Government And Employment Generation

A few years back the government passed an Act in Parliament known as the National Rural Employment Guarantee Act 2005.

  • It promises 100 days of guaranteed wage employment to all adult members of rural households who volunteer to do unskilled manual work.
  • The families, which are living below poverty line, will be covered under the scheme.
  • This scheme is one of the many measures that the government implements to generate employment for those who are in need of jobs in rural areas.

Since independence, the Union and state governments have played an important role in generating employment or creating opportunities for employment generation.

Their efforts can be broadly categorised into two — direct and indirect.

  • In the direct generation of employment opportunities, government employs people in various departments for administrative purposes. It also runs industries, hotels and transport companies and hence provides employment directly to workers.
  • When output of goods and services from government enterprises increases, then private enterprises that supply materials to government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For example, when a government-owned steel company increases its output, it will result in direct increase in employment in that government company. Simultaneously, private companies, which supply inputs to the government steel company and purchase steel from it, will also increase their output and thus employment. This is the indirect generation of employment opportunities in the economy.

The government has implemented many programmes, aimed at alleviating poverty, through employment generation. They are also known as employment generation programmes. All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural shelter, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, construction of houses and sanitation, assistance for constructing houses, laying of rural roads, development of wastelands/degraded lands.



Bibliography : NCERT – Indian Economic Development



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