4 min read.Updated: 08 Mar 2021, 09:58 PM ISTAjit Ranade
A carrot plan that incentivises firms to hire locally would work much better than a job-quota stick
How do you boost the hiring of local workers? Two recent and contrasting approaches are worth examining. The first one is from Singapore, which has a population of 5.7 million. The second is from India’s state of Haryana, with a population of 28.8 million. A few months ago, Singapore’s ministry of manpower and its inland revenue authority announced that its government would pay firms S$15,000 for each local worker hired who was below 40 years of age. For older workers, the reward was S$30,000. This incentive would be available for six months and is part of a S$1 billion scheme to boost local hiring, especially of older workers. The government would also help local job seekers by putting up information on the 100,000 jobs thus being created.