Unemployment In India


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  • In simple terms “Unemployment is where a person who is mentally sound, physically fit, qualified enough and is willing to work.. And still not getting work, such a situation is termed as unemployment.”
  • So there are basically two types of unemployment: Voluntary unemployment is when a person is out of a job with his own desire.Because he doesn’t want to work, or wants higher wages or don't want to work at all.In these types of situation the person who is unemployed has no say in the matter. It means that a person is separated from remunerative work and denied of wages although he is capable of earning his wages and is also anxious to earn them.
  • Structural unemployment is a form of unemployment where, at a given wage, the quantity of labor supplied exceeds the quantity of labor demanded, because there is a fundamental mismatch between the number of people who want to work and the number of jobs that are available. Cyclicalunemployment, occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.Demand for goods and services fall, less production is needed and less workers too.Frictional unemployment occurs when a worker moves from one job to another. So it’s the time till the worker is unemployed till he gets another job.Educatedunemployment is unemployment among people with an academic degree. Its is amongst educated people who either don’t find a job in their stream, or not happy with the pay scale or looking for better opportunities.Disguised unemploymentDisguised unemployment implies that many workers are engaged in productive work. n agricultural field require 4 labourers but people engaged in this activity is 6 then this unemployment for 2 labours is called disguised unemployment..Seasonal UnemploymentSeasonal unemployment occurs at certain seasons of the year. It is bascially seen in indian villages basically associated with agriculture. Since agricultural work depends upon Nature, therefore, in a certain period of the year there is heavy work, while in the rest, the work is lean.Underemployment refers to an employment situation that is insufficient in some important way for the worker, relative to a standard or where his skills sets are not fully utilized. Examples include holding a part-time job despite desiring full-time work, and overqualification, where the employee has education, experience, or skills beyond the requirements of the job.
  • Rapid increase in population adds upto a great deal of unemployment as rise population doesn’t keep pace with the employed generatedJobless growth :the rate of growth is inadequate to absorb the entire labor force of the country, the opportunities are not sufficient t absorb the additions in labor force.Industrialization is not rapid in our country and labor finds very few employment opportunities. So agriculture remains the principal area of employment and land is becoming overcrowded as large no. of persons are unemployedAfter completing the required education people come out to look for jobs, having gained neither occupational, vocational training, no functional literacy thus it gives a rise to unemploymentWhen under a period of recession the company may resort to cut down their costs on expenditure and unnecessary work force.Long term inflation can also cause unemployment due to lower levels of investment. When an economic boom is unsustainable inflation will sometime lead to higher employmentOne such reason again is disability. Most disabled people are incompetent to work on normal grounds hence this too adds to unemployment.
  • With no employment situation people get depressed, and due to stress commit heinous crimes like suicides Without work people get depressed which increase the incidents of alcoholism and child abuse.When people have no jobs they resort to anti social activities, breaking the law and order and involving in thefts and other ant social activities.There is loss of production and output because those who are unemployed are not able to add towards GDP-A cost to the government for the simple reason that the government must fund the unemployed increasing its budget deficit.high unemployment means there is an excess supply of jobs. This means that employers can more easily find labour and are less likely to increase wages to attract workers.
  • Providing more training and education to the unemployed, this will help improving computers and communication, people will become more confident and employableGovt. must support to struggling industries in order to try to save jobsOpening of growth centres in small towns and rural areas so as to provide information about new employment oppurtunities and benefitsFirms could be given tax breaks or subsidies for taking on long term unemployed. This helps give them new confidence and on the job training. If unions are able to bargain for wages above the market clearing level, they will cause real wage unemployment. In this case reducing influence of trades unions will help solve this real wage unemployment.Govt can help in creating demand in the economy by:giving grants to business to produce goods, have projects such as road building, reduction in interest rates to enourage spending reduction in income tax to encourage spending.
  • SGSYwas launched on Apr 1999 after restructuring the TRDP and allied schemes, it’s a self employment program for rural poorJRY was announched on Feb 1989 and it was supposed to provide intensive employment creating in the 120 backwards districtsPMRY was designed to provide self employment to more than a million educated unemployed youth setting up seven lakh micro enterprises under 8th five year plan.NREP was meant to help rural population which largely depends upon wage employment and virtually no source of income during the lean agricultural periodEAS was aimed at providing 100 days of unskilled manual work on demand to two members of the rural families in the age group 18 to 60 SGRY was launched on sept 23 2001 and scheme of JGSY and employment assurance schemes was fully intergrated with SGRY, it aims at providing additional wage employment in rural areas.
  • Chart provided by the ministry of labourWhere this chartIn India, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.Unemployment Rate in India decreased to 3.80 percent in 2011 from 9.40 percent in 2010.
  • Unemployment In India

    1. 1. Akash Dhar (SMBA25)
    2. 2. What is Unemployment ? • Mentally Sound • Physically Fit • Qualified Enough • Willing to work
    3. 3. Underemployment Seasonal
    4. 4. Causes • Rapid Population Growth • Jobless growth • Inefficient agricultural & industrial sector • Education system • Recession • Inflation • Disability
    5. 5. Effects • Suicides • Alcoholism & child abuse • Civil Unrest • Loss of Production • Increase in Govt. expenditure • Easily supply of jobs
    6. 6. Measures • Training to the unemployed • Support to struggling industries • Growth centers in small towns and rural areas • Subsidies on the Basis of Employment • Reduce Power of trades unions • Creating demand in the economy
    7. 7. Government Schemes • Swaranjayanti Gram Swarozgar Yojana (SGSY) • Jawahar Rozgar Yojana (JRV) • Priminsters’ Rozgar Yojana (PRY) • National rural employment programme (NREP) • The Employment assurance scheme (EAS) • Sampoorna Grameen rozgar yojana (SGRY)
    8. 8. Employment Scale
    9. 9. THANK YOU