In development economics, the link between employment and poverty is one of the most debatable issues, particularly in the light of their relationship with the general growth rate of the economy. A higher rate of growth of gross domestic product (GDP) does not necessarily reduce poverty, if the distribution of benefits of the growth is highly unequal. Employment is a source of income and livelihood, and also a reflection of the overall living condition of people. The Approach Paper to the Tenth Five Year Plan prescribed that in order to ameliorate poverty, it is essential to create ‘gainful high quality’ employment for the existing as well as prospective additions to the labor force. Growth in employment is usually linked with growth in earning of the households and, hence, has a direct bearing on the poverty levels. As most of the poor rural households are primarily engaged in occupations which, since the initiation of the reforms, have not experienced a significant increase in productivity, amelioration of poverty for this group, in the immediate future, has to come mainly through additional employment generation. Hence, it is widely acknowledge that creating adequate employment opportunities should constitute one of the important objectives of the development strategy of the country.