Are Employment Exchanges in India Still Relevant in the Age of Online Job Portals?

Fate of Employment Exchanges across India

In recent years, the fate of employment exchanges across India has been a topic of concern and debate. These institutions, which were once considered vital for connecting job seekers with potential employers, now face various challenges. With the changing dynamics of the job market and the rise of online job portals and recruitment platforms, the relevance and effectiveness of traditional employment exchanges have come into question.

Many argue that these exchanges need to evolve and adapt to the digital age to remain useful and efficient in helping job seekers find employment opportunities. However, others believe that the concept of employment exchanges is outdated and no longer serves its intended purpose in the current job landscape.

Regardless of differing opinions, it is essential to address the challenges faced by employment exchanges and explore ways to revitalize and modernize these institutions to better serve job seekers and employers alike. The future of employment exchanges in India may depend on their ability to innovate and stay relevant in a rapidly changing job market.

Role of Employment Exchanges in India

A good write-up on the role of Employment Exchanges in India with reference to the contemporary unemployment problem.

In India, though the State remains the single largest employer, it cannot solely create employment but can accelerate employment generation through its industrial policy by encouraging the formation and growth of SMEs across the country. If we analyze the role of the State in employment generation, it was considerably more significant during the first two Five-Year Plan periods due to the emphasis on forming new State-owned core industries and expanding agricultural irrigation projects. These projects required a large number of skilled and semi-skilled labor, and Employment Exchanges played an important role in recruitment.

In fact, the services of the Department of Employment and Training originally came into existence in 1945 to rehabilitate servicemen who were unemployed due to post-war demobilization. Hence, the Directorate General of Resettlement and Employment (DGRE) was formed, and Employment Exchanges were gradually opened across the country. By early 1948, the services of Employment Exchanges were available to all job aspirants, and the DGRE was renamed the Directorate General of Employment and Training. Simultaneously, the Union Public Service Commission and State Public Service Commissions were formed, and most jobs related to the sovereign functions of the State and Central Governments were gradually brought under these recruitment agencies.

Moreover, as mentioned in the article, the formation of the Government's own recruitment agencies for subordinate cadre services like the SSC, Banking Services Recruitment Board, Teachers Recruitment Board, etc., reduced the role of Employment Exchanges. The emergence of professional recruitment agencies in the Private Sector also contributed to this reduction. No Private Enterprise prefers the sponsorship of Employment Exchanges in their recruitment process because Employment Exchanges restrict their role to the registration of job seekers, periodic collection, compilation, and preparation of Statements of Employment and Unemployment based on the returns filed under the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.

I feel that both the Central and State Governments should consider revamping the role of this Department in the wake of globalization, which offers vast employment generation opportunities in the Private Sector. This department can be staffed by professionals to provide proper career guidance and effective coaching to the educated unemployed in rural areas.