Spiraling Consumption Expenditure on Education: An Employment Perspective in Manipur

By Marchang Reimeingam

Published: 22^nd Jan. 2009, Imphal Free Press

Education is a function of employment in the modern job market. People invest on development of human resources in order to yield some product for future economic well-being and for better welfare of society among many other purposes. Education is a means for development of morality and personality, accumulation of knowledge and skills, and for employability in the modern labour market in particular among many ends. It was imparted in one or other form for the development and betterment of human race irrespective of the civilization throughout the human generations. Inevitably, much before the birth of western education, in Manipur society education have been imparted although not through a written form. With the introduction of western education the importance of it has increased tremendously especially for job. Educating and motivating for prosperity through learning is widespread yet education remains a dream for large section of the people of Manipur. At present education is considered as the most necessary commodity; therefore educational attainment is ever rising irrespective of the type of household job and income level. This is largely contributed by the nature of competitive structure of demand for labour with extra qualifications in the existing job market.

Expenditure on education is increasing over the years due to the rise in income level as well as due to the increase in literacy rates/educational level apart from dearer cost in accessing its infrastructure. The increase of expenditure on education can be substantiated by a factual figure on household consumption expenditure on education. According to National Sample Survey, 3.76 percent of the total monthly consumption expenditure was spent on education per person/household in 1999 (55^th Round) which has significantly increased to 6.39 percent in 2004 (60^th Round) for rural areas; similarly, it has considerably increased from 6.49 percent in 1999 to 8.93 percent in the latter year in urban areas for Manipur. For All-India, it was at the level of 1.93 percent in 1999 which has marginally increased to 2.86 percent in 2004 in rural areas; however, in urban areas, it has increased by about 2 percentage point from 4.33 percent in 1999 to 6.52 percent in the latter year. It is evident that the monthly expenditure on education is higher in urban than rural areas as expected. Also it is higher to an extent for Manipur when compared to the All-India level in rural and urban areas in both the years. The differences in spending on education between the state and All-India may be due to the following few factors. In Manipur a large section of student enrolment in private educational institution, many go for further higher education, financing for higher education outside the state, high aspiration for education, increasing expenditure on private home tuition as a result of steep competition (and often more of a fashion), inadequate availability of government or subsidies educational infrastructure, etc.  On other hand, the lower level of expenditure at All-India level probably be due to lower literacy rates or for that matter lower proportion of educated people compared to Manipur. Moreover, it is due to the generalization for all the states and union territories (UTs) of India where some states or UTs have lower spending on education.

The increasing spending on education is also a concern for the planners and policy makers because each additional increment on educational expenditure is an outcome of factors like unemployment and the demand for higher educational qualification for particular job. Furthering higher education is, often argues, a mechanism to curb an unemployment in short-run by accommodating in higher education through subsidy on education. Instituting various new educational institutions particularly “distance education or correspondence courses” is a vivid example. In an existing trend of spiraling consumption expenditure on education a proper direction or guidance or course content that are in demand at present and in near future and applicable and adaptable in the local economy and environment are seemingly lacking. In short, expenditure on education should be made for employability in order to get a salaried job or established an establishment within the state’s economy. This will definitely lead to a reduction in unemployment level as well as save a wasteful money resources and time and use in other productive or developmental work.

It might be provocative to comment but in reality many employees who are less productive continue to hold the prestigious post enjoying the leisure in the classy office without paying much attention to those unemployed who may possess higher productivity if employed as their substitutes. The employers contend that the fresher are less competent and inexperienced to execute the task. A platform should be created in order to substantiate the argument. Further, existing employees should efficiently be trained in order to make more productive and consequently generate more jobs in the system.

Moreover, present job seekers are quite informative about the scarcity of vacant organized jobs in which extra qualification becomes necessary condition in search for job. On the other side, the employers are highly aware of the situation of the excess supply of the overqualified job seekers, which enhances employers bargaining power of wage particularly in the private sector. In the process job seekers’ bargaining power is dwindling due to the increasing number of qualified applicants. Even though higher qualification is not a necessary condition where minimum qualification is prescribe; people possessing higher educational qualification seems to have advantages in getting a job. For instance, many recently recruited Manipur Civil or Police Services or the like by the Manipur Public Service Commission possessed higher qualification including Masters of Philosophy and above. It is also a prevailing fact that many unemployed are seeking jobs where prescribe educational qualification is much lower than their possessed qualification. It is due to a higher competition across the type of available job and also due to a high prevalence of unemployed people. Person with an extra qualification are demanded or preferred so that same person can execute several type of job and also spend less resource in training. Technically, minimum prescribe qualification has seeming raised. In the past when number of educated people were few an expected earnings increases as the level of education increases. However, at present situation in many cases higher qualification is by and large a contributing factor for getting employment particularly in private sector. This induces to the growth of demand for higher education; thereby resulting to an increase in consumption expenditure on education.

In exploring the possible means for all the educated unemployed to be employed the commonly called self-employment is the only way. Various schemes for educated unemployed are available; however, in reality the amount is meager and less viable for execution. Further, it has lots of limitations like the knowledge of schemes, its amount, the terms and delivery norms of the scheme of finance to mention some examples. It can be argued that employment with a lower educational qualification could have benefited more than acquiring higher education and then experiencing a long period on waiting for the aspired job; had the present high unemployment level been foreseen. In a sense the opportunity cost of education is very high. It would not be incorrect that many are voluntarily unemployed due to their qualifications and job aspirations. Moreover, voluntary unemployment must have increased significantly in recent years. However, one should keep in mind that education is not only for entering in the salaried job market. Because the little education which the earlier generation has acquired propels the present generation to acquire higher than them so as to develop and realize the rich heritage, culture, values, etc. The decline of job vacancies in the labour market and the increase of demand for higher education tend to stagnate the growth of employment. Meanwhile in Manipur educated people are plenty which will face a serious repercussion in the long-run. Many remain voluntarily unemployed due to their aspiration of job which commensurate with their acquired educational qualification is yet to be found. It is also threatening that the pace of job creation particularly in government sector is sluggish and its rate is insignificant. Generation of job at this rate will take innumerable years to accommodate all the existing educated unemployed, even if those new entrants are not added. This implies that in near future large army of educated unemployed would revolt and transmit against governmental policies and programmes which is undesirable. The government is unable to generate adequate jobs; hence, games with policies of incentives and schemes which last only for short-run are unveiled. Instead government should create amicable socio-economic environment and encourage and invite private market players so as to generate adequate employment which can act as a substitute in providing a decent job.

In summary, consumption expenditure on education has increased significantly in recent years due to higher demand for education as a result of growing literacy level, increasing cost of education, and also cause by unemployment to cite few reasons. Many are voluntarily unemployed as a consequence of slow job generation by the state and high job aspirations among the unemployed which commensurate with their acquired educational qualification. Higher education seeming become a necessary condition although a prescribe qualification may be lower in getting a job. Perhaps, education should be restructured, delivered and acquired on the basis of quality and quantity of job available or likely to be available and for employability. Adequate job generation is required to reduce unemployment for every stage of educational level so that people will not go for further education and make unnecessary expenditure. Otherwise, people will go for higher education which will spill the problem of educated unemployment over the government in long-run. 
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For citation: Marchang Reimeingam, Spiraling Consumption Expenditure on Education: An Employment Perspective in Manipur, Imphal Free Press, Imphal, 22^nd Jan. 2009.