Essay Test – 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.

Descriptive English Economics & Social Issues Financial Awareness

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

Answer – 2 : (By MENT-U Students)

The COVID 19 pandemic and the subsequent lockdown measures instituted yielded unprecedented spike in India’s unemployment rates. With business shuttered causing a huge wave of reverse migration, the country’s overall unemployment rate rose high. It is worth noting that India has been facing a crises of unemployment even prior the pandemic. According to official data, India’s unemployment rate for 2017-18 was pegged at 6.1%, the highest in 45 years.

The government has responded to this situation by introducing ‘Garib Kalyan Rozgar Abhiyaan’ and by increasing investment in MGNREGA scheme which will ensure job opportunities to people near their home, based on their skills. Several other measures, including National Employment Policy, a National Electronic Employment Exchange and building of a skill based database are also in the pipeline.

Other measures that can be taken to improve the situation of employable youth of our country are as follows- Firstly, the government must loosen its fiscal restraint to help economy stabilize, recover and grow. Secondly, not only there should be moratorium on loans, but the government needs to ensure the provision of working capital at low interest rates for startups and MSME. And the government must foster investment in infrastructure which is the fastest way to create jobs. Last but not the least, wage subsidy should be given directly to workers along with reducing the tax compliance burden especially for small businesses.

It is clear that the revival and rebuilding exercise would entail addressing structural deficiencies too, without which it would end up as a temporary one and inconsequential in the long run. As it is well said, “In the midst of chaos, there always lies an opportunity” and therefore it is important to rebuild a more inclusive economy post COVID 19 world, and much of that hinges on how we revive labour markets and livelihoods.

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