As many as 30 million jobs were generated in 2022-2023, and more than 110 million in the last five years, said Sumita Dawra, secretary, ministry of labour and employment, on Saturday.
Dawra was citing provisional figures from the Reserve Bank of India’s (RBI) KLEMS database for 2022-23, which is expected to be released in the coming months.
The KLEMS database tracks employment generation and productivity levels in capital, labour, energy, material, and services sectors.
As per the database, employment in India surged to 580 million by the end of FY23 as against 470 million by the FY18-end. “With this level of employment being generated, we want our policies to be supportive of the labour force,” said Dawra, at CII Annual Business Summit 2024.
The labour secretary also mentioned that the government is working on simplifying Employees’ Provident Fund Organisation (EPFO), and Employees’ State Insurance Corporation (ESIC) related procedures for subscribers. In recent years, several EPF members have flagged facing rejections on their claims.
The rejection rate for all claims has increased from 22% in FY19 to around 28% in the last three financial years. The most pronounced deterioration has been witnessed with regard to the final settlement claims, where the rejection rate rose to 34% in FY23 — meaning one in three claims — from 18% in FY19.
Meanwhile, Dawra said that as global value chains become more anchored in India, a focus on “quality employment” becomes imperative to take advantage of the demographic dividend and realise the dream of Viksit Bharat. “India needs to align its labour laws with the present economic milieu to improve productivity of labour to stay ahead in terms of competitiveness,” she added.
According to the labour secretary, the government has undertaken a “plethora of facilitative reforms” to reduce the multiplicity of laws. So far, 29 labour related acts have been consolidated into four codes with the objective of reinforcing trade and investment, facilitating ease of doing business and reducing compliances, addressing the issue of decriminalisation, addressing skill development needs, dispute resolution, among others, she mentioned.
The government, in 2019-20, consolidated multiple labour laws into four codes: Code on Social Security 2020; Occupational Safety, Health and Working Conditions Code 2020; Industrial Relations Code 2020; and Code on Wages 2019.
Dawra mentioned that the codes have also looked at leveraging technology by strengthening the electronic processes and the use of e-shram for social security, and facilitation of women empowerment. “India needs to focus on four major issues namely skilling and reskilling; labour market flexibility, future of work and aligning demand with supply,” she added.
FE had reported earlier that the Narendra Modi-led government, after the general elections, is likely to implement the codes soon after it assumes office, citing an official.
Labour laws fall under the concurrent list of the Schedule 7 of the Constitution of India. “The state governments are bound to implement the laws formulated by the Parliament and they can’t refuse to do so,” an official had told FE.
“The Centre didn’t notify the rules as the intent was to take all the states on board, but some states refused to frame the respective rules, such as West Bengal, but post elections, the codes will be notified,” the official had said.
