First-Time Job Incentive Scheme to Boost Youth Employment

New employment push from Motihari

First-Time Job Incentive Scheme to Boost Youth Employment: On July 19, 2025, Prime Minister Narendra Modi introduced a major employment scheme aimed at encouraging youth to enter the private sector workforce. The announcement came during his rally in Motihari, Bihar, where he also launched development projects worth ₹7,200 crore.

Incentivising first-time job seekers

The newly launched scheme offers a ₹15,000 incentive to individuals who are joining private sector jobs for the first time. This financial support is designed to make private employment more attractive, especially in rural and backward regions.

Launch date and implementation plan

The scheme is scheduled to be implemented from August 1, 2025. A massive budget of ₹1 lakh crore has been allocated, signaling the government’s strong intent to ensure widespread coverage and smooth rollout across multiple states.

Static GK fact: Motihari in Bihar is historically significant as the place where Mahatma Gandhi launched the Champaran Satyagraha in 1917.

Aiming to curb migration

One of the key motives behind the scheme is to discourage youth migration from states like Bihar by boosting local employment opportunities. This can help reduce pressure on urban areas and bring development back to smaller towns and villages.

Reducing dependency on government jobs

In many Indian states, youth prefer government jobs due to job security and social status. By offering a direct cash incentive to private job joiners, the government hopes to shift this mindset and diversify employment choices.

Supporting formal sector participation

The scheme promotes entry into the formal employment sector, ensuring better job benefits, social security coverage, and legal safeguards for first-time workers. This will gradually reduce the size of the unorganized workforce, which still dominates in states like Bihar.

Static GK fact: As per Periodic Labour Force Survey (PLFS) 2022-23, Bihar’s unemployment rate for youth (15–29 years) stood higher than the national average.

Infrastructure as a parallel driver

During the same event, PM Modi also flagged off four Amrit Bharat trains, strengthening regional connectivity. These infrastructure developments are expected to complement job growth, especially in logistics, tourism, and small industries.

Static GK Tip: The Amrit Bharat Station Scheme aims to modernize over 1,309 railway stations across India to enhance connectivity and economic activity.

Political and economic implications

Announced just ahead of upcoming elections in Bihar, the scheme also carries political weight, showcasing a blend of development and welfare politics. It aligns with the vision of a Viksit Bharat (Developed India) by 2047.

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First-Time Job Incentive Scheme to Boost Youth Employment: