Lok Sabha Question No. 1911 (UNSTARRED), answered on 2022-03-14
Subject: GDP Growth and Employment
Ministry: LABOUR AND EMPLOYMENT
Asked by: Karti P. Chidambaram

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO.1911

TO BE ANSWERED ON 14 TH  MARCH, 2022

## GDP GROWTH AND EMPLOYMENT

## 1911.  SHRI KARTI P. CHIDAMBARAM:

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

- (a) whether  the  Government  is  cognizant  of  several  studies  that  indicate that the co-relation between GDP growth and employment had significantly weakened, since 2018;
- (b) whether the Government is taking any steps to grow employment on par with GDP;
- (c) whether it is true that 15 million jobs were permanently lost during the first wave of the pandemic;
- (d) whether the Government has estimated the number of jobs permanently lost in the second and third waves of the pandemic; and
- (e) whether  any  measures  were  taken  after  the  first  wave  to  prevent permanent job losses in the country?

## ANSWER

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

(a) to (e):   As  per  the  Quarterly  Periodic  Labour  Force  Survey  (PLFS)  report for urban sector (available till March 2021) released by Ministry of Statistics &  Programme  Implementation  (MOSPI),  during  the  COVID-19  pandemic,  the unemployment rate for urban sector rose to 20.8% and GDP also contracted to  -23.8% (at constant prices) in the first quarter of 2020-21. With the revival of  economy in  the  subsequent  quarters  of  2020-21,  the  unemployment  rate showed a recovery to 9.3% along with GDP recovered to 1.6% (at constant prices) during the last quarter of 2020-21.

Further,  as  per  quarterly  PLFS  report,  the  Worker  Population  Ratio (WPR)  which  went  down  to  36.4%  during  first  quarter  of  2020-21  also recovered to 43.1% during the last quarter of 2020-21.

Employment  generation  coupled  with  improving  employability  is  the priority of the Government. Accordingly, the Government of India has taken various steps for generating employment in the country. The Government of India  has  announced  Aatmanirbhar  Bharat  package  to  provide  stimulus  to business and to mitigate the adverse impact of Covid 19. Under this package, the Government is providing fiscal stimulus of more than Rs. Twenty Seven lakh crore. This package comprises of various long term schemes/ programmes/  policies  for  making  the  country  self-reliant  and  to  create employment opportunities.

Aatmanirbhar  Bharat  Rojgar  Yojana  (ABRY)  has  been  launched  with effect from 1st October, 2020 as part of Atmanirbhar Bharat package 3.0 to incentivize  employers  for  creation  of  new  employment  along  with  social security  benefits  and  restoration  of  loss  of  employment  during  Covid-19 pandemic. This scheme being implemented through the Employees' Provident Fund  Organisation  (EPFO),  seeks  to  reduce  the  financial  burden  of  the employers and encourages them to hire more workers. The terminal date for registration of beneficiaries has been extended from 30.06.2021 to 31.03.2022. Benefits have been provided to 50.81 lakh beneficiaries through 1.33 lakh establishments till 28.02.2022.

Pradhan  Mantri  Mudra  Yojana  (PMMY)  is  being  implemented  by  the Government  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. Upto 04.03.2022, 33.91 crore loans were sanctioned under the scheme.

Government had launched the Garib Kalyan Rojgar Abhiyaan (GKRA) of 125 days on 20th June, 2020 to boost employment and livelihood opportunities  for  returnee  migrant  workers  and  similarly  affected  persons including  youth  in  rural  areas,  in  116  selected  districts  across  6  States  of Bihar, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh. The Abhiyaan has achieved an employment generation of 50.78 crore person days with a total expenditure of Rs. 39,293 crore.

PM GatiShakti  is  a  transformative  approach  for  economic  growth  and sustainable development. The approach is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure. This approach is powered by Clean Energy and Sabka Prayas leading to huge job and entrepreneurial opportunities for all.

The Government has put emphasis on railways, roads, urban transport, power, telecom, textiles and affordable housing amid continued focus on the National Infrastructure Pipeline. Budget 2021-22 launched Production Linked Incentive (PLI) schemes, with an outlay of Rs. 1.97 lakh crore, for a period of 5 years starting from 2021-22. All these initiatives are expected to collectively  generate  employment  and  boost  output  in  the  medium  to  long term through multiplier-effects.

The  Government  of  India  is  encouraging  various  projects  involving substantial investment  and  public expenditure  on  schemes  like  Prime Minister's  Employment  Generation  Programme  (PMEGP)  of  the  Ministry  of Micro, Small & Medium Enterprises, Mahatma Gandhi National Rural Employment  Guarantee  Scheme  (MGNREGS)  &  Pt.  Deen  Dayal  Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) of the Ministry of Rural Development, Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) of the Ministry of Housing & Urban Affairs etc. for employment generation.

Besides these initiatives, various flagship programmes of the Government  such  as  Make  in  India,  Digital  India,  Smart  City  Mission,  Atal Mission for Rejuvenation and Urban Transformation, Housing for All, Infrastructure Development and Industrial Corridors are also oriented towards generating employment opportunities.

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