Shortcomings of Employment-Related Policies
The government often makes ambitious promises about employment schemes, but these are rarely implemented effectively or monitored for results
Recent schemes, like the internship program targeting top 500 companies, are impractical.
They overlook micro, small, and medium enterprises (MSMEs), which could better absorb interns.
The government’s approach tends to focus on supply-side measures (like financing recruitment costs) rather than addressing demand issues, leading to ineffective results
Official job creation figures (e.g., 109 million new jobs) are questioned due to methodological flaws and inconsistency with other data sources, such as the Periodic Labour Force Survey (PLFS).
A significant portion of new jobs is in agriculture and self-employment, often driven by necessity rather than choice, indicating a lack of quality job opportunities elsewhere.
Despite initiatives like ‘Make in India,’ the share of manufacturing jobs has decreased (12.6% in 2011-12 to 11.4% in 2022-23), and industrial sectors critical for job creation are struggling
High numbers of job applications for government posts with very few actual positions filled, and a large number of vacancies, indicate inefficiencies in public sector employment.
Way Forward
Ensure that employment schemes are not only announced but effectively implemented and monitored for progress.
Expand internship programs to include MSMEs, which can offer practical opportunities and better address diverse job markets
Focus on stimulating demand for labor through economic growth and infrastructure development, rather than solely providing financial incentives for hiring.
Use reliable data sources and methodologies to accurately measure job creation and labor market conditions.
Improve transparency in reporting employment statistics.
Promote long-term investments in sectors that can create sustainable, quality jobs, such as green jobs and essential public services
Align educational and vocational training programs with industry needs to improve employability and job readiness.
Address the large number of vacant government posts through timely recruitment and better management practices to reduce the backlog of applications.
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