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Day 28 – Q 3.What is ‘gainful employment’? What is its status in India? Discuss the significance of skill development to ensure gainful employment.

3. What is ‘gainful employment’? What is its status in India? Discuss the significance of skill development to ensure gainful employment.

‘लाभकारी रोजगार’ क्या है? भारत में इसकी स्थिति क्या है? लाभकारी रोजगार सुनिश्चित करने के लिए कौशल विकास के महत्व पर चर्चा करें।


Gainful employment refers to an employment condition where employee receives consistent work and payment from the employer.


Recent Labour Bureau data suggests that just 1.5 million jobs were created against 10-15 million people entering workforce. In these times of ‘jobless’ economic growth, status of gainful employment looks very grim in India.

  • Agriculture sector which employs around 48% of workforce provides only seasonal employment.
  • Complex labour laws have hindered employability in manufacturing sector with employers hiring casual and contractual labours.
  • Though service sector has grown since LPG reforms, it employs just around 25% of workforce. Service sector is mainly skewed in terms of IT and engineering graduates face problem of underemployment, lack of skills which leads to lack of employability (National employability report- just 8% can be employed in core engineering jobs).
  • Prevailing informal economy involving around 80% of workforce (ILO) with issues like lack of secured work, lower wages, social security. Ex: construction sector- seasonal.

Among various reasons, mismatch between skills required and skills of workforce remains a major factor in lower job opportunities today. Realising this, Government of India has launched various initiatives under Skill India Mission like Pradhan Mantri Kaushal Vikas Yojana(PMKVY). Skilling our vast human resource will play significant role in ensuring gainful employment in following way

  • Equip people with skills to adopt to changing technology and economic needs.
  • Absorb large workforce from agriculture to manufacturing sector by enhancing productivity. Ex: MSME sector.
  • Help people to take up entrepreneurship. Ex: agri start up.

Apart from skilling people, there is a need to ensure education – employment policy coherence linking education institutes with industries.


Skilled human workforce is prerequisite for India to reap benefits from its demographic dividend.

Best Answer: Kritika Mishra

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