Hindu Editorial Anlaysis : 21-August-2024
The recent Union Budget in India introduced five major schemes focused on employment. With a significant outlay of ₹2 lakh crore over five years, the aim is to provide jobs, skill development, and opportunities for 4.1 crore youth. This approach reflects the urgent need for effective policies to create meaningful employment in the country.
The Global Unemployment Challenge
Unemployment has become a pressing issue worldwide. Economists and policymakers are striving to find sustainable solutions. In India, the situation is particularly challenging due to its large and diverse population.
Recent Employment Package
In response to this crisis, the Finance Minister announced a new employment package. One notable scheme aims to encourage corporates to hire 1 crore interns over the next five years. However, this plan has some limitations:
- It only includes the top 500 companies, leaving out micro, small, and medium enterprises (MSMEs).
- MSMEs are crucial to India’s economy, and excluding them seems counterproductive.
Flaws in Implementation
A significant issue with annual budget announcements is that they often look good on paper but fail in practice.
- Promises made, such as disinvestment targets, rarely come to fruition.
- The scale of the internship program appears unrealistic, expecting each company to take on 4,000 interns annually amidst automation and job reductions.
Addressing Wage Challenges
To achieve sustainable employment, we must first tackle the issue of low wages. The Periodic Labour Force Survey (2019-20) indicated that earning ₹25,000 monthly places an individual in the top 10% of wage earners. It’s essential to uplift wages to ensure dignified livelihoods.
Skilling and Placement Issues
Short skill programs often result in low long-term placements due to:
- Low wages that make it hard for individuals to live decently in urban areas.
- Many skilled workers return to villages in search of better opportunities.
Importance of Education and Skills
States with better human development indicators tend to have higher consumption rates. For instance, Tamil Nadu and Kerala excel in education, whereas Odisha struggles despite focusing on short-duration skill programs.
Role of the State in Employment
While the private sector plays a vital role in job creation, the government must also intervene:
- Establish a minimum wage.
- Provide high-quality public services.
- India’s public employment is lower than in many developed nations, indicating a need for more public sector jobs.
Key Policy Initiatives
To improve employment prospects, several key initiatives should be implemented:
- Community Involvement: Identify local skilling needs through community participation.
- Wage Setting: The state should help set minimum wages and ensure quality public goods.
- Enhancing Productivity: Focus on productivity through targeted investments.
- Youth Employment Registry: Create a registry to track individuals seeking jobs and develop personalized plans for them.
Exploring Green Jobs
The concept of ‘green jobs’ is gaining popularity. Sectors like sustainable finance and clean energy are creating new job opportunities.
Government Initiatives
Several government initiatives aim to boost employment:
- Infrastructure Investments: Improving roads, railways, and ports can create numerous jobs.
- Aatmanirbhar Bharat Rojgar Yojana (ABRY): This scheme promotes job creation and restoration post-pandemic.
- Digital and Manufacturing Expansion: Growing these sectors can lead to economic growth and more job opportunities.
A Comprehensive Way Forward
Creating sustainable employment is crucial, especially amid economic shifts and technological advancements.
Key Areas of Focus
- Demand-Side Measures: Stimulating consumer spending and business investment can naturally generate jobs.
- Skill Development: Upskilling and reskilling programs must be prioritized to enhance employability.
- Support for MSMEs: These enterprises are essential for job creation; thus, providing them resources can lead to significant growth.
- Labour Reforms: Fair working conditions and reasonable hours are necessary for worker welfare.
- Investment in Public Services: Long-term investments in healthcare, education, and infrastructure are essential for job creation and overall well-being.
Why In News
The recent Union Budget unveiled five major employment-related schemes with an ambitious ₹2 lakh crore outlay spread over five years, aimed at facilitating jobs, skilling, and other opportunities for 4.1 crore youth. However, for these initiatives to translate into meaningful employment opportunities, robust policy frameworks and effective implementation strategies are essential.
MCQs about Understanding India’s Employment Challenges and Solutions
- What is the primary goal of the five employment-related schemes announced in the recent Union Budget?
A. To increase corporate taxes
B. To facilitate jobs, skilling, and opportunities for youth
C. To promote international trade
D. To reduce government spending
- Which segment of businesses is primarily excluded from the internship scheme introduced in the recent employment package?
A. Large corporations
B. Non-profit organizations
C. Micro, small, and medium enterprises (MSMEs)
D. Government agencies
- What is identified as a major flaw in the implementation of budget announcements?
A. High public approval ratings
B. Overwhelming success in job creation
C. Grand promises without effective follow-through
D. Immediate results in economic growth
- Why is skill development considered crucial in the context of India’s employment challenges?
A. It decreases the need for public sector jobs.
B. It is essential for adapting to technological changes and enhancing employability.
C. It focuses solely on traditional job roles.
D. It requires no investment from the government.
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