types of unemployment exist in india

8/10/2019 Types of Unemployment Exist in India

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Types of Unemployment Exist in India

Unemployment means idleness of manpower. The state in which labour possesses necessary ability and

health to perform a job, but does not get job opportunities, is called unemployment.

The nature of unemployment differs according to the level of economic development in a country. India

is an underdeveloped economy. The following types of unemployment exist in India:

1. Rural Unemployment:

India is essentially a rural economy. According to 2001 Census, 72.2 per cent people live in villages.

Agriculture is their principal means of livelihood. Two kinds of unemployment exist in rural areas:

(a) Seasonal Unemployment:

This is primarily confined to agriculture. Agriculture does not provide employment round the year. It is

also known as perennial unemployment. Sowing and harvesting season ranges between five and seven

months.

For the rest of the period the cultivator has to remain idle. Experts believe that an Indian cultivator

remains unemployed for five to six months. When the next sowing season starts he again goes back to

cultivation. Therefore, it is called seasonal unemployment.

(b) Disguised Unemployment or Underemployment:

It is again a feature of the agrarian economies. When more people are engaged than actually required

for production, it is called disguised unemployment. If a part of labour force is withdrawn from the farm

the total output of the farm will remain unchanged. The withdrawn labour force will be termed as

disguisedly employed.

Under this situation the marginal productivity of labour (i. e., the addition to the total product) over a

wide range is zero. Indian agriculture is a self-employing sector. There is absence of alternative

occupations in the economy.

The burden of increasing population ultimately; falls on land and there is overcrowding on the farms.

Rigid social structure and joint family system encourage this overcrowding. No one appears to be

unemployed. But in reality, large part of the labour force is underemployed.


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2. Urban Unemployment:

According to 2001 Census, 27.8 per cent population lives in urban areas. Therefore, the magnitude of

urban unemployment is not as high as that of rural unemployment. Two kinds of unemployment exist inthe urban areas:

(a) Industrial Unemployment:

The Britishers had totally destroyed the village based industries. The condition of artisans and farmers

was not good. They migrated to the urban areas in search of jobs. But they could only increase the

number of unemployed persons.

In recent years many industries have been modernized. New and automation techniques of production

have rendered many workers unemployed. It is called technological unemployment.

Industrial activities are increasing by leaps and bounds. Fluctuations in the business activities affect the

level of employment. Industrial recession of 1966-68 rendered many workers unemployed. Recent

power shortage in many states has slackened the industrial activity and increased the number of

unemployed persons. It is called cyclical unemployment.

(b) Educated Unemployment:

Indian universities and colleges have been producing lakhs of graduates every year. Education in India is

not job oriented. Students have been aimlessly studying different courses.

When they come out of college after completing their education, they fail to get suitable jobs. Educated

unemployment entails a waste of the countrys most valuable resource, the human capital.

The Problem Of Unemployment In India Economics Essay

In this mission iam planning to do about unemployment in India, and how the government overcome

the unemployment here, and what is the cost of unemployment, For more details, we can see the

following:

Unemployment in INDIA

India is a country with massive unemployment problems. Unemployment can function as a state of

inactivity for a man fit and ready to be defined. It is a condition of involuntary and voluntary

idleness. Some features of unemployment were identified as follows:

A. The incidence of unemployment is significantly higher than in urban areas in the countryside.

2. Unemployment for women than for men.


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(6) Unemployment due to a deterioration in business

in various industries, trade or business, sometimes it's worse. This deterioration is due to various

factors. The effectiveness of the employer, sharply lower profits competitions etc. are some of the

factors that lead to a deterioration in the industry and the company.

(7) Seasonal unemployment

certain industries and traders involved workers for a given season. If the season ended the workers are

made unemployed. Sugar industry is an example of this type of seasonal unemployment.

The problem of unemployment is enormous. Various issues have caused this problem .There are

individual factors such as age, disability and physical disabilities, to limit the people. External factors are

technological and economic factors. There is tremendous increase in population. Each year India adds to

the population again. be more than this every year about 5 million people are eligible to secure jobs. BA

is subject to ups and downs of economic cycles and globalization. Economic depression or sick industries

is often close to convincing their employees become unemployed. Technological development

contributes to economic development. But unplanned and uncontrolled growth of technology is chaos

on job opportunities. The data processing and automation have led to technological

unemployment. Strikes and lockouts are inseparable aspects of the industrial world. Because these

industries often face economic and production is lost. Since the employee does not receive salary or

wages during the strike they are suffering from financial difficulties. You are permanently or temporarily

unemployed .Today's youth are not ready to jobs that are considered socially demeaning or low rise.Our

education system has its own fatal error and their contribution to unemployment are preparing an open

truth .Our education is not the head of the young generation to become self-employed, on the contrary,it makes them dependent on government agencies, which are difficult to achieve. Our state of the start

of the five-year plans, several employment initiatives and programs over the years, but generating, in

the absence of proper implementation and monitoring have failed, introduced to achieve the necessary

goals. Recently UPA government with Rural Employment Guarantee Programme , which will provide the

minimum days of employment to people living in villages. This is a laudable program, if sincere, because

it will provide employment for people reacted during natural disasters such as droughts, floods, etc.

measures to reduce unemployment may be more emphasis on creating opportunities for independent

work, increased productivity and income of the laity working poor, trying to shift focus from the

establishment of relief type of work for the construction of fixed productive assets in rural areas and,

instead, can anything be accelerated back to protectionist measures, the pace of privatization

HOW THE UNEMPLOYMENT Overcome

Unemployment problem can be resolved in India by introducing corporate farming system, improving

the marketing system, social security for farmers, subsidiaries


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Indian agriculture is an area that can solve future unemployment situation in India, but this is the most

neglected area of the politicians and public officials.

Now I will list down some important points, this can be done.

Introducing Corporate farming system

The Soviet method of farming can not fit. The solution may be corporate agriculture, where companies

invest their money and share technology in agriculture, the benefit of farmers. Enhance the most

important agricultural scene in India, is water. For this we need to build large dams.

Agriculture in India need more support from industry. Food Machinery too.In India, only 2% of

agricultural production is processed. In developed countries it is as high as 80%.It is better to give back

to the farmers from their fields and also to remove as industry middlemen buy direct from farmers. The

Government must also invest irrigation technologies and more efficient, reliable and cost effective credit

system.

Improving the marketing system and social security

Promotion should also be improved. Social Security must be submitted for each person in India. It will

mean at least that people do not live in acute poverty if the crops fail, or they lose their jobs. However,

it should be clear that without the employment generated by services and manufacturing.

We can also help farmers, where traditional cultures have been a failure due to water shortages by

offering them help plant crops such as jatropha, which only need a small amount of water, and will also

help direct the business, as in productionhelps biofuels.

Subsidization of farmers and implement crop insurance scheme

Other suggestions would be complete crop insurance and farm subsidies are used instead of the

consumer. The government needs to subsidize farmers heavily to reduce the situation, the price of food,

and it is on the market at a competitive price available, instead of buying from the farmers and sell them

cheaply to the public.

The government has to subsidize everything first. Improved irrigation system must be created. We are

good at production, but if an effective system is down, it would be much better. Irrigation is the key. We

have natural resources, so we have to use it better. For example, completed in Gujarat, Sardar Sarovar

after the project, it would not only drinking water to Saurashtra / Kutch region, but also opportunities

for a better agricultural products in the not-so fertile land in the region. So there must be an increasedeffort on the part of the government in developing a better infrastructure for agriculture.

Increasing storage

The government should create more space for the fall, as Indian granaries are overflowing and rot, while

people can not afford food die of starvation. We need to figure out a system that we can better manage

the food industry and better.


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Why do farmers commit suicide?

Most farmers who commit suicide do a poor choice of plants and grow high-risk crops such as cotton,

tobacco, etc. drought and pests, these plants are much easier than others destroy. The government can

do about it much (and I know it works). You should read our research and consulting services and advice

to farmers to plant what and what not. In addition, much emphasis is placed on research to find plantsthat are grown to diversify. Fruit crops, some cereals, pulses need less water and fewer resources

wisely.The education of farmers about these "non-traditional" options and opportunities are very

important.

Tightening of agricultural credit system

The agricultural credit system should be so tight that the farmers credit only if they are to make

informed decisions. In this way, farmers will not be in serious debt and not be forced to kill himself.

I think that if these steps are carried out effectively in agriculture, as agriculture in India can provide

employment for millions of people in rural and urban areas of the country people, the urban areas aregoing to get work in other areas will return to their villages and hard work in agriculture, for the basic

living conditions for their activities in their area are doing.

I invite everyone not just the Indian community, but also the global Internet community, the entrances

to share in this concern.

COST unemployment

Most economists agree that high unemployment is not only costly to individuals and families directly

affected, but also local and regional economy and the economy as a whole. We can distinguish between

the economic costs of people without work and the social costs of doing so often follow.

Lost production of goods and services

Unemployment leads to a waste of scarce economic resources and reduces the duration of the growth

potential of the economy. An economy with high unemployment is to produce in its production

possibility frontier. The hours that work the unemployed can not ever be won.

But if unemployment can be reduced, the total national production increases, leading to an

improvement in welfare.

Fiscal costs of government

High unemployment has an impact on government spending, taxes and the amount of debt each year

An increase in unemployment leads to higher pensions and lower taxes revenues.When individuals are

unemployed, they receive not only treatment but also pay no tax.


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Because they use less they contribute less to the government in taxes.

This increase in public spending and the decline in tax revenue could lead to higher public debt

requirement (known as a public sector net cash requirement) Score

Welfare loss of investment in human capital

Unemployment waste some of the scarce resources in the training of workers.Furthermore, workers

who are unemployed for long periods of de-skilled as their skills are increasingly in a rapidly changing

labor market dates. This reduces the chances of employment in the future, which, in turn, the financial

burden for the state and society.Check out the review on page Long-Term Unemployment

Social costs of unemployment

Rising unemployment is a social and economic disadvantage is - there is no correlation between rising

unemployment and rising crime and increasing social dislocation (increased divorce, the decline in

health and lower life expectancy).

Areas with high unemployment and declining real income and expenditure, and a growing number of

relative poverty and income inequality. Than younger workers are more geographically mobile than

older workers, there is a risk that areas with higher than average unemployment, suffering from an

aging workforce potential - making them less attractive as investment locations for new businesses.

solutions to Unemployment Problems in India

Among the various socioeconomic problems, which our country is facing today, the problem ofunemployment is one of the most serious Unemployment is defined as condition of a person who is

willing to work but unable to find a paying job.

There are various factors that are responsible for unemployment i country. Unemployment can be due

to seasonal layoff particularly in agricultural sector. It can be due to technological changes in an

automated industry or due to lack of adequate skills by the workers. Unemployment can also be due to

fluctuation in the economy. All these factors add to the problem of unemployment. And because of this

unemployment problem we are wasting our valuable human resource.

Why India even after 63 years of Independence is not able to so this problem? Even after so much of

planning, where are we lacking tackling this problem?

First thing that strikes everyone whenever the question unemployment is raised is our rapid growth of

population. The employment opportunities that are getting created in our country are not able to keep

pace with our population growth. According to Unit Nations population report, India with its annual

population grow of 1.65 percent is the largest contributor to the world's population growth, which


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accounts for 21 percent of the annual increase in the world population and China is in the second

position with a contribution of 15 percent.

If our population grows at percent pace, there is no doubt we ill be surpassing China in the years to

come and the employment opportunities for our coming generation will become still more bleak.

Secondly, our system of education prepares our youth mostly for the white collared jobs. With no work

experience and unprepared for the challenges of work, many employers are reluctant to hire these first

time job seekers.

So, one of the hardest hit sections of the society is youth. These scenarios compel us to look at the

problems the society has to face because of the unemployment.

The problem of unemployment is going to have a multifaceted effect on the society. Unemployment in

the society has led to increase in the crime rate, increase in the poverty rate, and deterioration in the

health standards of the people.

Firstly, with regard to the increase in the crime rate in our towns and the cities, we find in most of the

cases, the youth are the main culprits the youth of the country, who are the real asset provided their

power is utilised properly, could contribute to the material prosperity of the country. On the other hand,

an unemployed youth may prove to be disastrous to a society. The increasing crime rate in the cities

speaks out that truth. Not a single day passes without having new about chain snatching, robbery and

murder. Another dangerous trend which we are witnessing is that of unemployed youths are being

enticed the antisocial elements and separatist movements. These antisocial elements and separatists

target unemployed youths for destabilizing our country using them as tools creating mayhem.

Secondly, India still has poverty on a large-scale. Unemployment is one of the reasons for this large scale

poverty. The families without having able-bodied members employed are pushed to the vicious circle of

poverty.

Thirdly, deterioration in the health standards of our countrymen aggravates the problem of

unemployment. Non-availability of the social security makes the life of an employed more difficult. It

affects his mental health, which in turn affects his physical health also. How can a person who is

struggling to get a square meal think of maintaining his health - en he falls ill? For an unemployed

person it is too costly to fall ill. A recent report in The Hindu, states that the people of Vidarbha

Maharashtra) have stopped seeking medical help for their ailments, as cannot afford to pay the doctor's

fee and buy the prescribed medicines.

Since the beginning of the Five-Year Plans, Government has taken several steps for increasing the

employment opportunities and eventually eradicating the unemployment problem. Some of the

centrally sponsored programmes are PMGSY (Pradhan Mantri Gram Swarozgar Yojana SEEUY (Self

Employed Scheme for Educated Unemployment Youth Jawahar Rozgar Yojana, etc., stands testimony for

this. But even then the problem still prevails then where are we failing? Let us look into the solutions for

this problem.


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The first and foremost thing we have to do arrest the high rate a unemployment and provide

employment opportunities to our masses is to check the population growth.

As the gap between the employment opportunities created in the country and yearly output from the

educational institutions is too wide, it is very difficult to absorb the large number of fresher. Even

though the Government is spending crores of rupees towards control of population through the variousschemes, the rate of population growth has not drastically reduced. To tope it, the Government has

decided to abandon the 2-child norm.

Secondly, the current education system does not lay much emphasis- on the vocational education. Even

though a National Policy on Education has been adopted by giving high priority to vocationalisation of

the secondary education, but the quality of these vocational courses is far from satisfactory and hence

the progress on this front is very slow. The Government must look into it much more seriously and there

should be a continuous monitoring mechanism to evaluate the implementation of these programmes.

Only vocationalisation can help in diverting a part of the youthful workforce and ease the pressure on

the white-collar jobs.

Thirdly, agriculture is the backbone of the Indian economy. The Government must continue its policy

towards the encouragement of agriculture and development of agriculture-based industries. This will

arrest the problem of migration from the rural areas to urban areas. The Government has to take up

massive irrigation development programmes in the rural areas which will not only make the land

capable of cultivation but would also create jobs for the landless labourers and seasonally unemployed.

Provision of irrigation facilities is the main panacea for rural and agricultural development.

Fourthly, in order to check the rural migration to urban areas, there is an urgent need for the

development of the small towns intermediate cities. This will ease the pressure on the urban cities and

such restructuring helps in the development and use of the vast unutilized markets within the countryrather than excessive dependence upon the report activities.

Fifthly, the economic growth of the country has a bearing on the job market. When higher economic

growth is achieved through more productive use of all resources it results in higher per capita income

which in turn results in more savings and investment activities creating greater employment

opportunities in the country. Even though we had targeted a growth rate of 8 percent during the 10th

Plan period, we may end up with a growth of 7 percent because of slow down of the agricultural growth

and international oil prices.

Sixthly, because of the liberalization of the economy, we can see a new lot of foreign companies

investing in our country. Government must rue its liberalization policy in a smooth way and encourage

foreign companies to start their manufacturing units in our country, which in turn, would increase the

employment opportunities.

Now the latest mantra in India is that of Business Process Outsourcing and Call Centres. As has got the

largest pool of English speaking scientific and talented manpower it has become an obvious choice for

the foreign companies to outsource their non-core business processes to our country. But as we are


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facing stiff competition from our neighbouring China and because of the recent allegations made against

our Call Centers, the Government must be careful in dealing with these situations and if necessary

stringent cyber laws need to be implemented.

Problems and Solutions to Unemployment in India

Unemployment means a person willing to work but unable to find a qualified job. Our country is facing

many problems but one of the serious problem is of unemployment. Many graduates, doctors,

engineers, scientist are unemployed or working underemployed. Due to unemployment we are wasting

our countrys human resource.

The unemployed rate in between age group 15- 29 has been increased since 2009-2010. According to

the Global Employment Trends 2014 the unemployment rate has raised to 3.8%, last year it was 3.7%.

TheInternational Labour Organisation(ILO) has said in the recent report that India has shown rise in the

unemployment in the last two years.

If the problem of unemployment is solved it will help in development of the country. With Population of

1.20 billion in our country the unemployment rate is increasing day by day. The problem of

unemployment is rising but still many industries are facing the problem of skilled candidate for their

company. There is a boom of software companies, Outsourcing companies in India, but still facing the

problem of unemployment.

Here are some of the reasons why there is unemployment in India

1.

There are employment opportunities in India, but the rising population problem creates the

unemployment. If the population grows in the same rate the next generation will face moreproblems of unemployment. If there is vacancy for 1 position 100 or 1000 apply for the position

and only one gets the job and others remain unemployed.

2.

Inflation

3. Indians dont take jobs which are below their grades. Many find it difficult to work at the below

qualification level job.

4.

Low wages or salary below the market rate.

5.

Many big industries look for the skilled candidate only, for their company.

6.

Recession

7.

Many Employers give preference to the experienced candidates only and not the fresher.

8.

Not enough or new jobs: As per the experience & analysis from Get Sarkai Naukri,number of

new government jobs is decreasing every year. Government is not able to create enough jobs

keeping in mind the Indian population.
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9.

Slow business expansion

10.

Advanced Technology: Earlier for a task hundreds or thousand people were required to do a

work but now due to the advanced technology only one person can do many peoples work.

With the advanced technology companies are hiring few persons to operate the machine. Give a

command on computer and the work is done this has cut off the employment of many.

11.

Corruption: In Government sector and in some private sector people get the job by giving the

bribe. Even though the candidate is not that qualified but if he gives the bribe he gets the job. So

to get a government job give a bribe.The qualified candidate remains unemployed as no money

to give the bribe.

Problems caused due to unemployment

Unemployment and poverty goes side by side. The problem of unemployment gives rise to the

problem of poverty.

Young people after a long time of unemployment find the wrong way to earn money.

To get rid from the unemployment stress, they accept alcohol or drugs.

Unemployed youths accepts suicide as the last option of their life

Lower economic growth

Increase rate in Crimes. As the employed youth dont have anything to do they start doing

robbery, murder etc.

Health issues i.e it affects mentally as well as physically

Solutions to the unemployment in India

1. The very first solution for the unemployment is to control the rising population of our country.

Government should motivate people to have small families. Indian government has started initiatives to

control the population but still the population is rising.

2. The quality of Indian education should be improved. The current education system is not upto the

level. Government should keep a strict watch on the education system and try to implement new ways

to generate skilled labour force. Government should select a committee to look after the schools and

universities. The syllabus taught is of no use to the industries so the education should be as per thecurrent requirements of the industries. Before completing the education a practical knowledge should

be given.

3. Also todays youth should join the institute or select the course where proper training is given and the

course is as per the current industries requirements. Take the course as per your interest and which will

bright your future.


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types of unemployment exist in india

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