Employment

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Employment

  1. 1. MANAGERIAL ECONOMICS EMPLOYMENT AND UNEMPLOYMENT IN INDIA
  2. 2. CONCEPTS EMPLOYMENT• The state of being employed• Persons holding job• Persons performing any paid work• Persons absent due to illness, strike or vacation are considered as employed
  3. 3. CONCEPTS Contd… FULL EMPLOYMENT• State of economy in which all eligible people who want to work can find employment at prevailing wage rates• However, it does not imply 100% employment because of allowance for frictional unemployment and seasonal factors
  4. 4. CONCEPTS Contd… UNDER EMPLOYMENT• A situation in which a worker is employment but not in the desired capacity whether in terms of compensation, hours or level of skill or experience
  5. 5. TYPES OF UNEMPLOYMENT• Frictional unemployment• Structural unemployment• Cyclical unemployment• Technological unemployment• Seasonal unemployment• Disguised unemployment
  6. 6. FRICTIONAL UNEMPLOYMENT• Unemployment that occurs naturally during normal working of economy• Temporarily caused due to inefficient movement of people between regions and jobs• New workers searching for job• Voluntary switching of job• Fired or seeking reemployment• Company abstains from hiring because it believes there are not enough qualified individuals available for the job when in actuality there is
  7. 7. STRUCTURAL UNEMPLOYMENT• Joblessness caused not by lack of demand but by changes in demand patterns or obsolescence of technology and required retaining of workers and large investment in new employment• Arises from mismatch between the jobs available in the market and the skills of the available workers in the market• Change in industrial structure of a country• Change in technology• Change in requirements of skill
  8. 8. CYCLICAL UNEMPLOYMENT• Cyclical unemployment is the fluctuating rate of employment resulting from swings in the business cycle• Increases during recession• Decreases during an expansion• Example: An auto worker may be laid off during recession when people are buying fewer cars
  9. 9. TECHNOLOGICAL UNEMPLOYMENT• Caused by technological changes or new methods of production SEASONAL UNEMPLOYMENT• Caused by a seasonal variation in the structure of jobs• Typically repeats the same pattern annually
  10. 10. DISGUISED UNEMPLOYMENT• Exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero• An economy demonstrates disguised unemployment where productivity is low and where too many workers are filling too few jobs
  11. 11. DISTRIBUTION OF EMPLOYEDPERSONS BY BROAD INDUSTRY GROUP• Agriculture, Forestry and Fishing 45.5%• Mining & Quarrying 2.10%• Manufacturing 8.90%• Electricity 1.80%• Construction 7.50%• Wholesale, Retail 8.80%• Transport, Storage 4.10%• Finance, Insurance 2.60%• Community Service 8.40%• Others 10.30%• TOTAL 100.00%
  12. 12. TECHNOLOGY AND EMPLOYMENT• IT and IT enabled services to grow to 5.3 million by 2022• India has highest young population• India produces more engineers• BPO mushroomed but USA policies may affect

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