The government has implemented schemes to generate employment such as wage-based employment and the promotion of self-employment. In order to counter the rising unemployment scenario in the country which spiraled during the pandemic, the government undertook various initiatives to generate employment and reduce unemployment in the country. This article discusses various measures undertaken by the government to check rising unemployment, which is important for UPSC aspirants.

Various Government Schemes for Unemployment in India

Pradhan Mantri Mudra Yojana (PMMY)

It was undertaken by the government to encourage self-employment. Under this scheme collateral-free loans up to Rs. 10 lakh, are provided to small/micro business enterprises and to individuals to enable them to set up or expand their business activities.

Pradhan Mantri Rojgar Protsahan Yojana

It was initiated in 2016-17 by the Ministry of Labor and Employment. Here government pays the entire employer’s contribution (12% or as admissible) towards the EPS and EPF for all sectors to all eligible new employees for the next 3 years from the date of registration of the new employee.

Skill India Mission

• It is implemented by the Ministry of Skill Development and Entrepreneurship with a focus to provide skilling to one crore people under Short Term Training (STT), Recognition of Prior Learning (RPL), and Special Project (SP) across the country for four years with an outlay of Rs. 12,000 crore.
• Under the scheme, a short-duration skill development training program is being imparted to all prospective candidates including candidates belonging to BPL in the country.

Pradhan Mantri Garib Kalyan Yojana (PMGKY)

Here the government of India contributes both 12% of the employer’s share and 12% employee’s share under the Employees Provident Fund (EPF), totaling 24% of the wage for the wage month from March to August 2020 for organizations having up to 100 employees with 90% of such employees earning less than Rs. 15000/-.

PM SVANidhi

• This scheme was initiated by the Ministry of Housing and Urban Affairs.
• It focuses to provide affordable working capital loans to street vendors to resume their livelihoods that were impacted during the Covid-19 lockdown.
• The vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly installments in the tenure of one year.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

• It was initiated in the 10th five-year plan in 2005 and works under the Ministry of Rural Development.
• It is a centrally sponsored scheme with the pattern 90:10.
• It provides a legal guarantee of at least 100 days of unskilled manual work in rural areas.
• Any member greater than 18 years of age of a rural household, willing to do unskilled manual work can apply to the local Gram Panchayat (which will issue a Job Card).

National Career Service

• It was envisioned for transforming the National Employment Service to provide various employment-related services such as job matching, career counseling, vocational guidance, information on skill development courses, apprenticeships, internships, etc through an online portal.
• National Career Service (NCS) focuses on a one-stop solution to provide various services related to employment and career-related services to the citizens of India.
• This program is implemented by the Directorate General of Employment, Ministry of Labour & Employment.

National Rural Livelihood Mission (NRLM)

• The scheme named Deendayal Antyodaya Yojana- NRLM ( national rural livelihood mission) was launched by the Ministry of rural development, govt.
• In India in June 2011 a restructured form of the Swarna Jayanti gram Saroja Yojna (SGSY).
• This scheme is fully focused on promoting self-employment and the organization of the people who live in rural areas.
• In this program, the main idea is to organize the poor into a self-help group.
• This scheme aims to create efficient and effective institutional platforms for the rural poor, enabling them to make their livelihood and good standard of living.
• It aims to cover 7 crore low households, 600 districts, 6000 blocks, 2.5 lakh gram panchayats, and 6 lakh villages across the country through self-help groups and helps them for livelihood in a period of 8 to 10 years.

National Urban Livelihood Mission (NULM), 2013

• It is a scheme initiated by the Ministry of Housing and Urban Affairs.
• A Centrally Sponsored Swarna Jayanti Shahari Rozgar Yojana (SJSRY) since 1997 has been restructured as DAY - National Urban Livelihoods Mission since 2013.
• It is for all cities with a population of more than 1 lakh or more.
• It was brought in to decrease poverty, gain self-employment and skilled wage employment, and build strong grassroots level institutions.
• The mission would aim at providing shelter equipped with essential services to the urban homeless

Conclusion

The unemployment crisis in India has increased further, particularly during the pandemic period. This has led to recession, slowing growth of the economy, and fewer job creation potential in the market. In order to reduce unemployment and boost job creation, the government launched various welfare programs, some of which have been described in this article.

FAQs

Question: What is the main objective of the MGNREGA scheme?

Question: How does PMKVY address the issue of unemployment?

Question: What type of employment does PMEGP promote?

Question: What is the role of the National Career Service (NCS)?

Question: Who is the target audience of DDU-GKY, and what does it aim to achieve?

MCQs

1. Which scheme provides 100 days of wage employment to rural households?

A. PMKVY

B. MGNREGA

C. PMEGP

D. DDU-GKY

2. What is the main focus of Pradhan Mantri Kaushal Vikas Yojana (PMKVY)?

A. Financial assistance for micro-enterprises

B. Skill development training

C. Job matching services

D. Wage employment for rural areas

3. Which scheme promotes self-employment through the establishment of micro-enterprises?

A. NCS

B. PMKVY

C. PMEGP

D. Start-up India

4. Who are the beneficiaries of the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)?

A. Urban youth

B. Women entrepreneurs

C. Rural youth aged 15 to 35

D. Skilled professionals

5. What is the purpose of the Start-up India initiative?

A. Promote self-employment in rural areas

B. Provide financial assistance for new businesses and start-ups

C. Offer short-term vocational training

D. Connect job seekers with employers

GS Mains Questions and Model Answers

Q1: Discuss the role of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in addressing rural unemployment in India.

Answer: MGNREGA, launched in 2005, is one of the largest wage employment programs globally, aimed at providing at least 100 days of wage employment in a financial year to rural households whose adult members are willing to perform unskilled manual work. This act ensures livelihood security by creating job opportunities in rural areas, especially for marginalized communities. Additionally, it contributes to rural development through infrastructure projects like water conservation, afforestation, and rural road construction. MGNREGA not only reduces rural distress by providing a safety net against hunger and poverty but also empowers women and promotes inclusive growth by ensuring equal wages.

Q2: Analyze the significance of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in addressing the skill gap in India.

Answer: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) plays a pivotal role in addressing the skill gap among India’s youth by offering short-term training programs aimed at improving employability. The program focuses on providing industry-relevant skills to unemployed youth and dropouts, thereby aligning their skills with labor market requirements. By ensuring certification after training, PMKVY boosts the confidence of job seekers, making them more competitive in the job market. Additionally, the scheme supports entrepreneurship through financial incentives. PMKVY contributes significantly to India’s goal of becoming a global skills hub, and its emphasis on vocational training makes it an essential part of the nation’s economic growth strategy.

Q3: Evaluate the effectiveness of the Prime Minister’s Employment Generation Programme (PMEGP) in promoting self-employment in India.

Answer: The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme aimed at promoting self-employment by facilitating the establishment of micro-enterprises in rural and urban areas. The scheme targets unemployed youth and individuals from economically weaker sections of society, offering them financial assistance to set up small businesses. PMEGP has played a significant role in encouraging entrepreneurship, particularly in the MSME sector, which is critical to India’s economy. It helps in job creation by fostering local industries and encouraging innovation. However, challenges such as inadequate access to finance and market linkages need to be addressed to enhance the scheme’s impact on reducing unemployment.

Previous Year Questions on Government Schemes for Unemployment

1. UPSC CSE Prelims 2017

Question: Which of the following government schemes provides wage employment in rural areas?

A. PMEGP

B. MGNREGA

C. PMKVY

D. DDU-GKY

Answer: B

Explanation: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides 100 days of wage employment to rural households each financial year, focusing on livelihood security in rural areas by providing unskilled manual labor opportunities.

2. UPSC CSE Mains 2019 (GS Paper 3)

Question: "Skill development is crucial for addressing unemployment in India." Discuss the role of government initiatives like PMKVY in enhancing employability among the youth.

Answer:

• PMKVY provides industry-relevant skills through short-term training.
• Focuses on youth and dropouts, making them employable in various sectors.
• Supports entrepreneurship and helps align skills with market demands.
• Plays a critical role in bridging the skill gap and contributing to India’s economic growth.