Description

The generation of adequate work opportunities for our growing labour force has been one of the central objectives of Indian development planning since its very inception. We have long recognised that productive employment is not merely a means to the ultimate ends of economic well-being and poverty reduction, but is an important end in itself. It is a basic source of human dignity and self-respect. It is also an important means for nurturing national identity and social cohesion. On the whole, we have been reasonably successful in our efforts, and open unemployment in India has been kept quite low over an extended period of time.
In recent years, however, two trends have become apparent, which dictate a reappraisal of our approach to development and employment generation. First, demographic trends indicate that the rate of growth of population in the working age group is accelerating due to the high birth rates experienced in the late 1970s and early 1980s, and is likely to attain its peak during the current decade. Second, the pace of creation of work opportunities has not kept pace with the growing requirement during the 1990s, despite an acceleration in the growth rate of the economy. Taken together, these trends imply that if nothing is done, the country will face the spectre of rising unemployment with all its attendant economic, social and political consequences. There is also a growing recognition that the commonly cited unemployment figures mask the high incidence of underemployment in the country. Too many of our people do not have sufficient work to engage them round the year, while others work long hours at low levels of productivity and with little remuneration.