Why joblessness increasing

By coercive methods and disruptive mass agitation, government employees including those in banks have been getting huge pay rise periodically and it has now sky rocketed.

Net result of this situation is that employees’ expectations of salaries have risen considerably all over the country in all sector. While the governments which earn money from the tax payers can afford to pay high salaries and if necessary by increasing the taxes, private sector cannot do this.

More than 90% of the jobs are in the private sector as well as in unorganized sector. In such conditions, reduction of the number of employees due to high pay expectations has become a pre condition for private companies to survive economically. Because of the pressure of salaries, most private companies have reduced the manpower considerably and resorted to automation , outsourcing etc. This is happening in the case of government departments also, where vacancies are not filled up.

In the case of unorganized sector too and in farming operations, manpower needs have been considerably reduced by resorting to mechanization. Amongst those in the middle income group, who constitute more than 90 percent of national population, one thinks several times before engaging labour and keep it to minimum due to high wage demand.

It is high time that deep investigation has to be been done as to whether undue salary increase is leading to loss of job opportunities in India.

N.S.Venkataraman
Nandini Voice For The Deprived
nandinivoice.com more  

View all 18 comments Below 18 comments
From the employers' perspective, no organisation can afford to employ those who are not productive(We may have to exclude Govt, and Public Sector, thanks to the unproductive reservation and quota). Our current education system has a lot to be blamed in churning out graduates and post graduates who are not employable. Need of the hour is, Job oriented training programs by Government and NGOs. When the private sector is empowered by qualified employees resulting in better business sense, the overall economy will stand to benefit, leading to better employment. The awareness of job seekers to job oriented learning holds the key. Regards Muralidharan Margabandhu more  
Is government training in Skills can alleviate the difficulty of unemployable graduates and PGs more  
Government servants are bound by Service Rules unlike private companies who are under Labour Laws including Bank employees. Also resort to Strike work to claim wage increase by issuing strike notice.Leave the work spot after Eight hour duties right royally where as Government servants have no such privileges whatsoever. Except some MSME's most of the company employees are earning fat salaries comparatively. Their take home Money after retirement are always considerably good comparably. more  
Persistent Inflation negates any salary hike. Those who work in the Public Sector dont understand this. I am not worrieD about salary demands. I am worried about the UNIVERSAL corruption . The Governor of J&K recently said " the problem there is ther DEEPLY ENTRENCHED CORRUPTION. Do you have any suggestions on THAT ? Regards OZA more  
Mr Venkataraman has partially explained thew rationale behind the Government employees and the Private sector. The general tendency in government employment is security of the job where as this is not there in Private sector. What we expect as Government employee is the increase by way of DA or Pay Rise after every 10 Years. The out put of the Individual in Private sector is much more where as in Government sector it is not. Evewn in Private sector outsourcing is taking place for reducing the expenditure. The contractor makes the profit and the money do not reach the worker. With loop holes many in EPF and ESIC some of the savcings are defaulted by the contractor and worker tend to loose. Therefore the Government should plug such loopholes and make the worker put his worth for what he receives. The Trade Unions and other agencies should work for the Nation and not for themselves and damaging work atmosphere. more  
Sankaran Thiagarajan observations are very true and needs to be pressed upon by this group more  
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