Editorial Analysis: A ground plan for sustainable mass employment
Kartavya Desk Staff
Source: The Hindu
General Studies-3; Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Introduction
• The recent budget announcement of five major employment-related schemes by the Indian government is a bold and ambitious step towards addressing the pressing issue of job creation and skill development.
• With an outlay of ₹2 lakh crore over five years, these schemes aim to provide employment opportunities and skills training to approximately 4.1 crore youth.
• However, the success of these initiatives will depend on the effective implementation of policies and addressing the structural challenges in India’s labour market.
The Importance of Employment and Skilling
• The Economic Survey has emphasized the need for the private sector to play a significant role in job creation. However, any sustainable roadmap for mass employment must go beyond merely urging the private sector.
• The Periodic Labour Force Survey (PLFS) 2019-20 highlighted that a wage earner in the top 10% of the income bracket earns just ₹25,000 per month, which is insufficient for a life of dignity in urban areas.
• Short-duration skill development programs have often failed to yield long-term employment outcomes, primarily due to the low wages offered to skilled workers. Therefore, a more integrated approach that combines education, skills, and human development indicators is essential.
The Role of Public Employment and Wages
• While the private sector is crucial for job creation, the state must play an active role in setting a floor rate for wages and ensuring the provision of high-quality public goods.
• Public employment in India, per unit of population, is significantly lower than in most developed countries. Therefore, there is a need for key policy initiatives that focus on creating sustainable mass employment with dignity.
Key Policy Initiatives for Sustainable Employment
• Community-Driven Skilling Initiatives: Skilling needs should be identified through decentralized community action, involving local bodies like gram sabhas and basti samitis. A register of those seeking employment should be maintained, and personalized employment plans should be developed in partnership with professionals. This bottom-up approach will ensure that skilling programs are aligned with local needs and lead to meaningful employment.
• Skilling needs should be identified through decentralized community action, involving local bodies like gram sabhas and basti samitis.
• A register of those seeking employment should be maintained, and personalized employment plans should be developed in partnership with professionals.
• This bottom-up approach will ensure that skilling programs are aligned with local needs and lead to meaningful employment.
• Convergence of Developmental Initiatives: Employment cannot be improved in isolation. There should be a convergence of education, health, skills, nutrition, livelihoods, and employment initiatives at the local government level.
• Employment cannot be improved in isolation. There should be a convergence of education, health, skills, nutrition, livelihoods, and employment initiatives at the local government level.
• Integration of Vocational Training in Higher Education: Vocational courses and certificate programs should be integrated into undergraduate curricula in colleges. This will enhance the employability of graduates and provide them with the skills needed for the job market.
• Vocational courses and certificate programs should be integrated into undergraduate curricula in colleges. This will enhance the employability of graduates and provide them with the skills needed for the job market.
• Standardization of Healthcare Professional Courses: Nursing and allied healthcare professional courses should be standardized across all states according to international benchmarks. This will address the demand for healthcare professionals in India and abroad.
• Nursing and allied healthcare professional courses should be standardized across all states according to international benchmarks. This will address the demand for healthcare professionals in India and abroad.
• Creation of Community Caregiver Cadres: Community cadres of caregivers should be created to provide crèche services, enabling women to work without fear of leaving their children unattended. This initiative can be modeled on the Community Resource Persons of the Rural Livelihood Mission.
• Community cadres of caregivers should be created to provide crèche services, enabling women to work without fear of leaving their children unattended. This initiative can be modeled on the Community Resource Persons of the Rural Livelihood Mission.
• Investment in Industrial Training Institutes (ITIs): ITIs and polytechnics should be developed as hubs for skill development, with a focus on updating infrastructure and aligning curricula with industry needs. These institutions should also serve as feeder schools for vocational education.
• ITIs and polytechnics should be developed as hubs for skill development, with a focus on updating infrastructure and aligning curricula with industry needs. These institutions should also serve as feeder schools for vocational education.
• Introduction of Enterprise and Start-up Skills in Schools: Technology and enterprise should be introduced as subjects in high schools to foster innovation and entrepreneurship among students. This will prepare them for the demands of the modern job market.
• Technology and enterprise should be introduced as subjects in high schools to foster innovation and entrepreneurship among students. This will prepare them for the demands of the modern job market.
• Co-Sharing Model of Apprenticeships: Apprenticeships should be co-shared with industry, ensuring that potential employers have a stake in the skilling process. This will enhance the quality of apprenticeships and improve job placement rates.
• Apprenticeships should be co-shared with industry, ensuring that potential employers have a stake in the skilling process. This will enhance the quality of apprenticeships and improve job placement rates.
• Streamlining Capital Loans for Women-Led Enterprises: Working capital loans for women-led enterprises should be streamlined to help them scale up. Initiatives like the Start Up Village Enterprise Programme (SVEP) under the National Rural Livelihoods Mission (NRLM) have shown the importance of providing comprehensive support to first-generation entrepreneurs.
• Working capital loans for women-led enterprises should be streamlined to help them scale up.
• Initiatives like the Start Up Village Enterprise Programme (SVEP) under the National Rural Livelihoods Mission (NRLM) have shown the importance of providing comprehensive support to first-generation entrepreneurs.
• Universal Skill Accreditation Programme: A universal skill accreditation programme for skill providers should be introduced, with state and industry jointly sponsoring candidates. This will ensure the quality of training and increase the employability of the workforce.
• A universal skill accreditation programme for skill providers should be introduced, with state and industry jointly sponsoring candidates. This will ensure the quality of training and increase the employability of the workforce.
• Focused Use of MGNREGA Funds: Seventy percent of MGNREGA funds should be allocated to water-scarce blocks and those with high deprivation, with a focus on the poorest families. This will provide livelihood security and improve the productivity of wage earners.
• Seventy percent of MGNREGA funds should be allocated to water-scarce blocks and those with high deprivation, with a focus on the poorest families. This will provide livelihood security and improve the productivity of wage earners.
• Scaling Up Apprenticeships: The scale of apprenticeships should be increased, with a focus on skill acquisition rather than just providing stipends. The government should ensure that employer subsidies are linked to providing wages of dignity upon the successful completion of apprenticeships.
• The scale of apprenticeships should be increased, with a focus on skill acquisition rather than just providing stipends. The government should ensure that employer subsidies are linked to providing wages of dignity upon the successful completion of apprenticeships.
Conclusion
• The government’s new employment-related schemes have the potential to make a significant impact on job creation and skill development in India.
• By focusing on community-driven initiatives, standardizing skill training, and ensuring the convergence of developmental efforts, India can create sustainable mass employment with dignity, thereby improving the quality of life for millions of its citizens.