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.

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.

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.

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.

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.

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.

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

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