Labour Ministry to Become Employment Facilitator, Not Regulator

The Union Ministry of Labour and Employment has released the draft of the Labour Force Policy, 2025. This draft national policy envisions the ministry not as a regulatory body but as an institution that promotes employment generation. This move signals a major shift in India’s labour framework.

The draft policy proposes a technology-driven, employee-centric framework based on universal social security, AI-powered job matching, and digital compliance. Its goal is to transform India’s fragmented labour system into a unified, transparent, and future-ready workforce.

According to the draft, by 2047, India aims to establish a labour ecosystem that ensures Universal employee registration and portability of social security, Creation of millions of green and quality jobs, Near-zero workplace fatalities, Increased female labour force participation, Reduction in informality through digital compliance, AI-driven labour governance capacity across all states, and A “One Nation, Integrated Workforce” framework.

The policy will be implemented in three phases, with a monitoring mechanism established to track progress against specific targets and timelines.

Phase 1 (2025–27): Focus on institutional framework and integration of social security systems.

Phase 2 (2027–30): Development of a universal social security account, skill credit system, and district-level employment facilitation centres across the country.

Phase 3 (post-2030): Consolidation and expansion of all initiatives launched in earlier phases.

The draft also highlights the introduction of modern inspection tools, risk-based audits, and digital reporting systems to enforce national safety and health standards at workplaces, thereby strengthening compliance.

Furthermore, it mentions that through open APIs, multilingual access, and digital verification reliability, the policy will help bridge the gap between talent and opportunities in small towns, rural districts, and MSME sectors.

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