Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Employment Policy Convention, 1964 (No. 122) - India (Ratification: 1998)

Articles 1 and 2 of the Convention. General economic policies. The Committee notes the Government’s report provided in August 2011 including detailed information in reply to the 2010 observation. The Government indicates that it is implementing various employment generation and poverty alleviation programmes under the 11th Five Year Plan 2007–12 to increase employment opportunities in both rural and urban areas. The Committee notes that these programmes have not only generated employment opportunities but have also provided financial cushions for the workers and their families affected by the slowdown. The Government also recalls that the economic growth of 6–8 per cent per annum during the first half of the past decade has significantly increased the demand for labour and, hence, employment growth. The Government recognizes that employment growth has not been uniform across various population segments. Employment growth was much higher in urban areas than in rural areas and was significantly higher for urban females than for the rural males, rural females and urban males. The Government also states that addressing underemployment along with open unemployment is important for policy initiatives, particularly, from the point of view of inclusive growth. Youth were particularly affected by unemployment (for the period 2004–05, the unemployment rate was almost 30 per cent for young people aged 20–24 years). According to the Employment–Unemployment Survey conducted by the Labour Bureau, the unemployment rate for 2009–10 was 9.4 per cent nationwide, rising to 10.1 per cent in rural areas. The unemployment rate was 14.6 per cent for women compared to 8 per cent for men. As indicated by the ILO in the technical advice provided to the Government in recent years, the Committee notes that for an employment strategy to be effective, it is important to mainstream employment in the country’s development strategy. The Government might consider going beyond special programmes and integrating employment concerns into policy-making at the macroeconomic as well as sectoral level. The Government and the social partners might wish to identify sectors that are more employment-friendly and pursue policies and programmes conducive to their growth based on an analysis of the employment impact of growth of such sectors. The Committee therefore invites the Government to indicate in its next report to which extent measures implemented under the Five Year Plan 2007–12 have managed to improve the quality of the employment generated and alleviate both unemployment and underemployment. Please also provide information on the efforts made to improve the employment situation for young persons and workers in the unorganized sector and the results achieved in terms of designing targeted programmes and incentives for promotion of sustainable job creation for the youth and for those working in the informal economy. The Committee would welcome continuing to receive relevant data on the situation and trends of the labour market disaggregated by state, sector, age, gender and skills, in particular for socially vulnerable groups such as young persons, women jobseekers, scheduled castes and scheduled tribes, ethnic minorities and persons with disabilities (Article 1(2) and Article 2(a)).

Promotion of employment for poor workers in the rural sector. The Committee notes the information provided on the various important programmes implemented to provide job opportunities in the rural sector. The programme Swarnajayanti Gram Swarozgar Yojana has been providing self-employment to villagers through the establishment of self-help groups since its launching in 1999. Thus, in 2010–11, 322,093 self-help groups received assistance under that programme. The Committee notes that the national policy designed for the creation of sustainable employment in the rural sector was renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) in October 2009. According to the data supplied by the Government, MNREGA provided 52.58 million households with sustainable employment in 2009–10. The total number of jobseekers that were provided with sustainable employment has been increasing steadily over the last four years. It was suggested to increase providing work for 100 days to 200 days and that special emphasis be put on fostering small industries. The impact of the MNREGA on the improvement of rural workers’ wages was also significant in numerous states. The Committee invites the Government to continue to supply information on the impact of MNREGA and other major employment generation programmes in enhancing job growth and sustainable employment for poor workers in the rural sector.

Consultation of the representatives of the persons affected. The Committee notes that the 43rd India Labour Conference held on November 2011 included tripartite consultations and discussions on employment generation and skill development. The representatives of trade unions, employers’ organizations and States and Union Territories proposed various measures to generate employment and sustain economic growth. The Committee also notes that the social partners have been actively involved in the skills development system and that they actively contributed to the elaboration of employment policies. The Committee invites the Government to continue to provide examples of questions addressed and decisions reached on employment policy through tripartite bodies. It would also appreciate continuing to receive information on the involvement of the social partners in the implementation of the major employment generation programmes.

Part V of the report form. ILO technical assistance. The Government indicates that a National Employment Policy has been drafted in association with the ILO and is still awaiting final approval. Its objective is to accelerate employment growth, particularly in the organized sector, and to improve the quality of jobs in terms of productivity, incomes and protection of workers, especially in the unorganized sector. The Committee also notes that a Decent Work Country Programme – India Document (DWCP–ID) was launched in February 2010 in close cooperation with the ILO supporting the implementation of a national employment policy. The Committee invites the Government to indicate in its next report the action taken as a result of the advice received from the ILO in the matters covered by the Convention.