Observing that employment allowance is only being paid by a handful of states, the panel suggested that rest of the states should be "persuaded" to provide such allowance.
"Though the Union Government is not in favour of providing any employment allowance, the panel, however, desires that it may, at least persuade the rest of the states to emulate the states giving unemployment allowance."
In the present scenario, the panel noted, private establishments are much more than those run by the government.
To make employment exchanges attractive to job seekers, it is necessary that private employers notify their vacancies in employment exchanges, the panel on labour and employment said.
It said the comprehensive strategy to attract private employers could seek them to advertise their vacancies on the portal and give them access to the profiles of candidates across the country, allowing them to screen, test and interview the candidates in employment exchanges.
The proposed web portal will connect all exchanges providing all employment related information.
At present, Chhattisgarh, Harayana, Kerala, Tamil Nadu, Punjab, Punducherry and Jammu and Kashmir are paying unemployment allowance to registered unemployed youth.
"The committee strongly feels that payment of unemployment allowance not only helps youths to sustain in dire situations but also facilitates the government in getting a realistic data of unemployment situation in the country as it encourages the youths to come forward and register," the panel said.
Taking into account the mushrooming of private placement agencies, some of whom mislead the youths, the panel also recommended that such "unscrupulous agencies must be regulated and checked so that the unsuspecting unemployed youths are not fleeced".