Essay Test – 29

Descriptive English Economics & Social Issues Financial Awareness

Level – Moderate
WORD LIMIT- 300 words
Kindly use MSWORD with dictionary off*.
Time – 40 minutes.

Question:

Unemployment was already high and post COVID-19 the situation has worsened. Unemployment rate has risen to a 9-week high of 9.1% in week ended on August 16. What is the future of employable youth keeping in view the current situation? Support your answer with rational suggestions.

Answer – 1 : (By MENT-U Students)

FUTURE OF EMPLOYABLE YOUTH


During March 2020, when Government of India put stringent lockdown, many economists were forecasting the impact on economy in terms of trillions of loss and economy contraction. Unemployment level also reached its peak due to liquidity problems in businesses. But Post COVID-19, situation has worsened. In a week ended on 16 August, 2020, unemployment rate has risen to 9.1% which clearly shows the disruption created by COVID-19 pandemic.

India is enjoying demographic dividend in terms of young woking population but it is not being leveraged properly. During Pandemic, many students who have completed their graduation are unemployed now. On the other hand, those who want to pursue higher studies, don’t have financial resources to pay their tuition fees because of a great damage on their income sources. Moreover, many startups are moving towards shutdown level due to working capital issues. In rural India, situation has also worsened because of reverse migration.

Although problem is huge. But some steps can be taken by Government to reduce the maginitude of this disruption. Firstly, it needs to bifurcate the unemployment situation into two levels: Capability issues and Pandemic issues. Capability issues refer to the situation when unemployment is created because of lack of skills among youth and Pandemic issues refer to the situation when unemployment is created not because of lack of skills but because of environmental impact (in this case COVID-19 Pandemic). Government needs to plan accordingly. Secondly, skill mapping analysis should be done to narrow down the skill demand-supply gap created in the market.

Moreover, an incentive framework should be prepared so that corporates employ more labour which will help in flattening the rising unemployment curve of India. This can be in terms of tax incentives or less stringent labour laws. And also rural incentive plans like DBT transfer or MNREGA plan should be considered. These steps not only helps in reducing the labour led disruption in an economy but also helps the employable Youth to enhance their skills and a brighter future for them in India.

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