Contents
Introduction
With over 133 million people entering India’s workforce by 2047 (CII estimate), employment generation is central to sustaining demographic dividends, inclusive growth, and social stability—necessitating its treatment as a national policy priority.
Employment as a National Priority
- Demographic Dividend and Growth Nexus: India’s working-age population will peak by 2043 (UNFPA, 2024). Harnessing this window requires quality employment creation. The World Bank (2023) highlights that each 1% rise in employment elasticity can lift 10 million out of poverty annually.
- Economic Equity and Social Stability: Employment ensures distributive justice and balanced regional growth. The ILO’s 2022 Employment Outlook warns that underemployment and informality (over 80% workforce) can erode India’s growth potential and deepen social inequalities.
- Growth and Resilience Linkage: In a consumption-driven economy, job creation broadens the demand base. According to CMIE (2024), India’s labour participation rate stands at 41%, with female LFPR below 25%. Enhancing quality employment is thus vital for sustained GDP growth and gender equity.
Need for a Unified National Employment Framework
- Despite multiple central and State schemes (PMKVY, MGNREGA, National Career Service, PM-DAKSH), India lacks a cohesive policy integrating employment, skills, migration, and livelihoods.
- Fragmented approaches lead to duplication and inefficiency.
Integrated National Employment Policy (INEP)
- Integrated National Employment Policy: As recommended by NITI Aayog (2023), should align industrial, trade, and education policies with labour market outcomes.
- Governance Architecture: Empowered Group of Secretaries at the Centre, with District Employment Committees for localized planning.
- Time-bound Sectoral Targets: Identifying high-employment sectors — textiles, construction, agro-processing, care economy, and tourism.
Labour Market and Skilling Reform
- Mismatch between graduate employability (only 48% job-ready, India Skills Report 2024) and sectoral needs necessitates Outcome-Based Skilling (OBS) linked to industry demand, AI, and green technologies.
- Timely implementation of four Labour Codes (2019–20) will formalize employment, improve flexibility, and ensure universal social security.
Employment Mobility and Data Systems
- A national framework must integrate migration policy, allowing seamless interstate worker movement.
- Strengthened real-time data via Periodic Labour Force Survey (PLFS) and a National Employment Data Grid can inform evidence-based policymaking.
Enhancing Livelihood Security: The Three-Pillar Impact
- Social Protection and Formalisation: Unified employment policy can converge welfare and work — linking e-Shram, EPFO, and ESIC platforms — to ensure portable, digital social security for 40 crore informal workers.
- Gender-Inclusive Workforce Expansion: Policies like Employment Linked Incentive (ELI) for firms hiring women, formalization of Anganwadi and ASHA roles, and investment in childcare and gig platforms can raise female LFPR to 35% by 2030.
- Green and Urban Jobs Transition: Emerging green sectors (EVs, renewables, circular economy) could create 3.5 crore jobs by 2047 (CEEW Report 2024). Urban employment guarantees in Tier-2 cities can cushion cyclical distress.
Way Forward
- Blended Finance for MSMEs: Access to concessional capital for labour-intensive sectors.
- Gig Economy Regulation: National registry and portable benefits for 9 crore expected gig workers by 2030.
- Data-Driven Governance: Real-time dashboards linking PLFS, GSTN, and EPFO data.
Conclusion
As Amartya Sen noted in Development as Freedom, “Employment is the surest path to dignity and capability.” A unified national framework can transform India’s workforce into engines of equitable, resilient growth.


