“It’s not the govt’s job to tell the pvt sector to provide job security to gig workers,” says Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman has said that the government can only encourage the private sector to create jobs and cannot dictate how companies should invest their money or provide employment.
In an interview with The Indian Express, Sitharaman was asked about the challenges facing different sections of the job market, including social security for gig workers, stagnant wages, rising costs, job security and changing skill requirements.
‘It’s Up to the Private Sector’
Sitharaman said the government’s role is limited when it comes to directing private companies on investment and employment decisions.
“Except for nudging the private sector, you can’t do as much as the government. It’s up to the private sector. It’s their money that they are investing. Beyond a point, it will not be the government’s job to tell them,” she said.
According to her, private companies ultimately decide where to invest based on market conditions and the returns they expect from those investments.
She said that when the market creates a demand for a particular service, skill or set of workers, private companies are likely to invest in that area if they see an opportunity to benefit from it.
‘Market Forces Decide Where the Money Is Put’
Sitharaman said market forces play an important role in determining where both private and government investment goes.
“But if the market requires it, meaning that if there’s a need for something and the private sector sees a point that if they invest, they will be able to get something out of it, they will come in actually,” she said.
She added that investment would not happen unless there is demand for a particular set of workers or jobs requiring specific skills.
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Need to Match Skills With Jobs
According to Sitharaman, the focus should therefore be on creating conditions where demand and available skills can be matched.
“So, we need to create situations and identify people to match with them,” she said.
Her comments come amid broader concerns around employment, including the availability of quality jobs and the changing requirements of the workforce.
While the government can encourage private-sector participation, Sitharaman said companies will ultimately make investment decisions based on market demand and business considerations.
