India’s working-age population is set to grow by 133 million over the next 25 years. This surge represents nearly 18% of the global workforce increase. However, this demographic dividend is time-bound, with the workforce expected to peak by 2043. Employment generation is crucial to harness this advantage. Quality jobs can reduce poverty, bridge social gaps, and support inclusive growth. India’s consumption-driven economy depends on broadening employment to sustain growth and resilience.
Need for Long-Term Employment Policies
Employment must be a national priority. Short-term or fragmented policies will not suffice. Consistent growth strategies that encourage steady investment are essential. Despite government efforts in skill development and social security, India lacks a unified framework for employment. Both demand and supply sides of the labour market need attention. Demand depends on economic growth and sectoral expansion. Supply is influenced by skills, mobility, and societal norms. Bridging these gaps is key to effective policy impact.
Improving Graduate Employability
Graduate employability remains a concern. College curricula require urgent review to align with job market needs. Skilling programmes should focus on industry demands and emerging sectors. Integration of technologies like Artificial Intelligence and robotics in training is vital. This will prepare graduates for future jobs and reduce skill mismatches.
Integrated National Employment Policy
An Integrated National Employment Policy is critical. It should consolidate existing schemes and align initiatives across States, Ministries, and industry. Governance could be led by an Empowered Group of Secretaries, with District Planning Committees ensuring local relevance. The policy must set time-bound goals, identify high-employment sectors, and align trade, industrial, education, and labour policies. Addressing labour market frictions, regional disparities, and barriers faced by women and marginalised groups is essential.
Labour Mobility and Migration
Labour mobility is crucial for job matching. Cooperation between Centre and States on migration policies and support systems is needed. Political barriers should not hinder mobility. Building One India for employment mobility will enhance economic integration. Timely implementation of the four Labour Codes and clear transition guidelines will support businesses and workers.
Focus on Labour-Intensive Sectors
Job creation efforts must target labour-intensive sectors like textiles, tourism, agro-processing, real estate, and healthcare. The Micro, Small and Medium Enterprises (MSME) sector, employing over 25 crore people, needs comprehensive support in finance, technology, skilling, and market access. Urban job distress could be addressed by piloting employment guarantee schemes in select cities.
Gig Economy Potential
The gig economy currently employs between 80 lakh and 1.8 crore workers and could grow to 9 crore by 2030. Its spread into Tier-2 and Tier-3 cities offers vast potential. A national gig economy policy can promote growth while ensuring worker protection. This includes skilling, finance, social security, fair contracts, safety standards, and grievance redress. A centralised registry can ease onboarding and preserve work histories.
Enhancing Job Quality and Inclusivity
Improving wages, working conditions, and social security is vital for job quality. Affordable housing near industrial hubs can boost mobility and living standards. Regional employment balance can be promoted through targeted interventions in underdeveloped districts, rural internships, and remote work options. Increasing female labour force participation requires incentives, formalising community health roles, investing in childcare and eldercare, and changing societal norms.
Importance of Employment Data
High-quality, real-time employment data is essential. A dedicated task force could improve data collection methods, include informal and rural sectors, and reduce publication delays. Accurate data will guide policy and investment decisions.
Questions for UPSC:
- Point out the challenges and opportunities presented by India’s demographic dividend in the context of economic growth and employment.
- Critically analyse the role of the Micro, Small and Medium Enterprises (MSME) sector in India’s job creation and economic resilience.
- Estimate the impact of labour mobility and migration policies on regional development and social integration in India.
- With suitable examples, underline the significance of the gig economy in transforming employment patterns and worker protections in emerging economies.
