Addressing Youth Unemployment: A Comparative Study

The issue of high youth unemployment is a critical and pervasive problem in many countries. Governments play a pivotal role in combating this issue. One of the key steps is to reform the examination system in secondary education, thereby ensuring a more sustainable and inclusive workforce. This paper explores effective government measures, specifically focusing on reducing the pass percentage of examinations, and compares the benefits of privatizing certain services.

Reducing the Pass Percentage in Secondary Education

One of the first steps that governments should undertake is to reduce the pass percentage in secondary school completion exams such as SSLC (Secondary School Leaving Certificate) within states like Kerala. Currently, the SSLC pass rate is over 99%. By reducing this to a more modest rate, around 50%, we can ensure that a larger number of students would either attempt or succeed in finding educational alternatives or vocational training. This would cut down on the number of graduates pursuing hazardous jobs or engaging in self-employment, both of which may not provide long-term stability or productivity. Employers would then have a broader pool of candidates, leading to better job placements across various sectors.

Privatizing State-Owned Services

Another important measure is to privatize state-owned services. This policy shift would not only promote competition and innovation but also create more job opportunities. The following are some examples and benefits of privatization:

Telecommunications

Up until 2002, the state-controlled telephone company was the sole provider of telephone services in many places. These services were costly and unreliable. Today, private companies such as Reliance, Airtel, and Vodafone have stepped in, offering a wide range of services and employing many people in the process. The cost of long-distance calls has significantly decreased, and the number of job opportunities has increased.

Postal Services

For centuries, the government postal department was the primary means of sending letters. However, today, there are numerous courier services that not only offer faster delivery but also provide employment to millions of people. This shift has not only improved the efficiency of postal services but also created a diverse workforce within the sector.

Dairy Services

The dairy industry also illustrates the benefits of privatization. In the past, state-run milk distribution systems were the sole source of milk in places like Mumbai and Tamil Nadu. However, the introduction of private milk suppliers has led to better-quality milk and more job opportunities. Private companies have introduced numerous milk brands, each with their own unique selling propositions, thus creating more jobs in production and distribution.

Food Industry

The bread sector is another example. Until 1992, state-owned bakeries were the only source of bread. Private bakeries have since emerged, providing more options and employment. These companies have not only increased competition but also offered better service to consumers, thereby creating more jobs in manufacturing and distribution.

Public Transport

One of the areas where the government has a significant presence is public transport. State-owned transport companies are not always efficient or cost-effective. In contrast, private transport services often operate more efficiently and at lower costs. For example, in 2002, the state-owned telephone companies charged Rs 30 per minute for calls from Chennai to Hyderabad or Mumbai. Today, this rate has significantly reduced to 30 paisa per minute. If the government were to allow private companies to run local bus services, particularly in big cities, fares could be much lower, and transportation would be more efficient.

Conclusion

In conclusion, reducing the pass percentage in secondary education and privatizing state-owned services can play a crucial role in addressing youth unemployment. These reforms can help create a more efficient and competitive job market, generating more opportunities for young people. By leveraging the benefits of privatization, governments can promote innovation, reduce costs, and create a sustainable economic environment for future generations.