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BySneha Soni
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What it is
Unemploymentas defined bythe ILO-occurs whenpeopleare without jobs and theyhave actively looked forwork withinthepastfor
weeks Unemploymentrateis a
measureoftheprevalenceofunempolyment,calculatedas a percentage by dividingthenumberofunemployedindividuals by allindividualscurrently inthelabourforce.
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Identified features of unemployment
Theincidenceofunemploymentis muchhigherinurban areas theninrural areas.
Unemploymentrates for women arehigherthen
thoseformen.
Theincidenceofunemploymentamong theeducated is muchhigherthantheoverall
unemployment.
Thereis greaterunemploymentin agriculturalsectorthaninindustrial and othermajor sectors.
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Classificationofunemployment
Structural
Voluntary
Unemploymeny
involuntary
Cyclical
Sudden
Seasonal
Disguised
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Causes of Unemployment
Rapid changes intechnology
Recessions
Inflation
Disability
Undulating business cycles
Changes intastes as well as alterations intheclimaticconditions.This may inturnlead to declinein demand forcertain services as wellas products.
Attitudetowards employers
Willingness to work
Perceptionofemployees
Employee values
Discriminating factors intheplaceofwork (may includediscriminationonthe basis ofage,class,ethnicity,color and race).
Ability tolookforemployment
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Effects Of Unemployment
Effects ofunemployment
are social,too,not just
economic.
Frequently,crimerates rise as people areunabletomeettheirneeds through work.
Divorcerates oftenrise becausepeoplecannotsolvetheirfinancialproblems.
Unemploymentfinancialcosts
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EFFECTS OF UNEMPLOYMENTCont..
Mentalhealthproblems Health diseases
Tension athome
Politicalissue
Tensionovertaxes rise Insecurity amongstemployees
Crime and violence
Suicidecases
Socialouting
Stigma
Employmentgaps
His/her skills touse
Unemploymentcanlead toemotional and mental stress
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REMEDIES OF UNEMPLOYMENT
Rapid Industrialization
Need offastereconomicgrowth
Greaterfocus onvocational skills and selfemployment
Governmentsupport Cuts inreal wages
Promoting education
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GOVERNMENTPOLICY TO SOLVEUNEMPLOYMENT
Recently UPAGovernmenthas comeup withRuralEmploymentGuaranteeprogram which aims to
provideminimum days ofemploymenttopeopleliving inthe villages.
Theproblemofunemploymentin India can be solved
by adopting a multi dimensional strategy. Vocationaleducation should be givenmoreimportance.Morelabourintensiveindustries should be setuptocreatemore jobs.
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