Unemployment occurs when actively job searching people are unable to find work. There are several types of unemployment including frictional, structural, cyclical, and seasonal. The major causes of unemployment in India are slow economic growth, increasing population, agriculture being seasonal, the fall of cottage industries, slow industrialization, and low savings and investment. Suggestions to reduce unemployment include changing to more labor intensive technologies, improving vocational education, expanding employment exchanges, and providing assistance to self-employed individuals and small businesses. The government of India has implemented programs like the Drought Prone Area Programme and Jawahar Rozgar Yojana to generate rural employment as well as schemes supporting self-employment and small industries.
2. WHAT IS 'UNEMPLOYMENT'
Unemployment occurs when a person who is actively searching for
employment is unable to find work. Unemployment is often used as
a measure of the health of the economy. The most frequent measure
of unemployment is the unemployment rate, which is the number of
unemployed people divided by the number of people in the labor
force.
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3. • Frictional Unemployment
• Results from the fact that
workers must search for
appropriate job offers
• This takes time, so they remain
temporarily unemployed
• Structural Unemployment
• Results from a poor match of
workers’ abilities and skills with
current requirements of
employers
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THE MAJORTYPES
OF UNEMPLOYMENT
4. THE MAJORTYPES
OF UNEMPLOYMENT
(CONT'D)
• Structural Unemployment
• Results from a poor match of
workers’ abilities and skills with
current requirements of
employers
• Cyclical Unemployment
• Results from business
fluctuations that occur when
aggregate (total) demand is not
at a level that would result in full
employment
• Can be positive or negative
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5. THE MAJORTYPES
OF UNEMPLOYMENT
(CONT'D)
• Seasonal Unemployment
• Results from the seasonal pattern of
work in specific industries
• Adjustments are made to offset the
effects of seasonal unemployment so
that meaning comparisons can be made
between different periods of the year.
This adjustment is needed in order to
assess the affects of the other types of
unemployment.
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7. (i) Slow Economic Growth:
Indian economy is underdeveloped and role of economic growth is very slow. This slow
growth fails to provide enough unemployment opportunities to the increasing population.
(ii) Increase in Population:
Constant increase in population has been a big problem in India. It is one of the main
causes of unemployment. The rate of unemployment is 11.1% in 10th Plan.
(iii) Agriculture is a Seasonal Occupation:
Agriculture is underdeveloped in India. It provides seasonal employment. Large part of
population is dependent on agriculture. But agriculture being seasonal provides work for a
few months. So this gives rise to unemployment.
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MAIN CAUSES OF UNEMPLOYMENT IN INDIA
8. (iv) Fall of Cottage and Small industries:
The industrial development had adverse effect on cottage and small industries. The
production of cottage industries began to fall and many artisans became unemployed.
(v) Slow Growth of Industrialization:
The rate of industrial growth is slow. Though emphasis is laid on industrialization yet the
avenues of employment created by industrialization are very few.
(vi) Less Savings and Investment:
There is inadequate capital in India. Above all, this capital has been judiciously invested.
Investment depends on savings. Savings are inadequate. Due to shortage of savings and
investment, opportunities of employment have not been created.
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MAIN CAUSES OF UNEMPLOYMENT IN INDIA ( CONT’D)
9. (i) Change in industrial technique:
Production technique should suit the needs and means of the country. It is essential
that labor intensive technology should be encouraged in place of capital intensive
technology.
(ii) Policy regarding seasonal unemployment:
Seasonal unemployment is found in agriculture sector and agro based industries.
To remove it:
(a) Agriculture should have multiple cropping,
(b) Plantations, horticulture, dairying and animal husbandry should be encouraged,
(c) Cottage industries should be encouraged.
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SUGGESTIONSTO SOLVE UNEMPLOYMENT PROBLEM
10. (iii) Change in education system:
Educational pattern should be completely changed. Students who have liking for higher
studies should be admitted in colleges and universities. Emphasis should be given on
vocational education. Qualified engineers should start their own small units.
(iv) Expansion of Employment exchanges:
More employment exchanges should be opened. Information regarding employment
opportunities should be given to people.
(v) More assistance to self employed people:
Most people in India are self employed. They are engaged in agriculture, trade, cottage
and small scale industries etc. These persons should be helped financially, providing raw
materials and technical training.
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SUGGESTIONSTO SOLVE UNEMPLOYMENT PROBLEM (CONT’D)
11. 1. Drought Prone Area Programme (DPAP):
This programme was launched in 70 such districts of 13 states as were prone to
drought. The programme has proved fruitful particularly in removing seasonal
unemployment. In Sixth Plan, the programme provided 17 crore and 70 lakh man-days
of employment.
2. Jawahar Rozgar Yojana:
• The Jawahar Rozgar Yojana was started on 28th April 1989. The objective of this
Yojana is to provide employment to at least one member of each poor rural family for
fifty to a hundred days a year at a work place near his residence. A special feature of
the scheme is that 30% of the employment generated will be reserved for women.
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STEPSTAKEN BY GOVT.TO INCREASE EMPLOYMENT IN
INDIA
12. 3. Self-employment to Educated Unemployed Youth:
In 1983, a scheme namely self-employment of educated unemployed was initiated.
Under this scheme, loans up to Rs. 25,000 are given to those educated unemployed
who have no other financial resources.
4. Small and Cottage Industries:
In order to reduce unemployment, government if has made special efforts to develop
small and cottage industries. In 1995-96 about 33 lakh persons were employed in these
industries.
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STEPSTAKEN BY GOVT.TO INCREASE EMPLOYMENT IN
INDIA (CONT’D)
