The latest Reserve Bank of India data has put the net household savings as a percentage of GDP at their lowest level in nearly 50 years. This has left families with less disposable income, and which, in turn, has impacted consumption patterns. A report by Marcellus Investment Managers, has traced the slowdown to three basic factors: technological disruptions, a cyclical economic downturn, and deteriorating household balance sheets. Among the three, the ‘technological disruptions’ are fundamentally altering the job economy. As underlined by the report, the jobs that once formed the backbone of middle-class employment are increasingly being replaced by automation and technology. Artificial Intelligence threatens most of the jobs, more so, the white collar ones. A report from Goldman Sachs has indicated that the AI could replace 300 million jobs globally, and impact two-thirds of jobs in the US and Europe. One-fourth of the jobs could be performed completely by AI. OpenAI and Mckinsey Global Institute estimate that AI would affect half of the job tasks for 20% of the workers. These are grim predictions for the job prospects for the educated youth just entering the job market.
Fallout of the AI is being compounded by the economic downturn and declining household incomes. This is despite the fact that the Indian economy is doing relatively well. Projected to grow at 7% this year, India’s economy is the fastest-growing among the world’s major economies. But the benefits aren’t sufficiently trickling down to people. Despite this economic expansion, job opportunities remain limited, and the competition is intense, with only graduates from well-known colleges securing desirable positions. The unemployment rate in the country for those in the 15 years and above category remained unchanged at 3.2% in 2023-24. However, the youth unemployment rate for those in the 15-29 years age group rose to 10.2% in 2023-24 from 10% in 2022-23. The employment is more for females, rising from 10.6% in 2022-23 to 11% in 2023-24.
Job security is another area of growing apprehension, with more Indians expressing concerns about potential layoffs. These worries are not unique to India, as global issues like recession, economic slowdown, and multinational conflicts weigh on the minds of individuals worldwide. Kashmir mirrors this tough job situation. In fact, the situation is more difficult in the UT as there are fewer opportunities outside government jobs: In the July-September quarter of 2024, Jammu and Kashmir recorded the highest unemployment rate at 11.8 percent, followed by Odisha with 10.6 percent. This calls for not just a job plan for also an education plan for the youth, so that the new generation has required skills and know-how to be relevant to the new job market.
Follow this link to join our WhatsApp group: Join Now
Be Part of Quality Journalism |
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast. |
| ACT NOW |
| MONTHLY | Rs 100 |  |
| YEARLY | Rs 1000 | |
| LIFETIME | Rs 10000 | |
