Lok Sabha Question No. 1094 (UNSTARRED), answered on 2025-02-10
Subject: Employment Growth and Wage Equity
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Manickam Tagore B, Shri Vijayakumar Alias Vijay Vasanth

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

## UNSTARRED QUESTION NO. 1094 TO BE ANSWERED ON 10 TH  FEBRUARY, 2025

## EMPLOYMENT GROWTH AND WAGE EQUITY

1094.   SHRI MANICKAM TAGORE B:

SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:

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

- (a) whether  the  country  is  facing  high  unemployment  rates  despite  97%  of firms have been planning to increase employment;
- (b) the specific action taken by the Government to address the issue across all the sectors;
- (c) the  measures  being  taken  by  the  Government  to  ensure  that  these  jobs are not low-wage or temporary, but provide long-term, stable employment for the youth;
- (d) whether  the  Government  has  any  plan  to  ensure  these  jobs  offer  fair wages and quality working conditions especially in light of rising inflation, if so, the details thereof;
- (e) whether the Government intends to ensure that this growth is distributed fairly and reaches workers and if so, the details thereof; and
- (f) the  manner  in  which  the  Government  ensure  that  the  expected  rise  in private  investments  translates  into  sustainable  and  quality  jobs  and  not just low-skill and exploitative employment?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a)  to  (f):  The  official  data  on  Employment  and  Unemployment  is  collected through  Annual  Periodic  Labour  Force  Survey  (PLFS),  which  is  conducted  by Ministry  of  Statistics  and  Programme  Implementation  (MoSPI)  since  2017-18. The survey period is July to June every year.

As per the data available in latest Annual PLFS Reports, the estimated Unemployment Rate (UR) on usual status for persons of age 15 years and above has  decreased  from  6.0  %  during  2017-18  to  3.2%  in  2023-24.  Also,  the estimated Worker Population Ratio (WPR) indicating employment on usual status for persons of age 15 years and above has increased from 46.8% in 2017-18 to 58.2% in 2023-24.

The  KLEMS  (K:  Capital,  L:  Labour,  E:  Energy,  M:  Materials  and  S: Services) database published by Reserve Bank of India (RBI) provides employment estimates, including manufacturing sector, at all India level. As per the latest data of the database, employment in the country increased to 64.33 crore in 2023-24 as compared to 47.5 crore in 2017-18.

Further,  more  than  7  crore  net  subscribers  have  joined  Employees' Provident  Fund  Organization  (EPFO)  between  September  2017  and  September 2024 indicating increase in formalization of the job market. Also, more than 3.92 crore net subscribers have joined EPFO during the year 2021-22 to 2023-24.

Provision  of  minimum  wages  under  the  Minimum  Wages  Act,  1948 provides  for  cost  of  living  allowance  as  a  component  of  minimum  wages. Accordingly, the Central Government revises the cost of living allowance called as Variable Dearness Allowance (V.D.A) on basic rates of minimum wages under the Minimum Wages Act, 1948, every six months effective from 1st April and 1st October every year on the basis of Consumer Price Index for Industrial workers to protect the minimum wages against inflation.

Employment generation coupled with improving employability is a priority of  Government  and  is  a  multi-stakeholder  initiative.    The  various  Ministries/ Departments of Government of India like Ministry of Micro, Small and Medium Enterprises,  Ministry  of  Rural  Development,  Ministry  of  Housing  and  Urban Affairs,  Ministry  of  Finance,  Ministry  of  Textile  etc.  are  implementing  different employment  generation  schemes/  programmes  for  all  including  youth.  The details of these schemes/ programmes may be seen at https://dge.gov.in/dge/schemes\_programmes.

Government is implementing Skill India Mission (SIM) to deliver skill, reskill  and  up-skill  training  through  an  extensive  network  of  skill  development centres/  schools/  colleges /institutes  etc.  under  various  schemes,  viz.  Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS), National Apprenticeship Promotion Scheme (NAPS) and Craftsmen Training Scheme (CTS) through Industrial Training Institutes (ITIs). The SIM aims at enabling youth of India to get future ready, equipped with industry relevant skills.

Further, Government has announced in Budget 202425, Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities  for  4.1  crore  youth  over  a  5-year  period  with  a  central  outlay  of Rs.2  lakh  crores.  It  includes,  the  Employment  Linked  Incentive  (ELI)  scheme announced in Budget 2024-25, with an outlay of Rs 1,07,000 Crores, which aims at  job  creation  and  formalization  of  work  force  by  providing  Social  Security through EPFO, enhancing employability and incentivizing additional employment generation through incentives to employees and employers.

Union Budget 2025-26 has also announced multiple employment generation initiatives across various sectors.

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