What is Unemployment Allowance in India

To entice young voters during election season, practically all political parties make a monthly jobless benefit guarantee of about Rs. 3,000.

Some states, including Andhra Pradesh, Tamil Nadu, Himachal Pradesh, and others, already offer unemployment benefits, but they typically only amount to Rs. 1000 per month.

Unemployment allowance will aid young people without work while they look for employment. To make sure that the advantages are exclusively received by the deserving, however, adequate implementation is necessary. The long-term improvement of employment possibilities should be the focus of political parties. Otherwise, giving out unemployment allowance solely to win over voters will make things worse.

The pros of unemployment allowance in India

India has a severe unemployment problem. The government has so far been unable to offer enough employment possibilities for the enormous population. Therefore, granting unemployment allowance can improve the situation.

India has a large number of underemployed workers. Although the majority of them wish to get into a position that suits them, their occupation prevents them from having the time to polish their skills and attend interviews. They can take a two to three month break to find a better job with the help of unemployment benefits.

Workers who are unable to find employment under MGNREGA (National Rural Employment Guarantee Scheme) must get an unemployment allowance from the central government.

The cons of unemployment allowance

The government is additionally burdened with unemployment benefits.

India is the most populous nation. With so many young people out of work, providing unemployment benefits is essentially untenable. Moreover, some independent contractors and other persons may abuse it.

As unemployment allowances help people feed themselves, people could lose interest in looking for work. Also, politicians might not focus on enhancing employment prospects but instead keep using this to win over people.

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