By TIOL News Service

NEW DELHI, SEPT 14, 2014: AT the two-day Labour and Employment Ministerial Conference of G-20 Nations on September 10-11, 2014 in Melbourne, Australia, Mr. Narendra Singh Tomar, Union Minister of Labour and Employment addressed the Labour Ministers of 20 countries. He highlighted the fact that India has one of the most youthful populations of the world, with 58% of our population being below the age of 29 years. The population dependency ratio is declining and is expected to rise only after 2030, said the Minister.

While speaking in a session on “Creating better jobs”, Mr Tomar further said that employment generation is India's biggest challenge today. In the last decade, the rate of employment growth was less than 1%. Youth unemployment rate is 6.6% and underemployment rate is touching 5.7%. Every year almost 10 million people enter labour force in India. A large informal sector, lower participation of women in labour force, increasing the productivity of labour and providing social protection to the vulnerable sections were cited as the main challenges. Creation of commensurate health and educational infrastructure for them is the highest priority so that the economy can reap its demographic dividend for growth and prosperity.

Mr Tomar added that one of the key requirements to boost labour market participation rate is to minimize the skill mismatch in job market by enhancing the skill base of the workforce in emerging economies like India. Structural unemployment and underemployment are biggest challenges on account of the mismatch between demand and supply factors of employment and rigidities in the labour market. He elaborated that Government of India is adopting multipronged strategies to address it from both demand and supply side. From the supply side, creation of local jobs and development of SMEs have been identified as the doorways to reduce structural unemployment. Minsitry of Labour & Employment has started a scheme on “Demand Responsive Vocational Training”. Under this scheme, any industry can sign an MOU with Government to conduct training programme to meet specific skill requirement of the company which would ensure minimum 80% employment in any local industry. From the demand side, emphasis is given to creation of appropriate skill sets among the rural migrant and urban poor. We are in favor of labour mobility, skill portability and harmonization of skills qualification framework for a paradigm shift of laborers from low skill based work to high productivity jobs. Evolving National Vocational Qualification Framework is one of key pre-requisites to ensure that skills and qualifications match new job requirements.Skill Development Initiative Scheme, based on Modular Employable Skill (MES) framework has been in operation to provide vocational training to early school leavers and existing workers, especially in unorganized sector. Government of India is taking proactive measures to create employment opportunities for people with disabilities and other disadvantaged groups through 21 Vocational Rehabilitation Centers. A national Scheme ‘Recognition of Prior Learning of Construction Worker' has been prepared by MoLE to evaluate skills and knowledge acquired informally and addresses them through Skill gap training for 15 days. Active labour market policies (ALMPs) in our country are recognized as an important strategy. Under National Career Service (NCS) project, Public Employment Exchanges are being revamped into Career Counseling Center for assessing local job scenario and organizing job fairs for efficient placement. Government of India is taking affirmative policy measures to simplify the labour laws. “We believe that G 20 can serve as a policy platform for exchanging best practices and knowledge sharing for creation of better jobs and boosting participation in the World of Work,” said Mr Tomar.

Mr Tomar also mentioned that industry and commerce are the two areas having maximum potential of employment. Employers have a big role to play to address the concern of jobless growth. Therefore, this G20 conference besides appealing to governments should also appeal to employers that in addition to profit-earning, they should focus more on employment generation in the course of their business expansion.