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Determinants of Private Demand - Unemployment Rate
Unemployment rates linked to specific courses of study can be useful indicators to determine investment in education. Their availability in published form, however, requires establishment of information systems linked to specific courses of study. Such information systems are available for only engineering degree/diploma courses [called National Technical Manpower Information System (NTMIS)]. A similar system for courses in science subjects is available but their results are not widely published. Its surveys are also not conducted at regular intervals.
General higher education courses such as B.A, B.Sc, B.Com are, however, not linked with specific jobs. They continue to be in demand for the reason that they are considered for a variety of jobs. At the current juncture, there is a good demand for general graduates from good colleges with campus recruitment which was not there a few years ago. However, because of the elusive and masked value of general education courses, it has not been possible to bring down the public demand for general graduate courses although they have the highest unemployment rates. Considering the stalemate in this regard, the National Policy on Education, 1986 advocated a strategy of ‘de-linking degrees from jobs’. It has not, however, been possible to use this strategy effectively as there is no alternative foolproof system of grading large number of candidates seeking jobs.
Many of the employers who use entrance tests for employment in their organisations resort to initial screening of candidates on the basis of university degrees. A major factor for the popularity of general higher education is that not all students get opportunities for professional education because of their limited intake capacity. Many of those who fail to make the grades for professional education join general education courses. For a large number of girls it is considered an extra qualification increasing their chances of marriage as they get preference over non-graduates. A host of these factors contribute to the prevalence of unemployment even for the educated persons.
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