Lok Sabha Question No. 1459 (UNSTARRED), answered on 2019-07-01
Subject: Need of Formal Jobs
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shrikant Eknath Shinde, Pritam Gopinath Munde, Vinayak Bhaurao Raut, Pushpendra Singh Chandel, Shrirang Appa Barne

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK  SABHA

## UNSTARRED QUESTION NO.1459

TO BE ANSWERED ON 1ST JULY, 2019

## NEED OF FORMAL JOBS

1459. DR. SHRIKANT EKNATH SHINDE:

DR. PRITAM GOPINATHRAO MUNDE:

SHRI VINAYAK RAUT:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI SRIRANGA APPA BARNE

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) whether there is an acute need of more formal enterprises and non-farm jobs to provide formal jobs to the aspirants and if so, the details thereof;
- (b) whether  single  labour  code,  ease  of  doing  business  intervention,  cashless transactions, reformed labour laws are some of the reforms that the country needs now and if so, the response of the Government in this regard;
- (c) whether the  country's labour laws have several issues that need to be first rectified  to  solve  job  problem  and  if  so,  the  reaction  of  the  Government thereto; and
- (d)
- the steps taken by the Government to solve the job problem?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a)  to  (d):    Employment  generation  coupled  with  improving  employability  is  the priority  concern  of  the  Government.  Government  has  taken  various  steps  for generating employment in the country like encouraging private sector of economy, fast  tracking  various  projects  involving  substantial  investment  and  increasing public expenditure in various schemes.

Pradhan  Mantri  Rojgar  Protsahan  Yojana  (PMRPY)  has  been  launched  by  the Ministry  of  Labour  and  Employment  for  incentivising  employers  for  promoting employment generation. Under this scheme, Government is paying entire employer's  contribution  (12%  or  as  admissible)  towards  EPF  and  EPS  for  all eligible new employees for all sectors for 3 years. This scheme has a dual benefit, where, on the one  hand, the employer  is incentivised for increasing the employment base of workers in the establishment, and on the other hand, these workers will have access to social security benefits of the organised sector. The scheme aims to cover a large number of informal workers to the formal workforce.

Reforms  in  labour  laws  are  an  ongoing  process  to  update  the  legislative system  to  address  the  need  of  the  hour  so  as  to  make  them  more  effective, flexible and in sync with emerging economic and industrial scenario. The Second National Commission on Labour has recommended that the existing Labour Laws should  be  broadly  grouped  into  four  or  five  Labour  Codes  on  functional  basis. Accordingly, the Ministry has taken steps for drafting four labour codes on Wages, Industrial Relations, Social Security & Welfare, and Occupation Safety, Health and Working  conditions  respectively,  by  simplifying,  amalgamating  and  rationalizing the relevant provisions of the existing Central Labour Laws. These initiatives will reduce  the  complexity  in  compliance  due  to  multiplicity  of  labour  laws  and facilitate setting  up of enterprises and  thus  creating the  environment  for development of business and industry in the country and generating employment opportunities  without  diluting  basic  aspects  of  safety,  security  and  health  of workers.

Pradhan  Mantri  Mudra  Yojana  (PMMY)  has  been  initiated  by  Government inter  alia  for  facilitating  self-employment.  Under  PMMY  collateral  free  loans uptoRs.  10  lakh,  are  extended  to  micro/small  business  enterprises  and  to individuals to enable them to setup or expand their business activities. Upto 31st March, 2019, 18.26 crore loans were sanctioned under the scheme. Start-up India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of start-up businesses, to  drive  sustainable  economic  growth  and  generate  large  scale  employment opportunities. Besides these initiatives, flagship programmes of the Government such as Make  in  India,  Digital  India,  Swachh  Bharat  Mission,  Smart  City  Mission,  Atal Mission for Rejuvenation and Urban Transformation, Housing for All, Infrastructure development  and  Industrial  corridors  have  the  potential  to  generate  productive employment opportunities. Ministries/ Departments/ States run skill development schemes across various sectors to improve the employability of youth and also facilitate  placements.  Schemes  such  as  the  National  Apprenticeship  Promotion Scheme  (NAPS)  wherein  Government  reimburses  25  percent  of  the  stipend payable  to  apprentices  also  enhances  employability  of  the  youth  to  access employment.

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