Why the Modi Government Has Not Created Employment: Debunking the Myth

It is a common misconception that the Modi government has failed to create employment, but a closer examination reveals that the situation is not as dire as it seems. The government's primary role is not to be an employer but to create conditions for job creation, including promoting entrepreneurship and fostering a supportive business environment.

Employment Creation and Government Roles

The responsibility of job creation ultimately lies on the private sector and the market. The government's role is to provide an infrastructure and policy framework that encourages businesses to create jobs. This does not mean that the government can absolve itself of all responsibility. Instead, it can contribute to job creation in various indirect ways such as improving education and training, enhancing skills, and promoting public and private investment.

Job Creation: Beyond Government Employment

While government jobs remain a popular choice for many, the reality is that job creation is multi-faceted and cannot be solely attributed to any single entity. The current state of the economy has seen an increasing trend toward self-employment, which can be more flexible but often lacks the stability and benefits of formal employment. This shift is driven by changing economic and social dynamics.

Impact of Corruption and Administrative Efficacy

Post-2024, instances of corruption in government departments have surged exponentially. This has led to a situation where people are opting to work in the private sector instead, where the need for multiple licenses and corruption come packaged together. However, it is important to note that while this trend may contribute to a perception of job creation difficulties, it also highlights systemic issues that need to be addressed.

Embracing Reality and Understanding Job Metrics

Accepting the reality of the situation is crucial. Unemployment in India has been exacerbated by factors such as the COVID-19 pandemic and a surge in retirements, leading to an increase in the unemployment rate to a record high of 23%. Additionally, the government has been preoccupied with political tasks, including elections and party topplings, which sometimes divert attention from economic development.

Understanding the Promise and Reality of Job Creation

During the 2014 general election campaign, Prime Minister Modi pledged to create at least 20 million new jobs annually. However, this promise has not been fully realized, leading to a significant increase in unemployment. The current unemployment rate stands at 23%, which is the highest in the recent post-independence period.

Challenges in Job Creation

There is a need to distinguish between different types of jobs. A job that pays 15,000 rupees is different from one that pays 12 lakh rupees. The latter often requires specialized skills that are not only in short supply but also costly for employers to acquire. Additionally, the assumption that a degree guarantees job security is often unrealistic. Many students are not aware of the employability of their degrees and many engineering students have not completed their projects seriously, making it challenging to expect graduates to immediately secure well-paying jobs.

Concluding Thoughts

While it is reasonable to point out the challenges faced by the Modi government in creating employment, a more nuanced understanding is necessary. The government is working within a complex economic and social context. Encouraging entrepreneurship and skill development can lead to long-term job creation. It is important for the public to recognize the multi-faceted nature of employment and the broader role of the government in fostering a conducive environment for job creation.