the party won the biggest mandate in India in the last 30 years.

With the macroeconomic situation not quite friendly, any company that can create jobs or expand its operations is great news for its publicity.  

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