Lok Sabha Question No. 1149 (UNSTARRED), answered on 2021-07-26
Subject: Urban Unemployment Crisis
Ministry: LABOUR AND EMPLOYMENT
Asked by: Abhishek Banerjee

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 1149 TO BE ANSWERED ON 26 TH  JULY, 2021

## URBAN UNEMPLOYMENT CRISIS

## 1149.      SHRI ABHISHEK BANERJEE:

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

- (a) the steps taken by the Ministry to mitigate the unemployment crisis as a part of the pandemic recovery process;
- (b) whether the Ministry plans to lay down an urban employment scheme similar to MGNREGA in the rural areas to help solve the urban unemployment crisis; and (c) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

- (a)  to  (c):  Government  of  India  has  taken  a  number  of  initiatives  for  promoting employment generation in the country during corona pandemic. Financial package of  more  than  rupees  twenty  seven  lakh  crore  under  'Aatma  Nirbhar  Bharat'  has been provided inter-alia,  to  create  employment  opportunities for  migrant workers, workers  of  organized  and  unorganized  sector,  and  promoting  rural  economy.  It includes number of initiatives for all these sectors.

Aatmanirbhar Bharat Rojgar Yojana (ABRY) has been launched w.e.f. 1st October, 2020  to  incentivize  employers  for  creation  of  new  employment  along  with  social security  benefits  and  restoration  of  employment.  This  scheme  being  implemented through EPFO  seeks  to reduce the financial burden of the employers and encourages  them  to  hire  more  workers.  Under  ABRY,  Government  of  India  is providing for a period of two years, both the employees' share (12% of wages) and employers  share'  (12%  of  wages)  of  contribution  or  only  employees'  share  of contribution depending on employment strength of the EPFO registered establishments, for new employees whose monthly wage is less than Rs. 15,000/per month. The new employees under the scheme include those who lost their jobs during Covid-19 and didn't join in any EPF covered establishment upto 30.09.2020.

Under  Pradhan  Mantri  Garib  Kalyan  Yojana  (PMGKY),  Government  of  India  has contributed both 12% employer's share and 12% employee's share under Employees Provident Fund (EPF), totaling 24% of the wage for the wage month from March to August, 2020 for  the establishments having upto 100 employees with 90% of such employees earning less than Rs. 15000/-.This has helped in providing employment in EPFO registered establishments during post Covid period.

Statutory PF contribution of both employer and employee was reduced to 10% each from existing 12% each for all establishments covered by EPFO for three months i.e. May to July 2020.

PM-  SVANidhi  Scheme  has  facilitated  collateral  free  working  capital  loan  upto Rs.10,000/-  for  one-year  tenure  to  street  vendors,  to  help  them  resume  their businesses.

RBI  and  Government  of  India  have  introduced  measures  to  infuse  liquidity  in  the economy to sustain the market economy and raise the level of employment.

Besides above, Government has taken various other steps for generating employment in the country like encouraging various projects involving substantial investment  and  through  public  expenditure  on  schemes  like  Prime  Minister's Employment  Generation  Programme  (PMEGP),  Mahatma  Gandhi  National  Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya Grameen Kaushalya  Yojana  (DDU-GKY)  and  Deendayal  Antodaya  Yojana-National  Urban Livelihoods  Mission  (DAY-NULM). Wage under MGNREGS has been increased from Rs. 182 per day to Rs. 202 per day.

Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government inter alia, for facilitating self-employment. Under PMMY collateral free loans upto Rs. 10 lakh, are extended to micro/small business enterprises and to individuals to enable them to setup or expand their business activities.

Earlier Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched to incentivise employers for creation of new  employment.  Under the scheme, Government of India is paying Employer's contribution i.e. 12% for a period of three years to the new employees earning upto Rs. 15,000/- through EPFO. The terminal date for registration of beneficiary through establishment was 31st March 2019. The beneficiaries registered upto 31st March, 2019 will continue to receive the benefit for  3  years  from  the  date  of  registration  under  the  scheme  i.e.  upto  31st  March, 2022.

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.

The Ministry  of  Housing  and  Urban  Affairs  is  implementing  a  Centrally  Sponsored Scheme namely "Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM)" across the country to reduce poverty and vulnerability of urban poor households on a sustainable basis. Mission, inter-alia, aims to enable urban poor to access gainful self-employment and skilled wage employment opportunities. Also, financial assistance is provided to individuals/ groups/ Self Help Groups (SHGs) of urban poor for setting up gainful self-employment ventures or micro-enterprises.

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