Clearly delineate the 'employment problem' that India currently faces. Also, explain the fundamental reasons behind existence of this problem.

Periodic Labour Force Survey PLFS and employment unemployment survey indicate unemployment rate of 4.9% on labour force participation rate of 45%. For females, unemployment rate is higher, around 8%. Employment problem - unemployment refers to a situation when a person able & willing to work at prevailing wage rate unable to find work. India's issues - 1. Unemployment type - 1.1. Disguised unemployment in agriculture, i.e. underemployment. 1.2. Structural unemployment due to structural weaknesses in infrastructure.

2. Skewed employment pattern - 2.1. 45% of workforce in agriculture (ILY of GDP) 2.2. 34% of workforce in service sector (57% of GDP) 3. Graduate manufacturing sectors to accommodate people out of agriculture. 4. Employment present, a lack of employability leading to hindered inclusive growth. Reasons for this problem - 1. Jobless growth after 1991 LPG reforms (0.2 employment elasticity) - PLFS shrunk no output by government due to fiscal crisis. 1.1. Growth led by service sector which is not labour intensive. 1.2. MSMEs shut due to competition from outside. 2. Improper and inadequate vocational training, no TVET in colleges. 3. Lack of skilled manpower India has only 5% skilled workforce. 4. Underdeveloped labour intensive manufacturing sector. 5. Increasing population & labour force.

2. Improper and inadequate vocational training, no TVET in colleges. 3. Lack of skilled manpower India has only 5% skilled workforce. 4. Underdeveloped labour intensive manufacturing sector. 5. Increasing population & labour force. Way forward - Make in India to make India manufacturing hub as seas. 2. Poverty alleviation programme & skill development, eg SKM, NRLM-DAY. Employment is essential to fulfil goal of inclusive growth and sustainable development. MSMEs should be promoted.