Context:

The recent Budget announcement of five major employment-related schemes, aimed at creating jobs and skilling opportunities for 4.1 crore youth, with an ambitious ₹2 lakh crore outlay over five years, reflects the government’s commitment to addressing the employment challenge. The Economic Survey further strengthens this focus, urging the private sector to create jobs, motivated by lower taxes since 2019 and higher post-pandemic profits. However, any evidence-based roadmap for sustainable mass employment with dignity requires a more comprehensive approach, recognizing the complexity of the employment challenge.

Recognizing the Challenge of Wages

A key issue in achieving sustainable employment with dignity is the persistent challenge of low wages, exacerbated by an oversupply of unskilled labor. The Periodic Labour Force Survey (PLFS) 2019-20 revealed that a wage earner is among the top 10% if they earn ₹25,000 a month. However, many short-duration skill programmes have had low placement rates, primarily because the wages offered do not support a dignified life in urban areas. This has led many workers to return to their villages in search of alternative employment opportunities.

The Link Between Human Development and Economic Consumption

The Role of Education and Skills in Economic Well-Being

Evidence points to the critical role of education and skills in boosting economic consumption and well-being. States such as Tamil Nadu, Kerala, Himachal Pradesh, Goa, and Sikkim, which have better human development indicators, also exhibit higher monthly per capita consumption. In contrast, Odisha, despite its focus on short-duration skilling programmes, lags behind in per capita consumption due to a lack of robust higher secondary, vocational, and higher education opportunities.

The State's Role in Employment Generation

While the Economic Survey encourages the private sector to take the lead in job creation, the state has an equally important role in ensuring fair wages and providing high-quality public goods. Evidence shows that public employment per capita in India is significantly lower than in most developed countries. Therefore, any sustainable plan for mass employment must consider the state's role in setting minimum wage standards and delivering public services that contribute to overall human development.

Policy Initiatives for Sustainable Mass Employment

Decentralised Community-Driven Skilling Initiatives

Sustainable mass employment must begin from the grassroots level through decentralized, community-driven skilling initiatives. The key to success lies in community ownership of state programmes, facilitated by direct community involvement. Gram sabhas in rural areas and basti samitis in urban areas can play a pivotal role in implementing government programmes effectively.

To enhance employment and self-employment opportunities, a comprehensive register should be created, documenting all individuals seeking jobs or entrepreneurial ventures. Personalized plans for each youth can then be developed in collaboration with professionals at the cluster level, ensuring tailored guidance and support. Additionally, well-educated professionals should be employed on fixed-term contracts at the local government level to oversee the implementation of these plans, monitor outcomes, and effectively match skill providers with potential employers.

Convergence of Initiatives at the Local Government Level

To achieve sustainable employment, there must be a convergence of initiatives related to education, health, skills, nutrition, livelihoods, and employment at the local government level. Women’s collectives can ensure accountability and effective implementation of these initiatives, supported by untied funds, functions, and functionaries.

Integrating essential services such as education, health, skills, nutrition, livelihoods, and employment at the local government level can significantly improve human development outcomes. By empowering communities with access to untied funds, they can make more effective decisions tailored to their specific needs, leading to better service delivery and overall well-being. Enhanced community decision-making ensures that resources are allocated efficiently, fostering greater accountability and more impactful results in addressing public goods and services.

Introducing Vocational Courses Alongside Undergraduate Programmes

Introducing need-based vocational courses and certificate programmes alongside traditional undergraduate degrees (B.A., B.Sc., B.Com.) can significantly enhance employability. This approach has been successfully implemented in some colleges and should be expanded nationwide. For example, colleges in Mumbai offer certificate courses in areas such as tourist guiding and counselling alongside regular degree programmes, improving graduates' employment prospects.

Standardising Nursing and Allied Health Care Courses

The demand for healthcare professionals is growing both within and outside India. However, the uneven quality of training institutions and the lack of standardized curricula and course durations present significant challenges. Standardize nursing and allied health-care professional courses across all States to meet international benchmarks, ensuring consistency in training quality.

Establishing Community Cadres of Care-Givers

There is a need to establish community cadres of care-givers to provide crèche services universally, enabling women to work without concerns for their children’s care. Current anganwadi services are inadequate to meet the demand for childcare, especially for infants. Train and employ care-givers through local governments or women’s collectives, following the successful model of Community Resource Persons under the Rural Livelihood Mission.

Revitalising Industrial Training Institutes (ITIs) and Polytechnics

Investing in ITIs and polytechnics as hubs for skill development is critical for providing quality vocational education. Many institutions suffer from outdated infrastructure and a lack of up-to-date technology, which hampers their effectiveness in upskilling and reskilling workers. Empower ITIs and polytechnics with greater autonomy and community oversight, transforming them into hubs for vocational education and feeder schools for skills training.

Introducing Enterprise and Start-Up Skills in Schools

Schools should introduce technology and enterprise as subjects at the upper primary and high school levels. This will foster innovation and entrepreneurship among students from an early age. Engage industry professionals to visit schools and provide training in business and entrepreneurship, helping students develop the skills needed for future employment and enterprise.

Implementing a Co-Sharing Apprenticeship Model

A co-sharing apprenticeship model with industry can create better opportunities in both manufacturing and services sectors. Skilling costs should be shared between the government and industry to ensure that both parties have a vested interest in the success of the apprenticeship programme.

Streamlining Capital Loans for Women-Led Enterprises

Access to working capital loans for women-led and first-generation enterprises must be streamlined to enable these businesses to scale. The success of initiatives such as the lakhpati didis under the Rural Livelihoods Mission highlights the importance of providing comprehensive credit histories and leveraging technology for lending.

Universal Skill Accreditation Programme

A universal skill accreditation programme for skill-providing institutions is essential. The state and industry should jointly sponsor candidates for courses, with rigorous assessment processes in place to maintain the quality of training.

Targeted Use of MGNREGA Funds for Livelihood Security

Seventy percent of funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) should be directed toward water-scarce and deprived blocks. These funds should be used for individual beneficiary schemes, including animal sheds, irrigation wells, and work sheds, to ensure livelihood security. Focus on skills development to enhance the productivity of MGNREGA wage earners, leading to better wages and improved living standards in poor regions.

Expanding Apprenticeships on Scale

Apprenticeships must be expanded to absorb more youth into the workforce. However, it is essential to ensure that these apprenticeships focus on skill acquisition rather than merely providing stipends. Government subsidies for employers should be contingent on the provision of dignified wages upon successful completion of apprenticeships.

Conclusion

By implementing these 12 policy initiatives, India can create sustainable mass employment with dignity. These measures emphasize community-driven action, decentralized planning, and skill development, leading to higher productivity and improved quality of life for workers across the country.

Source: The Hindu