Employment schemes by government – UPSC Economy Notes

Employment schemes initiated by governments play a pivotal role in addressing unemployment and fostering economic growth. These schemes are designed to provide opportunities, support, and incentives for individuals to gain meaningful employment, particularly in sectors facing challenges or experiencing a lack of skilled labor. By offering training, subsidies, and job placements, these programs aim to empower citizens, reduce poverty, and stimulate overall development. From targeted initiatives for vulnerable groups to broader strategies for workforce development, government-led employment schemes serve as crucial mechanisms for social welfare and economic progress, reflecting a commitment to inclusive growth and prosperity.

NEED OF EMPLOYMENT:

Importance of Employment:

• Economic-Social Well-being: Employment is crucial for the economic, social, and psychological well-being of individuals.
• Holistic Development: It contributes to the holistic development of society and the country.

GOVERNMENT INITIATIVES IN PROMOTING EMPLOYMENT GENERATION IN INDIA:

1. Interlinking of Databases:
   • Portals like Udyam, e-Shram, National Career Service (NCS), and Atma Nirbhar Skilled Employee-Employer Mapping (ASEEM) are interlinked.
   • Provides live, organic databases offering Government-to-Citizen (G2C), Business-to-Citizen (B2C), and Business-to-Business (B2B) services.
2. PM SVANidhi (Prime Minister’s Street Vendor’s Atma Nirbhar Nidhi):
   • Central government provides an initial working capital of up to Rs 10,000 to street vendors.
3. PMEGP (Prime Minister’s Employment Generation Programme):
   • Credit-linked subsidy program for generating self-employment through micro-enterprises in the non-farm sector.
4. Pradhan Mantri MUDRA Yojana (PMMY):
   • Provides loans up to 10 lakhs to non-corporate, non-farm small/micro enterprises.
5. Stand-Up India:
   • Facilitates bank loans between 10 lakhs and 1 Crore for SC/ST and/or women entrepreneurs.
6. Startup India:
   • Flagship initiative to promote a startup culture and build an inclusive ecosystem for innovation and entrepreneurship.

CHALLENGES IN CREATING EMPLOYMENT OPPORTUNITIES:

1. Rapid Population Growth:
   • Puts pressure on job creation.
2. Skill Gap:
   • Mismatch between available skills and market demands.
3. Dominance of Informal Sector:
   • Prevalence of informal employment.
4. Gender Disparity:
   • Disparities in employment opportunities for men and women.
5. Technological Advancement:
   • Automation leading to job displacement.
6. Statistical Challenges:
   • Difficulty in accurate measurement and reporting.
7. Volatile Global Market:
   • External factors impacting job creation.
8. Low Capital Availability with High-Interest Rates:
   • Hindrance to entrepreneurial ventures.

Conclusion: The government must recognize the seriousness of the job situation. Despite the demographic dividend potential, challenges like skill gaps and the dominance of informal employment need urgent attention to ensure the effective utilization of the growing workforce. Addressing these challenges will contribute to a more robust and sustainable employment landscape in India.

Steps Taken by the Government to Tackle Unemployment:

India, currently in the midst of its demographic dividend, has implemented various initiatives to boost economic growth by creating “good jobs” and meeting the aspirations of the expanding working-age population. Here are some of the steps taken:

1. National Rural Livelihood Mission:
   • Pandit Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY):
     • Placement linked skill development program in a PPP mode.
     • Assures placements in regular jobs for skilled individuals.
   • Rural Self Employment and Training Institutes (RSETI):
     • Enables trainees to access bank credit and start their own micro-enterprises.
2. Make in India:
   • Aims at promoting India as a global hub for manufacturing, design, and innovation.
   • Seeks to attract investments and boost job creation.
3. Startup India Programme:
   • Focuses on nurturing innovation and startups to drive economic growth.
   • Aims to generate large-scale employment opportunities.
4. Mudra Scheme:
   • Provides access to institutional finance for unfunded micro/small business units.
   • Extends loans up to Rs. 10 lakh for various economic activities, fostering income generation and employment.
5. Stand Up India:
   • Similar to the Mudra Scheme, it provides access to institutional finance for unfunded micro/small business units.
   • Aims to create income-generating activities and employment opportunities.
6. National Manufacturing Policy:
   • Aims to engage in job creation, targeting 10 crore work opportunities by 2022.
7. National Urban Livelihoods Mission:
   • Focuses on organizing urban poor in self-help groups.
   • Creates opportunities for skill development leading to market-based employment.
   • Facilitates the setup of self-employment ventures with easy access to credit.

These initiatives collectively aim to address the challenge of unemployment, particularly by enhancing skills, promoting entrepreneurship, and fostering a conducive environment for job creation across various sectors.

Expanding employment opportunities in various sectors is crucial for India’s economic development. Here are some potential sectors for employment generation:

1. Manufacturing Sector:
   • Apparel and Leather Industry: As mentioned, the apparel and leather sectors have significant potential for job creation, especially for women. These industries are labor-intensive and can provide employment opportunities for individuals with lower levels of education.
2. Infrastructure Development:
   • Construction Industry: Infrastructure development projects, including roads, bridges, and housing, can create a large number of jobs. The construction industry is known for its labor-intensive nature.
3. Skill Development and Education:
   • Skill Development Programs: Investing in skill development programs to enhance the employability of the workforce is crucial. Training programs in various industries can help bridge the skill gap and create opportunities for employment.
4. Technology and IT Enabled Services:
   • IT and BPO Services: While requiring specific skills, the IT and business process outsourcing (BPO) sectors have the potential to generate employment, especially for individuals with technical and communication skills.
5. Agricultural Diversification:
   • Agro-Processing Industries: Encouraging agro-processing industries can help add value to agricultural products and create jobs in rural areas. This can also address the issue of disguised employment in traditional agriculture.
6. Renewable Energy:
   • Renewable Energy Sector: The growing focus on renewable energy can lead to job opportunities in solar, wind, and other clean energy projects. This sector requires a range of skills, from manufacturing to installation and maintenance.
7. Healthcare and Pharmaceuticals:
   • Healthcare Industry: The healthcare and pharmaceutical sectors are expanding and can offer employment in various roles, including medical professionals, technicians, and support staff.
8. Tourism and Hospitality:
   • Tourism and Hospitality Sector: Promoting tourism can create jobs in hospitality, travel, and related services. This sector has the potential to generate employment both in urban and rural areas.
9. Micro, Small, and Medium Enterprises (MSMEs):
   • Support for MSMEs: Providing support and incentives for micro, small, and medium enterprises can foster entrepreneurship and create job opportunities.
10. E-commerce and Logistics:
    • E-commerce and Logistics: With the growth of e-commerce, there is an increasing demand for logistics and delivery services, creating opportunities in transportation and warehousing.
11. Government Initiatives:
    • Make in India, Skill India, and Start-Up India: Government initiatives aimed at promoting manufacturing, skill development, and entrepreneurship can contribute to job creation.

It’s important for policymakers to consider a multi-pronged approach, addressing issues such as skill development, infrastructure development, and supportive policies for various industries to ensure sustainable and inclusive employment generation.

FAQs

1. What are employment schemes provided by the government?

The government offers various employment schemes aimed at generating job opportunities and supporting livelihoods. These schemes encompass diverse sectors such as rural development, skill enhancement, and social welfare.

2. How do government employment schemes benefit citizens?

Government employment schemes provide avenues for skill development, financial assistance, and employment opportunities, especially for marginalized communities and those in rural areas. These schemes contribute to poverty alleviation, economic empowerment, and overall societal development.

3. What are some notable government employment schemes in India?

Notable government employment schemes in India include the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Rojgar Yojana (PMRY), National Rural Livelihoods Mission (NRLM), Skill India Mission, and Start-Up India, among others. These schemes address various aspects of employment generation, skill development, and entrepreneurship promotion.

4. How can individuals access government employment schemes?

Individuals can access government employment schemes through designated government offices, online portals, and community centers. Depending on the scheme, applicants may need to fulfill specific eligibility criteria and provide necessary documentation to avail themselves of benefits.

5. What impact do government employment schemes have on the economy?

Government employment schemes play a crucial role in stimulating economic growth by creating a workforce equipped with relevant skills, fostering entrepreneurship, and reducing unemployment rates. Additionally, these schemes contribute to poverty reduction and enhance overall productivity, thereby positively impacting the economy’s welfare and sustainability.

In case you still have your doubts, contact us on 9811333901. 

For UPSC Prelims Resources, Click here

For Daily Updates and Study Material:

Join our Telegram Channel – Edukemy for IAS

• 1. Learn through Videos – here
• 2. Be Exam Ready by Practicing Daily MCQs – here
• 3. Daily Newsletter – Get all your Current Affairs Covered – here
• 4. Mains Answer Writing Practice – here

Visit our YouTube Channel – here