Will Government Able To Create Jobs Before Elections?

INDIA NEWS

Will Government Able To Create Jobs Before Elections?


January 25, 2017



To soften the impact of demonetisation and GST, Arun Jaitley is likely to introduce new employment and skilling scheme. Though clear-cut policies that would have an immediate impact on job creation are unlikely, jobs are likely to be a top priority after the disruptions caused by demonetisation and GST rollout. The government is working on a National Employment Policy (NEP) and a universal social security scheme, which may be announced in the Budget, along with higher allocation for the MUDRA scheme for financing entrepreneurship. Additionally, a renewed focus on skill development and vocational training may also be seen in the Budget. The NEP is expected to have a sector-wise focus, especially on labour-intensive sectors such as textiles and handloom, and other small and medium enterprises. It will likely provide them with incentives for formal employment. Similarly, the Labour Code on Social Security, which is still under discussion, could also feature in the Budget. It aims to provide social security coverage to all workers, especially those in the informal sector.

While the Centre has launched policies such as Make in India and Skill India, labour markets have been mostly subdued, with private investment remaining muted due to both global and domestic economic factors. The Annual Employment-Unemployment Survey, conducted by the Labour Bureau, pegged the unemployment rate at 5 per cent in 2015-16 from 4.9 per cent in 2013-14 and 4.7 per cent in 2012-13.