POVERTY AND UNEMPLOYMENT / पॉवर्टी और

यूनिमॉलीमेंर्ट

UNEMPLOYMENT / बेरोजगारी

It can be defined as a situation where someone of working age is not able to get job but he / she would like to work. Therefore, if a mother left job to bring up her child or if someone went into higher education, they are not working but would not be called unemployed as they are not actively seeking unemployment.

इसे एक ऐसी स्थिनि के रूप में पररभानिि नकया जा सकिा है जहाां कामकरिे की उम्र के नकसी व्यस्ि को िौकरी िही ां नमल पािी है लेनकि वह कामकरिा चाहिा है। इसनलए, अगर एक मााँ िे अपिे बचे्च को लािे के नलएिौकरी छोड़ दी या अगर कोई उच्च निक्षा में चला गया, िो वे काम िही ां कररहे हैं, लेनकि उन्हें बेरोजगार िही ां कहा जाएगा क्ोांनक वे सनिय रूप सेबेरोजगारी की िलाि िही ां कर रहे हैं।

Employed means a person who is engaged in some economic activity linked to GDP. / नियोनजि का अिथ है एक व्यस्ि जो जीडीपी से जुड़ी कुछआनिथक गनिनवनियोां में सांलग्न है।

FULL EMPLOYMENT / पूर्ण रोजगार: situation where all those who are willing and are able to work, satisfy two conditions / वह स्थिनि जहाांसभी इचु्छक हैं और काम करिे में सक्षम हैं, दो ििों को पूरा करिे हैं :

i. They get work for specified time period / उन्हें निनदथष्ट समय अवनि केनलए काम नमलिा है

ii. Get wages according to their skills. / उिके कौिल के अिुसार मजदूरीप्राप्त करें।

UNDER- EMPLOYMENT / अंकुश- रोजगार

Any situation lacking full employment- either do not get work or do not get wages as per skills. / नकसी भी स्थिनि में पूर्थ रोजगार की कमीहोिी है- या िो काम िही ां नमलिा है या कौिल के अिुसार मजदूरी िही ांनमलिी है।

More worse than full unemployment. / पूर्थ बेरोजगारी से भी बदिर।

UNEMPLOYMENT

A situation where some people are willing and able to work do not get work regularly generally due to lack of job creation.

First condition is not specified.

Worst

TYPES OF UNEMPLOYMENT

1. DISGUISED UNEMPLOYMENT

Generally it is found in overpopulated, underdeveloped countries, especially in agriculture as entire family is working in agriculture, the number of persons working in land are far in excess of those who are generally required to produce the given volume of output. So, some workers are surplus as they are not adding anything in the production.

Their marginal productivity to production made by an additional unit of labour is zero. From point of view of society, such person is unemployed because he doesn’t contribute to output.

Hence his unemployment remains disguised or hidden.

2. Structural Unemployment

The problem of unemployment in India is structural in nature.

It arises because of demand and supply mismatch between the labor demanded and labor supplied in a country.

Therefore, even number of vacancies either equal to or greater than the number of unemployed, The unemployed workers may lack the skills needed for the job or he or she may not live in that part of the country where jobs are not available.

3. Frictional or Functional Unemployment

It is the unemployment that results from time spent between jobs when a worker is searching for or transitioning from one job to another.

It is also called search unemployment.

It is based on circumstances of the individual

Not bad because it leads to better skills and contribute more to economic growth and productivity.

4. CYCLICAL UNEMPLOYMENT

It is a factor of overall unemployment that relates to regular ups and downs or cyclical trends in growth and production that occur within the business cycle.

When business cycles are at their peaks, cyclical unemployment will tend to be low because economic output is being maximized.

When economic output falls , as measured by the GDP the business cycle is low and cyclical unemployment will rise.

5. SEASONAL UNEMPLOYMENT

It occurs when people are unemployed at particular times of the year when demand for labor is lower than usual.

For example : in Ski resort , unemployment is likely to be higher in summer when there is no snow.

CAUSES OF UNEMPLOYMENT IN INDIA

1. Rapidly rising population

2. Seasonal Agriculture

3. Backward methods of agriculture.

4. Decrease in number of cottage industries.

5. Defective education pattern.

6. Lack of transport and communication.

7. Inadequate employment planning.

SOLUTIONS TO THE PROBLEMS OF UNEMPLOYMENT IN INDIA

1. Stress should be given on those sectors which have capacity to absorb labor force.

2. Education reforms must be done to tackle problem of structural unemployment.

3. Population control is key to solve unemployment issues.

4. Extension of social services should reach the far flung areas, so that development process can be initiated in backward regions of the country.

5. Small and cottage industry must be promoted for purpose of creating self employment opportunities by small scale industries.

6. Rural development schemes and employment generation programmes must be implemented in latter rent spirit.

APPROACH TO MEASURE UNEMPLOYMENT RATE IN

INDIA

The National Sample Survey Office(NSSO), which provide estimates of rate of unemployment on the basis of its 5 yearly services, uses 3 different context.

A person is considered unemployed on:

1. Usual status basis: in reference year if the individual was not working but was either seeking or was available for work for majority part of the year. In 2011-12, it was 2.9% as per 68th round of survey.

2. Weekly Status : In it, a person is considered unemployment, if he / she has not worked even for one hour during the week, but was seeking or available for work. In 2011-12, it was 3.8%. It is based on current weekly status and gives average weekly picture of the unemployment during the survey year.

3. Current daily status : This is the most exhaustive way to measure unemployment. This approach attempts to classify unemployment by person days, rather than by persons. A person is considered to be employed for entire day, if he/she worked for 4 hours and less than 4 hours, if he/she is employed for half of the day and seeking or not available for work for other half of day, depending whether he or she seeking or available for work . In 2011-12, it was 5.8%.

As on 1st January 2012 (68th round), 472.9 million were demanding job.

Out of the given workforce, 52% are self-employed, 18% workers are regular and 13% are casual workers. Nearly half of the population is engaged in agriculture sector, 24% in secondary sector , 27% in teritary sector.

In India, women are more self-employed than men.

In rural areas, 59% men work in agriculture and number of women is 75%.

The average wage rate, all- over the country is Rs 396 per day.

INDICATORS OF EMPLOYMENT AND

UNDEREMPLOYMENT

LABOUR FORCE

It is that part of population which is willing and able to work.

It may include employed and unemployment persons.

Students who never applied for a job is not part of it.

LABOUR FORCE PARTICIPATION RATE

WORKER POPULATION RATIO

PROPORTION UNEMPLOYED

UNEMPLOYMENT RATE

CERTAIN FACTS RELATED TO UNEMPLOYMENT

As per the Economic Survey of India in 2018-19, unemployment rate is 6.1% as compared to 5% in 2017-18. It also indicates a shift in pattern of employment from permanent job to casual and contractual employment. This temporary nature of work has adversely effected wages, employment, stability and social security of workers.

From July 2014 – December 2016, in the major 8 sectors only six thousands forty one thousand jobs were created in comparison to 2.1 million from July 11- December 2014 ( Manufacture , trade, construction, education, health, IT, transport, accommodation and restaurant).

As per certain economist, stringent land acquisition laws and inflexible labor regulations make it difficult for India to attract investors in manufacturing sector.

A recent study conducted by Aspiring Minds, 2017 indicates that 97% of the engineers want jobs in software and core engineering. However, due to shortage of job, many engineers prefer to join a PHD program.

According to ILO report 2015-16, 1.6 crore individuals enroll in higher education due to lack of jobs hence the government should refrain from cutting research grant and reducing PHD seats .

According to UGC Regulations 2016, in any university a professor can guide only 8 PHD students, associate professor can guide 6, and assistant professor can guide only 4, that leads to massive cut in number of PHD seats all over the universities across India.

As per the given estimates by the Center for Monitoring Indian Economy around 1.5 million jobs were lost in India during first 4 months of 2017. the two major reasons behind that promotion of automation in various manufacturing companies.

POVERTY

DEFINITION OF POVERTY

In country, poverty can be of two types:

1. Absolute Poverty

2. Relative Poverty

ABSOLUTE POVERTY

It means that person is not able to afford basic necessities of life like food, clothing, shelter, etc.

RELATIVE POVERTY

It means that a person is relatively poor to the average standard of living of society i.e. his / her income is less than average income of society.

It shows the given inequalities in the society.

Relative poverty is general found in developed countries.

In India we have both absolute and relative poverty in excess or in abundance.

SURESH TENDULKAR COMMITTEE RECOMMENDATIONS

2009

Background of Indian Poverty debate

Many evidences shows official head count ratio under estimated actual poverty.

National Family Health Survey suggested 46% of Indian children are facing malnutrition

India had 41% of household as poor

RECOMMENDATIONS

1. India should have uniform poverty line.

2. Uniform and updated consumption basket.

3. Move away from calorie based poverty line

4. To have Mix Reference Period based poverty line

5. Inflation or price adjustment in rural and urban areas.

NC Saxena Committee

MoRD in 2008

To calculate rural BPL figures in state.

Suggested expansion of social security net involving fiscal and administrative challenges.

S.R Hashim Committee

Planning commission in 2010.

To recommend methodology for identification of BPL families in urban areas in the context of 12th Five Year Plan.

This are identified through specific vulnerabilities in Residential , occupational, social categories.

Socio – Economic and Caste Census 2011

1st paperless census in India.

1. Pradhan Mantri Ujjwala Yojana

2. PM Awas Yojana

3. Electricity connection under Deen Dayal Upadhay Power Scheme

4. Prepare labor budgets

5. Ayushman Bharat

C. Rangarajan Committee in 2012

2012

To revise the definition of poverty

Poverty line is defined on the basis of monthly per capita consumption expenditure based on modified Mix Reference Period(MMRP).

In MMRP the customer expenditure data is gathered from households using recall periods of :

1. 365 days

2. 7 days

3. 30 days

Limitations faced by the committee

1. Poverty line is originally calculated on household basis and different households get different type of subsidies but they are not reflected.

2. NSSO complains series under reporting of data of consumption expenditure, so as to enjoy schemes.

NITI AAYOG CHAIRMAN ARVING PANAGARIYA 16 member COMMITTEE:2015.

Its member failed to reach a consensus and suggested that another panel of specialists to be asked to do the job.

NITI AAYOG CHAIRMAN ARVING PANAGARIYA 16 member COMMITTEE:2015.

Its member failed to reach a consensus and suggested that another panel of specialists to be asked to do the job.

NITI AAYOG CHAIRMAN ARVING PANAGARIYA 16 member COMMITTEE:2015.

Its member failed to reach a consensus and suggested that another panel of specialists to be asked to do the job.

SOME CRUCIAL FACTS REGARDING POVERTY IN INDIA1. As per the World Bank estimate, 30% of global poor now resides in

India. In 2014-15 as per the World Bank estimates provided in Global Monitory Report, 140 million people in India live in extreme poverty . As per the World Bank , in India 828 million people are living below $2 per day as compared to Sub-Saharan Africa where it is 75.2%.

2. The share of children under age of 5 years who are stunted is 60%.

3. Of 1000 children born in poorest population quintile, 82 will die within 12 moths and 117 in five years.

4. In India, 43.5% of children under age of 5 are underweight.

5. Everyday around 3000 Indian children die from illness related to malnutrition and 7 lakh people die due to diarrhea as per World Bank report.

6. As per the most recent Swachhta Status Report around 52.1% of population in rural India practice open defecation.

MEASUREMENT OF POVERTY IN INDIA

1. HEAD COUNT RATIO:

Incidence of poverty

Fails to tell poorest of poor.

2. POVERTY GAP RATIO

It is the mean shortfall from poverty line expressed as the percentage of poverty line.

Measure intensity of poverty.

Average poverty gap in the population as a proportion of poverty line.

Improvement over the poverty measure head count ratio.

Estimates depth of the poverty.

Fails to calculate effect of inequality between poor.

Does not capture differences in severity of poverty amongst the poor.

3. Income Gap Ratio

4. Poverty Line

Average consumption expenditure needed by an household to satisfy the basic minimum requirements for all family members, given in terms of nutrition, clothing, shelter, education, health, etc.

ALTERNATE POVERTY ESTIMATES FOR INDIA

1. Socio- Economic and Caste Census 2011

Based on exclusion criteria.

Caste was analyzed for the first time on a nationwide scale.

SECC data included:

1. Household without shelters

2. Destitute/ living on alms

3. Manual scavengers

4. Primitive tribal group

5. Legally released bonded laborers.

2. Multi dimensional Poverty Index

Developed by UN Development Program and Oxford Poverty and Human Developmental Initiative.

Identifies multiple deprivations at the households and individual level in health, education, standard of living.

Classification is done as poor and non poor depending on weighted number of depreviations.

MPI reflects both the incidence of multidimensional deprivations and its intensity.

Comprehensive picture of people living in poverty, permits comparisons both across countries, region and world.

10 indicators – nutrition, child mortality, years of schooling, school attendance, sanitation, cooking fuel, drinking water, electricity, housing and assets.

CAUSES OF POVERTY IN INDIA

1. Faith in GDP growth and reality.

2. Climatic factor

3. Rapidly rising population

4. Education and unemployment

5. Social factors

6. Destruction of conventional industries

7. Low agriculture productivity

8. Unequal distribution of land and other

ADDRESSING THE PROBLEM OF POVERTY

1. Land reform

2. Education reform

3. Generation of employment opportunities

4. Healthcare reforms

5. Human development initiative and creation of social infrastructure.

6. Achieving a higher rate of inclusive GDP growth arte.

7. Direct attack on poverty through various alleviation programme and special area development programme.

ALTERNATE POVERTY ESTIMATES FOR INDIA

1. Directed Anti- Poverty Programme

a. Self employment Programme:

i. Training of rural youth for self employment

ii. Integrated rural development program

iii. Development of women and children in rural areas

b. Wage Employment Program:

National Rural Employment Guarantee Scheme, 2005

MILLENIUM DEVELOPMENT GOALS

SUSTAINABLE DEVELOPMENTAL GOALS(SDGs)

SIMILARITIES BETWEEN MDGs and SDGs:

1. Zero goals

2. More comprehensive goals

3. Inclusive goal setting

4. Distinguished hunger and poverty

5. Funding

6. Peace building

7. Data revolution

8. Quality education

POVERTY IS A COGNITIVE TAX

OCCUPATIONAL STRUCTURE