Under-employment is the main problem: Niti Aayog
In the three-year action agenda for 2017-18 to 2019-20, Niti Aayog, premier policy ‘think tank’ of the Government, asserted that “Unemployment is the lesser of India's problems. The more serious problem is underemployment."
It further stressed that creation of high-productivity jobs and high wage jobs is the need of the hour. With the focus on domestic market through an import-substitution, Aayog shared, it will prompt and arise a group of small firms in the market.
As per ET, the employment unemployment surveys (EUS) have constantly been reporting stable but low rates of unemployment in the last three decades.
Chinese manufacturers are looking forward to Indian workers as wages are rising in China due to an ageing workforce. Therefore, Aayog stressed the need for adopting a manufactures- and exports-based strategy that will help India in long term. Also, the attempts should be made for the creation of Coastal Employment Zones (CEZ), that has potential to attract multinational firms from China to India. This will help in the creation of an ecosystem of highly productive firms inclusive of small and medium enterprises.
Talking of reforms in labour laws, Aayog said, without reforms unifying the existing large number of labour laws into four codes do not solve any purpose and soon change could be seen in all sectors as employers no longer rely on regular fixed-term employment instead would seek contract workers, freelancers and part-time employees.
NITI Aayog provides relevant technical advice to the Centre and States while the formation of strategic and long term policies of the government. It is government’s premier policy ‘Think Tank’ providing both directional and policy inputs.