Need for sustainable mass employment in India

Source: The post need for sustainable mass employment in India has been created, based on the article “A ground plan for sustainable mass employment” published in “The Hindu” on 21st August 2024

UPSC Syllabus Topic: GS Paper 3- Economy-employment

Context: The article discusses the need for sustainable mass employment in India. It emphasizes creating jobs with dignity, improving skills through education and vocational training, and involving communities in these efforts. It also highlights the importance of public and private sector roles.

For detailed information on India Employment Report 2024 read this article here

Why is there a need for employment reforms?

1. Low Wages: A wage earner in the top 10% makes only ₹25,000 per month, indicating wage disparity.
2. Short-Term Skilling Issues: Short-duration skill programs have low long-term placement rates due to inadequate wages, especially in urban areas.
3. Regional Disparities: States like Tamil Nadu and Kerala, with better education and skills, have higher consumption levels, while Odisha, despite skilling efforts, lags due to insufficient education infrastructure.
4. Public Employment Gaps: India’s public employment per capita is much lower than in developed countries, highlighting the need for government intervention in creating sustainable jobs.

What are the incentives taken by the government for employment reforms?

1. Budget Allocation: The government has allocated ₹2 lakh crore over five years to create jobs and skill opportunities for 4.1 crore youth.
2. MGNREGA Focus: 70% of MGNREGA funds are directed to water-scarce and high-deprivation areas, emphasizing livelihood security through skills and better wage rates.
3. Community-Based Programs: Initiatives like community cadres of crèche caregivers and expanding apprenticeships aim to improve job readiness and support women’s employment.
4. Support for Women-Led Enterprises: Programs like the Start-Up Village Enterprise Programme (SVEP) and the Rural Livelihoods Mission help women access capital and scale their businesses, supported by innovations from the Reserve Bank Innovation Hub.

What are solutions for improving employment with dignity?

1. Community-Based Skilling: Encourage local communities to identify skill needs and connect with employers through registers and planning.
2. Integration of Services: Converge education, health, and employment services at the local level to enhance community accountability and effectiveness.
3. Education Reform: Introduce vocational courses alongside traditional degrees in colleges to improve employability.
4. Standardizing Training: Standardize courses like nursing to international levels to improve quality and employability.
5. Support for Caregivers: Develop community-based caregiver programs for better childcare and women’s employment.
6. Enhancing Technical Education: Improve infrastructure and curricula in ITIs and polytechnics to meet current industry standards.
7. Fostering Enterprise Skills: Introduce enterprise and technology education in schools to encourage innovation and business skills.
8. Apprenticeship Reforms: Create a co-sharing model of apprenticeships with industries to ensure practical training and job readiness.
9. Access to Capital: Streamline capital loans for women-led and first-generation enterprises to facilitate business scaling.
10. Skill Accreditation: Launch a universal accreditation for skill providers to ensure quality and relevance of training.
11. Focused Use of MGNREGA Funds: Direct a significant portion of MGNREGA funds to skill development in deprived regions to enhance productivity and wage levels.
12. Expanding Apprenticeships: Increase the scale of apprenticeships to improve skill acquisition and ensure fair wages.

Question for practice:

Discuss the challenges and solutions for creating sustainable employment with dignity in India.