2. Synopsis of the Presentation
Introduction to Unemployment.
Forms of Unemployment.
Nature of Unemployment in India.
Ways to Measure Unemployment.
Causes of Unemployment.
3. Introduction to Unemployment
Introduction to Unemployment
Every 6th person in the world is an Indian and every
3rd poor person in the world is also an Indian.
With Increase in the number of unemployed persons,
Poverty expands.
The problems of unemployment and poverty is Very
High which demands an immediate solution.
Till 5th Five Year Plan, no serious efforts were taken
to solve the unemployment problem.
It was assumed that the gains of economic growth
would percolate downwards and the inequalities
would decline and problems of poverty and
unemployment would get solved automatically.
4. Cont:
But after the Fifth Five Year Plan, removal of
unemployment became as one of the important
Objectives of economic planning in all five year
plans.
In less developed countries economic growth
generally benefits the elite groups and, as a
result, economic Inequality grow.
India is facing the same problem of Inequalities.
5. What is
Unemployment?
A person who is not gainfully
employed in any productive activity
is called as unemployed and
collectively
it
is
called
as
Unemployment.
7. Voluntary Unemployment
There are some people who are unwilling work at the
prevailing wage rate,or
There are some people who get a continuous flow
income from their property or other sources and need
not work.
Voluntary Unemployment is a National waste of human
energy.
8. Frictional Unemployment
Temporary phenomenon.
Results when some workers are temporarily out of
work while changing jobs.
Also result when the work is suspended due to strikes
or lockouts.
Frictional unemployment is caused by imperfect
mobility of labour.
9. Casual Unemployment
Here workers are employed on a day to day basis.
In generally exist in Construction, catering or
agriculture industries.
It occurs due to short-term contracts, which are
terminable any time.
10. Chronic Unemployment
When unemployment tends to be a long- term feature
of a country it is called chronic unemployment.
Underdeveloped countries suffer from chronic
unemployment on account of :◦ vicious circle of poverty
◦ lack of developed resources and their under
utilization
◦ high population growth
◦ backward & even primitive state of technology
◦ low capital formation, etc.
11. Seasonal Unemployment
Industries such as agriculture, the catering
trade, trade in holiday resorts, some agro-based
activities like sugar mills and rice mills, provide jobs of
seasonal nature which are for certain period.
People engaged in such type of work or activities may
remain unemployed during the off-season.
So it is Seasonal Unemployment.
12. Disguised Unemployment
When some workers have zero marginal productivity
so that their removal will not affect the volume of total
output.
Disguised unemployment implies underemployment
of labour.
This kind of unemployment is a common feature of
under developed economies especially of their rural
sector.
In short, overcrowding in an occupation leads to
disguised unemployment.
14. Structural Unemployment
Due to structural changes in the economy, Structural
Unemployment may result.
Caused by:1)decline in demand,
2)disinvestment,
3)reduction in its manpower requirement.
In fact, structural unemployment is a natural
concomitant of economic progress and innovation in a
complex industrial economy of modern times.
15. Cyclical Unemployment
Capitalist biased, advanced countries are subject to
trade cycles.
Trade cycles are especially recessionary and
depressionary phases causing cyclical unemployment
in these countries.
During the contraction phase of a trade cycle in an
economy, aggregate demand falls and this leads to
disinvestment, decline in production and rise in
unemployment.
The solution for cyclical unemployment lies in measures for
increasing total expenditure in the economy, thereby pushing up
the level of effective demand. Easy policy and fiscal measures
such as Deficit Financing may help.
18. Cont:
Most of the unemployment in India is definitely structural,
that is, the structure of the economy is such that it does not
absorb an increasing number of people coming to labour
market in search of jobs.
Industrial Unemployment results when industrial sector fails
to absorb the increasing labour force.
Also, Cyclical Unemployment is the result of Industrial
Recession in urban areas.
Educated Unemployment results when a large number of
educated people remain unabsorbed.
It is estimated that over
Disguisedly Unemployed.
1/3rd
of India's work force is
19. Ways to measure Unemployment
Ways to measure Unemployment
Usual Status: This measure estimates the number of
persons who may be said to be chronically unemployed.
This measure generally gives the lowest estimate of
unemployment especially for a poor economy because only
a few can afford to remain without work over a long period.
Current Weekly Status (CWS): This estimate reduces
the reference period i.e. the period for which data is
collected to one week. According to this estimate a person
is said to be employed for the week even if he is employed
only for a day during that week.
Current Daily Status (CDS): The reference period here is
a day. It counts every half day's activity status of the
respondent over the week.
20. Causes of Unemployment
Causes of Unemployment
Jobless Growth.
Increase in Labour Force.
Inappropriate Technology.
Inappropriate Educational System.
