File picture of job seekers at a job fair, used for representation only.
| Photo Credit: The Hindu

Amid a worsening unemployment crisis, China has seen the rise of an unusual trend where companies offer “pretend to work” services to help jobless individuals hide their situation from family and friends.

For a daily fee of around 30 yuan (Rs 290), these services provide office space, lunch, and even fake workstations, complete with computers and phones. Some providers go as far as offering “boss” packages, where clients can pose in a leather chair and take photos, South China Morning Post reported.

In Hebei province, one such service provides office access for 29.9 yuan (Rs 280) per day, enabling users to “work” from 10 am to 5 pm while enjoying lunch.

Unemployment is a growing problem in China, especially among young people. China’s unemployment rate reached 5.1 per cent in December 2024, up from 5 per cent in November, marking the highest level in three months. For locally registered residents, the jobless rate rose slightly to 5.3 per cent. Among non-local residents, it was 4.6 per cent, while non-local agricultural workers had a slightly lower rate at 4.5 per cent, according to China’s National Bureau of Statistics.

The pressure to maintain appearances has pushed many individuals to adopt creative strategies. A former e-commerce worker from Hangzhou, spent his days in a coffee shop applying for jobs but told his family he was still employed. “I didn’t want to make them worry,” he said.

A 29-year-old former semiconductor worker kept his layoff a secret from his girlfriend. He used his severance pay to prepare for civil service exams at a library, acting as if he were still working.

While the “pretend to work” services are gaining attention, experts say it’s not a healthy way to cope. They have attributed the phenomenon to societal pressure to succeed and the stigma associated with unemployment.

Zhang Yong, a professor of social work at Wuhan University, said, “The sudden shock of losing a job can lead to depression.”

He advised people to talk openly with their families, seek counseling, and stay realistic about their job prospects. “They need to take an honest look at their situation, understand the job market, be open with their families and build a healthier mindset about career choices,” he added.

New Delhi:

The Congress on Sunday promised to give Rs 8,500 to educated unemployed youths in Delhi for one year if it comes to power in Delhi. The financial assistance will be provided under a scheme called the ‘Yuva Udaan Yojana’ and it is not free, AICC general secretary Sachin Pilot said at a press conference.

“We will provide financial assistance to youths who can show their skills in a company, factory or organisation. They will get money through these companies. This is not a scheme under which one will get money while sitting at home,” Pilot said.

“We will try that people are absorbed in those fields where they have received training… so that they can… improve their skill set,” he added.

On January 6, Congress announced ‘Pyaari Didi Yojana’, promising a monthly financial assistance of Rs 2,500 for women if it is voted to power. On January 8, the party announced ‘Jeevan Raksha Yojana’ under which it promised to provide free health insurance of up to Rs 25 lakh.

Polling for the 70-member Delhi Assembly will be held on February 5 and votes will be counted on February 8. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

When Julius Caesar’s Senate fixed January 1 as the ‘first day of the year’, the idea wasn’t only to ‘start afresh’. It was also when those in civil office were to set in motion their responsibilities. In that tradition, coming down from 45 BC, let the existing coalition government headed by Narendra Modi set out to focus and do a lot better with this list: Top 25 Must Get Done In 2025.

1. Control inflation: Retail inflation reached a 14-month high of 6.21% and food inflation reached a 15-month high of 10.87% in October 2024. In 2023, savings by households dipped to a 50-year low.

2. Make the GDP grow: The Reserve Bank of India reduced GDP growth estimates from 7.2% to 6.6% in December 2024. The repo rate was not cut for eleven consecutive terms.

3. Attract foreign investment: 13 thousand crore (1.6 billion USD) worth of foreign direct investment has decreased between 2022-23 and 2023-24.

4. Make the rupee strong: In December 2024, the rupee stayed weak for the third straight session and settled at an all-time low of 85.27 against the US dollar.

5. Generate employment: Youth unemployment rate has been at 10% for the last two years. As per the Economic Survey, half of all individuals are not ready to be employed after graduating from college.

6. Favour the common man: In the last four years, Rs 5.65 lakh crore has been written off for the industrial sector. Agriculture, the largest employer in the country, received the least attention in terms of loan write-offs among all sectors from Scheduled Commercial Banks.

7. Provide food for all: Annually, 17 lakh Indians die from diseases related to insufficient food intake.

8. Ensure equal wages for all: Annual growth rate of real wages over the last decade has been close to zero at the all-India level. Rural real wages for the last five years have declined at 0.4% and agricultural wages have become stagnant at 0.2%. Four out of five people earn less than Rs 515 as of 2021.

9. Ensure dignity of life for farmers: As per the NCRB, 30 farmers commit suicide every day. Since February 2024, 22 farmers have lost their lives and over 160 have been injured while protesting for a legal guarantee for MSP.

10. Enable safety for women: Section 63 of the Bharatiya Nyaya Sanhita deals with the offence of rape but provides an exception for marital rape, stating that “sexual intercourse or sexual acts by a man with his own wife, the wife not being under eighteen years of age, is not rape”.

11. Ensure dignity for the marginalised: Between 2018 and 2020, 443 people died cleaning sewers and septic tanks. Manual scavenging was banned in 2013.

12. Protect the press: Between 2014 and 2019, there were 200 serious attacks on journalists, along with arrests and interrogations. At least 194 journalists were targeted by government agencies, non-state political actors, criminals, and armed opposition groups in 2022 alone.

13. Ensure equitable representation: The representation of women in the 18th Lok Sabha is merely 13.6%. This is even less than the 17th Lok Sabha, which had 14.4% women. Only two out of 24 Parliamentary Standing Committees are chaired by women.

14. Allow legislative scrutiny: Since 2019, over 100 bills have been passed in less than two hours. In the 17th Lok Sabha, nine out of 10 bills introduced in Parliament have been marked by zero or incomplete consultations.

15. Select the Deputy Speaker of Lok Sabha: The 17th Lok Sabha did not have a Deputy Speaker for its entire five-year term. The office of the Deputy Speaker continues to remain vacant even in the 18th Lok Sabha.

16. Allow criticism: The number of opposition MPs who have been suspended in the last five years has increased 13-fold. As many as 95% cases by the Enforcement Directorate in the last ten years have been filed against those from the Opposition.

17. Respect institutions: The National Commission for Backward Classes, the National Commission for Scheduled Castes, and the National Commission for Protection of Child Rights do not have a Vice-Chairperson.

18. Support Scheduled Tribes, Scheduled Castes & Other Backward Classes: As of March 2024, one out of 10 Kasturba Gandhi Balika Vidyalayas (KGBV) were not functional. Two out of five Eklavya schools were not functional as of July 2024.

19. Complete timelines: The 2021 Census has still not been conducted. This makes it the first Census to be delayed between 1887 and 2011.

20. Utilise funds better: As much as 80% of the Beti Bachao Beti Padhao’s total fund was spent on media advocacy, not for interventions on health or education.

21. Release dues owed to states: The government owes Rs 1,500 Crore under MGNREGS and Awas Yojana to West Bengal. The non-payment of the funds has directly affected the livelihood of 59 lakh MGNREGS workers.

22. Care about Manipur: The violence in Manipur has continued for more than a year, causing the displacement of 67,000 people, of which 14,000 are school-going students. The Prime Minister is yet to visit the state.

23. Safeguard minorities and their welfare: The NCRB recorded 378 instances of communal violence in 2021 and 272 such instances in 2022. In 2023, India witnessed 668 documented hate speech incidents against one community alone. One hundred and twenty-eight properties were demolished between April and June 2022, following communal violence and protests.

24. Build secure public infrastructure: There were 244 train accidents between 2017 and 2022. As many as 135 people died when a suspension bridge collapsed in Morbi. Fourty-one workers were trapped for 17 days after the Uttarkashi Tunnel caved in.

25. Enable a safer internet: Frauds relating to “digital arrests” in the first nine months of 2024 amounted to losses worth Rs 1616 crore. The Digital Data Protection Rules have not been notified despite the Act being passed over a year ago.

(Research credit: Varnika Mishra)

(Derek O’Brien, MP, leads the Trinamool Congress in the Rajya Sabha)

Disclaimer: These are the personal opinions of the author

Aspirants wait to board a train to go home after completing the Uttar Pradesh constable civil police direct recruitment examination in Lucknow. File
| Photo Credit: The Hindu

India is not producing enough good quality jobs for its people. A good quality job provides dignity, adequate compensation, an opportunity for learning, and advancement for those who strive. Instead, many jobs are unpaid, informal, and dead end. Worse, the seemingly low unemployment rate masks the fact that to count as employed, a person needs to have reported working for only one month in an entire year.

The dearth of quality employment, particularly among the youth, is a ticking time bomb that threatens not just our economy, but the very legitimacy of our state. If the government fails to create avenues for social and economic participation for young people, it will inevitably breed frustration.

A twofold problem

The political problem is twofold: how do we give people a sense of dignity and purpose, and the means for financial support? Traditionally, people have derived dignity and purpose through a combination of community, work, and political engagement. However, the package deal of liberalism and capitalism have deprioritised traditional sources of community and increased the importance of work in conferring social standing and belonging. As a result, work has become the dominant entry point into a broader sense of community and political engagement.

While the elite find purpose and status through their control over societal discourse and decision-making, which also bring them substantial financial rewards, large sections of our population feel they lack both dignity and financial security. This disparity is likely to worsen as technological advancements and capital concentration potentially displace large numbers of workers, perhaps permanently. In a large democracy such as India, such concentration of purpose and financial gain among the elites can erode faith in the system and lead to political instability.

This challenge — how we structure our society, what we value, and how we include everyone — is fundamentally political. Yet, the political response has been inadequate, oscillating between deferring to market forces and resorting to short-term partisanship. The market-oriented approach is reflected in the superficial mantra of ‘creative destruction,’ suggesting that old jobs and industries will be seamlessly replaced by new and better ones. Meanwhile, some politicians and capitalists have mooted universal basic income (UBI) as a solution. UBI is a minimum “income” received by all citizens of a given population as financial transfers from the government without having to work.

Setting aside the question of UBI’s financial feasibility, it is important to recognise that inequality and an assault on human dignity are inherent in the very concept. UBI implies that a significant portion of the population is no longer needed in the economy, with a smaller subset “paying” for the rest. Its very premise concedes that technology and capital will create outsized winners while the majority will merely survive on their largesse. This approach fails to address people’s need to feel relevant and capable, and ignores the loss of dignity that comes from not contributing meaningfully to society. It does not, thus, account for the possibility that UBI might encourage more anger and populism because people want to contribute and thrive, not just survive on the sidelines.

There is a risk to democracy as a whole as well. UBI would shift focus from structural reforms to mere economic transfers and thus entrench elite power by insulating them from pressures to address fundamental inequities in the economy and labour markets. It risks recasting the state as a mere distributor of funds rather than the architect and arbitrator of societal processes required to create a just and participatory social and economic system.

Addressing structural issues

The partisan response has been to lob the issue between parties for short-term electoral gains instead of responding to the ongoing structural transformation of our society. Some political leaders are mindful of the long term, but institutionally, parties have become too narrow in their scope to address larger questions such as unemployment and have reduced their ambitions to winning elections alone. However, divesting societal issues to civil society or government in order to function solely as election-winning machines jeopardises their long-term legitimacy. This is because democracy is about more than elections — it is about creating a social contract that works for everyone.

In fact, the failure to anticipate and address long-term structural issues is a key reason why people feel neglected by the political class and view politics as a cynical game. When people believe the political system is incapable of addressing pressing challenges, they lose faith in democratic institutions. Thus parties and institutions must find ways to address structural issues, including unemployment, inequality, and dignity; else, people will seek alternatives, rendering political parties irrelevant. We are witnessing this globally through the rise of populism, authoritarianism, and civic disengagement.

Political parties must provide meaningful leadership by addressing structural issues head-on without resorting to deflection or partisanship. The future of Indian democracy — and the continued relevance of our political institutions — hinges on our ability to restore a broader sense of public purpose and economic participation to the centre of our national dialogue.

Ruchi Gupta, Executive Director of the Future of India Foundation, which anchors an initiative to harness the political process to create aspirational employment opportunities for youth at the district level

The high unemployment rate in the Bharatiya Janta Party-ruled Haryana reflected even in Union government surveys, has been a major weapon in the hands of the Opposition to attack the State government, and more so as the State goes to the polls in a few weeks from now.

But the Periodic Labour Force Survey (PLFS) by the Ministry of Statistics and Programme Implementation for the January-March quarter in FY24, shows that the unemployment rate among those above 15 years of age as per current weekly status in urban areas has more than halved to 4.1% from 8.8% since the corresponding quarter the year before, dropping below the national average of 6.7%.

Sharp contrast

This is in sharp contrast to the annual PLFS results for 2021-22 which showed that Haryana with an unemployment rate of 9% – more than double the national rate of 4.1%, had fared poorly compared to its neighbours including Uttar Pradesh (2.9%), Himachal Pradesh (4.0%), Rajasthan (4.7%) and Punjab (6.4%).

Attributing the high unemployment rate in FY22 in the State to the global post-Covid economic slowdown in sectors such as hospitality and civil aviation, Chief Principal Secretary to the Chief Minister, Rajesh Khullar told The Hindu that job creation, both in the public and private sector, had been the Government’s top priority. He said the government was on a “job offering spree” in the past few months to fill government posts.

“Around 30,000 regular government jobs, including in Group C and D, have been filled this year so far with Chief Minister Nayab Singh Saini handing over appointment letters to 7,500 Trained Graduate Teachers on July 30. The government aims to give 50,000 regular jobs before the Assembly polls on October 5, but some of these appointments have been delayed as the Model Code of Conduct came into force on August 16.

‘Mission 60,000’

His predecessor Manohar Lal had in January announced “Mission 60,000” for youth employment for Below Poverty Line (BPL) families by engaging them as “Van Mitras”, “E-Sewa Mitras” and “Kisan Mitras” and imparting training to 10,000 youth to become contractors,” said Mr. Khullar.

Read: After furore over CMIE data, govt. figures show Haryana sliding on unemployment

The proposed manufacturing plants of Maruti Suzuki and Suzuki Motorcycle at Industrial Model Township at Kharkhoda in Sonipat district to be commissioned next year are likely to generate around 15,000 direct jobs, he said, adding these efforts by the government are getting reflected in the recent job survey reports.

Dismissing official job statistics as mere “jugglery of data”, Naveen Jaihind, president of Jai Hind Sena, a social organisation said not enough government jobs have been filled in the past few years. Protesting in a unique way against unemployment in the agrarian State, Mr. Jaihind, led a “Berozgaro Ki Baraat (Wedding Procession of Unemployed)” in Rohtak in January last year, to highlight the socio-economic implications of high unemployment among the youth.

Mr. Jaihind, who is also former Haryana AAP president, said the State’s skewed sex ratio, coupled with high unemployment rate had led to rising number of young men forced to remain single in rural Haryana pushing them into drug-addiction and crime. A resident of Rohtak’s Meham, Shankar Dayal Sharma, a Masters in Physiotherapy, said though every hospital and health care centre needs a physiotherapist, the government had advertised only eight vacancies a decade ago. Working part-time at a nearby clinic for a paltry ₹9,000 per month, Mr. Sharma, 30, said he was tired of waiting for a physiotherapist’s job and was ready work a Group-D job with the Government if opportunity arose. “A couple of relatives are teaching at private schools. They hold PhD degrees. Yet they are willing to work Group-D jobs because the government has failed to offer them jobs as per their qualifications,” Mr. Sharma said.

Two-time Congress Chief Minister and Opposition Leader, Bhupinder Singh Hooda, critical of the Government’s efforts in jobs creation said it is instead sending workers to warn-torn Israel. Mr. Khattar’s government facilitated 10,000 people to be recruited in Israel’s construction sector amid a labour shortage there. He said the Government has not filled more than two lakh posts across departments, and is instead recruiting non-Haryanvi residents to higher positions. 

‘Going abroad’

A Jind-based travel agent, seeking anonymity, spoke of a growing trend among youth from Haryana’s districts bordering Punjab emigrating legally or illegally for some years now, looking for better opportunities. “Government jobs still remain the top preference for the youth as they look for stability. But there have not been enough appointments in the past few years, more so under the present Government. The youth have begun going abroad. They are inspired by their friends who have gone abroad and who present a rosy picture of their lives on social media,” said the agent.

Also read:Eight crore new jobs in last three to four years: PM Modi

Former general-secretary, Manesar Industries Welfare Association, Manmohan Gaind, said there is huge demand for a skilled workforce. But the government’s programmes to impart skills had failed to produce the workforce with the desired skills. He said the government must incentivise industry to impart skills to the youth by bearing the entire expenses for their training. He also demanded that Micro, Small and Medium Enterprises (MSMEs) be treated on par with the agriculture sector and be offered credit at 4-5% interest rate. “While the government may have to waive credit to farmers, MSMEs repay every single penny to the banks and also generate jobs. Though home loan is available at 8% interest rate, MSMEs borrow at 10-11% rate to buy a machine for their expansion,” complained Mr. Gaind, Chief Executive Officer, M. M. Creations, which makes couture clothing and home furnishings.

A poster of an immigration consulting agency in Rajpura town amid rising emigration in Punjab.
| Photo Credit: REUTERS

Uncertain over securing a suitable job, Ranjandeep Singh, a 22-year-old bachelor of arts graduate in Punjab’s Malout town in Muktsar district has been for the past six months rigorously preparing to clear his language testing exams as he aspires and foresees ‘a better life’ abroad. His concern — similar to many youngsters in Punjab — is the want of suitable employment opportunities, and in the prevailing scenario migrating abroad is Mr. Singh’s topmost preference.

“I am preparing for IELTS (English language proficiency test) exam and shall appear next month. Once I clear it, I intend to go to Canada to study and find a job. I have lost hope of finding a suitable job here. By suitable, I mean a job in which I can live a dignified life. I completed my BA last year (2023). Later, I got a job as a security guard at a local private company in Malout. I was getting a meagre salary for the work, making it difficult for me to assist my family. Also, the long working hours took a toll on my health, after working for two months I left the job. I also worked in the sales wing of a local pesticide company, but with the scanty wages, making ends meet was tough. Finally, I decided to go abroad. I am preparing to go to Canada,” said Mr. Singh, who belongs to a family that owns a 4-5 acre farm land at village Karamgarh.

‘Protest march’

Close to 150 kilometres away from Malout, on July 28, in Sangrur — the hometown of Chief Minister Bhagwant Mann —  under the banner of ‘Punjab Berozgar Sanjha Morcha’ (Punjab Unemployed Joint Front), five outfits of youths, who have been for long seeking government jobs, were up in arms against the Aam Aadmi Party (AAP) government in the State for its alleged apathy towards their demands. They staged a ‘protest march’ near the Chief Minister’s local residence in Sangrur, even as the protesters were stopped by the Police as they attempted to cross the barricades. Shouting anti-government slogans, the protesters blamed the AAP government for not paying any heed to the plight of “unemployed youth”.

41-year-old Raman Kumar, B.Ed (Bachelor of Education), who cleared his Punjab State Teacher Eligibility Test in 2018 is annoyed as his wait for a “secure government job” is still a distant dream. 

Sukhwinder Singh Dhilwan, who has been leading the struggle of these youngsters asserts that even though there are several posts vacant in departments such as health and education, the State government was not recruiting. “We are asking the government to fill up vacant posts of the master cadre of teachers in all subjects and grant age relaxation. Also, the vacant posts of multi-purpose health workers should be advertised and filled. The examination for art and craft teacher recruitment should be conducted among other demands,” he said.

According to the Periodic Labour Force Survey (January-March 2024) the unemployment rate in Punjab for the age group of 15 years and above (urban areas) stands at 6.8% among men and 10.9% among women. Punjab’s total unemployment rate is 7.7%, which is above the national unemployment rate of 6.7%.

Also read:On unemployment in Indian States

The matter of concern among a few economists, however, is the unemployment rate among the youth. As per the survey, the unemployment rate in Punjab in the age group of 15 and 29 years in urban areas is 17.4%, which includes 15% among men and 26% among women.

Pointing out that the quality of employment is quite bad in Punjab, noted economist Dr. Lakhwinder Singh, a visiting professor at the Institute for Human Development, New Delhi, says “80% of youth employed in Punjab is highly dissatisfied withtheir jobs. This is highest across Indian States. The generation of new but decent jobs will prevent them from going to greener pastures.”

“Given the structure and slow growth of the Punjab economy, the employment elasticity is low. Thus high unemployment is the natural outcome. To reduce unemployment, the Punjab government should invest to raise capital formation that will make the Punjab economy dynamic and generate higher GSDP growth and employment. Punjab is suffering from investment famine. Consequently, the digital revolution and the forth industrial revolution in technologies are bypassing Punjab. The State government should rise from this slumber and make investments in these areas that will attract young educated professionals to seek employment in these sectors. Private corporate investment can also be induced to invest in new activities where most of the youth aspire to work,” says Dr. Lakhwinder.

Rise in migration

The latest study by Ludhiana-based Punjab Agricultural University (PAU) has revealed that Punjab is witnessing a steady rise in migration. Punjab has witnessed a rise in emigration with approximately 13.34% of rural households having at least one member who has emigrated.

“Low income (72.81%), less employment opportunities (72.97%), and corruption (72.97%) were the main factors reported behind overseas migration as stated by migrants’ family,” points out the study. Meanwhile, the State government claims to have been working to improve the employment rate. 

The BJP floundered in the 2024 Lok Sabha election. The floundering continued on the floor of both Houses where Members of Parliament from the INDIA parties delivered multiple speeches that were well-structured, well-executed, and rich in content. A recurring theme in many of these powerful interventions on the Budget was a 12-letter word giving Modi and his coalition sleepless Delhi nights: unemployment.

Article 41 of the Constitution states, “The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education, and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.”

Employment And Food Insecurity

Many MPs in the Opposition quoted CMIE data about the employment rate – which is the ‘proportion of employed persons in the working age population’ – recorded at 37% in June 2024. The Global Hunger Index 2023 was often referred to last week in Parliament – India ranked 111th out of 125 countries. Despite improvements in food production and distribution, food insecurity persists, particularly in marginalised communities. 

Impact On Personal Freedoms

A citizen cannot truly enjoy any liberty when perpetually anxious about her family’s unmet needs. This becomes even more important when the Budget skirts around the issues of health, nutrition, social security, and education. It is difficult to think about personal liberties on an empty stomach. 

MGNREGA

MGNREGA addresses the issue of Right to Work. However, it ensures it as a statutory right, instead of being a Fundamental Right. The latter cannot be taken away by an amendment of the MGNREGA Act. It bears repetition that states have been constantly deprived of MGNREGA funds. The Union owes the West Bengal government alone Rs 7,000 Crores for the scheme. 

In a labour-surplus society, why then is the Union government often selling the family silver to private entities? Two dozen large Public Sector Undertakings (PSUs) have been privatised. This is not the solution. Should it not be the duty of the state to offer the labour force multiple opportunities for employment? There are 30 lakh vacancies in the Union government and government-controlled organisations. What is the road map and timelines for these vacancies to be filled? Parliament is in session. The government must provide answers. 

Education And Skill Development

The Union has an obligation to provide quality education and skill development to improve employability, and guarantee livelihood. But Budget 2024 has allocated only Rs 1.20 lakh crore to education, which is a 2% decline from Actuals (Rs 1.23 lakh crores) in 2023-24. 

Right To Livelihood As A Fundamental Right 

Through judicial interpretation, the Right to Livelihood has been read into the Right to Life, even though it is not explicitly listed among the Fundamental Rights in Part III of the Constitution. The Supreme Court emphasised, “An equally important facet of the right to life is the right to livelihood because no person can live without the means of living, that is, the means of livelihood. If the right to livelihood is not treated as a part of the constitutional right to life, the easiest way of depriving a person of his right to life would be to deprive him of his means of livelihood to the point of abrogation. Such deprivation would not only strip life of its effective content and meaningfulness but also make life impossible to live.”

The Right to Work, outlined in the directive principles, has been interpreted alongside the Rights to Livelihood and Life, evolving into a Fundamental Right through judicial pronouncements. Integrating the Right to Work into Fundamental Rights, and ensuring that policies are designed to create sustainable job opportunities, is paramount to ensuring employment. Even after a tepid performance in the elections, where they were punished by young people, this government refuses to prioritise investment in education and vocational training. 

Only talk about cooperative federalism will not do. States politically opposed to the ruling dispensation are deprived on flimsy grounds for years of their MGNREGA funds. These are funds due to people who have completed their work, and have still not been paid.

Additionally, fostering a more inclusive job market by supporting small businesses and encouraging entrepreneurship can play a critical role in generating employment. By taking these steps, India can better align its economic policies with its constitutional commitments and provide more meaningful support to its citizens.

The Right to Work still requires the state to take responsibility, and appropriate legislative actions, to fully provide citizens with the Right to Life, Livelihood, and Dignity.

Research Credit: Chahat Mangtani

(Derek O’Brien, MP, leads the Trinamool Congress in the Rajya Sabha)

Disclaimer: These are the personal opinions of the author

The story so far: The Union Budget for 2024-25 made it clear that employment was a major priority of the government, with the word getting 23 mentions in the Finance Minister’s speech. With many voters expressing their disenchantment with rising unemployment in the recent election, Prime Minister Narendra Modi has lent his title to a package of schemes on employment.

What is the current state of employment?

According to the Economic Survey, India’s workforce was estimated to be nearly 56.5 crore in 2022-23, of which more than 45% is employed in agriculture, 11.4% in manufacturing, 28.9% in services, and 13% in construction. Officially, the unemployment rate was just 3.2% in that period, but economists note that these statistics do not reflect ground reality, given the large number of underemployed people in the country and the fact that many job seekers continue to work on farms or the unorganised retail sector or as casual labourers. A person is categorised as employed if he pursued any economic activity for at least 30 days in the preceding year.

Almost one in five people in the workforce (18.3%), mostly women, do not receive any wages for their labour, as they are unpaid workers in household enterprises. The urban unemployment rate for the quarter ending March 2024 stood at 6.7%, while youth unemployment stood at 10% in 2022-23. The percentage of people in regular salaried work has dropped from 22.8% in 2017-18 to 20.9% five years later, despite policy efforts to formalise the workforce; many salaried workers do not have access to contracts or social security benefits that usually define a formal worker. The government cites enrolment in the Employees Provident Fund Organisation (EPFO) as evidence of formalisation. The EPFO has 7.3 crore contributing subscribers, though total accounts are 30 crore, including inoperative accounts and multiple accounts held by individuals.

What were specific schemes in the package?

Three of the schemes provide employment-linked incentives. The first scheme is meant to support the hiring of first-time employees, with a wage subsidy of up to ₹15,000 paid to the employee, and is expected to cover one crore people. The second is aimed at the hiring of first-time employees, specifically in the manufacturing sector, with wage subsidies to be paid to both employees and employers for four years, with a maximum incentive of 24% of a ₹25,000 monthly wage. The third supports employers who hire new workers, not necessarily first-timers, by reimbursing up to ₹3,000 of their monthly EPFO contribution. In fact, all three schemes are dependent on employees being registered with the EPFO. The fourth scheme aims to upgrade Industrial Training Institutes and boost skilling efforts, with 20 lakh students expected to benefit. The final scheme, which garnered headlines partly because of its similarities to a proposal in the Congress’s manifesto, is aimed at on-the-job skilling, with an ambitious target of one crore youth to be given internships in India’s top companies with a monthly allowance of ₹5,000 for one year, with the companies bearing training costs and 10% of the allowance.

What is in the fine print?

Economists and small industrialists say the conditions and procedures built into these schemes may create obstacles for effective implementation. For instance, the incentive scheme for first-time employees, which offers a ₹15,000 subsidy is paid out in three instalments; the second instalment is only payable if the employee undergoes a compulsory online financial literacy course. “This is impractical. Why should employees in every unrelated sector be expected to do this? And why should this be a condition for this incentive?” asks Himanshu, who teaches at Centre for Economic Studies and Planning, Jawaharlal Nehru University (JNU).

More worrying is the clause stating that the subsidy is “to be refunded by the employer if the employment to the first timer ends within 12 months of recruitment.” If the employee switches jobs in 10 months, he has already received the benefit of the scheme, but the employer is required to bear the costs; labour experts say few small employers will be willing to take that risk. The scheme for creating jobs in manufacturing has a minimum requirement of hiring 50 people or 25% of their existing strength, which is a significant number of people to be hired at one go for any firm in return for marginal benefits.

How effective are these schemes likely to be?

These schemes essentially attempt to encourage hiring by reducing the cost of new hires. However, economists note that this is not the main constraint preventing employers from hiring new workers. Anamitra Roychowdhury, a labour economist at JNU, notes that India is already a low wage economy, with real monthly incomes falling over the last five years for the majority of the workforce. “Wage costs are a redundant constraint,” he says, adding that while skilling is certainly needed, it is not the central issue preventing hiring either.

“There is a bigger structural reason why the economy is not able to create jobs, and that is due to insufficient demand, caused by low consumption… and the lack of private investment. And if that comes up, then these costs won’t matter,” notes Amit Basole, professor at Azim Premji University. He adds that these schemes need to be pitched to the niche group of employers for whom such costs do matter, usually small firms with small margins. In fact, Finance Secretary T.V. Somanathan indicated in an interview with The Hindu that this may have been the government’s intention behind the scheme, noting that “fiscal incentives have a role at the margin”.

Editorial | Shuffling the deck: On the Union Budget 2024-25

With regard to formalisation of the workforce, Mr. Basole points out that apart from new people entering the workforce, there are also large numbers seeking to leave agriculture, petty trade, unorganised retail and domestic service. The need is to create formal jobs to keep up with the pace of the supply, which is not happening, as evidenced by the fact that the proportion of salaried workers has actually dropped slightly over the last five years.

What else is needed to create jobs?

“When we think of where we need to create jobs, it should not be in the top 500 companies which are largely capital intensive, but in the MSME (micro, small and medium enterprises) sector, in labour intensive sectors, in small towns. The need is to raise wages there, infuse money into MSMEs, which will have a multiplier effect,” says Mr. Himanshu, recommending a bottoms-up approach. If the urgent requirement is to stimulate demand by increasing consumption, another step could be to raise wages in MGNREGA, the rural jobs scheme, and create a similar employment guarantee scheme for urban workers, says Mr. Roychowdhury. “This would be the more direct approach to kickstart consumption,” he says, noting that the Centre has instead curbed MGNREGA funding.

The report found that 183 million people meet the definition of unemployed. File.
| Photo Credit: Thulasi Kakkat

Global unemployment is set to fall slightly this year, a United Nations agency said on May 29 , reversing its previous prediction of a rise while warning of “slow progress” on tackling inequalities.

The International Labour Organization (ILO) expects a global unemployment rate of 4.9% in 2024, after originally forecasting unemployment would rise to 5.2% this year from five percent in 2023.

In a report, the Geneva-based UN agency forecasts that the rate will stay at 4.9% in 2025.

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However, the ILO cautioned that “inequalities in labour markets persist, with women in low-income countries particularly affected.”

The report found that 183 million people meet the definition of unemployed, meaning they are actively looking for work and are immediately available. But the number of people without a job who wanted to work stood at 402 million.

The agency also said women were more likely to be unwillingly out of work and disproportionately affected by a lack of opportunities.

Women in low-income countries were especially hard-hit, with 22.8% who wanted a job not in work, compared with 15.3 percent for men.

For high-income countries, the rate stood at 9.7% for women and 7.3% for men.

The report also warned that these differences were just the “tip of the iceberg” as women were much more likely than men to have left the labour force altogether.

Worldwide, the report estimated that 45.6% of women of working age were employed in 2024. For men, the figure was 69.2%.

“Despite our efforts to reduce global inequalities, the labour market remains an uneven playing field,” ILO Director-General Gilbert Houngbo is quoted as saying in a press release.

“To achieve a sustainable recovery whose benefits are shared by all… we must place inclusion and social justice at the core of our policies and institutions,” Houngbo said.

The ILO is the oldest specialised UN agency and brings together employers, unions and governments from around the world.