Executive Summary:
This document is a response to Lok Sabha Unstarred Question No. 1229 regarding steps for improving workers' welfare and social security. It provides details on unemployment rates, government initiatives for job creation and skilling, the gig economy, implementation of labor codes, and unemployment allowance considerations. The document references data up to 2023-24 and future projections until 2029-30, with proposed actions and schemes outlined, including a budget announcement on February 1, 2025.
Key Points / Main Content:
Unemployment Rate:
* The unemployment rate (UR) for individuals aged 15 years and above decreased from 6.0% in 2017-18 to 3.2% in 2023-24.
* The UR for youth aged 15-29 years decreased from 17.8% in 2017-18 to 10.2% in 2023-24.
* The Worker Population Ratio (WPR) for youth aged 15-29 years increased from 31.4% in 2017-18 to 41.7% in 2023-24.
* The WPR for women aged 15 years and above increased from 22.0% in 2017-18 to 40.3% in 2023-24.
Government Initiatives for Employment and Skilling:
* The government is implementing schemes like PMEGP, MGNREGS, DAY-NRLM, DDUGKY, RSETIs, DAY-NULM, PM SVANidhi, and PMMY to generate employment.
* MSDE is implementing PMKVY to provide skill development training.
* The Union Cabinet approved the Employment Linked Incentive (ELI) Scheme.
* The National Career Service (NCS) Portal offers career-related services.
Gig Economy:
* The number of gig and platform workers is estimated to rise from 7.7 million in 2020-21 to 23.5 million by 2029-30.
* The Code on Social Security, 2020, provides for social security measures for gig workers.
* The government proposed registering gig workers on the eShram portal, providing identity cards, and offering healthcare under AB PMJAY.
Implementation of Labor Codes:
* The Central Government has formulated the Code on Wages, 2019 and the Code on Social Security, 2020 and published in the Official Gazette.
* Central and State Governments have the power to make rules under the Codes.
* Draft Rules under both Codes have been pre-published by the Central Government.
* 34 States/UTs have pre-published draft Rules under the Code on Wages, 2019.
* 32 States/UTs have pre-published draft Rules under the Code on Social Security, 2020.
Unemployment Allowance:
* The Atal Beemit Vyakti Kalyan Yojana (ABVKY) provides unemployment benefits to insured workers who lose their jobs.
* The unemployment benefit under ABVKY has been enhanced to 50% of the average daily earning, payable up to 90 days.
Impact Analysis:
Workers:
* Impact: Workers benefit from reduced unemployment rates, increased employment opportunities through government schemes, social security measures for gig workers, and unemployment benefits.
* Action Required: Workers should utilize the NCS portal for job search and skill development, register on the eShram portal if they are gig workers, and understand their entitlements under the Code on Social Security and ABVKY.
Employers:
* Impact: Employers are affected by government schemes incentivizing employment generation, and the implementation of the Code on Wages and Code on Social Security.
* Action Required: Employers should familiarize themselves with the requirements of the Code on Wages and Code on Social Security, participate in government schemes like the ELI Scheme, and comply with the regulations regarding social security for gig workers.
State and Central Governments:
* Impact: State and Central Governments are responsible for implementing and monitoring the various employment generation schemes, skill development programs, and the Code on Wages and Code on Social Security.
* Action Required: State Governments need to finalize and implement the draft Rules under the Code on Wages and Code on Social Security, monitor the effectiveness of employment schemes, and ensure compliance with labor laws. The Central Government must continue to provide guidance and support for these initiatives.
Key Entities Referenced
Code on Wages, 2019: A central government legislation related to wage regulation and standards.
Code on Social Security, 2020: A central government legislation focused on providing social security benefits and frameworks.
Periodic Labour Force Survey PLFS: A survey conducted by the Ministry of Statistics and Programme Implementation (MoSPI) to collect data on employment and unemployment.
Ministry of Skill Development and Entrepreneurship MSDE: A government ministry responsible for skill development and entrepreneurship initiatives.
Pradhan Mantri Kaushal Vikas Yojana PMKVY: A flagship scheme of the Ministry of Skill Development and Entrepreneurship to impart skill development training.
NITI Aayog: A policy think tank of the Government of India.
eShram portal: A government portal for registering unorganized sector workers, including gig workers.
Atal Beemit Vyakti Kalyan Yojana ABVKY: An unemployment benefit scheme under the Employees State Insurance Corporation (ESIC) for insured workers who lose their jobs.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1229
TO BE ANSWERED ON 28th JULY, 2025
STEPS FOR IMPROVING WORKERS WELFARE AND SOCIAL SECURITY
1229. SHRI THIRU DAYANIDHI MARAN :
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:
(a) the details of the current unemployment rate in the Country,
disaggregated by age group, gender and State- wise along with
comparision to pre-pandemic levels;
(b) the details of the steps taken by the Government during the last
five years to address the issue of rising youth unemployment
including job creation in the formal sector and skilling initiatives;
(c) whether any assessment has been made by the Government on the
growth of informal and gig economy jobs and if so, the details
thereof including the impact on wages, job security and social
protection;
(d) the details of the measures taken by the Government to strengthen
the implementation of the Code on Wages and Code on Social
Security across the Country including monitoring mechanisms; and
(e) whether the Government has any plan to consider an
unemployment allowance or support scheme for youth and if so,
the details thereof along with the proposal and its implementation
status and if not, the reasons therefor?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) The data on Employment and Unemployment is collected through
Periodic Labour Force Survey (PLFS) which is conducted by the Ministry
of Statistics and Programme Implementation (MoSPI) since 2017-18.
As per the latest available Annual PLFS reports, the estimated
Unemployment Rate (UR) on usual status for persons of age 15 years
and above has decreased from 6.0% in 2017-18 to 3.2% in 2023-24.
Further, the estimated Unemployment Rate on usual status for youth of
age 15-29 years and above has decreased from 17.8% in 2017-18 to
10.2% in 2023-24.Also, as per the data available in latest Annual PLFS Reports, the
estimated Worker Population Ratio (WPR), indicating employment on
usual status for youth of age 15-29 years has increased from 31.4% in
2017-18 to 41.7% in 2023-24. Further, the estimated Worker Population
Ratio (WPR) for Women of age 15 years and above has increased from
22.0% in 2017-18 to 40.3% in 2023-24.
The detailed information disaggregated by age group, gender and
State- wise along with comparision to pre-pandemic levels, is available
in the PLFS reports which may be seen at
https://www.mospi.gov.in/download-
reports?main_cat=ODU5&cat=All&sub_category=All
(b) Employment generation coupled with improving employability
including youth is a priority of the Government. Accordingly,
Government is implementing various employment generation schemes/
programmes. These inter-alia include Prime Minister’s Employment
Generation Programme (PMEGP), Mahatma Gandhi National Rural
Employment Guarantee Scheme (MGNREGS), Deendayal Antyodaya
Yojana- National Rural Livelihoods Mission (DAY-NRLM), Deen Dayal
Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), Rural Self
Employment and Training Institutes (RSETIs), Deen Deendayal
Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), PM
Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), Pradhan Mantri
Mudra Yojana (PMMY), etc. The details of various employment
generation schemes/programmes being implemented by the
Government may be seen at https://dge.gov.in/dge/schemes_programmes.
Ministry of Skill Development and Entrepreneurship (MSDE) has
been implementing its flagship scheme, Pradhan Mantri Kaushal Vikas
Yojana (PMKVY), since 2015 to impart skill development training
through Short-Term Training (STT) and up-skilling and re-skilling
through Recognition of Prior Learning (RPL) to youth across the country
with the to enhance the employability of youth by equipping them with
industry relevant skills.
In addition, the Union Cabinet has approved the Employment
Linked Incentive (ELI) Scheme to support employment generation,
enhance employability and social security across all sectors, with
special focus on the manufacturing sector.
Further, Ministry of Labour and Employment, Government of India,
is running the National Career Service (NCS) Portal which is a one-stop
solution for providing career related services including jobs from
private and government sectors, information on online & offline job
fairs, job search & matching, career counselling, vocational guidance,
information on skill development courses, skill/training programmes
etc. through a digital platform [www.ncs.gov.in].(c) As per an estimation by NITI Aayog vide its report titled “India`s
Booming Gig and Platform Economy” published in June 2022, the
number of gig workers and platform workers, in the country was 7.7
million in 2020-21, which is expected to rise to 23.5 million by 2029-30.
The Code on Social Security 2020 provides for framing of suitable
social security measures for gig workers and platform workers on
matters relating to life and disability cover, accident insurance, health
and maternity benefits, old age protection, etc. The Code also provides
for setting up a Social Security Fund to finance the welfare scheme.
Recognizing the contribution of gig workers on online platforms,
the Government in its Budget announcement made on
1.2.2025, proposed to register them on e-Shram portal, arrange for
their identity cards and provide health care under Ayushman Bharat-
Pradhan Mantri Jan Aarogya Yojana (AB- PMJAY) health scheme.
(d) The Central Government has formulated the Code on Wages,
2019 and the Code on Social Security, 2020 and published the same in
the Official Gazette for general information. “Labour” as a subject is in
the Concurrent List of the Constitution of India and the power to make
rules under the Code on Wages, 2019 and the Code on Social Security,
2020 have been entrusted to Central Government as well as State
Governments. As a step towards implementation of the above-
mentioned Codes, the Central Government has pre-published its the
draft Rules under both the Codes. As per available information, 34 and
32 States/Union Territories have pre-published the draft Rules under the
Code on Wages, 2019, the Code on Social Security, 2020 respectively.
(e) Under the Atal Beemit Vyakti Kalyan Yojana (ABVKY), of
Employees’ State Insurance Corporation (ESIC), unemployment benefit
is paid to insured workers who lose their job, as per eligibility. The
unemployment benefit under the ABVKY has been enhanced to 50%
from 25% of the average daily earning, payable upto 90 days.
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