Thousands of job seekers arrived on Mumbai's Andheri East on Tuesday for a walk-in interview held by AI Airport Services Ltd., creating an unprecedented chaotic scene.
With only 1,800 positions available for handyman and utility agents (those responsible for various repair and maintenance tasks), 15,000 people flocked to the AI Airport Services Ltd. recruitment office.
Fearing a stampede due to the escalating chaos, organisers started collecting resumes and dismissing applicants. The Aviation Industry Employees Guild's general secretary, George Abram, criticized the process as mismanaged, alleging that 50,000 job seekers turned up for the interview.
"There were around 50,000 people who turned up, as per my sources there," Abram said. We had warned the company against such drives. There was a one km-long queue."
"Police had to be called. Applicants were asked to leave their application, and they would be called later. There are vacancies for 1,786 handyman and 16 utility agents. This shows the joblessness among the people," the top executive added.
The positions required a minimum SSC/10th pass and a maximum age of 23. Successful applicants would be offered a fixed monthly salary of Rs 22,530 (approximately £207) under a fixed-term contract for three years.
There's a discrepancy in reported applicant numbers for the AI Airport Services Ltd. recruitment drive. The Aviation Industry Employees Guild estimates 50,000 applicants showed up, while Rambabu Chintalacheruvu, CEO of AI Airport Services Limited, stated around 15,000 submitted applications.
In case you're unfamiliar with it, Air India Airport Services Ltd (AIASL) was previously known as Air India Air Transport Services Limited.
This isn't the first instance of overwhelming applicant turnout for limited positions. On July 9 in Gujarat, a similar scene unfolded when roughly 1,000 people showed up for a company's walk-in interviews for only 40 vacancies in Ankleshwar, according to an India Today report.
India's Unemployment Challenge
India's ambitious goal of becoming a developed nation by 2047, championed by Prime Minister Narendra Modi, is intertwined with its ability to address unemployment. Recent events like the overwhelming crowds at job fairs in Mumbai and Ankleshwar highlight a critical issue: unemployment in India.
As a nation with a vast and diverse workforce, fluctuations in unemployment rates significantly impact the country's economic trajectory. Let's delve into the current unemployment scenario in India.
According to the Centre for Monitoring Indian Economy (CMIE), India's unemployment rate surged to a concerning 9.2 percent in June 2024, a sharp rise from 7 percent just the month before.
The situation is particularly concerning for women. CMIE's Consumer Pyramids Household Survey reveals a female unemployment rate of 18.5 percent in June 2024, significantly higher than the national average of 9.2 percent.
This number has also been steadily rising, with a 3.4 percent increase from June 2023 (15.1 percent). Furthermore, recent controversies like Foxconn's exclusion of married women from factory jobs highlight the additional challenges women face in the Indian workforce.
While India's Labour Participation Rate (LPR) has shown positive signs, rising to 41.4 percent in June 2024 from 40.8 percent in May and 39.9 percent in June 2023, unemployment concerns persist. Data reveals a rise in both rural and urban unemployment rates.
The rural unemployment rate jumped to 9.3 percent in June from 6.3 percent in May, while the urban unemployment rate climbed from 8.6 percent to 8.9 percent. Notably, the Labour Participation Rate (LPR) represents the portion of the working-age population (15 years and above) that is either employed or actively seeking work.
India's Unemployment Rate: A Key Indicator
The unemployment rate, a crucial economic indicator, reflects the percentage of the workforce actively seeking jobs. It rises during economic downturns due to job scarcity and falls when job opportunities increase.
The current unemployment rate in India is calculated using the following formula:
Unemployment Rate = Number of Unemployed Persons / Civilian Labor Force
Unemployment Rate = Number of Unemployed Persons / (Number of Employed Persons + Number of Unemployed Persons)
But who counts as unemployed?
In India, to be counted as unemployed, you must be:
- 16+ years old and available for full-time work in the past four weeks.
- Actively searching for a job during this period.
However, some exceptions exist, like those temporarily laid off but seeking to return to their previous jobs.
With a growing workforce and ambitious development goals, India faces a complex challenge in managing unemployment. Also, addressing the gender gap and disparities in rural and urban job markets will be crucial in achieving a more inclusive and prosperous future.