Apropos of your edit “A poor job” (FE, September 18), it is shocking that 255 PhDs are among the 23 lakh applicants for 368 vacancies for the post of peon in the UP government Secretariat, where the minimum qualification for the post is just fifth-grade pass and that the candidate must know how to ride a bicycle. The galloping rate at which graduates are produced by the universities is one of the reasons for the young workforce in today’s organisations. However, employability of the educated is a serious problem in India as our education system is one-dimensional and lays emphasis only on scoring marks and not acquiring skills required for jobs. But, the skill profile expected of the modern employee, too, has undergone a sea-change as organisations prefer people with multiple skills that can’t be imparted, like being a good team player, ability to take initiative, leadership, flexibility, adaptability and also creative-thinking skills. It is important that education policy makers review the situation and reorient the education system to bridge the gap between demand and supply of employable graduates.
The rate riddle
The US Fed has refrained from increasing key rates, though till as late as mid-August, there were all-round indications that a hike is in order. That this can happen in the largest economy only shows how global factors have acquired increasing influence over domestic ones, however pressing the latter might be. Ever since the US economy plunged sharply, in 2008-09, a new-wave theory, on induced monetary liquidity, had engulfed universal economics. The next four years saw a massive expansion of production capacity worldwide. As the cyclic growth abated, excess capacity idled and brought in fiscal imbalances in its wake. Brazil crashed and China followed, not to speak of the eurozone that was under stress already. We had our share of miseries, in being unable to push growth beyond a given rate despite our will and capacity to do so. The US has accepted its limitations and stepped clear of changing key rates. China is wondering how to push sales to keep its industry from sagging by tinkering with exchange rates. The RBI Governor has been as lucid as he has been candid in his speech. Today, our conservatism thus far on monetary policy, in the face of clamour for accelerated growth through loosening key rates, stands largely vindicated. That said, inflation is down; there is improved transmission of money in the system; and crude prices will remain low for a while—all of these are factors that could permit reduction of key rates. The positive effect of this on our economy may take a year to be noticed and, by then, we can only hope that other major economies recover enough to provide us the extra marketing space. RBI policy on September 29 could signal the softening of rates.