Presentationof

Indian Economy

Unemployment in India

Topic

Submitted to

Dr. Pinki Assit. Prof. of CommerceIndira Gandhi University,

Meerpur

Submitted byBHAWNA SAINI

TARUNA KOCHER

MONIKA GUPTA

MADHUBALA

M.COM ‘HONS’ 5TH semester

ContentsMeaning of unemploymentDefination of unemploymentEffects of unemploymentCauses of unemploymentTypes of unemploymentSuggestions to solve unemployment

problemSteps taken by Government to increase

EmploymentEmployment in Eleventh five year plan

Meaning of Unemployment

Unemployment means a situation in which people

are willing to work, at the

existing rate of wage, but they do

not get work.

Pigou

“A man is unemployed only when he is both without a job

or not employed and also desires to be employed.”

Definition of Unemployment

Loss of Human Resour-

ces

Increase in Poverty

Socials Problems

Effects of Unemployment

Political Instabilit

y

Exploitatio-n of

Labourers

Causes of unemployment

Rapid growth of population

Automation

Agriculture, a seasonal Industry

Defective Education System

Less saving and investment

Lack of employment policy

Slow progress of Industrialisation

Slow economic growth

Open UnemploymentUnder UnemploymentEducated

UnemploymentIndustrial

UnemploymentRural Unemployment Urban UnemploymentSeasonal

UnemploymentFrictional

UnemploymentStructural

UnemploymentCyclical Unemployment

Types of Unemployment

It means the person does not get employment at all during the year. These person are willing to work , have necessary skills, capability ,but they are not able to find the work.

Open Unemploym

ent

It means the person gets employment for a few months and remains unemployed for some months. Secondly, it means person works at a job that is below his qualification.

Under Unemployme

nt

Educated unemployment

When educated people do not get job according to their educational standard it is called educated unemployment.

Industrial Unemployment

With the rapid growth of population and urbanisation, more people seek employment in industries. Because of seasonal nature of agriculture, people from village come to urban areas in search of industrial jobs.

Rural unemploymentIt is characterised by seasonal

unemployment and under unemployment.

Urban unemployment

It is characterised by educated unemployment, open unemployment and industrial unemployment.

Seasonal Unemployment

It means a person is employed in a particular season and is unemployed in another season. In India, it is very common in agriculture. Here persons get work in cropping and harvesting season and in other months of the year, they remain unemployed. It is estimated that a farmer who sows a single crop in a year remains unemployed generally for 5 to 7 months.

Frictional UnemploymentThis unemployment of temporary nature. It arises due to market imperfections. When people shifts one place to another and there they seek jobs; there many be unfilled vacancies at that place ,but it takes some time to match the unfilled vacancies.

Structural Unemployment

This unemployment is because of technology changes or change in the demand pattern of goods. It is possible that demand of new type of goods has increase or technological advancement has taken place and labour does not have right skills to manufacture new type of goods or work with new technology.

Cyclical Unemployment In every economy, trade

cycles prevail, i.e. period of boom depression. In the period of boom, there are many economic activities. More persons jobs in the period of boom. While in the period of depression, there are lesser economic activities like decrease in demand.

SUGGESTIONS

Check on populationNational employment policyStrengthening Information

Technology sectorPromoting rural non farm ActivitiesMore IndustrialisationPromotion of ExportsChange in the Education system

Steps taken by government to increase employment

Swaranjayanti Gram Swarozgar yojana(SGSY) It is the single self employment programme for the rural poor. It was launched in Apirl, 1999.It aims at establishing a large number of small enterprises in the rural areas. The expenditure on SGSY is shared by the central and state government in the ratio of

75:25. For north- eastern states this ratio is 90:10.The SGSY is implemented by District Rural

Development Authority through the Panchayat Samitis.The SGSY has now been restructured as

National Rural Livelihood Mission (NRLM).

Sampoorna grameen rozgar yojana(sgry)

It was launched on the 1st september, 2001. The main objectives of this yojana are

to provide opportunity of employment to surplus labour , to provide food

security, development of the basic infrastucture.This

yojana has set a target of creating 100 crore man

days of employment. In this yojana part of wages are paid in terms of food.

Micro, small and medium enterprises

With a view to reducing unemployment, government has made special efforts to develop micro, small and medium enterprises. In 2009-10, as many as 695 lakh persons were employed in these industries. Special incentives are given to these enterprises in 11th five year plan.

Development of organised sector

Many people are getting employed in organised public and private sectors, such

as, industries, mining, transport,

construction activities etc.In the year 2008-

09, it provided employment to 2 crore and 81 lakh

persons

employment in foreign countries

Government also helps people to get employment aboard. Special agencies have

been set up to recruit people to serve in foreign countries like Kuwait, Saudi Arabia,

Iran, Canada, Australia, etc.

NATIONAL FOOD FOR WORK PROGRAMME

In November 2004, Government has started National food for work programme in 150 most back ward districts of the country. In this programme wages are distributed in

the form of foodgrains. This scheme is aimed at rural poor.

Swaranjayanti shahari rozgar yojana

This yojana provides employment to urban unemployed. It came into

operation from 1st december, 1997. it comprises of two special

schemes; Urban self employment

programme(USEP) Urban wage employment

programme(UWEP)In urban self employment

programme the person starts his own work/business and earns

profit while in urban wage employment programme the person takes employment as

employee with some other person and get wage/ salary for his work.

Mahatma gandhi national rural employment guarantee

act(mgnrega)

Government enacted MGNREGA in 2005 and in year 2006-07, this act has been

implemented in 200 districts of the nation. It provides atleast 100 days of guaranteed wage employment in every financial year to the poor persons living in rural areas to atleast one adult person

in every house hold.Now, this act has been extented to all 640 districts.

Employment in eleventh five year plan

Creating 58 million new employment oportunities

Reducing unemployment rate to below 5 per cent

Creating quality jobs in organised sectorsCreating non agriculture work oportunities by

creating jobs in industrial and service sectorsSpecial programmes aimed at target groups

such as weavers, artisans, craftmens etc.