Employment as a national priority

Source: The post Employment as a national priority has been created, based on the article “Treat employment as a national priority” published in “The Hindu” on 6 October 2025. Employment as a national priority.

UPSC Syllabus: GS-3-Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: India, the world’s most populous nation, has one of the youngest workforces globally. According to the Confederation of Indian Industry (CII), India will add about 133 million people to its working-age population (15–64 years) over the next 25 years, nearly 18% of the global addition. However, this demographic dividend is time-bound, with the working-age population expected to peak around 2043.

Importance of Employment Generation

• Economic growth and equity: Employment generation plays a pivotal role in ensuring inclusive and sustainable growth. Large-scale job creation helps lift millions out of poverty, reduces regional and social disparities, and ensures a more equitable distribution of economic benefits.

• Social stability: When people have secure livelihoods, it enhances social cohesion and reduces inequalities. Employment provides individuals with dignity, purpose, and belonging, thereby contributing to broader social harmony and inclusion.
• Resilient consumption economy: In a consumption-driven economy like India’s, quality job creation boosts household income and purchasing power, sustaining domestic demand. This continuous cycle of income and spending drives stable, resilient economic growth and shields the economy from external shocks.

Key Challenges

1. Lack of Unified National Framework: India lacks an integrated national policy linking employment, skills, and livelihoods. Fragmented central and state initiatives hinder coordinated job creation and accountability.
2. Skill–Employability Gap: Outdated education curricula and weak industry linkages reduce graduate employability. Skill programmes need alignment with emerging technologies and sectoral needs.
3. Regional Disparities & Labour Frictions: Industrial growth is uneven across states. Migration barriers and limited worker mobility restrict access to opportunities, worsening regional inequality.
4. Underdeveloped Social Security: The informal workforce lacks protection, benefits, and grievance systems. Expanding inclusive social security and worker welfare is crucial for equitable growth.

Way Forward

1. Focus on Long-Term Job Creation
   1. A long-term, consistent strategy is needed to encourage steady investments and create sustainable employment opportunities.
   2. Coordination between Central and State governments is essential to integrate skill development, education, and social protection.
   3. An Integrated National Employment Policy should be established to align existing schemes and address both the supply and demand sides of the labour market.
2. Strengthening Institutional Mechanisms
   1. A robust institutional framework should be created through an Empowered Group of Secretaries, supported by District Planning Committees, to oversee employment policy implementation.
   2. These institutions should set time-bound targets and focus on high-employment sectors, aligning education, labour, and industrial policies.
   3. They must also address regional disparities, gender gaps, and challenges faced by marginalised communities to ensure inclusive participation.
3. Priority Sectors for Job Creation
   1. Job creation must focus on labour-intensive sectors such as textiles, construction, tourism, agro-processing, healthcare, and education.
   2. The MSME sector, which employs over 25 crore people, requires targeted support through easier access to finance, technology, and skill development.
   3. The digital economy and gig sector present emerging opportunities, with gig employment expected to rise from 80 lakh to nearly 9 crore workers by 2030.
   4. Policies should ensure formalisation of informal jobs and provide social protection for gig and platform workers.
4. Labour Reforms and Worker Protection
   1. The timely implementation of the four Labour Codes is essential to simplify compliance and strengthen worker rights.
   2. A centralised employment registry should be developed to streamline worker onboarding and enhance mobility.
   3. Labour contracts must include fair wages, safety standards, and effective grievance mechanisms to protect workers’ rights.
   4. The gig economy should be regulated to provide minimum wages, social security, and occupational safety for workers.
5. Promoting Regional and Social Inclusion
   1. Employment opportunities should be regionally balanced through targeted interventions in underdeveloped districts and rural areas.
   2. Policies must support industrial hubs, rural internships, and remote work options to generate employment beyond metropolitan areas.
   3. Increasing women’s labour force participation is crucial, which can be achieved through investment in childcare, eldercare, and removal of restrictive norms.
   4. Employment strategies must ensure inclusivity for youth, women, and marginalised communities to promote equitable growth.
6. Incentives and Complementary Policies
   • Initiatives such as the Employment-Linked Incentive (ELI) Scheme should be expanded to encourage industries that create quality jobs.
   • Formalisation of Anganwadi and ASHA workers will enhance employment quality in the social sector.
   • Investment in affordable housing and industrial clusters can improve worker mobility and living standards.
   • Strengthening labour market flexibility and entrepreneurship will promote a dynamic employment environment.
7. Building a Data-Driven Employment Framework
   1. Reliable and real-time employment data is essential for effective policymaking.
   2. A dedicated task force should be established to improve employment data collection and reduce the time lag between data generation and policy implementation.
   3. Transparent and timely data publication will enable better monitoring of job trends and policy outcomes.

Conclusion: A coordinated, inclusive, and forward-looking employment strategy focusing on job quality, sectoral diversification, skilling, and gender inclusion can transform India’s labour potential into economic strength. Treating employment as a national priority is essential not only for sustained growth but also for achieving equitable and resilient prosperity by 2047.

Question: “Employment generation must be treated as a national priority to ensure inclusive and sustainable growth.” Discuss.