Years of policy failure and inadequate work-at-home opportunities had triggered a brain drain from Punjab that Chief Minister Bhagwant Mann’s party had voted to stop. The unemployment rate among job-seeking graduates or highly educated people of the state has increased from 13.6% recorded in May-August 2016 to 14.82% in the same period this year. The Center for Monitoring Indian Economy (CMIE), an independent private economic think-tank and business information company, reports that Punjab’s labor force participation rate (LFPR) has come down from 46.62 to 40.09%.
financial incentive
Recognizing the importance of anchor units in employment generation, the government has decided to offer them customized incentive packages based on their gestation period and ability to develop ancillary enterprises and job creation potential. These units will get an annual job-subsidy of Rs 36,000 for each employee for a maximum period of 5 years. In case of women, scheduled castes this figure is Rs 48,000. backward class, and Other Backward Classes. The subsidy is for direct recruitment with Punjab domicile.
The two types of anchor units include those with at least 1,000 workers and an investment of Rs 200 crore and those with at least 500 workers and an investment of Rs 50 crore. Units seeking their financial benefits will have to maintain the limit of direct employees and file monthly returns verified by the Labor Inspectorate.
Those living below the limit in any month will not get the benefit of that month. Additional drawn incentive will be recovered with 12% compound interest per annum. To protect and create jobs, the government will provide a one-time relief package to large sick units that present a revival plan highlighting the existing jobs and the numbers to be created.
Skill Development
In order to bridge the gap between the need of the industry and the skills of the youth of Punjab, the government is planning to open a university of skill and vocational education with industry-relevant curriculum. It will offer skill-based certificate, diploma and degree programs and will coordinate with the departments of technical education, higher education and industry. Employers from different industrial sectors will train the youth. The industrial clusters will each get a capital subsidy of up to Rs 5 crore for building, machinery and training equipment. A registry of all skilled graduates will help both job seekers and employers.
startup incubator
In order to promote entrepreneurial culture among the students, the state government will set up incubation centers in colleges and universities to teach them the art of business. The government will lay emphasis on academic-industry linkages and networking through these centers and help students to avail benefits of state and central schemes, incentives and grants.