The Eleventh Plan is proposing to create seven crore jobs with a view to containing the rising unemployment rate and making growth more inclusive during the plan period (2007-12).
The 11th Plan's mantra of inclusive growth, the draft Plan document said, would be judged by the ability of the government to generate adequate number of productive employment opportunities.
The Plan document would be discussed in a full Planning Commission Meeting chaired by Prime Minister Manmohan Singh on Thursday.
The draft also made a case for relaxing labour laws stating that "weight of evidence suggest while outright hire and fire approaches may not be desirable, there is room for creating greater flexibility short of this position".
It further said that encouragement to labour intensive industries and small and medium enterprises would help in generating additional employment opportunities in the services and manufacturing sectors.
Although the employment growth rate accelerated to 2.6 per cent during 1999-2000, the average daily status unemployment rate increased from 6.1 per cent in 1993-94 to 8.3 per cent in 2004-05.
According to the draft document, faster growth of labour force has neutralised the impact of new employment opportunities leading to an increase in the unemployment rate.
The employment opportunities, it said, has to be provided to not only new entrants to the labour force, but also for the agriculture workers who will be leaving the farming sector.
Creation of additional employment opportunities, it added, was also important as because of "demographic transition" the number of young people entering the work force would continue to expand.