Jobs for all by 2012, says Rangarajan

New Delhi, Mar 13 (UNI) Noted Economist and the Chairman, Economic Advisory Council to the Prime Minister, Dr. C. Rangarajan has said that according to estimates, unemployment would be totally eliminated by 2012 with a sustained growth of 9 percent per annum.

Delivering the V.V. Giri Memorial lecture on "Employment and Growth" here this evening, Dr. Rangarajan expressed confidence that the formidable challenge of providing employment to 8 million people every year can be met with growth rate picking up and harmonious industrial relations.

" We need interventions both from the demand and supply sides in order to achieve higher levels of employment. On the demand side, the most potent force is growth". He said interventions are also needed for pursuing sector specific policies aimed at the growth of labour intensive sectors.

Regarding interventions on the supply side, Dr. Rangarajan said they should be in capacity building and enhancing the skill endowment of the labour force. The labour market should be made more flexible to enable a shift of labour force from the unorganised to the organised sector. This would give workers a better deal in terms of wages, he said. Dr. Rangarajan said focus in agriculture should be on quality rather than quantity of employment so that "excess labour in the agriculture sector shifts to productive employment in industry and services".

Describing labour reforms as a sensitive issue, Dr. Rangarajan said the preferred alternative would be to delete Chapter IV-B of the Industrial Disputes Act but simultaneously, the compensation payable to workers should be at a much higher rate to prevent trivial attempts on the part of employers to close the establishments. On the issue of Contract Labour Act, he said the option would be "to define the concept of core activities more narrowly and simultaneously to improve the working conditions of contract employees".

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