Unified National Employment Framework: Need & Challenges

India’s working-age population will grow by 133 million over the next 25 years, presenting a unique demographic dividend. However, without coordinated, long-term employment strategies, this opportunity risks becoming a demographic Disaster.

India’s Employment Landscape

Formal Employment: Over 13 million net Employees’ Provident Fund Organisation (EPFO) subscribers added in FY25; 77.3 million total since September 2017.
Self-Employment: Increased from 52.2% to 58.4%.
Casual Labour: Declined from 24.9% to 19.8%.
LFPR: Labour Force Participation Rate rose from 49.8% (2017–18) to 60.1% (2023–24).
WPR: Worker-Population Ratio improved from 46.8% to 58.2%.
Youth Unemployment Rate: Dropped from 17.8% (2017–18) to 10.2% (2023–24).

Need for Unified National Employment Framework

Consolidation of Schemes: Coordinate central & state programs to address regional labour market needs. E.g., Canada’s Local Employment Planning Councils align federal programs with local demand.
Coordination Across Ministries: Align trade, industrial, education, and labour policies to maximise employment outcomes. E.g. NSDM aligns education, labour, and industrial policies.
Time-bound Goals: It helps set measurable targets for job creation and the inclusion of women. E.g. Singapore’s SkillsFuture sets clear sectoral skill targets to boost employability.
Monitoring & Evaluation: For enabling real-time data collection, performance tracking, and policy feedback mechanisms. E.g. e-Shram portal centralises informal worker data to guide policy interventions.

The National Skill Development Mission (NSDM), launched in 2015 by the Indian government, is a comprehensive program aimed at creating an end-to-end skill development framework in India.

The e-Shram portal is an online platform by the Indian Ministry of Labour & Employment to create a National Database of Unorganised Workers (NDUW).

Key Challenges in Implementing UNEF

Policy Fragmentation: Centre and State employment schemes lack coordination, reducing impact.
Labour Informality: 90% of the workforce remains informal, limiting social security and formal jobs.
Skill Mismatch: Graduate skills are often misaligned with industry, especially in AI and robotics.
Inclusion Barriers: Women, youth, and marginalised groups face structural and societal obstacles.

Way Forward

Governance Strengthening: Empower Secretaries and District Committees for workforce management.
Policy Integration: Align industrial, skill, education, trade, and labour policies for coherent job creation.
Inclusivity Measures: Enhance participation of women, youth, marginalised groups, and gig workers.
Data Systems: Create a real-time employment database to connect 1.2 crore job seekers.

The Unified National Employment Framework can turn India’s demographic advantage into sustainable, inclusive, and quality employment. Effective implementation is key to resilient growth and achieving Viksit Bharat by 2047.

Reference: The Hindu | PMFIAS: Shift in India’s Employment Landscape

PMF IAS Pathfinder for Mains – Question 379

Q. Inclusive growth in India depends on creating decent and productive employment opportunities. Critically analyse how a Unified National Employment Framework (UNEF) bridges policy fragmentation and promotes equitable labour market outcomes. (250 Words) (15 Marks)

Approach

Introduction: Write a brief introduction by mentioning the aim of the UNEF.
Body: Analyse how the Unified National Employment Framework bridges policy fragmentation, promotes equitable labour market outcomes, and the way forward.
Conclusion: Emphasis on ‘One India’ approach & mention future course of action.