Lok Sabha Question No. 1654 (UNSTARRED), answered on 2025-03-10
Subject: Decline in Entry-level Hiring
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Muhammed Hamdullah Sayeed

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

## UNSTARRED QUESTION NO. 1654

TO BE ANSWERED ON 10 TH  MARCH, 2025

## DECLINE IN ENTRY-LEVEL HIRING

## 1654.    SHRI MUHAMMED HAMDULLAH SAYEED:

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

- (a) whether  the  Government  is  aware  of  the  decline  in  entry-level hiring  (freshers)  in  the  country  this  year,  as  reported  by  various professional services and HR consulting firms;
- (b) if  so,  the  reasons  identified  for  this  decline,  including  any  noted cautious approach by enterprises towards campus recruitment;
- whether  the  Government  is  taking  steps  to  address  the  demand and  supply  gap  in  the  job  market,  especially  with  an  increasing
- (c) number of graduates;
- (d) if so, the details thereof and whether any initiatives are in place to promote  job  creation  and  enhance  employability  among  fresh graduates  in  light  of  evolving  skill  requirements  and  a  global economic slowdown; and
- (e) if so, the details thereof?

## ANSWER

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

(a)  to  (e):  The  data  on  Employment  and  Unemployment  is  collected through Periodic Labour Force Survey (PLFS) which is conducted by the 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  Worker  Population  Ratio  (WPR)  indicating  employment  on usual status for youth of age 15-29 years increased from 31.4% in 201718 to 41.7% in 2023-24.

As  per  the  data  available  in  latest  Annual  PLFS  Reports,  the estimated  Worker  Population  Ratio  (WPR)  indicating  employment  on usual status for persons of age 15 years and above, who are graduates, increased from 49.7% in 2017-18 to 57.5% in 2023-24.

Employment  generation  coupled  with  improving  employability  of all including youth is a priority of Government and is a multi-stakeholder initiative.  The  various  Ministries/  Departments  of  Government  of  India like  Ministry  of  Micro,  Small  &  Medium  Enterprises,  Ministry  of  Rural Development, Ministry of Housing & Urban Affairs, Ministry of Finance, Ministry of Textiles, Ministry of Electronics and Information Technology etc. are implementing different employment generation schemes/ programmes  like  Prime  Minister's  Employment  Generation  Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY),  Rural  Self  Employment  and  Training  Institutes  (RSETIs), Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAYNULM),  Pradhan  Mantri  Mudra  Yojana  (PMMY),  National  Handicrafts Development  Programme  etc.,  which,  along  with  increase  in  capital expenditure, seeks to boost employment creation. The details of various employment generation schemes/programmes being implemented by the Government of India may be seen at https://dge.gov.in/dge/schemes\_programmes.

Under  the  Government  of  India's  Skill  India  Mission  (SIM),  the Ministry of Skill Development and Entrepreneurship (MSDE) delivers skill, re-skill  and  up-skill  training  through  an  extensive  network  of  skill development centres/ institutes etc. under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS), National Apprenticeship Promotion Scheme (NAPS) and Craftsman Training Scheme (CTS) through Industrial Training Institutes (ITIs), to all the  sections  of  the  society  across  the  country  including  the  State  of Maharashtra.  The  SIM  aims  at  enabling  youth  of  India  to  get  future ready, equipped with industry relevant skills.

The Government has brought in National Education Policy (NEP) 2020  which  aims  to  integrate  vocational  education  programmes  into mainstream education in all educational institutions in a phased manner. Beginning with vocational exposure  at early ages in middle and secondary school, quality vocational education will be integrated smoothly into higher education.

Further,  Government  has  announced  in  Budget  2024-25,  Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5year  period  with  a  central  outlay  of  Rs.2  lakh  crores.  It  includes,  the Employment Linked Incentive (ELI) scheme announced in Budget 202425, 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.

One  part of ELI scheme  specially focuses on incentivizing employers engaged in manufacturing sector for formalization/creation of jobs. Union Budget 2025-26 also prioritizes employment-led development, with multiple initiatives announced across various sectors.

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