An Analysis: Impact of Slowdown in Economy on Employment

The Employment generation coupled with improving employability is the priority of the Government. Government has taken various steps for generating employment in the country by encouraging various projects involving substantial investment and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deendayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) run by Ministry of Micro, Small & Medium Enterprises, Ministry of Rural Development and Ministry of Housing & Urban Affairs, respectively.

The Government is providing fiscal stimulus of more than rupees twenty seven lakh crore as part of the Aatmanirbhar financial Package. Aatmanirbhar Bharat package comprises of various long term schemes/ programmes/ policies for making the country self-reliant and to create employment opportunities for organised and unorganised sectors.

Aatmanirbhar Bharat Rozgar Yojna (ABRY) Scheme has been launched 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) reduces the financial burden of the employers of various sectors/industries including MSME and encourages them to hire more workers. Under ABRY, the Government of India is bearing for a period of two years, both the employees’ share (12% of wages) and employers’ share (12% of wages) of contribution payable or only the employees’ share, depending on employment strength of the EPFO registered establishments.

Under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Government is incentivizing employers for creation of new employment with social security benefits by paying Employer’s full contribution i.e. 12% towards EPF and EPS both (as admissible from time to time) for a period of three years to the new employees through EPFO. The terminal date for registration of beneficiary through establishment was 31st March 2019. The beneficiaries registered upto 31st March, 2019 will continue to receive the benefits for 3 years from the date of registration under the scheme.

Pradhan Mantri Mudra Yojana (PMMY) has been initiated by Government inter alia, 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.

Besides these initiatives, flagship programmes of the Government such as Make in India, Digital India, Swachh Bharat Mission, Smart City Mission, Atal Mission for Rejuvenation and Urban Transformation, Housing for All, Infrastructure development and Industrial corridors have the potential to generate productive employment opportunities.

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