Employed But Poor
Down To Earth|December 01, 2017

Poverty among employed people underscores the need for a new strategy on job creation

Richard Mahapatra
Employed But Poor

IN INDIA, we often wonder why the hard-working employed population lives in poverty. This is more pronounced among daily wage labourers and those employed in the informal sector. A significant percentage of India’s poor are, in fact, employed even though they might not have regular jobs. With unemployment turning out to be a big challenge for the government currently, and rural areas in distress due to agriculture’s all-time-low economic returns, India has started debating employment seriously. Problem is, our discussions usually centre around two solutions: create jobs through government spending on infrastructure and take up skill development that would offer some employability to the youth. Add to it the disproportionate focus on economic growth leading to job creation. These strategies are age-old, and are not in sync with job market characteristics. We have a high youth unemployment rate, and those who are employed are not able to lead a decent life.

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