Employment is the source of growth of the nation. The drastic recession of the country during the Covid 19 phase has taken employment to nadir. Employment is the need of the hour as the unemployed workforce is downfall productivity of the nation. The rising population should ensure rising demand and thus, an increase in supply and employment. But this phase of falling employment with rising population and stagnant demand is a spiral that would continue if not handled with an effective and efficient policy.
In order to tackle the complexities of unemployment while charting out ideas for creating an employment hub nation, the Center for Work and Welfare(CWW) at IMPRI Impact and Policy Research Institute, New Delhi, organized an online discussion on The Need for a National Employment Policy the state of employment and Livelihood– #Employment Debate series on 12 August 2021.
Prof Jayan Jose Thomas gave the analysis through data presentation and analysis. He presented the data on the impact of the COVID-19 pandemic on the informal sector in India. He stated that our working-age population(youth population) is increasing.
The analysis followed with presenting data on demand for labor which has slowed down in the manufacturing and construction sectors. Also, there are job losses in MSMEs. Nevertheless, the situation with the service sector is the opposite with the demand for labor growing in this sector. He presented data on disequilibrium between demand and supply of labor in India.
Then he presented the solutions for the ongoing crisis, stating that public investment can boosts employment and job opportunities, the multiplier effects being huge. The propensity to consume is significantly higher for the poor. Therefore, there is a need to widen the sources of demand, by raising the consumption of and investment for the poor.