2. Introduction
• Unemployment or joblessness is the situation of actively looking for
employment, but not being currently employed.
• If a man with a PhD degree works as a petty clerk in an office, he will
not be considered an unemployed person. At most, he would be
viewed as an ‘underemployed’ person.
• An unemployed person is ‘one who having potentialities and
willingness to earn, is unable to find a remunerative work’.
3. Definition
• Fair Child – ‘Unemployment is forced and involuntary separation from
remunerative work on the part of the normal working force during
normal working time, normal wages and under normal conditions’.
• The non-availability of work even though there is a desire to do it.
• The able-bodied persons of working age, who are willing to work, are
not able to find work at the current wage levels.
4. Elements of unemployment
• Elements of unemployment
• An individual be capable of working
• An individual should be willing to work and
• An individual must make an effort to find work
• On this basis, a person who is physically and/or mentally disabled, or
who is chronically ill and unable to work, or a Sadhu who because of
his status as an in charge of a Math, considers it below dignity to
work, or a beggar who does not want to work, cannot be included in
the definition of unemployed persons.
6. Types of Unemployment
• Seasonal unemployment
• It is inherent in the agricultural sector and certain manufacturing units like
sugar and ice factories.
• The nature of work in a sugar factory or an ice factory is such that workers
have to remain out of work for about six months in a year.
• Agricultural unemployment
• The landholding are so small that even the family members of the working
age-groups are not absorbed by the land.
• A cultivator in India remains unemployed for about four to six months in a
year.
7. Types of Unemployment
• Cyclical unemployment
• It results from trade cycles, profit, loss, fluctuations in the present level, e.g:
Depression in trade, thousands of people are thrown out of work.
• It may be caused due to cyclic functions of the industry, e.g: the course of
business shows alternating periods of booms and depressions.
• Industrial unemployment
• It is caused because of a large – scale migration of people from rural to urban
areas, losses incurred by industries, slow growth of industries, competition with
foreign industries, unplanned industrialisation, defective industrial policies,
labour strikes or employer’s lockouts, rationalisation, and so on.
8. Types of Unemployment
• Technical unemployment
• It is caused due to the introduction of automation or other technological
changes in industry or other work places.
• It also caused due to the reduction in man power necessary to produce a
finished product.
• Since every advance in technology has meant a displacement of human labour.
• Educational unemployment
• It is caused because the system of education is largely unrelated to life.
• The (education) system is irrelevant because of the stress it lays on higher
education which can be given only to a small minority.
• Most of whom would in any case be unemployed or unemployable once they
graduate.
9. Types of Unemployment
• Sudden unemployment
• Results from business, which engage workers periodically, e.g: workers are
turned out from time to time when the work in factories decreases.
• Frictional unemployment
• It is caused by changes in industrial structure, which are constantly occurring.
• Modern business are essentially dynamic, throwing some workers out of
employment for the time being.
• Demand is constantly shifting from one product to another leaving behind a
trial of unemployment.
• Temporary unemployment
• When young people have completed their education and training they remain
unemployed for a few days.
• Experienced persons will have some advantage in the competitive market.
10. Types of Unemployment
• Voluntary unemployment
• It results from the refusal of labour to accept a cut in the rate of real wages.
• But such unemployment cannot exist under full equilibrium conditions, when
there is free competition.
• Involuntary unemployment
• It not getting suitable compensation for their qualification and capabilities,
become unemployed for a short period of time.
• Arising from failure in industry or business
• Arising from seasonal business
• Arising from shortage of capital, equipment or other complementary
resources
11. Causes for unemployment
• Personal factors
• Defects in character
• Physical disability, deformity
• Mental and moral deficiency of the labourers
• Mental illness
• Accidents
• Defective education and training
• Throwing responsibility on wrong shoulders
12. Causes for unemployment
• Age factor
• Young men after completion of their education and training at this age find
difficulty in getting job because of their inexperience.
• Older people are more prone to accidents and are less adaptable.
• Vocational unfitness
• Too many young people have no understandings of their own abilities or
interests and no particular task in mind when they get training.
• Willingness to do anything may seem to indicate a working desire on the part
of the person seeking work.
• Employers, on the other hand may seek qualified and competent trained
workers.
13. Causes for unemployment
• Illness / Physical Disabilities
• Many workers are temporarily or permanently unemployed because of illness
or other physical disabilities.
• Industrial accidents are often fatal and sometimes make the workers
permanently disabled.
• Economic factor
• Unemployment complex may be ascribed to dislocations in industries and to
disorganisation of economic structure.
• Excessive increase in the population
• Increased pressure upon the land and an increase in the number of
unemployment.
14. Causes for unemployment
• Technological factor
• Advances in technical skills and highly specialized division of labour, able-
bodied and capable men are unable to secure jobs.
• Limited land
• The population is increasing while the land is limited.
• Subdivision of Land
• The land is subdivided into small portions, fragmentation of land falls very low
and sometimes the land becomes an uneconomic holding.
• Lack of subsidiary industries
• The landless farmer or with less land or infertile land, remains unemployed.
15. Main reasons given for Unemployment
among the Educated were
• Rightly or wrongly there is an impression among the public that investment
in education by an individual should yield for him a return in terms of a
remunerative job.
• An educated person naturally looks for a job suited to his particular type of
education. He/she has received with the result that there has been an
abundance of supply in regard to certain occupations and professions and
shortage in others, depending upon the development of education in the
country.
• The regional preferences shown by the educated which complicate the
problem.
• General disinclination among the educated to look for employment other
than office jobs.
17. Remedial Measures for Unemployment
• The problem of unemployment is growing by day to day in India.
• It is becoming more and more complex also.
• Such a complex problem will have to be tackled in a planned manner.
• No single solution can be effective remedy for this problem.
• Multi-pronged attempt is needed to face it in an effective manner.
• It is possible only with the combined efforts of the government and the
public.
• Population control
• Promoting economic development
• Educational reforms
• Five-Year Plans
• Oher schemes and programmes
18. Remedial Measures for Unemployment
• Population control
• The growing population in India is a major cause of many socio-economic
problems.
• Job opportunities are not increasing at the same rate to accommodate the
growing population.
• Hence the population growth has to be checked.
• Family planning programme has to be made more popular and other steps
are to be taken to minimise or neutralise its growth.
19. Remedial Measures for Unemployment
• Promoting economic development
• Promoting agriculture development
• Irrigation projects
• Development of fisheries, forest and animal husbandry
• Encouragement of cottage and household, industries
• Encouragement for growing commercial corps
• Attractive local programmes and projects
• Promoting industrial development
• Development of large-scale industries
• Development of small scale industries
• Development of village and cottage industries including handicrafts.
20. Remedial Measures for Unemployment
• Irrigation projects
• Construction of major and minor irrigation projects, expansion and development of
plantation, intensive garniture and horticulture.
• Development of Fisheries, Forest and Animal Husbandry
• Dairy farming, poultry, piggery, etc.
• Encouragement of Cottage and households Industries
• Basket making, brick-making, toy-making, beedi rolling, agarbati making, carpentry
and furniture making, leather works, carving, etc.
• Encouragement for Growing Commercial Corps
• Commercial crops such as coffee, tea, pepper, ginger, cashew, ground nut, etc.
• Attractive Local Programmes and Projects
• Depending upon the local needs and feasibility new agricultural programmes and
projects are to be launched.
21. Remedial Measures for Unemployment
• Education reforms
• Our education is not much job-oriented, its is degree-oriented.
• It caters more to urban needs rather than to rural requirements.
• It has completely come out of the British colonial basis. Hence, it has failed to
create an army of self-reliant, self-dignified young men and women.
• Practical training should be given to our educated youths to help them to
pursue one or the other vocation, and proper guidance and information
should be given to them regarding new job opportunities.
• Employment guidance bureaus and employment exchange agencies can play
a vital role in this regards.
22. Remedial Measures for Unemployment
• Five-year Plans
• Almost all the Five-Year Plans have given utmost importance to generate as
much employment opportunities as possible.
• They have given priority to agricultural growth, industrial development and
creation of vast employment opportunities.
• Expansion of employment opportunities by making use of the available man
power and natural resources was indeed.
23. Remedial Measures for Unemployment
• Other Schemes and Programmes
• Along with the Five-Year Plans, the Government of India and the Planning
Commissions, with the intention of countering, and if possible, completely removing
the problems of unemployment, have launched various other schemes and
programmes both in the rural and urban areas among which the following may be
mentioned.
• Intergraded Rural Development Programmes (IRDP)
• National Rural Employment Programme (NREP)
• Jawahar Rozgar Yojana (JRY)
• Rural landless Employment Guarantee Programme (RLEGP)
• Training Rural Youth for Self-Employment (TRYSEM)
• The Minimum Needs Programme (MNP)
• Self-Employment Programmes for the Urban Poor (SEPUP)
• Scheme for Self-Employmenet of the Educated Urban Youth (SEEUY)
• Nehru Rozgar Yojana (NRY)
24. Remedial Measures for Unemployment -
Schemes and Programmes
• Mahatma Gandhi National Rural Employment Guarantee Act
• Legal guarantee for one hundred days of employment in every financial year
to adult members of any rural household willing to do public work-related
unskilled manual work at the statutory minimum wage of Rs. 120 per day in
2009 prices.
25. Remedial Measures for Unemployment -
Schemes and Programmes
• National Career Service (India) (NCS)
• The objective of this project is to help job-seekers land up at the job they
deserve. Under this scheme, an online job-portal named as National Career
Service portal has been launched which acts as a common platform for Job-
seekers, employers, skill providers, govt. departments, placement
organizations and counsellors. The portal possesses mre than 3.11 crore
registered job-seekers and more than 9 lakh employers from across the
country.
26. Remedial Measures for Unemployment -
Schemes and Programmes
• Saksham or Rajiv Gandhi Scheme for Empowerment of Adolescent
Boys
• Aims at all-round development of Adolescent Boys and make them self-
reliant, gender-sensitive and aware citizens, when they grow up. It cover all
adolescent boys (both school going and out of school) in the age-group of 11
to 18 years subdivided into two categories, viz. 11-14 & 14–18 years. In 2014–
15, an allocation of Rs. 25 crore is made for the scheme.
27. Remedial Measures for Unemployment -
Schemes and Programmes
• Sabla or Rajiv Gandhi Scheme for Empowerment of Adolescent Girls
• Empowering adolescent girls (Age) of 11–18 years with focus on out-of-school
girls by improvement in their nutritional and health status and upgrading
various skills like home skills, life skills and vocational skills. Merged Nutrition
Programme for Adolescent Girls (NPAG) and Kishori Shakti Yojana (KSY).
28. Remedial Measures for Unemployment -
Schemes and Programmes
• Pradhan Mantri Kaushal Vikas Yojna
• To provide encouragement to youth for development of employable skills by
providing monetary rewards by recognition of prior learning or by undergoing
training at affiliated centres.
29. Remedial Measures for Unemployment -
Schemes and Programmes
• Standup India
• The objective of the Stand-Up India scheme is to facilitate bank loans
between INR 10 lakh (INR 1,00,000) and INR 1 Crore (INR 20,000,000) to at
least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least
one woman borrower per bank branch for setting up a greenfield enterprise.
This enterprise may be in manufacturing, services or the trading sector. In
case of non-individual enterprises at least 51% of the shareholding and
controlling stake should be held by either an SC/ST or Woman entrepreneur
30. Remedial Measures for Unemployment -
Schemes and Programmes
• Startup India
• Startup India is an initiative of the Government of India. The campaign was
first announced by Indian Prime Minister, Narendra Modi during his 15 August
2015 address from the Red Fort, in New Delhi. The action plan of this
initiative, is based on the following three pillars: Simplification and
Handholding.
31. Remedial Measures for Unemployment -
Schemes and Programmes
• Pradhan Mantri MUDRA Yojana (PMMY)
• Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble
Prime Minister on April 8, 2015 for providing loans upto 10 lakh to the non-
corporate, non-farm small/micro enterprises.
• These loans are classified as MUDRA loans under PMMY.
• These loans are given by Commercial Banks, RRBs, Small Finance Banks,
Cooperative Banks, MFIs and NBFCs.
32. Remedial Measures for Unemployment -
Schemes and Programmes
• Make in India
• The Make in India initiative was launched by Prime Minister in September
2014 as part of a wider set of nation-building initiatives. Devised to transform
India into a global design and manufacturing hub, Make in India was a timely
response to a critical situation: by 2013, the much-hyped emerging markets
bubble had burst, and India’s growth rate had fallen to its lowest level in a
decade.
33. Remedial Measures for Unemployment
among Educated
• By advancing loans for establishing small-scale industries requiring
capital amount
• Providing vocational training facilities
• Assist in procuring raw material and the disposal of the finished goods
• Expansion of education closely linked with future requirements has to
be planned
• Discovering vocational aptitude and provide vocational counselling,
development of cooperative sector, reorganise system of education,
expansion of rural economy
34. Remedial Measures for Unemployment
among Educated
• Development of university employment bureau to remove the
hardship felt by educated youth
• Start industrial estates which provide factory sites with facilities as
transport, supply of electricity, water and gas
• Apprenticeship training by employers
• The expansion of education and training facilities should be closely
linked to the future requirements of the economy
• Small scale and medium industries will often provide growing
opportunities for absorbing educated persons in gainful and
productive work.
35. Remedial Measures for Agriculture
Unemployment
• Prevent further sub-division of land into even smaller pieces
• Creation of economic holdings as well as increase in the output
• Intensive cultivation do not exploit the natural resources to the fullest
extent of their potentiality
• Proper rotation of crops is followed
• Good seeds, tools, manure, animals has to be arranged for better
production
• Proper arrangement of irrigation through minor and major projects to
avoid dependence of cultivation upon the rains.
