Current Situation in India and WorldwideAccording to Labour Bureaus Employment andUemployment Survey (2009-10), the estimateduemployment rate – in the region of 9.4 percentIt is evident from the survey that the situation has not changed in the two decades of reforms
Current Situation in India and Worldwide●10.1% of rural labor force is unemployed, and7.3% in urban areas● The global unemployment rate is around 6%continuously from 2009 to 2011● In absolute figures the number the number of under25 out of work worldwide is estimated to be around 81million●The developing world is home to nearly 90% (as of2010) of the economically active youths, with Asiaalone accounting for some 60%
Current Situation in India and Worldwide“The combined sales of worlds top 200MNCs is now greater than that of the combined GDP of all but worlds nine largest national economies. Yet total direct employment generated by thesemultinationals is a mere 18.8 million -one-hundredth of one percent of the global workforce” --- Institute for Policy Studies“Right now, the problem of unemployment has not fully appeared, but its a bomb in a dormant state" --- J. Manohar Rao“The former British premier Gordon Brown will call on world leaders to address this issue, warning of a time bomb that could damage both the developed world and emerging economies”
De-linking Economic Growth and Unemployment - Global Year World GDP Growth Unemployment 2007 5.3 5.6 2008 2.8 5.7 2009 -0.6 6.3 2010 5 6.2 2011 4.5 6.1 GDP & Unemployment Comparision 7 6 5 4 World GDP 3 Growth % Unemployment 2 1 0 2007 2008 2009 2010 2011 -1 Year
De-linking Economic Growth and Unemployment - India Industry Employed Workers (million) Annual Growth Rate (%) 1983 1993-94 1999-00 1983-94 1994-00 Primary 208.99 245.16 239.83 1.6 -0.34 Secondary 41.66 55.53 66.91 2.9 3.14 Tertiary 52.11 73.76 90.26 3.53 2.42 Total 302.76 374.45 397 2.04 0.98➔The post liberalisation period thus appears to be one, which neglectedagriculture➔ Growth of employment during 1994-2000 has substantially gone down
De-linking Economic Growth and Unemployment - India Growth Rate 1983 - 94 1994 - 00 (%) 1 Population 2.12 1.93 2 Labour Race 2.05 1.03 3 Employment 2.04 0.98 4 Organised 1.2 0.53 Sector Employment Public 1.52 -0.03 Private 0.45 1.87➢Little growth in the organised sector employment has been because of theprivate sector as public sector has shown negative growth➢Also because the share of public sector in the overall organised sectoremployment is around 75% therefore increase in private sector employmentcannot change the overall organised sector scenario
De-linking Economic Growth and Unemployment - India But I think that, the positive points of the GDP growth should not be neglected Growth of Average Daily Wage Earnings Rural Males Rural Females 1987-88 to 1993-94 to 1987-88 to 1993-94 to 1993-94 1999-00 1993-94 1999-00 Public Works 1.55 3.83 1.9 5.04Casual Labour 1.36 2.8 2.34 2.94in AgricultureCasual Labour 1.33 3.7 1.32 5.07 in non- agricultureCasual Labour 0.77 3.59 1.95 3.19in all Activities Caution : Just by looking at the increase in per day earning of employees it would bewrong to assess that total earnings have increased, as we have not taken into the account the total number of days for which the workers were employed.
De-linking Economic Growth and Unemployment - IndiaBecause there is a decent increase in the productivity of workers it is a better use of the human potential. Growth rate of productivity per worker 1983-84 to 1993-94 1993-94 to 1999-00 Primary 1.44 3.59 Secondary 2.97 4.08 Tertiary 3.12 5.13 Total 2.97 5.64
Looking Ahead and Conclusions “Organised sector cannot provide 10 million jobs per year” -- Indian Economy book by Ruddar Dutt and K.P.M Sundharam The country has, therefore to stimulate the growth of agriculture, small-scale industries,informal sector units so as to achieve the goal of 100 million additional jobs in the next 10 years.
Looking Ahead and ConclusionsI feel that small business opportunities (indirectly in the form ofunorganised sectors) created by the big companies cannot be neglected, and these companies generate huge revenue as well. It is evident from the following excerpts.
Looking Ahead and Conclusions Sunil Mittial, Founder, Bharti“Bharti Airtel employs around 50,000 people today, but we provide indirect employment to around 1.5 million.”
Looking Ahead and ConclusionsOther examples are●Tally (accounting software)You must have seen small tally coaching institutes that havecome up in all the areas of India, though Tally is made by a Multinational corporation.●Computer-Mobile Repair shopsThere are many small computer repair shops both in rural and urbanareas which employs many people though they are not directlyemployed by the huge MNCs which are making computers andmobiles.● Motorcycle-Car repair shopsAutomobile repair shops are a very common site in all the parts ofIndia. The kind of employment generated by these units cannot beneglected. Caution: (no supporting data)
Assumption I am discussing the inequity in terms of Economics. Because I think economic inequity leads to many problems in the society. For eg. Crime etc.People dont have money that is why they are not able to purchasegood education, good health, good home, healthy food, better cleanliness etc, and that is why they are poor. By having more money people can at least satisfy their basic minimum material needs.
The PoorDon’t ask me what poverty is because you have met it outsidemy house. Look at the house and count the number of holes.Look at my utensils and the clothes that I am wearing. Look at everything and write what you see. What you see is poverty. ―A poor man, Kenya 1997 When food becomes scarce, we only eat once a day to allow our children and husbands to eat three times a day –– Philippines 1999 In India, although illiteracy is not reported as the number onereason for poverty, poor people recognize that literacy would helpthem to manage their lives better. “They understand that illiteracy has made them more dependent, less enterprising and more vulnerable to the machinations of the educated” –– India, 1997
The Poor When food becomes scarce, we only eat once a day to allow our children and husbands to eat three times a day –– Philippines 1999In some areas of India, women within the household are expected to eat only after everyone else has finished eating, and during times of shortage women may be left with virtually nothing to eat at all –– India 1998 Women also frequently complain of sexual harassment from coworkers and managers – India, 1998
The Poor The Story of Murari - India, 1997 Murari is a 30-year-old man who is presently living in the village of Kedarkui with his family. He began his period of contractual labor in agriculture five years ago for a dominant Thakur caste farmer. The Thakur also acts as a moneylender in many of the surrounding villages.Five years ago, Murari took out a loan of approximately Rs. 1000 that he needed for anunexpected emergency. As a term of the loan, Murari was compelled to work for theThakur farmer as an agricultural laborer on the moneylender’s land for a wage of onlyRs. 5000 a year.This Thakur farmer/money lender provided Murari and his family withaccommodations, food, and some money for miscellaneous expenses, while keepingaccount of everything that was provided.At the end of the first two years, Murari owed Rs. 2,500 to the Thakur.After two years of labor he owed 250 percent more to the Thakur than he had initiallyborrowed due to the interest incurred on the loan, charges for food and accommodation,small loans provided on an on-going basis and so on. .However, despite this dismal situation Murari was not able to leave the Thakur’s farm insearch of more profitable work. If he attempted to leave, or flee, it is reported that themoneylender would track him down and the consequences would undoubtedly beserious. After five years of work as an agricultural laborer and house servant for theThakur, Murari now owes over 8000 Rs
The Rich The 15,000-square-foot bungalow features a swimming pool, jacuzzi, karaoke studio, and gym, as well as party rooms and terraces where Jhunjhunwala entertains family, friends, and business associates. 47-year-old founder of investment house Rare Enterprises has just bought a $5.4 million, six-bedroom duplex apartment in the tony Malabar Hill neighborhood. "I have far more wealth than I need," says Jhunjhunwala, whose estimated networth is just shy of $1 billion. "But it gives me the freedom to do what I enjoy and enjoy what I do."
The Rich Rising dramatically, 300 metres above sea level, and built at a staggering cost of over a billion dollars, Antilia (the name is likely to be changed to `Anandam) can be described as the Taj Mahal of the 21st century. But how many mortals live in a 27-storey abode called `Antilia (the worlds priciest abode)? The answer is - just five!” – Antilia, Ambanis new house It took seven years to build the 40,000-square-foot Bill Gates mansion on awooded five-acre compound in the moneyed Seattle suburb of Medina. Inside Bill Gates Garage, youll find a 1999 Porsche 911 Convertible and 1988 Porsche 959 Coupe. ” – Home, Bill Gates (now a philanthropist)
References Unemployment●http://bit.ly/epIPid (Hindy Article)●http://bit.ly/eepaw1 (Hindu Article)●http://bit.ly/gvQFyv (Hindu Article)●http://bit.ly/e4raNS (Hindu Article)●http://bit.ly/epCjAW (Hindu Article)●http://bit.ly/fDYVNf (Hindu Article)●http://bit.ly/hqrFWb (Economic Times Article)●http://bit.ly/fwBFPt (The India Site Article)●http://bit.ly/g2b1fc (The Institute of Chartered Accounts of India)●http://bit.ly/emmUfG (Ministry of Statistics and Programme Implementation)●Book : Indian Economy, by Ruddar Datt and K.P.M Sundharam Inequity● http://bit.ly/f1A3Z2 (World Banks Reports Link)● http://bit.ly/e6wA6y (Times of India Article)● http://bit.ly/fX5QRV (Bill Gates Home by labnol.org)