Employment generation

Indian Economy glossary

Also called: Job creation · Topic: Employment, Unemployment and Informalisation · NCERT: Class 10, Ch 2 "Sectors of the Indian Economy"

Meaning

Employment generation means creating new jobs, mainly through public investment and support. In India the aim is to move people out of disguised unemployment (more family members on a farm than the work needs) and seasonal unemployment into productive work. The usual tools are irrigation, rural roads and storage, cheap bank credit, agro-processing units near villages, and more education, health and tourism services.

Example

Laxmi's family works 2 hectares of unirrigated land. If the government or a bank loan pays for a well, the family can grow a rabi wheat crop. One hectare of wheat employs 2 people for 50 days. A Planning Commission (now NITI Aayog) study estimates about 20 lakh jobs in education alone and more than 35 lakh additional jobs every year in tourism.

Don't confuse with

  • Employment generation programmes: these are named anti-poverty schemes. Employment generation is the broader goal, reached through any policy or investment that creates work.

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