A brief presentation elaborating various aspects of unemployment in India.

1. The scenerio of Unemployment

2. Introduction
A brief description on unemployment.
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3. Definition of unemployment
◉ Unemployment is defined as a situation where someone of working
age is not able to get a job but would like to be in full-time
employment.
◉ Note: If a mother left work to bring up a child or if someone went into
higher education, they are not working but would not be classed as
unemployed as they are not actively seeking employment.
◉ One grey area is voluntary unemployment. This occurs when the
unemployed choose not to take a job at the going wage rate (e.g.
wrong job, benefits too low etc. ) They could be counted as
unemployed because they are still seeking a job (they just don’t want
to take one they are offered.
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4. Types of unemployment
Demand deficient
unemployment
Demand deficient
unemployment occurs in a
recession or period of very
low growth. If there is
insufficient aggregate
demand, firms will cut back
on output. If they cut back on
output, then they will employ
fewer workers. The deeper
the recession, the more
demand deficient
unemployment there will be.
This is also known as cyclical
unemployment.
Structural unemployment
This is unemployment due to
inefficiencies in the labour
market. It may occur due to a
mismatch of skills or
geographical location. For
example, structural
unemployment could be due to:
Occupational immobility.
Geographical immobility.
Technological change
Voluntary unemployment
This occurs when workers
choose not to take a job at
the going wage rate. For
example, if benefits offer
a similar take home pay to
(wage – tax), the
unemployed may feel
there is no incentive to
take a job.
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Frictional unemployment
This occurs when workers are
in between jobs e.g. school
leavers take time to find work.
There is always likely to be
some frictional unemployment
in an economy as people take
time to find a job suited to
their skills.

5. Causes of unemployment
Listing of major causes which leads to unemployment.
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6. Slow
Economic
Growth
Caste
System
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Agriculture
is a
Seasonal
Occupation
Fall of
Cottage
and Small
industries
Slow
growth of
Industrialis
ation
Expansion
of
Universities
Inadequate
Irrigation
Facilities
Immobility
of labour
Increase in
Population
Defective
Planning

7. Statistics
Some studies and graphs showing unemployment in India.
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8. Unemployment rate in India.(%)
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STATES % (July 2018)
Andhra Pradesh 5.3
Assam 7.5
Bihar 9.2
Chandigarh 18.0
Chhattisgarh 3.2
Delhi 7.4
Goa 2.1
Gujarat 4.5
Haryana 15.2
Himachal Pradesh 17.8
STATES % (July 2018)
Jammu & Kashmir 10.1
Jharkhand 11.2
Karnataka 0.7
Kerala 5.1
Madhya Pradesh 4.3
Maharashtra 3.8
Meghalaya 3.5
Odisha 6.1
Puducherry 3.8
Punjab 8.4
STATES % (July 2018)
Rajasthan 9.7
Tamil Nadu 2.0
Telangana 0.8
Tripura 18.0
Uttar Pradesh 4.7
Uttarakhand 0.7
West Bengal 6.7

9. 5.9%
Rural
6%
India
6.2%
Urban
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Aug 2018
8,05,50,762
Currently unemployed people in India

10. Effects of unemployment
Some pyschological and socio economic effects of unemployment.
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11. Psychological effects of unemployment
◉ Studies show that after unemployment, symptoms of somatisation,
depression, and anxiety were significantly greater in the unemployed
than employed.
◉ Large standard deviations on self-esteem scores in the unemployed
group suggested that some men coped better than others with job-
loss stress.
◉ Furthermore, unemployed men made significantly more visits to their
physicians, took more medications, and spent more days in bed sick
than did employed individuals even though the number of diagnoses
in the two groups were similar.
◉ Substance abuse; dangerous behaviour including suicide and violence
toward family members or others also correlate with unemployment.
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12. Loss of
prestige
Isolation
Violence
and
suicide
Anxiety
Depression
Substance
abuse
Lowered
self
confidence
Stress
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A variety of therapeutic approaches are available,
including (but not limited to) individual psychotherapy,
group psychotherapy, vocational rehabilitation,
incentive work therapy, medication if necessary, and
hospitalization or intensive day treatment programs.
Early intervention not only addresses the real problem
of psychological harm from unemployment but may
also serve to reduce the financial burden on society in
the long run.

13. Socio economic effects of unemployment
◉ An economy with high unemployment is not using all of the resources,
specifically labour, available to it. Since it is operating below its production
possibility frontier, it could have higher output if all the workforce were
usefully employed.
◉ However, there is a trade-off between economic efficiency and
unemployment: if the frictionally unemployed accepted the first job they
were offered, they would be likely to be operating at below their skill level,
reducing the economy's efficiency.
◉ During a long period of unemployment, workers can lose their skills,
causing a loss of human capital.
◉ High unemployment can encourage xenophobia and protectionism as
workers fear that foreigners are stealing their jobs. Efforts to preserve
existing jobs of domestic and native workers include legal barriers against
"outsiders" who want jobs, obstacles to immigration, and/or tariffs and
similar trade barriers against foreign competitors.
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14. Solutions
Some measures ans steps for controlling or reducing unemployment.
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15. ◉ Demand-side solutions
1) Increases in the demand for labour will move the economy along the demand
curve, increasing wages and employment. The demand for labour in an
economy is derived from the demand for goods and services. As such, if the
demand for goods and services in the economy increases, the demand for
labour will increase, increasing employment and wages.
2) Providing aid to the unemployed is a strategy used to prevent cutbacks in
consumption of goods and services which can lead to a vicious cycle of further
job losses and further decreases in consumption/demand. Many countries aid
the unemployed through social welfare programs. These unemployment
benefits include unemployment insurance, unemployment compensation,
welfare and subsidies to aid in retraining. The main goal of these programs is to
alleviate short-term hardships and, more importantly, to allow workers more
time to search for a job.
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16. ◉ Supply-side solutions
1) However, the labour market is not 100% efficient, although it may be more
efficient than the bureaucracy. Some argue that minimum wages and union
activity keep wages from falling, which means too many people want to sell
their labour at the going price but cannot. This assumes perfect
competition exists in the labour market, specifically that no single entity is large
enough to affect wage levels and that employees are similar in ability.
2) Advocates of supply-side policies believe those policies can solve this by
making the labour market more flexible. These include removing the minimum
wage and reducing the power of unions. Supply-siders argue the reforms
increase long-term growth by reducing labour costs. This increased supply of
goods and services requires more workers, increasing employment. It is argued
that supply-side policies, which include cutting taxes on businesses and
reducing regulation, create jobs, reduce unemployment and decrease labour's
share of national income. Other supply-side policies include education to make
workers more attractive to employers. 16

17. ◉ Some other solutions
1) Improve skills / human capital to make people more flexible in the workplace.
2) Provide stronger incentives to look for and accept work.
3) Increase the occupational and geographical mobility of labour.
4) Maintain a sufficiently high level of demand to create enough new jobs.
5) Encourage entrepreneurship and innovation as a way of creating new
products and market demand which will generate new employment
opportunities.
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18. “
“The only way to do great work is
to do what you love.”
-Steve Jobs
Founder, Apple Inc.
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19. Any contributions ?
Thanks!
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