Context:
To address persistent youth unemployment and stimulate formal job creation, the Government of India has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVB Rozgar Yojana). The scheme focuses on demand-side incentives, targeting both first-time employees and employers, in line with India’s broader vision of Viksit Bharat and inclusive economic growth.
Key Highlights:
Government Initiative / Policy Details:
- PMVB Rozgar Yojana aims to generate around 3.5 crore new employment opportunities.
- First-time employees eligible for incentives up to ₹15,000, released in two instalments.
- Employers creating new jobs can receive incentives up to ₹3,000 per month per new hire.
Target Beneficiaries:
- Youth and first-time entrants into the labour market.
- Private sector employers expanding their workforce.
Significance / Objectives:
- Promote formal employment and workforce participation.
- Reduce hiring costs for employers.
- Encourage early labour market entry for young individuals.
Relevant Prelims Points:
- Issue & Causes:
- High youth unemployment and informal employment dominance.
- Reluctance of employers to expand workforce due to cost pressures.
- Government Initiative:
- PMVB Rozgar Yojana uses direct financial incentives to boost job creation.
- Focus on first-time employees, ensuring formal job onboarding.
- Benefits:
- Supports income security for new workers.
- Lowers employer cost burden, encouraging hiring.
- Contributes to employment-led economic growth.
- Challenges:
- Ensuring effective implementation and monitoring.
- Avoiding misuse or substitution of existing jobs.
- Need to align jobs with skill requirements.
Relevant Mains Points:
- Facts & Provisions:
- Incentive-based employment schemes align with active labour market policies.
- Complements skilling initiatives like Skill India Mission.
- Conceptual & Static Linkages:
- Employment generation, demographic dividend, formalisation of labour.
- Role of government in correcting labour market failures.
- Way Forward:
- Integrate scheme with skill development and apprenticeship programmes.
- Strengthen digital monitoring systems to track genuine job creation.
- Encourage MSME participation through awareness and ease of access.
- Periodic evaluation to ensure sustainable employment outcomes.
UPSC Relevance (GS-wise):
- GS 2: Governance – welfare schemes, inclusive growth.
- GS 3: Economy – employment generation, labour reforms.
- Prelims: Government employment schemes, incentive-based policies.