Article;
13.3 unemployment-rate in 15-29 age group in 2012-13 Labour-Ministry -Survey.
Comment;
Higher productivity means higher wages which also indirectly
means we are under-paid and we are doing jobs longer. Use of skills make any
task easier or takes less time therefore we need to match skills with jobs.
Without which any task would be a little difficult or harder. We have to work a
little more harder and longer. We are paid according to the marginal product
which would be less if we are employed elsewhere, wrong skills and job match.
In this sense we are over-employed because we are getting less and working same
hours as the right jobs and skill match. We are over-employed because we are
being paid less. Nevertheless the problem of over-employment co-exist with unemployment
in INDIA because we are growing slower and are adding less jobs every quarter
because of, again, high inflation and interest rates which has put a hold on
investment. Our real wages are low also because of high inflation. We need to
improve real wages if we want to correct the “tag” over-employment because it
restricts the economy’s demand and consumption which is directly responsible
for the level of employment and growth. Our RBI Governor is giving more
importance to inflation over unemployment which also depends on the same
(inflation). If inflation goes down interest rates will go down and real-wages,
investment, employment and growth will pick-up. A low level of inflation is
also necessary for a high level of employment or low level of unemployment…
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