Centre likely to move ILO against its India employment report

News Analysis

1.     India's Objection to ILO Report:

o   India, a founding member of the International Labour Organization (ILO), is likely to file a complaint against the ILO concerning its India Employment Report 2024.

o   The Union Labour Ministry has expressed concerns that the model used by the ILO to assess India's employment situation is not suitable and does not reflect the actual scenario in the country.

2.     Youth Unemployment:

o   The ILO report highlighted that India's youth account for almost 83% of the unemployed workforce.

o   Additionally, the report noted a significant increase in the proportion of unemployed youth with secondary or higher education, rising from 35.2% in 2000 to 65.7% in 2022.

3.     India's Response:

o   The Indian government argues that the concept of employment has been changing drastically in the country, with more people turning to entrepreneurship and formal employment gaining momentum.

o   Increasing subscriptions to the Employees' Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC) are cited as indicators of formal employment growth.

4.     Data Discrepancies:

o   The Labour Ministry has previously raised doubts about the data used by private agencies like the Centre for Monitoring Indian Economy (CMIE) and now questions the data utilized by the ILO in their report.

o   The government insists that the Periodic Labour Force Surveys (PLFS) provide a more accurate depiction of the employment situation in India.

5.     Government’s Position:

o   Minister of State for Labour, Shobha Karandlaje, emphasized in the Lok Sabha that unemployment among youth in India is on a declining trend.

o   She highlighted that employment generation and improving employability are government priorities, with various initiatives being undertaken to generate employment across the country.

Implications:

1.     International Relations:

o   The potential complaint against the ILO may strain relations between India and the international labor body.

o   India’s challenge to the ILO report could also spark a debate on the methodologies used by global organizations to assess national issues.

2.     Youth Employment Focus:

o   The ILO report brings attention to the issue of youth unemployment in India, a critical challenge that needs to be addressed.

o   The Indian government may need to provide more comprehensive data and evidence to counter the claims made in the ILO report.

3.     Data and Methodology:

o   The disagreement over data sources and methodologies highlights the importance of reliable and consistent data in shaping national employment policies.

o   It may prompt a re-evaluation of how employment data is collected and analyzed in India, particularly regarding the inclusion of new forms of employment such as entrepreneurship and gig economy roles.

4.     Policy Implications:

o   The Indian government may need to reinforce its employment policies and initiatives to address the concerns raised by the ILO report, particularly in youth employment.

o   This situation could lead to the introduction of new measures aimed at reducing youth unemployment and improving the quality of jobs available.

5.     Public Perception:

o   The public and media attention on this issue may influence perceptions of the government's handling of unemployment and labor issues.

o   It could also impact political discourse, especially with the upcoming Lok Sabha elections, as employment remains a key issue for voters.

Conclusion:

The potential move by the Indian government to challenge the ILO’s India Employment Report 2024 highlights a significant disagreement over the assessment of the employment situation in the country. While the ILO report emphasizes the high rate of youth unemployment, the Indian government contests the data and methodology used, arguing that it does not reflect the actual employment trends. This issue underscores the importance of accurate data and highlights the need for continued efforts to address youth unemployment and improve the overall employment landscape in India.

MCQs for UPSC Prelims Exam

1.     What action is the Indian government likely to take regarding the ILO's India Employment Report 2024?

o   A) Accept the findings

o   B) File a complaint against the ILO

o   C) Implement the recommendations

o   D) Ignore the report

Answer: B) File a complaint against the ILO

2.     According to the ILO report, what percentage of India's unemployed workforce is accounted for by youth?

o   A) 65%

o   B) 70%

o   C) 83%

o   D) 90%

Answer: C) 83%

3.     Which data sources does the Indian government prefer over those used by the ILO report?

o   A) Private agencies like CMIE

o   B) Periodic Labour Force Surveys (PLFS)

o   C) World Bank reports

o   D) IMF economic data

Answer: B) Periodic Labour Force Surveys (PLFS)

4.     What trend did the Minister of State for Labour, Shobha Karandlaje, highlight regarding youth unemployment in India?

o   A) Increasing trend

o   B) Stagnant trend

o   C) Declining trend

o   D) No change in trend

Answer: C) Declining trend

5.     What alternative forms of employment does the Indian government claim are increasing in the country?

o   A) Agricultural employment

o   B) Entrepreneurial ventures and formal employment

o   C) Government jobs

o   D) Manual labor

Answer: B) Entrepreneurial ventures and formal employment