36574451 Unemployment In

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SUBMITTED TO: SUBMITTED BY:

MAAM SAROJ LAKHAWAT ADITI SHARMAAKSHTA VERMA

DEEPA NAGPALSHAKTI DEVIL


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CONTENTS:y Introduction

y Concepts of Measurement Of Unemployment

y Classification of Unemployment of Indiay Common Types Of Unemployment

y Causes of Unemployment in India

y Consequences of Unemployment

y Suggestions to remove Unemployment of India

y Conclusion


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INTRODUCTION:yAccording to Prof. Pigou,

An individual is unemployed only when he is both

without job or not employed and also desires to beemployed.

NOTE:

People who remain voluntarily unemployed andphysically or mentally challenged are not considered asunemployed.


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Concepts Of Measurement Of

UnemploymentLABOUR FORCE:

y It refers to number of persons actually or willing to work.

yIt is a measurement of potential labour force.

WORK FORCE:

y It refers to the number of persons actually working , anddoes not account for those who are willing to work.

yIt is a measurement of actual labour force.

LABOUR FORCE-WORK FORCE=NO.OF PERSONSUNEMPLOYED.


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PARTICIPATION RATE:

It refers to percentage of population actuallyparticipating in production activity.

It is measured as a ratio between work force and totalpopulation of a country.

PARTICIPATION RATE=(WORK

FORCE/TOTAL POPULATION )*100


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CLASSIFICATION OF UNEMPLOYMENT

IN INDIARURAL UNEMPLOYMENT:

y Two main types of unemployment in rural areas are:

DISGUISED UNEMPLOYMENT:yA situation where the no. of workers engaged in a job

is much more than actually required to accomplish it.

SEASONAL UNEMPLOYMENT:

y

It is a situation where workers engaged in seasonalactivities like agriculture, sugarcane crushing etc. workfor few months in a year and remain idle for next fewmonths.


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URBAN UNEMPLOYMENTy It can be divided into two parts:

INDUSTRIAL UNEMPLOYMENT:

y It includes those illiterate people who are willing to work inindustries but are not employed as many industries in Indiaare resorting to LABOUR SAVING DEVICES as in westerncountries.

EDUCATED UNEMPLOYMENT:

yEmployment opportunities have not increased as much asno. of educated persons leading to this type ofunemployment.


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YOUTH and WOMEN UNEMPLOYMENT

(common feature of both rural and urban areas)y YOUTH UNEMPLOYMENT:

y It implies that the contribution of the workingcapacity of the youth to production activities of the

country is low.y It is unemployment among the people in the age group

of 15-29 years and is more among educated looking forwhite collar jobs.

y

WOMEN UNEMPLOYMENT:y Social and economic factors account for woman

unemployment in India.

y Hardly 22% women are employed in India.


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COMMOM TYPES OF UNEMPLOYMENT

OPEN UNEMPLOYMENT:

y It refers to that situation where the worker is willing to

work and he has necessary ability to work yet he doesnot get work.

STRUCTURAL UNEMPLOYMENT:

y It occurs due to structural changes in economy.

y These changes are of two types:y Changes in technology.

y Changes in pattern of demand


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UNDER EMPLOYMENT:

It is that situation in which worker gets work for lesstime than ha can work.

FRICTIONAL UNEMPLOYMENT:

It occurs due to imperfections in the mobility of labour

across different occupations . One wishes to movefrom one job to the other ,but in the process of change

may remain unemployed for sometime.

CYCLICAL UNEMPLOYMENT:

It occurs owing to cyclical fluctuations in the economy.

Cyclical fluctuations include phases of boom ,recession , depression and recovery.


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CAUSES OF UNEMPLOYMENT IN INDIA

y SLOW ECONOMIC GROWTH->Indian economy isunder developed and fails to provide enoughemployment opportunities.

y RAPID GROWTH OF POPULATION ->Population isincreasing but economic opportunities are almostremaining same.

yAGRICULTURE->It gives rise to seasonal

unemployment.y LACK OF IRRIGATION FACILITIES->Due to this,

farmers grow only single crop and remain unemployedfor few months.


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yJOINT FAMILY SYSTEM->It gives rise to disguised

unemployment.

y LOW SAVING AND INVESTMENT->There is shortage ofcapital in India and even the scarce capital has not been

wisely invested.

y MOBILITY OF LABOUR->People do not move out to faroff areas even when the jobs are available and thus ,lesserthe mobility greater the unemployment.

y DECLINE OF COTTAGE AND SMALL INDUSTRIES->

Large industries have replaced them leading tounemployment of village people.


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CONSEQUENCES OF UNEMPLOYMENTECONOMIC CONSEQUENCES:

y It leads to non utilisation of manpower.

y There is a loss of output as unemployed persons onlylive as consumers not as producers.

y Decline of capital formation occurs as unemployedpeople do not generate surplus for investment.

y It decreases the productivity.


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SOCIAL CONSEQUENCESy It lowers the quality of life.y It leads to social injustice because higher the degree of

unemployment ,greater the extent of inequality in thedistribution of income and wealth.

y It motivates terrorism leading to social unrest.

y It leads to class struggle that promotes class conflicts.


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SUGGESTIONS TO REMOVE

UNEMPLOYMENTy INCREASE IN PRODUCTION->It is essential to increase

production in agriculture and industrial sectors. Development ofsmall and cottage industries and foreign trade should beencouraged.

y HIGH RATE OF CAPITAL FORMATION->It should beparticularly encouraged in such activities which generate greateremployment opportunities

.y

MORE HELP TO SELF EMPLOYED PERSONS->facilities like irrigation , betterseeds , manure,implements , credit , etc. should be provided.


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y CHANGE IN EDUCATIONAL PATTERNS->Emphasisshould be laid on vocational education.

y CHANGE IN INDUSTRIAL TECHNIQUE->It is

essential that labour intensive technology isencouraged in place of capital intensive technology.

QUICK YIELDING INDUSTRIES be given preference.

y COOPERATIVE INDUSTRIES ->Different state govt.

should initiate necessary steps to develop it

y MORE IMPORTANCE TO EMPLOYMENTPROGRAMMES IN PLANS->Programmes like

roads , flood control , forestry , soil conservation

development of small industries , should beencouraged.


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CONCLUSION

Unemployment is a curse ,a sign of poverty to the

individual ,degradation to society and loss of humanresource for the nation.

36574451 Unemployment In

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