Over the last 4 years, nation sees a depressing growth in the job market, and as far as the number is concerned, only 8 Lakh jobs have been created till October 2017 which is described as the slowest growth, according to the International Labor Organization though, the Modi led BJP government promised to create 10 million job opportunities annually during the 2014 election campaign. The country is struggling to give opportunities to more than 18 million unemployed people and becomes a big challenge for the government. If this is not enough then the government has only one year of time, and to ensure the balance; it must create 1.3 million jobs per month to fill the target that is obviously far away from the current growth rate. Since the government is facing a lot of criticism for failing to fulfill the electoral promise and having less time for the General election, the union budget was important for the ruling party to represent itself as the savior of unemployed people.
On this 5th budget, the Finance Minister gave the sign of the urgency by creating rural markets, offering tax sops to small-scale industries, spending more on infrastructure, and special packages for the textile industry. As per their statement, the government’s main focus is on the labor-intensive sectors like textile, leather, micro, small and medium enterprises and they are trying to create more facilities for the employment to increase the job growth.
Will it boost the job creation?
This time the union budget gives extra preferences for the job creation which is a welcome move but it depends on the way of implementation, and only time will say its success rate. During 2016, the government approved 6000 crores to the textile industry, and now they again announced 7148 crore which indicates some the increase of employment opportunities in this sector. The announcement of 24 new government medical colleges for the flagship programme in health wellness centers will also help for the job creation in the future. Eighteen new schools of planning and architecture and a proposed railway university will create more opportunities in regional areas and will ensure the entry of more skilled workforce.
To incentivized the employment generation, the government decided to take the responsibility of paying 8.3% of basic salary during the last budget and this time it also aims to increase it by extending the entire 12% employer contribution for the first 3 years of employment. Though the government provides tax benefits for the additional job creation, most of the companies are unable to take the benefits. But now due to this program, it is expected that the companies will hire more people. Also, the reduction in the contribution towards the EPF to 8% for the female workers will encourage their participation in the workforce.
Dedication is required
It is important to modernize the hiring industry for improving the employability by using advanced technologies that require during the recruitment. The nation is still depending on the traditional ways to access the opportunities which are limited to a large number of unemployed people. The rise of automation could lead to the job losses, however; with the effort to increase the skill instead of jobs only can save the nation from potential damage. The unemployment issue is becoming the most discussed topic and will be always in the scene for a country like India where 100 million people will be looking for employment in the next five years. It’s everyone duty to make the effort to increase the productivity and skill in the job market. The progress of the economy will help to resolve the unemployment issue. International organizations are applauding our achievements, but still, we need to do groundwork because of the constant changes in technologies, skills, and workforce. Though, the government shows the seriousness lately but is indeed a good step and nation will see the progress if the way of implementation becomes successful.