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Government and Employment Generation

The government has taken many steps in order to generate employment which is acceptable and to ensure minimum safety and job security. An Act called the National Rural Employment Guarantee Act, 2005 was passed by the Parliament which guarantees 100 days of wage employment to all the adults of rural households who are willing to do unskilled manual labour. The families below the poverty line will be covered by this act. This is one of the many schemes adopted by the government to alleviate unemployment in the rural sector.

The Union and the State government have taken initiatives, since our independence, to generate employment. Their initiatives can be classified in a broad sense into two categories: direct and indirect. Under the direct category, the government tries to absorb people into its various departments for administrative purposes. It also provides employment to many by running factories, hotels and transport companies. When there is increase in the output of goods and services of the government backed firms, there is an increase in the output of the private firms which supply raw materials to the government firms and hence it is another opportunity for employment generation. This is indirect employment. For example, if a government backed steel company increases the output of its steel production, then automatically the private firms supplying iron ore will increase there production capacities. Hence, both the government firm and the private firm have to employ more people in order to fulfill its increased output. In the chapter about poverty we had seen a number of schemes introduced by the government to alleviate poverty. These schemes aim to alleviate poverty by generating more employment. Hence they are also known as employment generation programs. These programs do not just provide employment but also provide the rural areas with clean dinking water, primary health and education, nutrient, shelter and assist the people to buy income generating assets, increase the generation of wage employment opportunities, construction of houses and roads, and improve sanitation and hygiene.

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