Key industrial states report high unemployment rate: CMIE

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New Delhi, Oct 18 | Two of the country’s prominent manufacturing centres registered joblessness in high double digits in September even though economic revival and demand resurrection were resulting in more jobs being created in various sectors.

According to the data for September released by the Centre for Monitoring Indian Economy (CMIE), the states of Haryana and Rajasthan topped the list of prominent Indian industrial states where unemployment rate in the month remained in high double digits at 20.3 per cent and 17.9 per cent, respectively.

The two states are important industrial hubs with the presence of several automobile and auto component companies, including prominent multi-national corporations. High unemployment rates in these states indicate that the so called national level economic recovery and demand resurrection has not yet reached various industrial segments that are still struggling to grow their businesses.

Interestingly, both the states had even higher unemployment in August at 35.7 per cent in Haryana and 26.7 per cent in Rajasthan.

As per CMIE data, apart from the two prominent states, Bihar, Delhi, Jammu and Kashmir, Puducherry and Tripura reported unemployment rate in double digits in September, while the national average for the month fell to 6.86 per cent from 8.32 per cent in the previous month.

What is worrisome is that in states such as Delhi, unemployment rate rose for the fourth consecutive month. Even in J&K, Himachal Pradesh, Punjab, Puducherry and Tamil Nadu, the unemployment rate in September was higher than the previous month.

The job market has created a worrisome scenario in the country since the outbreak of the Covid-19 pandemic last year.

In 2020, the national unemployment rate had shot up to over 20 per cent level. Even last month’s 6.86 per cent level presented a difficult situation for a labour-intensive economy like India. What is more worrisome is that urban unemployment rate is still higher than the national average at over 8.62 per cent, as per CMIE.

Source: IANS

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Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

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