Topic –Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
4) Recent estimates for employment generation do not give the true picture of the economy and suffers from flaws on several fronts. Examine. (250 words)
Why this question
The recent estimates of employment generation have been criticized for being over estimating the employment generation in the country. The estimates have been based on data from EPFO, ESIC, PFRDA. The results however do not corroborate with other factors. The issue is related to GS 3 syllabus under the following heading-
Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Key demand of the question.
The question wants us to give reason for why the recent employment generation statistics are inflated and do not represent the true picture of employment in the economy.
Examine- We have to dig deep into the issue and come out with proper reasons as to why the recent estimates do not represent the true picture of the economy and we have to form our arguments/ facts etc in support of the answer.
Structure of the answer
Introduction- Mention the quantum of jobs created as per the recent employment generation estimates by the govt. And mention the sources of data- EPFO, ESIC, PFRDA.
Body– discuss in detail about the flaws in the present estimates.
E.g some of the schemes are mandatory while others optional and hence don’t represent a true picture of even formal sector employment, it is hard to distinguish the accounts of those newly joining the labour market from those being formalised because of the change in the nature of enterprise, not in consonance with the Labour Bureau’s annual surveys which point out decrease in employment in agriculture etc.
Conclusion- mention the need for household surveys to capture the true and holistic picture of the employment generation in the economy,