Tackling Joblessness In Indian Cities With A National Urban Employment Guarantee Programme

As many as 13 states in India have already launched Urban Employment Programmes (UEPs) and others are increasingly looking to emulate.

Is it time the Union government explored building on these state-level initiatives to launch a nationwide umbrella programme? If so, what could be the broad contours of such a plan, and how does it become effective in countering the challenge of growing joblessness across urban India?

Lessons From The Past

India's endeavor to combat urban unemployment has undergone significant evolution, marked by pioneering initiatives across various states aimed at fostering sustainable livelihoods for their city dwellers. 

The journey traces back to 1997, when the Union government introduced the Swarna Jayanti Shahari Rozgar Yojana under the 9th Five Year Plan. This programme sought amalgamating three urban poverty alleviation schemes from the preceding Five Year Plan. Since then, there has been incremental progress, albeit on a relatively smaller scale.

Kerala's groundbreaking Ayyankali Urban Employment Guarantee Scheme (AUEGS), launched in 2017, marked a pivotal moment in India's approach to urban employment. Leveraging the Kudumbashree network, Kerala effectively implemented the scheme, guaranteeing 100 days of employment with a budget of Rs 125 crore. The scheme targets adult residents through ration card registration, ensuring accessibility to those in need.

Kudumbashree is a poverty eradication and women empowerment programme implemented by the government of Kerala, providing opportunities for self-employment and income generation. Microcredit and neighborhood groups were central components to its success.

"Kerala stands out as a noteworthy example, leveraging its Kudumbashree network to effectively implement urban employment initiatives. The initial steps involved meticulous planning, including the identification of suitable projects, enrollment of willing workers, and efficient allocation of resources," said Amit Basole, an economist at Bengaluru-based Azim Premji University.

"The onset of the COVID-19 pandemic prompted several states to introduce urban employment schemes, signaling an urgent need for action. As these schemes are relatively new, not many assessments from state-level programs have emerged," said Bosale, who specialises in labor market economics.

Several states such as Rajasthan, Odisha, and Himachal Pradesh have since followed Kerala's lead and introduced their own versions of urban employment guarantee schemes, each tailored to address the specific needs of their populations.

Rajasthan's Indira Gandhi Shehri Rozgar Guarantee Yojana (IRGY), rolled out in 2022, which kicked off with a substantial budget of Rs 800 crore, is designed to provide 125 days of guaranteed employment to city dwellers. The scheme focuses on labor-intensive projects, aiming to create sustainable livelihoods while addressing critical infrastructure needs in urban areas.

On the other hand, Odisha's Mukhya Mantri Karma Tatpara Abhiyan (MUKTA), launched during the lockdown in 2021 to create jobs with a budgetary allocation of Rs 194 crore, places a premium on community engagement and infrastructure undertakings.

By ensuring the active involvement of local communities in the developmental process, MUKTA underscores the importance of grassroots participation in shaping urban growth.

Various structural facets, including the duration of employment, wage differentials, reliability, consistency of work, community engagement, infrastructure enhancement, and social protection, have been addressed to varying extents in the state-level programs.

Beyond Job Creation

A national employment guarantee scheme transcends mere job creation; it embodies a multifaceted approach encompassing reliability, guaranteed employment, fair wages, social protection, women empowerment, and sustainable urbanization.

In analyzing the landscape of urban employment programmes across states, experts highlight critical insights essential for the success, sustainability, and inclusivity of such initiatives.

Basole emphasized the need for substantial budget allocations, effective administrative frameworks, and collaboration between urban local bodies and the central program to ensure seamless implementation and address potential conflicts.

Economist Jean Drèze, a member of the National Advisory Council during the first term of the UPA government (2004-2009), has mooted the idea of introducing vouchers within urban employment programs, acknowledging its potential to offer flexibility and choice for beneficiaries.

Jean’s idea is about creating a system where the state government provides special stamps called 'job stamps' to approved institutions like schools, colleges, and government departments. These stamps can be converted into a day of work for someone looking for a job.

The approved institution will arrange the work, and the government will directly pay the worker's wages (at least the minimum wage) into their bank account when they present the job stamp along with a certificate from the employer confirming the work done. Workers will be selected from a pool of registered workers, either by the employer or by an independent agency to ensure fairness and prevent any unfair practices.

Anamitra Roy, assistant professor at Centre for Informal Sector and Labour Studies at Jawaharlal Nehru University highlighted Kerala's effective leveraging of the Kudumbashree network and Rajasthan's commitment to government support as exemplary models. 

Central to a central programme’s success, Roy emphasizes, are timely wage disbursement, sufficient employment days, and a rights-based approach to ensure equitable access to opportunities.

Furthermore, Roy underscored the significance of inclusivity in urban employment initiatives, particularly in addressing vulnerabilities exposed by the pandemic. While such programmes offer short-term relief, sustained job creation requires broader structural reforms and a phased rollout strategy informed by pilot projects and lessons learned.

According to Basole, an urban employment programme serves as a crucial insurance, bridging the employment gap in the event of future pandemics or any such calamity. Therefore, the rationale behind advocating for such a program in 2019 remains unchanged.

Moreover, budgetary constraints pose a challenge for states, limiting their ability to implement large-scale initiatives similar to the MGNREGA. Consequently, a national programme, bankrolled by the Union government, retains its relevance, if not more so, as it can provide the necessary support and scale to address urban employment challenges effectively.

Also, a national programme, Roy said, would offer stability even as state governments change. Legal frameworks, including provisions for social security, are imperative to safeguard workers' rights and provide a safety net during periods of job scarcity. 

Lastly, a rights-based approach, coupled with a demand-driven framework akin to MGNREGA, would ensures equitable access to employment opportunities for both skilled and unskilled laborers.