Labour Bureau files MUDRA job report

Why in news?

• The Labour Bureau has completed its survey on employment generated by the MUDRA loan scheme, giving the Centre a potential data tool to combat other reports showing a dismal scenario on jobs.

Background: –

• The Pradhan Mantri Mudra Yojana was introduced in April 2015 as an effort to extend affordable credit to micro and small enterprises.
• Loans up to Rs. 10 lakh are extended to these non-corporate, non-farm enterprises by the Micro Units Development and Refinance Agency (MUDRA) through last-mile financial institutions.
• So far, 15.56 crore loans worth a total of Rs. 7.23 lakh crore have been disbursed.
• In December 2017, faced with mounting criticism on the failure to create job opportunities, the Labour Ministry had asked the Labour Bureau to initiate the survey on jobs created through the MUDRA scheme.

What report says?

• According to reports, a leaked copy of the NSSO’s findings showed that unemployment hit a 45-year high of 6.1% in 2017-18.
• Some economists have advised caution in the interpretation of MUDRA data, especially as it relates to jobs.
• Given that the average size of the loan disbursed under MUDRA is quite small, it is unlikely that the loan seekers are providing a job to anyone other than themselves.

(Scheme,social issue)(The hindu)

Pic courtesy:labourbureaunew.gov.in