Maharashtra: many projects but will it create unemployment?

Shivam Rangire, 24, is one of about 20,000 people who turned up on July 16 at the gate of Air India Airport Services Ltd. people who work with their hands.

That overcrowding would have caused chaos. When she got the email earlier in July, she was excited and hopeful about getting the job. He left his hometown of Akot, near Akola, about 600 km from Mumbai, by bus only to be surprised when he arrived there to find the number of job seekers Go beyond the standards offered by AIASL. After the instructions, he returned home and again went to Akola for the examination to be held on July 30 by AIASL.

“We could have handled the crowd better,” said Rambabu Chintalacheruvu, Chief Executive Officer, AIASL. Mr. Chintalachheruvu added: “Usually, when manual labor negotiations take place, a large number of people take place. He said the local police were informed about the mob without giving materials such as tents and water for the candidates.

A handler or unloader is responsible for removing baggage from passenger and cargo aircraft at the airport. The candidate is expected to have completed 10th standard, as per the recruitment notification on the AIASL website. Mr. Rangire, who holds a Bachelor of Arts (BA) degree, had to wait two years before he could apply for the job which he was overwhelmingly passed on. The recruitment process included a physical fitness test, measured by the number of up to 20 kg each gun bag that a person can throw within 30 seconds. seven in 30 seconds qualify for the next round, said another job seeker, such as Mr. Rangire, which is part of the Maharashtra workforce.

India’s Periodic Labor Force Survey (PLFS) 2023-24 data paints a slightly bleak picture for Maharashtra compared to the national average. While the number of labor and labor participants increased by around 2 percent for India, the same metrics saw a slight decline compared to 2022-23 for the State. The labor force participation rate is the share of workers who are currently employed or looking for work. PLFS 2023-24 estimates State unemployment in urban areas at 5.2%, against 4.6% last year. In terms of overall unemployment rate, Maharashtra posted 3.3% in 2023-2024, more or less than the national unemployment rate of 3.2% during the same period.

Economists believe that the data does not show a complete picture of the employment situation in India. “Million(s) who are said to be employed in PLFS are not working like CMIE (Economic Observatory of India) and ILO (International Labor Organization),” Santosh Mehrotra, Visiting Professor, Institute of Studies of Development, University of Bath, he said. A Hindu. For example, unpaid family work is considered work in PLFS but not by CMIE or ILO, Mr. Mehrotra added. In addition, the country’s trends suggest an increase in employment in the agricultural sector and a decrease in manufacturing jobs, which will not be reflected in a decrease in the number of jobs, he said.

This becomes clearer when you look at the data from the India Unemployment Report 2023 from the ILO. The International Labor Organization projects that educated unemployment in Maharashtra was 15% by 2022, an increase from 11% a decade ago. The PLFS, however, shows the unemployment rate of the educated above the secondary level to be 5.9% in 2023-24 from 6.1% last year. In fact, the PLFS report provides data for all working age groups, while the ILO report only shows data for workers in the 15-29 age group.

‘Failure to create jobs’

In addition to direct unemployment, there is also the problem of underemployment or underemployment. The story of Father Rangire is an example. The government in the Union Budget 2024-25 has mentioned youth with experience and providing internships in top companies. Education experts believe that this is a problem with the education system and it is an act of blaming the students. “Failure does not belong to the student. They learned what they were told to learn,” Maheshwar Peri, chairman of Careers 360, a career counseling agency, said. A Hindu. “Our failure is not to create enough job opportunities to be transferred to the employment of students”, said Mr. Peri. There is a gap between what students are trained to do, what they are promised and the actual ability to produce system jobs, he added. “There is a problem with vocational education,” Mr. Mehrotra added.

Although Mr. Rangire was able to find a vacancy in a government-run organization in hopes of getting a job, others were struggling. If he remains unemployed, for now, he is eligible to get ₹ 10,000 every month under the Ladka Bhau (Adorable Brother) Scheme recently announced by the Maharashtra government. The scheme aims to provide young men with a monthly stipend based on qualifications, ranging from ₹6,000 to ₹10,000, and practical work experience.

Regardless of qualifications, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) provides 100 days of employment opportunities every year. The Maharashtra Economic Survey 2023-24 has shown that employed households have increased to 24.5 lakh in 2023-24 from 20.4 lakh in 2021-22. Overall, the family was employed 47 days in 2023-24 up from 41 days in 2021-22. The increase in MGNREGA activities is a reflection of the increasing rural distress.

The prevalence of informal employment

“There are many who have many degrees, some have Master of Business Administration degrees and even PhDs, but you will find them driving autorickshaws or cabs, selling tea or snacks in villages,” said Vivek Monteiro, Secretary Center of Indian Trade Unions. (CITU) Maharashtra State Committee. Some people with manual skills take up carpentry or painting. The rest must depend on the work of ‘naka’ and ‘bandkham’ [casual labourers and construction workers]. Mr. Monteiro added: “Cars and drivers are major areas of employment which is a sign of unemployment.”

Agricultural concerns are also a reason why people migrate to self-employment. “Children of farmers are unable to continue farming business because of the failure of government schemes and insurance. They migrate to Mumbai in search of odd jobs,” said Sachin Atmaram Holkar, an agriculturist in Nashik. Curbs on onion exports, aimed at curbing inflation, pushed farmers into rural livelihoods. In Maharashtra, these farmers migrate to Mumbai for daily wage labor, which is unprotected, Mr. Holkar added.

Others like Amol Ashok Gorde from Nashik, remained unemployed for eight years. Mr. Gorde appeared in 50 public examinations, spending around ₹2,500 in each and doing odd jobs, all despite being an engineering student before taking up the job. in a private firm as an assistant engineer. Mr. Rangire and Mr. Gorde, who hail from the interior of Maharashtra, are among the many people who share a similar story across the State.

Government action

After a Cabinet meeting on July 30, Maharashtra Chief Minister Eknath Shinde announced projects worth Rs 81,000 crore, which he said would employ 20,000 people. The projects would focus on sectors such as semiconductors, green energy and lithium batteries. The projects are expected to come up in Vidarbha and Marathwada regions, but the timeline regarding job creation is not clear.

Until then, the educated and skilled youth are waiting for Deputy Chief Minister Devendra Fadnavis’ assurance that the government will fill one lakh government jobs.

It is noteworthy that this announcement was made months before the Assembly elections, perhaps as an indication of the importance of the activities that may take place during the National elections.