Jobs and Employment creation in India

While a lot of ink is used on focus on jobs in the - what people usually forget is that a majority of Indians work in what is referred to as the "unorganized sector". This sector has to be the focus of attention if the country has to emerge faster from the economic slowdown. Take a look at this old post by Dr. Madhukar Shukla on the future of work and employment in India.

Now a ILO report has stressed the need again. From an article in Mint:

“Employment creation by itself will be a stimulus for growth as purchasing power will increase and, therefore, local demand can be created, provided remuneration is adequate and monitored,” said the report sponsored by the International Labour Organization (ILO).

The report also called for the implementation of a statutory national minimum wage and easier credit for micro, small and medium enterprises, and emphasized that benefits from financial incentives be monitored to ensure employment is protected.

An estimated 131,000 people have lost their jobs across 3,003 labour-intensive, export-oriented sectors such as leather, gems and jewellery and textiles, according to the Labour Bureau’s latest survey conducted between April and June.

Half-a-million people had lost jobs between October and December, followed by a mild recovery—280,000 new jobs were created in the January-March period.

The report has identified urban youth, women, migrants and workers in the informal sector, particularly in construction, among the worst hit. The informal sector includes economic activities that are not officially regulated and which operate outside the scope of the incentive system offered by the government.