Lok Sabha Question No. 1004 (UNSTARRED), answered on 2021-07-26
Subject: Unemployment during Second Wave of Covid
Ministry: LABOUR AND EMPLOYMENT
Asked by: Tapir Gao

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 1004

## TO BE ANSWERED ON 26 th JULY, 2021

## UNEMPLOYMENT DURING SECOND WAVE OF COVID

## 1004.  SHRI TAPIR GAO:

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

- (a) whether  the  employment  opportunities  have  reduced  and  there  is  a  steep increase in the percentage of unemployment in the country during the last six months;
- (b)
- if so, the details thereof;
- (c) whether the Government proposes to extend any kind of financial assistance to the people who have become unemployed during the second wave of covid;
- (d)
- if so, the details thereof; and
- (e) the scheme of the Government to reduce the continuously increasing unemployment in the country?

## ANSWER

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

- (a) & (b): Annual Periodic Labour Force Survey (PLFS) on employment and unemployment is conducted by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. The annual PLFS data is available upto 2019-20. As per  the  results  of  annual  PLFS,  the  unemployment  rate  for  persons  of  15  years  and above on usual status (principal status + subsidiary status) basis in the country to the extent  available  during  2017-18,  2018-19  and  2019-20  was  6.0%,  5.8%  and  4.8% respectively.
- (c)  to  (e):  Government  of  India  has  taken  a  number  of  initiatives  for  promoting employment generation in the country. 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  includes  those  who  have  lost  their employment during Covid-19 pandemic and did not join any EPF covered establishment upto 30.09.2020. The terminal date for registration of beneficiary under the scheme has been extended from 30th June, 2021 to 31st March, 2022.

Under Pradhan Mantri Garib Kalyan Yojna (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  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.

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.

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 during the post Covid period.

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.

In addition, to enhance the employment generation, Government is 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), Deendayal  Antodaya  Yojana-National  Urban  Livelihoods  Mission  (DAY-NULM)  and Pradhan  Mantri  Kaushal  VikasYojana  (PMKVY)  run  by  Ministry  of  Micro,  Small  & Medium  Enterprises,  Ministry  of  Rural  Development,  Ministry  of  Housing  &  Urban Affairs and Ministry of Skill Development & Entrepreneurship (MSDE), respectively.

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

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