Why in news?
India’s young population offers a demographic dividend, yet job creation has not kept pace. In early 2025 industry bodies urged the government to bring together scattered employment schemes under one coherent policy. The aim is to harness new opportunities, protect workers and maximise productivity.
Need for a unified framework
India operates numerous schemes for skill development, apprenticeships, gig work and labour welfare. However they are overseen by different ministries and lack coordination. Employers and job seekers find the system confusing. A single framework would integrate labour market data, streamline benefits and match skills with demand.
Key proposals
- Integrated employment policy: Create a National Employment Policy that aligns training programmes, labour laws and social security. Use the National Career Service portal as a hub connecting job seekers with employers.
- Targeted incentives: Offer tax breaks and subsidies to labour‑intensive sectors like construction, tourism, textiles and electronics. Encourage rural internships and public works to provide experience for youth.
- Women’s participation: Provide hostel facilities, crèches and safe transportation to increase women’s labour force participation. Implement equal‑pay policies and flexible work arrangements.
- Gig and platform workers: Extend social security schemes to gig workers. Ensure platforms contribute towards insurance, health and pension funds.
- International mobility: Set up an authority to coordinate overseas employment opportunities, protect migrant workers and align skills with global demand.
Challenges and way forward
- Skills mismatch: Many graduates lack industry‑relevant skills. Curriculum reforms, industry partnerships and vocational training are needed.
- Regional disparities: Jobs are concentrated in urban areas, leaving many rural youth underemployed. Promoting rural industries and digital connectivity can bridge this gap.
- Informality: A large share of employment remains informal, depriving workers of benefits. Simplifying labour laws and enforcing contracts can encourage formalisation.
- Data gaps: Accurate and timely employment data are essential. Strengthening labour surveys and digital job registries will inform policy decisions.