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The Editorial Analysis: At the Centre of Job Creation


Unemployment in India: Relevance

  • GS 3 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.


Job crisis in India: Context

  • Recently, the PM has announced that 10 lakh government jobs will be provided over the next 18 months on a “mission mode”.


10 lakh jobs: Message of the announcement

  • One, the creation of employment is indeed a problem and can no longer be hidden from the public discourse.
  • Two, the private sector, especially modern sectors such as the service and manufacturing sectors, have not created many jobs.
  • Three, the government in the Nehruvian scheme of development occupied an important place in the labour market.
  • And four, the NDA government has blown the 2024 general election bugle.


The Editorial Analysis: At the Centre of Job Creation_3.1


Issues in employment trends

Data reliability

  • Last year for which we have information on employment in the organised sector from the Directorate General of Employment and Training is 2012.
  • The present government is at present relying on the Employees’ Provident Fund Organisation/National Pension System/Employees’ State Insurance Scheme registrations and exits as indicators of the formal labour market.
  • This could be misleading as companies may be increasing registrations to cross the threshold to become eligible to fall under any of these. Hence, this might be more a case of formalisation rather than employment generation.


Vacancies in the government departments

  • Media reports show that more than 85% of those aspiring for those 10 lakh jobs could be consumed by existing vacancies in Central government departments (8,72,243).
  • In that sense, the pr1onouncement possibly does not indicate 10 lakh new jobs.



  • Third, 241 central public sector enterprises (CPSEs) have been shedding jobs in recent years — jobs declined from 10.84 lakh in 2017-18 to 10.71 lakh in 2018-19 and to 9.22 lakh in 2019-20.


The Editorial Analysis: At the Centre of Job Creation_4.1

Role of private sector

  • The private sector creates jobs in response to market forces and while taking into consideration radically altering technological developments.
  • Projects in the modern private sector consume a lot of capital to generate very few jobs.


Way forward

  • The government should re-establish its role as the principal employment generator through jobs in its ministries and CPSEs and through assured employment generation programmes like MGNREGA.


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