Employment Generation in Budget 2026

Context

Trade unions have criticised Union Budget 2026-27 for failing to address unemployment, worker welfare, and social security, particularly for informal and gig workers.

Labour Ministry Allocation

• The Union Labour Ministry’s budget saw no major increase, raising concerns about policy priority for workers.
• Allocation remained nearly unchanged at ₹32,666.31 crore
• Trade unions termed this as “neglect of the employment sector”

Employment Generation Concerns

• Unions argue the budget lacks concrete measures to create new job opportunities.
• No major policy initiatives announced for boosting employment
• Absence of targeted programs for job creation in urban and informal sectors
• Focus seen as skewed toward capital investment rather than labor welfare

Social Security for Workers

• The budget fails to strengthen social protection systems for vulnerable workers.
• No new provisions for gig workers and informal sector employees
• No expansion in eligibility criteria or minimum pension under Employees’ Pension Scheme
• Scheme workers are still not formally recognised as workers

Allocation to Employment Schemes

• Key employment programs received funding, but unions say it is insufficient.
• ₹20,082.7 crore allocated to Pradhan Mantri Viksit Bharat Rozgar Yojana
• Trade unions argue the scheme does not ensure long-term livelihood security

Corporate Investment Focus

• The budget prioritises capital investment over worker welfare, according to unions.
• Reduction in capital investment directed toward corporate sector
• Unions claim worker-centric development is sidelined

Health and Education of Workers’ Families

• The budget does not address welfare of workers beyond employment.
• No specific measures for healthcare access
• No education support initiatives for workers’ children

Trade Union Reactions

• Major trade unions expressed dissatisfaction and accused the Budget of being rhetoric-heavy.
• Indian National Trade Union Congress (INTUC)

• Called the Budget “pro-corporate”
• Said it ignores health, education, and social security of workers

Bharatiya Mazdoor Sangh (BMS)

• Stated the Budget fails to address “urgent livelihood and social security concerns”
• Criticised lack of outcomes despite pre-budget consultations

All India Trade Union Congress (AITUC)

• Described the Budget as “full of rhetoric, no substance”
• Claimed it offers only future promises, not present relief

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