Editorial: Tackle urban joblessness

The proposal to introduce an urban employment guarantee scheme, on the lines of MGNREGA being implemented in rural areas, is an idea that is worth experimenting with to provide immediate relief for the unemployed but should not be seen as a panacea or a long-term solution to the problem. This is because the issues related […]

The proposal to introduce an urban employment guarantee scheme, on the lines of MGNREGA being implemented in rural areas, is an idea that is worth experimenting with to provide immediate relief for the unemployed but should not be seen as a panacea or a long-term solution to the problem. This is because the issues related to unemployment in India are structural in nature, due to the absence of a labour-intensive manufacturing sector. Millions of urban Indian residents are struggling without livelihood opportunities. A national urban employment scheme will therefore provide succour. In August last year, the Standing Committee on Labour emphasised the need for such a programme at the national level. Now, the Economic Advisory Council to the Prime Minister (EAC-PM) too has advocated an urban job guarantee scheme to rehabilitate the surplus labour. It could also serve as a channel to push funds through quickly in periods of stress. In its latest report, the Council also noted that raising minimum income and introducing universal basic income are some of the recommendations that can reduce the income gap and equal distribution of earnings in the labour market. The crushing impact of the prolonged lockdowns and restrictions following the coronavirus pandemic has further highlighted the need for an urban job guarantee scheme. The pandemic has destroyed livelihoods, especially of informal workers and the urban poor while a few paltry relief measures announced by the Centre have turned out to be inadequate in addressing the massive scale of employment and income loss. While going ahead with the urban job guarantee scheme, the Centre must be mindful of the problems inherent to it.

The most important fallout could be increased migration which will only exert further pressure on the crumbling infrastructure in the cities. Unlike in rural areas where works related to agriculture are seasonal in nature, the urban areas have no such flexibility. This will complicate the scheme as many of the migrant workers are unlikely to have the requisite skills needed for regular jobs in cities. There are also constraints regarding the capacities of the urban local bodies, the implementing agencies of the proposed scheme. There are also doubts whether the urban areas have the kind of public works required to sustain the programme. And, there is also the question of financing such a scheme at the national level. Some State governments have attempted to bring in urban employment schemes on their own, but they are so cash-strapped, particularly due to the pandemic-induced crisis, that it has been virtually impossible to do anything impactful on the ground. However, these initiatives can be built upon and improved for it to be successful at the national level. At a larger level, there should be a renewed focus on boosting growth, lowering inequalities in opportunities, improving access to education and health, and providing pathways for upward mobility.

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