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| PMEAC recommends creation of unemployment fund |
| BS Reporter / New Delhi Jun 13, 2009, 00:54 IST |
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Prime Minster's Economic Advisory Council (PMEAC) has recommended creation of an unemployment fund, which will be financed by the industry, to take care of employees losing jobs during the downturn.
“We have proposed the idea of an unemployment fund before the government to take care of the boom and bust cycles,” said PMEAC Chairman Suresh Tendulkar.
A study by United Nations Commission for Trade and Development (Unctad), which was released today, estimated that 1.16 million people lost their jobs in India because of current economic downturn impacting labour-intensive sectors like textiles, gems and jewellery, among others.
Further details on whether government will also contribute to the fund or which sectors the fund would cover were not given.
“Sectors which perform well should contribute to a fund which is then utilised to remain in the market when a slowdown takes place,” said Sugata Marjit, director of Centre for Studies in Social Sciences.
Exports fell by 33 per cent in April for the seventh consecutive month, according to the latest data.
Commenting on growth agenda over the next five years, Tendulkar stressed the importance for pushing reforms in the banking, insurance and pension sectors to make available long-term funds for corporates.
He emphasised on the importance to shift expeditiously from urban to rural and non-metropolitan markets where the demand is still high. He said this at a function organised by ministry of industry and commerce together with Unctad on ways to tackle the global slowdown.
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