causes of unemployment


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causes of unemployment

  1. 1. Why do people work? • Meet your needs. • Jobs are rewarded with pay. • The more responsible the job the greater the reward. • People enjoy working. • Socially meet new people. • Satisfaction in your work. • Purpose of life.
  2. 2. What is Unemployed? A Working Definition of Unemployment – People able, available and willing to find work and actively seeking work – but not employed – The unemployed are included in the labour force
  3. 3. How Is Unemployment Measured? • The unemployment rate is calculated as the percentage of the labor force that is unemployed. – Unemployment Rate= (Unemployed/Labor Force)*100
  4. 4. Flows in the Labour Market
  5. 5. Causes of Unemployment Key point i. Defective Investment System ii. Technological iii. Poverty iv. Defective System Of Education v. Rapid Increase In Population vi. Inadequate Development Of Agricultural Sector vii. Slow Progress Of Economic Development viii.Other Causes
  6. 6. Causes of Unemployment I. DEFECTIVE INVESTMENT SYSTEM Defective investment system is the most serious mistake of our economic policy. This mistake has been repeated again an again. If we have adopt labour dominated production system, investment certainly created many jobs.
  7. 7. Causes of Unemployment ii. Technological Unemployment caused when developments in technology replace human effort – e.g in manufacturing, administration etc.
  8. 8. Causes of Unemployment iii. POVERTY Poverty and unemployment are like twins. It is difficult to distinguish them completely. A person is poor because he is unemployed and if he is unemployed, poverty is natural for him. iv. DEFECTIVE SYSTEM OF EDUCATION Our education system is a rot learning. Its fail in shaping the mental and physical aspect of human being.
  9. 9. Causes of Unemployment v. RAPID INCREASE IN POPULATION YEAR POPULATION GROWTH RATE 1951 2% 1971 2.2% 1981 2.23% 1991 2.70% 2001 1.54% 2010-11 1.36%
  10. 10. Causes of Unemployment v. Inadequate development of agricultural sector Our 70 % of the people are living in villages. Hence, the agricultural sector should provide the employment to them.
  11. 11. Causes of Unemployment vi. Slow progress of economic development Employment increase is deeply connected wit grow rate of economic development. But during the first three decades of planning. Economic growth rate in India was very slow. As per latest estimates from 2004-2005 to 2010-2011period the average growth of economic development has reached to 28.4%.
  12. 12. Causes of Unemployment vii. Absence of national employment policy The national employment policy seems to have been absent in our country. In democracy the unemployment cannot be removed through astray measures.
  13. 13. Causes of Unemployment viii. Other Causes  Unemployment is the market power of unions.  High wages can improve worker health, lower worker turnover, increase worker effort, and raise worker quality.  Unemployment is the time it takes for workers to search for jobs that best suit their tastes and skills.