The Employment Service came into existence in India under the stress of postwar demobilization. Towards the end of the Second World War, the need for a machinery which could handle orderly reabsorption of civil life, of a large number of service personnel and war workers who were about to be released as keenly felt.
Having regard to the complexity of the problem and in order to ensure uniformity in policies and effective co-ordination of efforts it was considered necessary that the proposed machinery be directed and controlled by the Central Government. In accordance with a scheme that was agreed upon by the Central and State Governments, the Directorate General of Resettlement and Employment (D.G.R.&E) was set up in July 1945 and Employment Exchanges were gradually opened in several parts of the country.
This transition of the Employment Service from a resettlement agency to an all India placement organisation resulted in an enormous increase of work, which called for long-term measures. It was felt that the organisation which was hurriedly set-up to tackle the immediate problem of resettlement of released war service personnel, required to be restructured if it was to function as an effective machinery which could facilitate and further the employment process. Accordingly, the Training and Employment Services Organisation Committee (popularly known as Shiva Rao Committee) was appointed in 1952 (under the chairmanship of Shri B. Shiva Rao), to review the set-up and functions of the Employment Service and to make recommendations for its reorganization. The Committee submitted their report in 1954 which was mainly responsible for the present structure of the organisation and diversification of its functions in the field of Occupational Research, Vocational Guidance and Employment Market Information. Based on the recommendations of the committee, the day-to-day administration of the organisation was handed over to the State Governments with effect from 1st November 1956.
The administration of the Directorate of National Employment Service which was under the control of the Government of India was transferred to the State Government and tagged with the Department with effect from 1st November, 1956. The "Craftsmen Training Scheme" which was formerly under Education (CTM) Department was transferred to the Labour Department on 1st April 1964 and constituted as a wing of the Directorate of Employment and Craftsmen Training under the Labour Department. Now, the Directorate of Employment and Craftsmen Training, Assam (DECT) is under the Labour & Employment Department, Govt. of Assam having two wings – (1) Employment Wing and (2) Craftsmen Training Wing.