Jobs, Skills and Wages: Has the Union budget got the JSW factor right?

In aspirational India, unemployment is a political dynamite. The challenge is to ensure that the JSW triple-engine can meet the demands, even half-way.

Alive to the SOS call of the youth across the country for employment, and renewing focus on skill development, the Union Finance Minister Nirmala Sitharaman, in the first Union Budget of the new NDA government, has provided succour to students, first-time job-seekers, women, and encouraged participation of private sector to generate more jobs, greater security and respect for young adults in ‘Atmanirbhar Bharat’.

Union Budget comes in the face of stampede-like situations in Mumbai when on July 16 over 25,000 youngsters streamed in for interviews for 2,216 airport loader vacancies.(Unsplash)

The Union Budget comes in the face of stampede-like situations in Mumbai when on July 16 over 25,000 youngsters streamed in for interviews for 2,216 airport loader vacancies. Similar media stories abound with class-four jobs attracting applications of thousands of post-graduates and technically qualified youth, forced to wait for years for jobs.

While the 'one month wage for the first timers' scheme, announced is laudable, providing ₹15,000 in three instalments to every new entrant in all formal sectors, senior Congress leaders like P Chidambaram and Jairam Ramesh have accused the NDA government of 'lifting' the 2024 election promise of Congress from its Nyay Patra manifesto. The NDA government scheme is estimated to benefit 210 lakh youth.

"Finance Minister Sitharaman has taken a leaf out of Congress 2024 Lok Sabha polls manifesto by announcing an internship programme but in their trademark style, the scheme has been designed to grab headlines with arbitrary targets rather than a programmatic guarantee,” said Congress leader Jairam Ramesh.

"I am glad to know that the Hon'ble FM has read the Congress Manifesto LS 2024 after the election results. I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto," P Chidambaram posted on social media platform X (formerly twitter).

"I am also happy that she has introduced the apprenticeship scheme along with an allowance to every apprentice spelt out on page 11 of the Congress Manifesto. I wish the FM had copied some other ideas in the Congress Manifesto," he added, sardonically.

In her seventh Budget speech, Minister Sitharaman's 'Skilling Programme' has caught the nation's attention. While it promises to skill 20 lakh youth over a 5-year period, it will also upgrade 1,000 Industrial Training Institutes (ITI)'s in the hub and spoke arrangements with outcome orientation. In her speech, the Minister emphasized that course content and design will be aligned as per skill needs of industry.

“We recognize the 2024 Union Budget's emphasis on job creation and skill development. With a growing population that is set to become one of the youngest workforces in the coming years, the emphasis on initiatives to incentivize first-time entrants to the job market is essential. Government plans to enhance skills, improve infrastructure, and support entrepreneurs are crucial steps to boost job opportunities and the economy," said Sashi Kumar, Head of Sales, Indeed India.

Sharing data on the job market, Sashi Kumar revealed, “the demand for Artificial Intelligence & Machine Learning engineers (AI/ML) has surged by 433%; BPO executives follow closely with a 314% increase. On the sectoral front, sanitation and construction industries are experiencing the highest growth, with job postings increasing by 160% and 121%, respectively, as seen over June 2022 - June 2024. Significant job growth is witnessed in education, and medical research.”

Jobs in the manufacturing industry in India are growing at an impressive 40%, with a focus on specialised roles, like CNC operators and production supervisors. There is a shift in the skills landscape too, Kumar said, English proficiency and communication are as important as technical proficiency.

Encouraging innovation

From the Ahmedabad-based Entrepreneurship Development Institute of India, Dr Reshmi Manna hailed the skill development plans, the ₹2 lakh crore initiative to boost job creation and skill development for 4.1 crore youngsters over the next five years.

“This multi-pronged strategy is a major effort to combat unemployment and cultivate a competent workforce in India. It seeks to fill the skill gaps and increase employability. Budget aims to make young people more employable, more successful in the business world. It includes initiatives encouraging innovation and supporting companies, demonstrating that entrepreneurship is an absolute career path,” said the young Associate Professor, adding that India’s commitment to Sustainable Development Goals (SDGs) would also be met.

Resonating with the SDGs are the new schemes to facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry and establishing creches. Higher education is also in the ambit, as the minister announced financial support for loans up to ₹10 lakh for higher education in domestic institutions. There would be direct e-vouchers to 1 lakh students every year.

Youth orientation, and efforts to drastically reduce the distress factor among jobseekers moves young Noida-based trainer, Nataasha Bhardwaj, co-found Peerspro Consulting. She said, "not just emphasis on skill development for the youth, as spelt out in the budget, there is need to include emotional and spiritual health, sales training, negotiating skills, time management, communication skills, and personal financial management."

Drawing upon training experiences in Tier-II and Tier-III towns, Nataasha observed, "there may not be a scarcity of jobs in these fast-growing markets but rather a shortage of skilled candidates for these positions." Her action plan: Book clubs are imperative; for English and regional language speakers; training in public speaking and personality development to be included in these programmes.

More jobs with AI

The Union budget makes a direct call on the employers, with the promise the government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires. This is expected to generate 50 lakh jobs.

In the manufacturing sector, once again linked to first time employees, budgetary incentives have been announced for both employees and employers for EPFO contributions in the specified scales for the first 4 years. Thirty lakh youth are expected to benefit from these major schemes.

Adding the dimension of revolutionising productivity and worker efficiency, Prof Sunil Saxena, Director of New Delhi-based Easy Media Academy, said "training in Artificial Intelligence (AI) also needs to be integrated for the youth, young professionals and government officials irrespective of their experience."

The top 5 skills most in demand are Machine learning, Python, AI core skills, communication skills, and Natural language processing. Said Sashi Kumar, “at Indeed India, our data shows 42% of generative AI jobs in India mention “Machine learning”, while 40% ask for “Python” skills. AI core skills and communication skills are also sought after, appearing in 36% and 23% of job ads respectively. Other skills that are in demand are Natural language processing (20%), TensorFlow (19%), Data Science (17%).

Prof Saxena, a senior training professional, hailed the Minister's stress on employment and skill development as the twin engines to drive Aspirational India. "We must accept that AI will change the way most jobs are done today. Let’s also accept that AI will not take away jobs of those who want to learn; it will sweep away those who don’t want to get onto the AI bandwagon. The government is on the right path. This is the smartest way to make India a strong and vibrant nation of tomorrow," he said in a spirit of optimism which would surely gladden the Union Finance Minister.