Editorial: Avoid discrimination in jobs

It’s reckless to think that the quota system for locals will magically solve the unemployment problem

The Constitution allows every citizen to live and work anywhere freely within the country. Any attempt by the States to impose restrictions on this right would not only be ultra vires and unconstitutional but also regressive. The idea of enforcing reservations for locals in the private sector would undermine the basic spirit of equality and development. Moreover, such a policy would scare away the potential investors, thereby hampering the industrial development of the States. It would be naïve and reckless to think that the quota system for locals would somehow magically solve the unemployment problem. One wonders what would happen to India’s federal structure if every State insists on setting aside a significant chunk of the jobs in the private sector for locals. In such a scenario, half of the employees in Maharashtra, Karnataka and Telangana will have to move out. Most States will have an influx of people. Many corporations will lose out on people. Large corporations across sectors and IT giants like Infosys, Wipro and TCS can never have a national talent pool nor can they ensure diversity at their workplaces. Though some States like Haryana, Jharkhand, Madhya Pradesh, Karnataka and Maharashtra came up with different versions of quota policy for locals with the promised reservations ranging from 30% to 75%, nothing much has come out of them as they have remained only on paper. And, there is a growing realisation about the folly of such reckless populist moves. It must be pointed out that ‘jobs for locals’ laws go against the provisions in the Constitution which promise equality of law irrespective of place of birth (Article 14), against discrimination in employment (Article 16), and free movement to all citizens across the country (Article 19).

In fact, Article 16 prohibits the State from discriminating on grounds of place of birth or residence. Such quota policies would make the businesses unviable, thereby reducing the total number of jobs available. It will encourage informalisation of labour, as employers would look for ways to balance the need to remain competitive and follow the local laws. It will eventually lead to a throwback to the licence-permit-quota raj. Restrictions on labour mobility would deprive the labour pool of its diversity, which is a big strength of the Indian economy. At a more macro level, such rabid nativism weakens the bonds that unite India and violates the fundamental right of Indians to seek livelihood anywhere in the country. The other potential negative impacts are: increased risk of labour shortages, aggravating wage inflation and worsening regional inequalities. The solution to the problem of unemployment lies in improving the quality of education, upgrading the skills of workers and creating a favourable ecosystem to attract industries.

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