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Sr. No. TOPICS No.
1. Introduction. 3
2. Concept of unemployment. 4
9. Solution. 19
10. Conclusion. 20
11. Weblography. 21
1
INTRODUCTION
Meaning Of Unemployment
Unemployment is a situation where able and willing people are not able
Criteria of unemployment:-
o Time: If a person works less than optimal hours (or days) during
the year.
Concepts Of Unemployment
unemployment.
2
seeking job fails to get work for even one hour on any day, he is deemed to be
unemployed.
3) Current Daily Status: This concept considers the activity status of a person
for each person for each day of the preceding seven days .If he works for one
day but less than four hours, then he is considered as employed for half a day.
Types Of Unemployment
by a mismatch between the sufficiently skilled workers looking for jobs and
the vacancies available. Even though the number of vacancies may be equal to
the number of the unemployed, the unemployed workers lack the skills needed
for the jobs, or are in the wrong part of the country or world to take the jobs
market and the fact that these can never be as flexible as, e.g., financial
markets.
demand for labor. During the period when the industry is at its peak there is a
high degree of seasonal employment, but during the off-peak period there is a
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high seasonal unemployment. Seasonal unemployment occurs when an
a worker moves from one job to another. While he searches for a job he is
unemployment exists because both jobs and workers are heterogeneous, and a
mismatch can result between the characteristics of supply and demand. Such a
downturns and falls when the economy improves. Keynesians argue that this
Demand. This is caused by a business cycle recession, and wages not falling to
meet the equilibrium level. This type of unemployment is the most serious
one. This arises when demand for most goods and services fall, i.e., in
fewer workers are being demanded, in such a case mass unemployment can be
expected.
Causes Of Unempoyment
4
The main causes of unemployment in India are:-
country during the last decade has further worse the unemployment problem in
growth is inadequate to absorb the entire labour force in the country. The
labour force of the country, which are taking place as result of the rapidly
Industrialisation is not rapid in our country and industrial labour finds few job
on land is high, as about 2/3 of the labour force is engaged in agriculture. Land
is thus overcrowded and a large part of the work force is underemployed and
and colleges for a number of years men and women come out in large
functional literacy from which all future skilled, educated professional, and
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industries, but also in agriculture producers are increasingly substituting
in large unemployment.
unemployment were not preferred as the apprehension was that they could
other hand, and cutting down the economic surplus on the other. This policy
Such as:-
6
o Rural landless employment guarantee programme
flexibility may be available in the choice of technologies and thus it may not
above will enable attainment of the goal of full employment in any case not
April 1, 1999 after restructuring the IRDP and allied schemes. It is the only
7
Sampoorna Grameen Rozgar Yojana (SGRY) was launched on
September 23, 2001 and the scheme of JGSY and Employment Assurance
part of the Sixth plan and was continued under the Seventh Plan. It was
wage employment and has virtually no source of income during the lean
agricultural period.
to at least one member of the landless household for about 100 days in a
year.
in 1978-79 and extended all over the country in 1980-81.It was to provide
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husbandry etc. in primary sector, handicrafts etc. in secondary sector , and
was initiated in 1979. It aimed at training about 2 lakh rural youth every
the age group 18 to 60 years in the agricultural lean season within the
large scale and thus their contribution from the point of view of the reduction
finding the resources to finance the programmes; and the lack of clarity with
employment.
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UNEMPLOYMENT IN INDIA
DEFINATION:
INTRODUCTION:
It involves a waste of human resource and results in many social evils like theft,
pick- pocketing, robbery, murder etc. Its a serious economic, social and political
problem of the
country. Its a
cause as well as
effect of poverty.
The
unemployment rate
is used in
economic studies.
Rate is determined
as the percentage
of those in the
labor force without
jobs.
There are a
variety of different causes of unemployment, and disagreement on which causes
are most important. Different schools of economic thought suggest different
policies to address unemployment. Monetarists for example, believe that
controlling inflation to facilitate growth and investment is more important, and
will lead to increased employment in the long run. Keynesians on the other hand
emphasize the smoothing out of business cycles by manipulating aggregate
demand. There is also disagreement on how exactly to measure unemployment.
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12
CONCEPTS OF UNEMPLOYMENT
3) Current Daily Status: This concept considers the activity status of a person for
each person for each day of the preceding seven days .If he works for one day but
less than four hours, then he is considered as employed for half a day.
UNEMPLOYMENT IN INDIA:
13
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TYPES OF UNEMPLOYMENT
Economists and social thinkers have classified unemployment into various types.
Generally unemployment can be classified in two types:
VOLUNTARY UNEMPLOYMENT:
In this type of unemployment a person is out of job of his own desire doesn't work
on the prevalent or prescribed wages. Either he wants higher wages or doesn't
want to work at all. It is in fact social problem leading to social disorganization.
Social problems and forces such as a revolution, a social upheaval, a class
struggle, a financial or economic crisis a war between nations, mental illness,
political corruption mounting unemployment and crime etc. threaten the smooth
working of society. Social values are often regarded as the sustaining forces of
society. They contribute to the strength and stability of social order. But due to
rapid social change new values come up and some of the old values decline. At the
same time, people are not is a position to reject the old completely and accept the
new altogether. Here, conflict between the old and the new is the inevitable result
which leads to the social disorganization in imposed situation. In economic
terminology this situation is voluntary unemployment.
INVOLUNTARY UNEMPLOYMENT:
In this type of situation the person who is unemployed has no say in the matter. It
means that a person is separated from remunerative work and devoid of wages
although he is capable of earning his wages and is also anxious to earn them.
Forms and types of unemployment according to Hock are.
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This deterioration may be due to various factors. In efficiency of the
employers, keen competitions less profit etc. are some of the factors
responsible for deterioration in the industry and the business.
RURAL UNEMPLOYMENT:
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This kind of employment prevails is on rural areas. The nature of problem is
also complicated. There are only two types of unemployment commonly found in
agricultural economy e.g. India
a) Seasonal Unemployment:
In an agrarian economy like India, seasonal unemployment is the most
significant type of unemployment in rural sector. Agriculture labour in India is
mostly dependent on monsoon.
b) Disguised Unemployment:
In the rural subsistence agrarian sector of the Indian economy, the problem of
disguised unemployment is also typical. Disguised unemployment refers to that
type of unemployment in which laborers appear to be working and employed but
in reality, they are not employed as they do not add to the total output. In other
words they are removed from their jobs, output would not decrease.
URBAN UNEMPLOYMENT:
This type of unemployment is found in urban areas i.e. towns and cities.
1) Industrial Unemployment:
2) Educated Unemployment:
17
CAUSES OF UNEMPLOYMENT
In the set up of a modern market economy, there are many factors, which
contribute to unemployment.
18
having gained neither occupational nor vocational training nor functional literacy
from which all future skilled, educated professional, and managerial manpower is
drawn.
RECESSION:
19
INFLATION:
DISABILITY:
20
EFFECTS OF UNEMPLOYMENT
21
social mobility, this intergenerational effect will give rise to an inheritance of
inequality.
NATURAL RATE:
The natural rate of unemployment is the rate of unemployment where the labour
market is in a position of equilibrium. This means that the labour supply = labour
demand at a given real wage rate. All those people willing and able to take paid
employment at the going wage rate do so.
The diagram below shows the labour supply (those willing and able to take
work at a going wage rate) and the labour force - the number of active
participants in the labour market. The labour force expands as the real wage rises
because there is a greater incentive to search for paid work and sacrifice leisure.
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equilibrium "market-clearing wage") employment contracts along the labour
demand curve and total unemployment rises (see the diagram below)
23
24
LABOUR FORCE STATISTICS FROM THE CURRENT
POPULATION SURVEY
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REMEDIES FOR SOLVING PROBLEMS OF
UNEMPLOYMENT
METHODS:-
Try to bring the country out of a recession. The Government needs to try
to create demand in the economy. It could;
NEW DEAL: Labours New Deal programme for young unemployed people
was introduced across the UK in April 1998. In June 1998 the Government
launched a separate New Deal for Long-Term Unemployed People aged over
25+.
The programme is designed to provide pathways back into work for the long term
unemployed many of whom have become outsiders in the labour market despite
the continuing strength of the British economy. Higher levels of employment and
economic activity add to total national output and should help to improve the
overall performance of the labour market in sustaining long run economic growth.
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27
GOVERNMENT POLICY FOR REMOVING
UNEMPLOYMENT
Such as:-
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1. MAJOR EMPLOYMENT PROGRAMS
Swaranjayanti Gram Swarozgar Yojana (SGSY) was launched from April 1, 1999
after restructuring the IRDP and allied schemes. It is the only self-employment
programme for the rural poor.
Sampoorna Grameen Rozgar Yojana (SGRY) was launched on September 23, 2001
and the scheme of JGSY and Employment Assurance Scheme was fully integrated with
SGRY. It aims at providing additional wage employment in rural areas.
The Swarana Jayanti Shahari Rozgar Yojana (SJSRY) came into operation from
December 1, 1997, subsuming the earlier urban poverty alleviation programmes. It aims
to provide gainful employment to the urban unemployed and underemployed poor by
encouraging the setting up of self-employment ventures or provision of wage
employment.
The National Rural Employed Programme (NREP) was started as a part of the Sixth
plan and was continued under the Seventh Plan. It was meant to help that segment of rural
population which largely depends on wage employment and has virtually no source of
income during the lean agricultural period.
The Integrated Rural Development Programme (IRDP) was launched in 1978-79 and
extended all over the country in 1980-81.It was to provide self-employment in a variety
of activities like sericulture, animal husbandry etc. in primary sector, handicrafts etc. in
secondary sector , and service and business activities in the tertiary sector.
The Scheme of Training Rural Youth for Self-Employment (TRYSEM) was initiated
in 1979. It aimed at training about 2 lakh rural youth every year to enable them to become
self-employed.
Jawahar Rozgar Yojana (JRY) was announced in February 1989, it was supposed to
provide intensive employment creation in the 120 backward districts. It was later renamed
Jawahar Gram Samridhi Yojana (JGSY) whose objective was creation of infrastructure
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and durable assets at the village level so as to increase opportunities for sustained
employment to the rural poor.
The Employment Assurance Scheme (EAS) aimed at providing 100 days of unskilled
manual work on demand to two members of a rural family in the age group 18 to 60 years
in the agricultural lean season within the blocks covered under the scheme.
Till now these programmes have not been launched on a sufficiently large scale and
thus their contribution from the point of view of the reduction in the incidence of
unemployment seems to be only marginally.
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SUGGESTIONS
Unemployment agencies could tighten their job search and job acceptance
requirements.
Improvements to the education and training provided to young people, with a greater
focus on vocational skills.
Countries need to ensure that their welfare systems do not provide discouragement to
work.
Provide more training and education to the unemployed. This could help improve
computer skills and communication. These people will become more confident and
employable.
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CONCLUSION
The whole length of discussion concludes that to solve the unemployment problem of India
the development plans and the family planning programmed, both, should be reformed on the
lines suggested herein above whereby the extra employment opportunities will be generated
fast, on one hand, and population growth will be checked, on the other, in such a way that
growth of employment opportunities would considerably exceed to the population growth.
To solve these massive problem efforts should be made to rectify the mistakes in the
development move on one hand, & to mitigate the high population growth, on the other
reselect its programmers & reconstruct its plans so as to make the development move rural
oriented.
This will bring about fast agricultural development, uplift of village life & revival of village
industries, artisanship & handicraft to check the massive rural- urban migration. As regards to
the check on high population growth the prevailing family planning programmed has been
proved insufficient & incomplete. .
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WEBLOGRAPHY
1. www.economywatch.com
2. www.scribedoc.com
3. www.isid.ac.in
4. ideas.repec.org
5. www.legco.gov.hk/
6. www.jstor.org/stable/1818137
7. www.informaworld.com
8. www.cdedse.org/pdf/work174.pdf
9. www.icai.org/resource_file/16789ppui.pdf
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