Handhold MSMEs, Boost Apprenticeships To Create Employment In India: PHDCCI
Going forward, employment creation must be at the top of the agenda to absorb the growing young population in the country, says PHDCCI
To the central government, the PHD Chamber of Commerce and Industry (PHDCCI) in a report has suggested that employment creation in India should be accelerated by handholding of micro, small and medium enterprises (MSMEs), boosting apprenticeships and internships aided by industry and support startups and creating Self-employment opportunities.
The report stated that to create more than 10 crore jobs by 2030, about 6 crore should come from MSMEs, about 3 crore large industry conglomerates, around 1 crore from startups and 25 lakh from government departments including filling of vacant positions and NGOs.
It is suggested that the National Employment Policy should incorporate a quarterly target-based approach to enhance employment; setting up startup incubation centres and technology development centres with industry involvement at educational institutions to boost employability; strengthening workforce absorbing sectors, among the government, private and self-employment sectors and fulfil all the vacant positions at the Centre and State department; strengthening of university-industry linkages; boosting R&D and innovation in industry to motivate industry to become a workforce absorbing sector and publication of quarterly national data on labour force participation and employment status in public domain
At this crucial juncture, PHDCCI suggested that there is a need to formulate a comprehensive National Employment Policy on a mission mode approach with targeted outcomes every quarter as increased employment would smoothen India’s journey towards Viksit Bharat by 2047.
Interestingly, the BJP in its 2014 election manifesto listed job creation as a “high priority” task and earmarked manufacturing, infrastructure and housing as sectors with the potential to achieve the target. However, the International Labour Organisation (ILO) in its recent report stated that the unemployment rate of Indian youths is higher than for adults. The youth unemployment rate has been rising over the past several decades– from 5.6 per cent in 2000 to 6.2 per cent in 2012 and then increasing threefold, to nearly 18 per cent in 2018 and reaching around 15.1 per cent in 2020.
It added that unemployment among educated youths is particularly high and has exceeded global averages by 2018. Indian youths are attaining high levels of education, but not enough employment opportunities are created for them, as reflected by the declining participation in the labour force and workforce.
The challenge of educated youth unemployment is increasing and becoming huge in India, with immense implications for societal balance and peace, according to the report. However, a periodic Labour Force survey done by the government showed it further rose to 20.8 per cent in April-June 2020 during the Covid-19 pandemic before dropping to 3.2 per cent in 2022-23– nearly half of the 2017-18 levels.
