Role of Urbanization in  Boosting  Skills and Employment

Syllabus: GS2/ Governance, GS3/ Economy

Context

• Urbanization presents opportunities for skill development and employment creation, particularly in a rapidly urbanizing country like India.

Status of Urbanisation in India

• India is witnessing rapid urbanization. Every minute, 30 people migrate from rural to urban India
• According to the 2011 Census, India’s urban population increased from 27.7% in 2001 to 31.1% in 2011, at a rate of 2.76% per year.
• India is rapidly urbanizing and is estimated to host 50 percent of its population in cities by 2050. 
• India has 6 mega cities (population over 10 million) as per the 2011 Census: Delhi, Mumbai, Kolkata, Bengaluru, Chennai, and Hyderabad.

Opportunities of Urbanisation

• Diverse Employment Options: Urban areas host various industries, including manufacturing, IT, retail, and services, creating jobs across skill levels.
• Skill Enhancement Ecosystem: Urban centers serve as hubs for education and training institutes, fostering access to skill development programs. 
• Support for Entrepreneurship: Cities offer infrastructure, financial services, and market access that nurture entrepreneurial ventures.
• Technology-driven Growth: With rapid technological advancements, urban centers are pivotal for digital skilling, fostering job creation in IT, AI, and e-commerce sectors.

What are the Challenges?

• Unplanned Urbanization: The lack of adequate planning results in inadequate infrastructure and slum proliferation.
  • According to Census 2011, approximately 24% of urban households live in slums, reflecting challenges in housing and urban infrastructure.
• Mismatch of Skills: Many workers migrating to cities lack the technical or soft skills required for urban jobs, resulting in underemployment.
• Pressure on Resources: Overcrowding in cities strains housing, healthcare, and public utilities, impacting the quality of life and worker productivity.
  • According to NFHS-5, 2019-21, over 40% of the urban population lacks access to adequate sanitation facilities.
• Vulnerability in Informal Jobs: Workers in informal sectors face low wages, job insecurity, and lack of social security benefits.
• Gender Disparities: Women face barriers to skill development and employment due to safety concerns, limited mobility, and societal norms.
• Environmental Stress: According to a report by TERI, Urban centers contribute nearly 75% of India’s total greenhouse gas emissions.

Government initiatives

• Skill India Mission: Focused on creating a skilled workforce through programs like Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
• Smart Cities Mission: Aims to develop 100 smart cities with efficient infrastructure and governance.
• AMRUT (Atal Mission for Rejuvenation and Urban Transformation): Improving urban infrastructure to support economic activities and better living standards.
• Startup India Initiative: Fostering innovation and entrepreneurship by providing financial and regulatory support.
• DAY-NULM (Deendayal Antyodaya Yojana – National Urban Livelihoods Mission): Enhancing the employment and skill levels of the urban poor.
• Digital India Program: Promoting digital literacy and e-governance to support technology-driven employment.

Suggestions 

• Integrated Urban Planning: Develop well-planned urban centers with a focus on affordable housing, public transport, and access to training institutes.
• Public-Private Partnerships: Leverage private sector expertise in skill development and employment generation initiatives.
• Future-ready Skills: Emphasize digital, green, and soft skills to align with emerging industries and technologies.
• Support for Informal Sector: Introduce policies to formalize and enhance the working conditions of informal sector employees.
• Empowering Women: Ensure women’s participation in urban job markets through safe and inclusive workspaces and focused training programs.

Concluding remark

• Urbanization, if managed strategically, can serve as a catalyst for enhancing skills and employment opportunities, paving the way for sustained economic growth and inclusive development in India.

Source: IE