Not just in India, good education plays an important role in income equality all over the world. But in India, incoming inequality is growing very rapidly due to the abundance of skilled labour. The abundance of skill is so high that we can see PHD passed out applying for peon jobs.
Fewer opportunities are also a reason for it, but the abundance of skill is also a reason. In December 2022, the union health minister shared data in Rajya Sabha, which says there is at least 40% of seats are vacant in government hospitals. We didn’t have any data for private hospitals. This is the situation in most sectors, and the abundance of skills and pressure of earning livelihood forcing graduates, post graduated and doctorate to do a job with the eligibility criteria of just 10th pass and 12th pass.
In India and all over the world the demand for skilled people is still there, they are also getting overpaid. The gap is in the unskilled sector. Where the number of people looking for a job is very higher than the demand, and due to this gap they got underpaid and they don’t have any other option. Many skilled employees have to handle the pressure of more than one person due to abundance.
This is an era of layoffs. According to INC 42’s report, 3,987 employed got fired by just startups in less than a month of the year 2023. Directly or indirectly the reason will come out as economic slowdown. Some companies give the reason as cost cutting or restructuring. But it didn’t play a big part in income inequality. Then what creates income inequality? There is a sector that is underpaid due to a very high amount of job seekers. And most of them are unskilled. And there is also some sector where the demand is very high but the number of the person having desired skill is very less. Due to that the person in that sector got overpaid but they also have much higher pressure. But why people are unskilled? FunctionUp does a survey and the findings are very surprising. What they found was that 93% of people want to join online boot camps so that they learn new skills and become job ready. According to financial express, “only 45.90% of graduates are employable.” Isn’t it a big number? Isn’t the education system failing to provide the necessary skills to be job ready? If we leave a few institutions like IIT, IIM, and AIIMS, many institutions are not doing a good job of making student job ready.