Employment push: New job scheme must be supported by structural reforms

The widespread skill mismatch and the low penetration of technical and vocational education have further compounded the problem

The Union Cabinet on Tuesday approved the employment-linked incentive (ELI) scheme, first announced in the 2024-25 Union Budget. The scheme reflects an acknowledgement that India’s economic growth must translate into gainful job opportunities. According to the latest monthly bulletin of the Periodic Labour Force Survey, the female labour force participation rate was 33.2 per cent, far below the global average, while the youth unemployment rate (aged 15-29) was 15 per cent, compared with the overall unemployment rate of 5.6 per cent. Besides, most people are engaged in the informal sector, which is low-paying.

 

The ELI scheme, aimed at improving formal