Economist Surjit Bhalla challenges the unemployment crisis narrative, arguing that the demand for government jobs is driven by a desire for security, not a lack of jobs, citing a low 1-2% unemployment rate for the 29-64 age group since 1983.
Economist and author Surjit Bhalla challenged the prevailing narrative surrounding India's unemployment crisis, arguing that the intense public demand for government jobs is driven more by a desire for permanent security than a genuine lack of employment opportunities in the broader economy. Speaking exclusively to ANI, Bhalla, a former part-time member of Prime Minister Narendra Modi's Economic Advisory Council, pushed back against critics who suggested the country is facing a widespread job crisis.
Low Unemployment in Core Working-Age Group
He pointed to historical data trends, noting that the unemployment rate for the core working-age population (ages 29-64) has consistently remained at a low of 1 to 2 per cent since 1983. "Since 1983, the government has been providing employment and unemployment services data. The unemployment rate for those above the age of 29 to 64 has consistently been between 1 and 2 per cent," he said.
The Allure of Absolute Job Security
Bhalla argued that the fixation on public sector roles stems from systemic issues rather than a lack of market availability. He identified the hallmark of government employment, absolute job security as the primary incentive drawing talent away from the private sector. "It's a fact. Everybody wants a government job. Why? You cannot be fired. No accountability," Bhalla stated. He explained that the current Indian administrative and economic ecosystem fails to reward innovation or risk-taking, making the "no-fire" stability of government work a rational, albeit stagnant, choice for many.
Critique of 'Good Jobs' Narrative
Bhalla criticised many fellow economists for what he perceived as a politically motivated focus on "good jobs" rather than objective economic data. He argued that the practice of moving the goalposts, shifting from measuring general unemployment to specifically highlighting a perceived lack of "good jobs" serves an agenda that does not align with the reality of a 1 to 2 per cent unemployment rate among the working-age population. "Which other country in the world, when they discuss jobs, is it [only about] 'good jobs'? Good jobs are few! The economists don't question. I mean, they want to make a political point: 'Jobs are not here'," he noted.
Call for Systemic Overhaul
According to Bhalla, the fact that most Indians are settled in some form of employment by age 29 is evidence that the economy is functioning, but he stressed that the system remains in need of a massive overhaul to encourage productivity. "The jobs are there... We don't want to change; I mean, you need an overhaul," he said, emphasising that until the system begins to incentivise innovation and creates accountability for performance, the cultural preference for protected public sector employment will likely persist. (ANI)
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