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How to create more jobs in rural areas

The difficulty in assessing labor market processes in India, as in most growing economies, is the continued existence of shadow employment, which is many times larger than official employment. Data from India’s Visit here Labor Bureau does not give a complete picture, as most workers are employed in the shadow sector and are not reflected in official surveys. The vast majority of India’s economic structure comprises minuscule enterprises with less than ten employees, which tend not to be officially reported. In rural areas and small towns, the younger generation, employed on a family plot of land, in a small shop at a relative’s house, does not appear as workers. Still, they are part of the employed population. Formal employment in India represents about 15% of all employment, lower only in Africa. 

Employment initiatives 

The Indian government report estimates that some 120 million skilled workers will soon be needed in various Indian industry and services sectors. 

India’s labor market is now in the difficult stage of developing a nonagricultural economy and creating “gainful employment,” which the study defines as creating safer, better-paying, and more productive jobs. The introduction of such characteristics instead of the usual goal of increasing the number of jobs can be considered an indicator of a definite shift in labor employment policy. It is noteworthy that India’s labor market processes in the second decade of the 21st century are taking place against a background of reasonably steady economic growth, close to 7% per year. Still, they have not shown a qualitative change in the demand for labor. Here is a jobs in UAE Layboard.

Several technical cooperation programs in agro-industry and rural development, building trade capacity, and creating jobs are needed. These include projects aimed at creating or expanding agro-industrial parks, upgrading value chains at different levels, improving national and regional quality infrastructure and services systems for accessing international markets, and fostering business innovation through entrepreneurship development. Also, promoting services for the digitalization of value chains and quality infrastructure; stimulating investment and technology adoption of the fourth industrial revolution; and developing entrepreneurial skills among vulnerable groups, such as youth and women.


Among the most ambitious initiatives to overcome poverty over the past decade, Indian experts cite the Public Distribution System and programs in two key areas – education and health. For example, the Campaign for Universal Education aims to develop educational infrastructure, build schools, and provide teachers; the school lunch program motivates low-income families to send their children to school, if only because they will get a nutritious lunch.

The National Rural Health Mission aims to expand health care infrastructure, building different levels of health care facilities close to rural populations. Also, we should take a look at the National Health Insurance Program, which provides cashless health insurance for people below the poverty line, and motivates the poor to seek medical care.

Another important initiative is the National Rural Employment Guarantee Program. It guarantees adult members of rural households who are willing to do unskilled manual labor a minimum of 100 days of employment per fiscal year. According to official statistics, this program has reduced rural poverty by 32% in ten years and prevented 14 million people from falling below the poverty line. Still, numerous critics dispute this data, noting fundamental problems:

  • Jobs are often unavailable to those below the poverty line.
  • Wages are not paid in full.
  • People are poorly informed about the program.

Indian businesses, large and small, have their own experience in creating jobs in rural areas. For example, Pravin Khandelwal, head of Pranay Impex, a company that makes household cleaning products, said that about 70 percent of the workers in the company’s factories are women in the rural states of Maharashtra, Bihar, Uttar Pradesh, and Panjab. As a result, businesses in India, including startups, are now increasingly making major government initiatives part of their own corporate social responsibility programs to empower the poor.

So, what impact do labor market policies have on productivity? Visit here First, strict employment protection for existing workers can reduce productivity by limiting labor movement into new high-productivity industries. Second, conversely, minimum wages seem to increase productivity, although this may be because low-skilled workers have a more challenging time finding work. Third, generous unemployment benefits can boost productivity by helping unemployed workers find jobs that match their skills and by helping to create risky, high-productivity jobs. Finally, by allowing parents to stay in the labor force, family-friendly policies can also boost productivity.

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Employment-promoting policies can depress measured productivity by expanding employment opportunities for low-skilled workers. This would lower average productivity levels but would not affect the productivity of existing workers. 

Tourism in rural areas

The Ministry of Tourism of India emphasizes developing such rural tourist sites that boast rich art, culture, handloom, heritage, and handicrafts. These villages are rich in both natural beauty and cultural splendor. Visit here

In 2017, the Aga Khan Rural Support Program (India) and Grassroutes Journeys organized a joint tourism project to raise funds for the local community. In the village, tourists learn about the culture and traditions of the local community and discover the splendor of mountains, rivers, and green fields. In addition, tourists are immersed in the daily life of the villagers, learning how to prepare traditional food and farming. They also can socialize with the villagers over a conventional cup of tea or play local games with their children.

The tea industry

The tea industry is a significant source of income and export earnings for developing countries. In addition, a labor-intensive sector can provide green jobs, especially in remote and economically disadvantaged areas. However, in most tea-growing countries, farmers and pickers remain the poorest segment of society. Moreover, the COVID-19 pandemic also negatively affects the industry, with many tea-producing areas experiencing a drop in production and demand.

Better recovery from the COVID-19 pandemic means investing in sustainable farming practices for people, nature, and local economies while increasing adaptation to climate change.

Despite migration to urban areas, tribes and villages have the potential to develop entrepreneurship, especially in ecotourism, arts and crafts, animal husbandry, agribusiness, honey production, and millet products. However, there is a lack of infrastructure and technology. One of the main reasons for the lack of interest in entrepreneurship development among the tribal population is the unfavorable ecosystem in the tribal areas.