Open Forum
New Delhi, 4 May 2011
Rising Unemployment
GOVT INTERVENTION
VITAL
By Dhurjati Mukherjee
Prompted by country-wide concerns of growing unemployment
and under-employment, the Government set up an expert committee to ascertain
the accuracy of the Union Labour Ministry’s annual employment survey and
suggest remedial measures.
Shockingly, the survey for April-March 2009-10 released in
October last, revealed a much higher unemployment rate of 9.4 per cent spread
over a 400 million work-force. This year plans are afoot to widen the survey
base and cover all the 629 districts against only 300 last year and interview
over one lakh respondents.
Rising unemployment is all the more alarming against the
backdrop that the growth rates are quite high. True, certain categories of
employers are optimistic about their hiring plans and the organized sector is
set to create around 1.6 million new jobs this year, the figures are far from
adequate keeping in view the employment needs of the new entrants into the job
market.
The advent of new technology and techniques of increasing
productivity (both in the field and factory) have led to increased
unemployment. Notwithstanding, that heath care (2.50 lakh jobs), hospitality,
real estate, media and entertainment and IT are promising sectors of employment
generation.
This has resulted in muted demands being voiced to accord
Constitutional guarantee to the Right to Work. Presently, only socialist
countries accord the Right of Employment to their citizens but there are no
unemployment benefits as an alternative.
A document prepared by the Labour, in the 1980’s pointed
out: “The overall approach to the concept of Right to Work has essentially to
be that of creating conditions for the people to find productive work in the
process of development …. . However, the inclusion of Right to Work as a
Fundamental Right in the Constitution would make it incumbent to provide
employment to the residuary categories of persons who will still be unemployed
during the transition period”.
Economists and planners feel that the primary reliance must
be on the economic system to generate employment. As such, employment
generation has to be consciously built into the development strategy of any
country. In India,
for example, of the over 400 million working force, around 220-230 million
continue to depend on agriculture for their living. Thus, the 9 per cent growth
of the economy has of no significance to the farm workers.
Leading to surmise that India’s employment strategy needs to
be based on revitalizing all segments of the rural sector which have been
neglected over many years. Though, the
emphasis on infrastructure development vis-à-vis building roads, bridges etc
and extending power and telecom facilities impacted in generating employment,
including self-employment, in the last few years but this is inadequate.
Consequently, it is now necessary that the improved
infrastructure should be utilized to motivate people to set up tiny and cottage
industries along-with agro-based industries which have great potential through
skill training and financial assistance.
Besides, the country needs to explore the employment
potential in the food processing and horticulture industry which is witnessing
a revolution. Undoubtedly, if this development of agro-based industries is
given special attention, it could change the face of Indian villages and
generate employment opportunities. Towards that end, an integrated food law
could be brought to replace the current multiple laws and regulations, which
have affected normal growth and standards of the food processing industry.
In addition, horticulture, floriculture and food processing
could add value to products and ensure better returns for the farming
community. These unexplored areas with active support from research institutes
could also help in generating adequate employment opportunities and assist the
revival process of the rural economy. Moreover, through a proper plan, the
country could also gain valuable foreign exchange through exports.
Apart from these, there needs to be proper development of
cottage and village industries. The Government has to come forward and
encourage artisans to ensure that they get market value for their products. By
identifying around 200 growth centers throughout the country and providing
proper infrastructural facilities, roads, power and telecommunication, would
ensure accessibility to markets and help sell produce at competitive rates.
This could be completed in a time-bound frame of 5 to 10 years, by the Twelfth
Plan.
The National Commission for Enterprises in the Unorganized
Sector (NCEUS) aptly suggested the need to promote small, micro and tiny
enterprises with credit, marketing and technology support. Clusters of tiny
industries deserve SEZ treatment more than the rich exporting units. Priorities
in credit facilities should go to small farmers and micro enterprises.
Importantly, the entire planning process must now centre on
helping the poor and the vulnerable sections. The Government’s decision to provide
100 days guaranteed employment in a year under the NREGS to one member of every
poor household at a minimum wage for public works projects should be seriously
implemented. As it has helped in serving the dual purpose of generating
employment and in building rural infrastructure.
However, the performance review committee of the NREGS found
that the national average for April-October 2010 was poor and stood at 34 days.
Only Andhra Pradesh had done well by generating 46 days of work per household.
It was followed by Tripura (40) and Orissa and Rajasthan (39) each.
Clearly, our leaders need to heed the concerned voices of
economists and planners including former President Abdul Kalam who have
repeatedly asserted the need to reverse the planning strategy and concentrate
on the rural sector. As this would go a long way in tackling the problem of
unemployment and under-employment as also boost the living standards of the
poor and the economically weaker sections. Thereby, usher in the much-talked
about inclusive growth. ----- INFA
(Copyright,
India News and Feature Alliance)
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