Central government to support unemployed youth? Here's what we know

Citing a report, the Ministry of Labour stated that there has been a significant increase in employment in India in recent years. The government says that employment has increased by about 36%. The central government has recently been taking various initiatives aimed at supporting unemployed youth in the country. During the winter session of Parliament, MP G.C. Chandrasekhar raised concerns about the need for an unemployment allowance scheme to address rising inflation and its impact on job seekers.

He sought clarification on whether the government has any plans to launch such a scheme. Responding to this question, Minister of State for Labour and Employment Shobha Karandlaje stressed that job creation and youth welfare are the government's top priorities. She said these objectives are part of a dynamic and ongoing process. Minister Karandlaje also mentioned the Atal Beemit Vyakti Kalyan Yojana (ABVKY), an initiative under the Employees' State Insurance Corporation (ESIC).

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This scheme provides unemployment benefits to eligible insured workers who lose their jobs. The minister elaborated that unemployment benefits under ABVKY have been increased from 25% to 50% of average daily earnings and are provided for 90 days. In addition, the eligibility criteria for claiming this benefit have been relaxed to provide support to a larger number of people. Regarding job creation, the Ministry of Labour has reported a significant increase in employment rates in recent years.

Citing a government report, the ministry revealed that approximately 170 million jobs were created between 2016-17 and 2022-23, resulting in an approximately 36% increase in employment in India. These figures reflect the government's focused efforts to increase employment across various sectors, contributing to a stable economic trajectory. Furthermore, the unemployment rate in India has decreased significantly.

According to the Observer Research Foundation (ORF) report "Debunking the Myth of Jobless Growth: Insights from Data, Theory, and Logic,” the unemployment rate fell from 6% in 2017-18 to 3.2% in 2022-23. This report highlights positive employment trends and the current economic recovery, emphasizing the growth of jobs in key industries.

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Supporting these findings, data from the Reserve Bank of India's (RBI) KLEMS database, using sources such as the Employment and Unemployment Survey and the Periodic Labour Force Survey (PLFS), shows a steady increase in employment levels since the 1980s. These trends underscore the government's commitment to improving employment opportunities while implementing welfare schemes like ABVKY to help individuals navigate challenges in the labour market.