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Contemporary Employment Situation in India

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SARASWATHI VIDYALAYA
VATTIYOORKAVU, THIRUVANANTHAPURAM
ECONOMICS PROJECT
2020-2021
A project on
CONTEMPORARY...
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PROJECT REPORT
ON
CONTEMPORARY EMPLOYMENT SITUATION IN INDIA
Submitted in partial fulfillment of the require...
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SARASWATHI VIDYALAYA
SENIOR SECONDARY RESIDENTIAL CENTRAL SCHOOL
VATTIYOORKAVU, THIRUVANANTHAPURAM-695013
BO...
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Contemporary Employment Situation in India

  1. 1. 1 | P a g e 1 SARASWATHI VIDYALAYA VATTIYOORKAVU, THIRUVANANTHAPURAM ECONOMICS PROJECT 2020-2021 A project on CONTEMPORARY EMPLOYMENT SITUATION IN INDIA Submitted by Name: Sivapriya H R Class: Xll.H Roll no:
  2. 2. 2 | P a g e 2 PROJECT REPORT ON CONTEMPORARY EMPLOYMENT SITUATION IN INDIA Submitted in partial fulfillment of the requirement of Class Xll: ECONOMICS Batch: 2020-21 By Sivapriya H R Under the supervision of Mrs.Sreelaja K L Faculty Guide (Economics Teacher) SARASWATHI VIDYALAYA VATTIYOORKAVU, THIRUVANANTHAPURAM, KERALA
  3. 3. 3 | P a g e 3 SARASWATHI VIDYALAYA SENIOR SECONDARY RESIDENTIAL CENTRAL SCHOOL VATTIYOORKAVU, THIRUVANANTHAPURAM-695013 BONAFIDE CERTIFICATE This is to certify the project entitled “CONTEMPORARY EMPLOYMENT SITUATION IN INDIA” is the work done by SIVAPRIYA H R of class Xll H under the guidance of Mrs. SREELAJA K L during the academic year 2020-21 as a part of project work to be submitted in economics. Teacher in charge Examiner Principal
  4. 4. 4 | P a g e 4 ACKNOWLEDGEMENTS First and foremost, I thank Mrs.Shylaja O R, Principal of Saraswathi Vidyalaya for providing me the essential requirement for the completion of project on “CONTEMPORARY EMPLOYMENT SITUATION IN INDIA”. I am much indebted to thank Mrs.Sreelaja K L, my teacher in economics under whose profound guidance I could do this piece of work successfully. I would also like to thank my parents for all their valuable help and support. I also express my gratitude to my friends and well-wishers for their words of support, confidence and sharing information regarding the project without whose help this piece of work would not have been a success. Above all, I thank Almighty for giving us his blessings in this endeavor.
  5. 5. 5 | P a g e 5 INDEX 1. ABSTRACT 06 2. OBJECTIVES OF THE STUDY 07 3. SCOPE AND LIMITATIONS OF THE STUDY 07 4. CHAPTER 01 INTRODUCTION 08 - 11 1.1 Work and Worker 1.2 Types of Workers 1.3 Labour Force, Work Force, and its relations 5. CHAPTER 02 EMPLOYMENT – IT’S STRUCTURE AND WORKFORCE RATIO 12 - 15 2.1 Participation of People in Employment and Worker Population Ratio 2.2 Informalisation of Indian Workforce 2.3 Structure of Employment in India 6. CHAPTER 03 UNEMPLOYMENT- IT’S TYPE, CAUSES, AND CONSEQUENCES 16 - 26 3.1 Types of Unemployment 3.2 Causes of Increasing Unemployment in India 3.3 Consequences of Unemployment in India 7. CHAPTER 04 UNEMPLOYMENT – SUGGETIONS, MEASURES, AND POLICIES TO OVERCOME IT 27 - 32 4.1 Suggestions to Solve the Problem of Unemployment 4.2 Government Policies and Programmes in Employment Generation 4.3 Special Measures Undertaken by The Government To solve Unemployment 8. CONCLUSION 33 9. BIBILIOGRAPHY 34
  6. 6. 6 | P a g e 6 ABSTRACT The present study aims at analyzing the contemporary employment situation in India. The contemporary employment situation issue has started right from independence. A contemporary work or employment is the work that is done with regards to the current nature of skills, as employment includes the training and development and the remuneration and other associated employment benefits. The problem was stated “An Overview on Contemporary Employment Situation in India”. Through referencing a detailed study on types of workers employment, workers population ratio, causes of unemployment and consequences of unemployment were done. Sectoral development programs, Government policies and programs, special measures undertaken by the government were also discussed. Unemployment in the work and suggestions for solving unemployment in India.
  7. 7. 7 | P a g e 7 OBJECTIVE OF THE STUDY  To know more about contemporary employment situation in India.  To figure out the impact and causes of unemployment.  To know more about Unemployment. SCOPE AND LIMITATIONS OF THE STUDY It is significant to study unemployment. We will know more about our country that what population of our country India is employment. We will know the types of unemployment in our country like educated unemployment which is common in urban areas. Many students who enrolled and post matriculated cannot find jobs and this leads to wastage of resources to our country. While studying we can conclude how to stop this unemployment. The study intends to analyze the contemporary employment situation in India. The study has been limited in the sense that it is confined to a single tool, ie, referencing for collecting data. If the data is collected from each state it would have yielded better results. But within the limited time this was not possible. The influence of policies of different political parties on the employment situation in India are also neglected. Despite these limitations, I believe that the study will be worthy and useful in analyzing the contemporary employment situation in India.
  8. 8. 8 | P a g e 8 CHAPTER - 01 INTRODUCTION Indian economy is a developing economy. The nature of employment and unemployment, therefore, sharply differs from industrially advanced economies. Indian economy is predominantly a rural economy, where two-third of its labor force is still dependent on agriculture. Subsequently, the bulk of unemployment in India, also manifest itself in rural areas. The rural unemployment has two aspects viz. seasonal and perennial. The agriculture, which is the principal occupation in rural India, is by nature a seasonal occupation. It is estimated that at least for five to seven months a year, depending upon conditions, the agricultural workers face seasonal unemployment. The second aspect of rural unemployment is its perennial under-employment or chronic disguised unemployment. The increase in population, without corresponding increase in cultivatable land, has resulted in under employment or disguised unemployment and it is of perennial nature. The National Sample Survey Organization (NSSO) conducts Employment & Unemployment Surveys, regularly on quinquennial basis to measure inter-alia employment & unemployment situation in the country. As in rural areas, the level of employment and unemployment to a greater extent depends on normal monsoon, floods and drought conditions in the country, the measurement of employment and unemployment situation, therefore, becomes quite difficult. Work plays an important role in our lives as individuals and as members of society. Being employed in work gives us a sense of self-worth and enables us to relate ourselves meaningfully with others. Every working person is actively contributing to national income and hence, the development of the country engaging in various economic activities. Studying about working people gives us insights into the quality and nature of employment in our country and helps in understanding and planning our human resources. It helps to analyze the contribution made by different industries and sectors towards national income. It also helps us to address many social issues such as exploitation of marginalized sections of society, child labor etc.
  9. 9. 9 | P a g e 9 1.1 Work and Worker Work Work helps us to earn a living. But more importantly, work gives us a sense of worth to be able to do something and lends meaning to our being. It is our way of contributing to the national income of the country. Who is a worker? A ‘worker’ is one who is bound by a contractual agreement or one who gets rewards from working or is self-employed. A worker is an individual who is in some employment to earn a living. He is engaged in some production activity, hence contributes to gross domestic product of the country.  All those who are engaged in economic activities are workers.  Even if some of them temporarily abstain from work due to illness, injury, physical disability, festivals, bad weather, social functions etc, they are also workers.  Workers also include all those who help the main workers in economic activities.  Workers are paid by their employers for their work (in return for their services).  Those who are self- employed are also workers. There can be different types of workers defined based on certain parameters. 1.2 Types of Workers  Hired Worker These are workers who are employed by others (employers) and receive a salary/wage as compensation for work, they render their services to other, as a reward, get wages/salaries or maybe they are paid in kind. This is also known as wage employment.
  10. 10. 10 | P a g e 10 Hired workers may again be of two types: i. Casual Worker These are workers who are engaged by employers on a temporary basis for some specific work. They are not permanent and do not receive any social security or other work benefits. These are the workers who own and operate an enterprise to earn their livelihood. Example: Construction workers are contracted only for specific projects and not hired permanently. Seasonal workers such as those engaged on the farm only during the harvest season are also classified as casual workers. ii. Regular Salaried Worker These are workers hired by employers on a permanent basis and are paid regular salaries/wages for their work. These get social security benefits (pension, gratuity fund etc). Example: Chartered accountants, sports trainers at a sports club, Teachers employed in a school, bus conductors, Government officials etc.  Self-Employed The other set of workers are those who are not employed by some employer but who own and work for their own enterprise. These are the workers who use their own resources (land, labour, capital, enterprise) to earn their living. These are the workers who own and operate an enterprise to earn their livelihood. In other words, they are not employed by others. They provide jobs to themselves on their own. Self-employment is a major source of living in India. Example: Proprietors, businesspersons, Shopkeepers, a doctor running his own clinic, cement shop owner etc.
  11. 11. 11 | P a g e 11 1.3 Labour Force, Work Force and its Relation Labour Force It refers to the number of persons working or willing to work. It is not related to wage rate. It includes all those who are working and though not working but are seeking work and are available for work. In other words, it includes employed and unemployed workers. Thus, labour force includes all persons in the age group between 15 years and 60 years who  are employed (working)  are willing and available to work though they are presently unemployed (not working) Labour force does not include:  children below 15 years of age and old people above 60 years of age  handicapped persons  all those who are not willing and not available for work. Workforce  It includes all those who are employed and engaged in economic activities at a particular point of time. In other words, these refers to the total number of those persons who are working.  Work force does not include unemployed persons even though they are willing and available for work. Relation Between Labour Force and Workforce  Labour force = Workforce + Unemployed persons (who are willing and available for work)  Workforce = Number of persons working  To calculate unemployed persons = labour force – workforce
  12. 12. 12 | P a g e 12 CHAPTER- 02 EMPLOYMENT – IT’S STRUCTURE AND WORKFORCE RATIO The term ‘employment’ refers to the state of being employed. It is the relationship between an employer and employee, usually. Employment for people varies in the sense that some of them are employed for the entire year, while the others are employed for only some portion of the year. It is an activity which enables a person to earn. When undertaken this activity which enables a person to earn. When undertaken this activity, a person renders his services and get paid (wages or salaries in return. If all those who are willing and able to work, are working at the existing wage rate, the situation is called full employment. 2.1 Who Is India’s Employed? The nature of employment in India is multifaceted:  Some get employed throughout the year.  Some others get employed for only a few months in a year.  Many workers do not get fair wages for their work. While estimating the number of workers, all those who are engaged in economic activities are included as employed. 2.2 Participation of People in Employment and Worker Population Ratio Participation of people in employment refers to participation of people in the employment activity. Worker population ratio is used to measure the participation of people. Worker population ratio is an indicator which is used for analysing the employment situation in the country. The ratio helps us to know the proportion of population that is actively contributing to the production of goods and services of a country. If this ratio is higher, it means the
  13. 13. 13 | P a g e 13 engagement of people is greater. If this ratio is medium or low, it means that a remarkably high proportion of its population is not involved directly in economic activities. Worker population ratio is calculated by dividing the total number of workers in India by the population in India and then multiplying by 100. During economic development of a country, labour (workers) flow from agriculture (primary sector) to industry (secondary sector) and services (tertiary sector). In this process, workers migrate from rural to urban areas. When the structural changes take place, share of employment reduces in primary sector and secondary sector and increases in the tertiary sector. This shift can be understood by looking at the distribution of workers by industry. 2.3 Informalisation of Indian Workforce One of the objectives of development planning in India, since independence, has been to provide decent livelihood to its people. It has been envisaged that the industrialisation strategy would bring surplus workers from agriculture to industry with better standard of living as in developed countries. Though there has been tendency to shift from primary sector to secondary and tertiary sectors, more than half of Indian workforce depends on farming as the major source of livelihood. It has also been observed that over the years quality of improvement has not become better. We find that a small section of Indian workforce is getting regular income compared to others who do not get regular income and other benefits related to job such as maternity benefits, provident fund, gratuity, pension etc. Informalisation of Workforce It refers to a situation where percentage of work force in the formal sector tends to decline and that in the informal sector tends to rise. Market economy and informalisation of workers, perhaps are strongly correlated to each other.
  14. 14. 14 | P a g e 14 2.4 Structure of Employment in India The structure of employment in India can be divided into: Formal or Organised Sector  All the public sector establishments and those private sector establishments which employ ten or more hired workers are called formal sector establishments.  Employees working in such establishments are called formal sector workers.  The government through labour laws enabled them to protect their right in various ways.  These workers are entitled to social security benefits such as provident fund, gratuity, pension etc. These earn more than those in the informal sector.  These workers form trade unions and have strong bargaining power as their rights are protected by various labour laws. Informal or Unorganised Sector  All private sector establishments which employ less than 10 workers are called informal or unorganised sector establishments.  Employees working in such establishments are called informal sector workers.  These workers are not entitled to social security benefits such as pension, provident fund, gratuity etc. These do not get regular income. These do not have any protection from Government.  These workers cannot form trade unions and have weak bargaining power and their rights are not protected by labour laws. Workers are dismissed without any compensation.  This sector includes millions of farmers, agricultural labourers, owners of small enterprises etc. Technology used in the informal sector enterprises is generally outdated. They usually also do not maintain books of accounts. It also includes
  15. 15. 15 | P a g e 15 non-farm casual wage labourers who work for more than one employer such as construction workers and head load workers.  Owing to the efforts of international labour organisation (ILO) the Indian government has initiated the modernisation of informal sector, enterprise, and provision of social security measures.
  16. 16. 16 | P a g e 16 CHAPTER – 03 UNEMPLOYMENT- IT’S TYPE, CAUSES, AND CONSEQUENCES  Unemployment is a challenge which is generally found in any economy weather developed or less developed. Unemployment refers to a situation in which all those who are able and willing to work, fail to find work that earns them a living.  NSSO defines unemployment as a situation in which all; those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends, or relatives or by making applications to prospective employers or express their willingness or availability to work under the prevailing conditions of work and remunerations. Unemployment is a situation in when all those who are able and willing to work, fail to get job at the prevailing wage rates. Economists define unemployed person as one who is not able to get employment of even one hour in half a day.  Unemployment measures involuntary idleness of individuals.  It means wastage of valuable services of human resources of the country.  People who are permanently incapable and all those who may not be willing to work are not counted while measuring unemployment. Also, persons below 15 years of age and persons above 60 years of age are not counted, while measuring the size of unemployment. Many people in the rural areas do not go out to search for job but stay home when there is no work. There are a variety of ways by which an unemployed person is identified. 3.1 Types of Unemployment
  17. 17. 17 | P a g e 17 There are three sources of data on Unemployment Reports on Census of India, National Sample Survey Organisation’s Reports of Employment and Unemployment situation and Directorate General of Employment and Training Data of Registration with Employment Exchanges. Though they provide different estimates of unemployment, they do provide us with the attributes of the unemployed and the variety of unemployment prevailing in our country. Based on different estimates of unemployment provided by various sources of data, unemployment can be broadly classified into following categories: Rural Unemployment Degree of unemployment is more pronounced in rural areas than in urban areas than in urban areas. Nearly 75% of workers are working in primary sector. Working in this sector causes two types of unemployment: i. Disguised Unemployment  Economists have described most common type of unemployment prevailing in Indian Farms as disguised unemployment.  It is a situation when more than required number of workers are engaged in work. If some of them are withdrawn from the job, the total output will remain unaffected. For example, if only two workers are needed on 4 acres of land to carry various operations on this farm and 5 workers are working, then 3 workers are counted under disguised unemployment.
  18. 18. 18 | P a g e 18  It is quite common type of unemployment in rural area. It is clearer from the fact that there has been a sharp increase in the number of people working in agriculture without any corresponding increase in the area under cultivation.  Thus, when all those who apparently seem working in agriculture are not able to contribute individually to the total output, would be counted in disguised unemployment. ii. Seasonal Unemployment  This is another common form of unemployment prevailing in India. It occurs because agriculture is seasonal in nature. The farmer is unemployed in off season.  On an average, a farmer in India remains unemployed for about 6 - 7 months in a year, if grows just one crop in a year and because he cannot prepare his land for any other crop in off season, he remains unemployed during this period.  Some of these migrate to urban areas to find job in off season and if they are not able to pick a job there, the problem of unemployment will persist.  Seasonal unemployment occurs in many other seasonal activities too such as brick making, sugarcane crushing, ice-cream making, woollen processing etc. Urban Unemployment Data on urban unemployment can be easily obtained from the employment exchanges. Millions of people in urban areas are suffering from unemployment. i. Industrial Unemployment  It refers to the unemployment which occurs because of modern industrial development which is based on adopting capital intensive technology that uses labour saving devises. Hence, many people are rendered unemployed.  Also, there is rapid increase in population in India and the industrial sector has not expanded so much as to create job opportunities to absorb the ever-increasing labour force.  There has been tendency of migration of people from rural areas to urban areas which further adds to the problem of industrial unemployment.
  19. 19. 19 | P a g e 19 ii. Educated Unemployment  This is another serious problem, the country faces. Since independence, there has been tremendous expansion of educational facilities at school, collage, and university level. This has led to increase in the number of educated persons in the country. But this education is general in nature as there is lack vocational and technical education in India. The result is specific educated unemployment in India.  Also, education system in India is degree-oriented and job-oriented. Hence educated persons fail to get employment.  There is no correlation between the number of educated persons and amount of job opportunities. Job opportunities have not increased as much as the number of educated persons. Other Types of Unemployment Following are some other types of unemployment found in India, these are: i. Open Unemployment  It refers to the unemployment in which people are able and willing to work but fail to get work. They are ready to work at the existing wage rate, but there are no job opportunities available.  People looking for jobs in newspapers, through their friends and relatives, in factories and offices etc are some of the examples of open unemployment. Some of these registers themselves in employment exchanges.  This type of unemployment is common among agricultural labourers’ persons who have migrated from rural areas to urban areas and educated persons. ii. Underemployment  It is a situation when a worker does not work for full time or even if he is working for full time, he is paid less than what should he get.  Underemployment may be visible in nature. In this situation, persons get employed for less than normal work hours.
  20. 20. 20 | P a g e 20 For example, if a person works for 5 hours a day compared to 8 hours of normal work time, then he is under employed.  Underemployment may also be invisible in nature. In this situation, persons are employed in full time work, but they are paid less. One possibility may be that the worker is in a job where he cannot make full use of his skills and potential and earns more when shifted to job of his calibre. iii. Structural Unemployment  It arises due to mismatch between demand of specified type of workers and unemployed persons.  It exists because of structural changes in the economy. This may be due to: a) Change in technology because of which persons who are trained to work with old technologies are no longer required and are rendered unemployed. b) Change in the pattern of demand because of which new changes in the methods of production are required and persons who cannot match the requirements are terminated. iv. Frictional Unemployment  It is a temporary phenomenon. It happens due to some temporary changes taking place in the workplace.  It occurs when workers leave one job and need some time to wind up the previous job and undertake some formalities to join the new one. In this process they are not working for some time, hence will be called frictionally unemployed during this period.  This may also happen due to imperfect knowledge about information on job availability or may be during breakdown of plant or during installation of new machines and equipment etc. v. Cyclical Unemployment  This problem is common in capitalist advanced nations which face trade cycles of boom, recession, depression, and recovery.
  21. 21. 21 | P a g e 21  During the faces of recession and depression that is, when the level of income is falling causing further fall in demand of goods and services, the nations would find cyclical unemployment.  It is the fall in income and output levels that workers are thrown out of jobs because of which there is slow down in production and correspondingly a cut in employment opportunities. 3.2 Causes of Increasing Unemployment in India Following are the main causes of increasing unemployment in India: 1. Population Explosion  A high rate of population growth in India is responsible for the problem of unemployment in the country.  A high growth rate of population keeps adding more people nearly 4 million persons every year to the existing labour force who are seeking employment.  Increase in population is at a faster rate than the increase in number of job opportunities. 2. Low Rate of Economic Development  Slow growth rate of economy is another important factor that has led to unemployment.  Though Indian economy has expanded, and new employment opportunities have been generated but still these are not adequate to absorb the available labour force which is unemployed.  The actual growth rate of economy always is lesser than the targeted (required) growth rate and the result is that unemployment tens to mount.
  22. 22. 22 | P a g e 22 3. Low Level of Development in Agriculture  Our primary sector, especially agriculture is underdeveloped and there is heavy pressure of population on agriculture.  Old methods of cultivation, seasonal nature of agriculture, disguised unemployment and lack of awareness are some of the reasons responsible for unemployment in agriculture.  As total area of land (for cultivation) is fixed, scope of generating more employment opportunities from primary sector is limited. This makes the problem of unemployment more severe. 4. Low Level of Industrial Development  The slow growth in the industrial sector has resulted in less job opportunities for workers.  Increase in population and migration of workers from rural areas to urban areas adds more to the problem of unemployment in the industrial sector.  Most of the existing industrial units are shifting to capital intensive technology which uses laboursaving devices, and many workers are rendered unemployed.  Several small and cottage industries have declined due to lack of finances and development of modern industries. All artisans who are skilled in these products have become unemployed. 5. Lack of Vocational and Technical Education The existing education system fails to provide vocational and technical education to students at all levels. Its degree-oriented nature is different from the job-oriented nature of education which is required to get employment.
  23. 23. 23 | P a g e 23 Due to increase in educational and institutional facilities, number of educated persons is rising but corresponding to this, unemployment opportunities have not risen resulting in educated unemployment. 6. Low Level of Capital Formation  There is lack of investment in the country. Increase in investment in resources is very essential to make our infrastructure strong so that we can increase output and generate more employment opportunities.  Low level of capital formation is the reason for low investment. Lack of capital formation finds its base in low level of income generation in the country.  Because there is overall low level of income in the economy, level of savings also is low causing low level of investment and capital formation.  This vicious circle of low income, low savings, low investment, low capital formation, low output, and low-income results in lack of job opportunities and the obvious outcome in unemployment. 7. Immobility of Labour  There is low level of mobility of labour in India.  There are many reasons such as lack of awareness about job markets, family circumstance, language problems, religion etc which hinder the mobility of workers to better or new jobs.  If they do not mobile themselves to the places where job opportunities are available, unemployment is the obvious consequence. 8. Joint Family System In India, there is still joint family system prevalent both in rural areas and urban areas.
  24. 24. 24 | P a g e 24 In large families, many family members depend on the joint income of the family. Its effect is like effect of disguised unemployment as the joint income earned by one or two family members is divided among many family members. 9. Caste System  In India caste system is prevalent.  The work is prohibited for specific castes in some areas. In many cases, the work is not given to the deserving candidates but given to the person belonging to a particular community. So, this gives rise to unemployment. 10. 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. 11.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. 12. Defective Planning  Defective planning is the one of the causes of unemployment.  There is wide gap between supply and demand for labour. No Plan had formulated any long-term scheme for removal of unemployment.
  25. 25. 25 | P a g e 25 13. Expansion of Universities  The number of universities has increased manifold. There are 385 universities. As a result of this educated unemployment or white-collar unemployment has increased. 14. Immobility of labour  Mobility of labour in India is low. Due to attachment to the family, people do not go too far-off areas for jobs.  Factors like language, religion, and climate are also responsible for low mobility. Immobility of labour adds to unemployment. 3.3 Consequences of Unemployment in India Problem of unemployment brings many harmful effects along. These are discussed as under: 1. Economic Consequences  Fall in production and income. As human resources are not utilised to the full, there will be loss of output and income to such an extent of unemployment.  Low level of saving and investment. It is because of low level of income that people are not able to save and invest sufficiently causing decline in capital formation.  Poverty. A person without employment is not contributing to national income of the country. Hence not earning for himself too. In this way unemployment leads to poverty.
  26. 26. 26 | P a g e 26 2. Social Consequences  Low level of standard of living. Unemployment means a state of low quality of life as the person is not earning and is not able to maintain dignified standard of living.  Inequality in the distribution of income. Unemployment corresponds to inequality as some are working and earning and some are not. It will widen the gap between have and have nots.  Social unrest. Unemployment adversely affects the peace in the society. Being in the state of suffering, unemployed person may resort to theft, dacoity, deception etc.
  27. 27. 27 | P a g e 27 CHAPTER-04 UNEMPLOYMENT – SUGGETIONS, MEASURES, AND POLICIES TO OVERCOME IT 4.1 Suggestions to Solve the Problem of Unemployment Unemployment is a serious problem for the country. Solving this problem is a big challenge for the country. Following are some important measures to solve unemployment: 1. Increase in growth rate of GDP  Increase in production of goods and services is the first important measure to be taken in this regard. By accelerating the growth rate, the economy will be able to create job opportunities.  To achieve this, production in agricultural and industrial sectors should rise. Development of small scale and cottage industries should increase. We should be able to generate demand of domestic goods in other countries.  Increase in production in all sectors of the economy will create more demand for labour as job opportunities increased due to increased production. 2. Population Control  There is urgent requirement to control the growth rate of population so that addition to existing labour force can be reduced.  An effective strategy like family planning programme should be initiated to control population. 3. Development of Agricultural Sector  We need to develop agricultural sector effectively that is, it should be modernised and mechanised so the labour productivity can be enhanced.  There should be improvement in methods of cultivation, irrigational facilities, land reforms, government support farmers etc.
  28. 28. 28 | P a g e 28  Farmers should be made aware of multi-cropping and other non-farm activities so that problem of seasonal and disguised unemployment can be solved. 4. Educational Sector Reforms  As the existing education system is more degree -oriented efforts should be make it job-oriented.  The system should include vocational and technical education at all levels of education.  There should be more institutions providing information about special programme of training or enhancing skills for educated unemployment. 5. Financial Help to Self-employed Workers  there should be encouragement to self-employed workers in rural areas and urban areas to set up their work areas.  In rural areas, government should provide short term, middle term, or long-term loans to farmers to buy seeds, equipment, manure etc.  In urban areas, there should be financial assistance given to set up their own enterprises. 6. Infrastructural Development  Infrastructural facilities like health, education, hospitals, dams, roads etc are particularly important to develop the economy.  If these facilities develop in right direction, these will enable overall development of the economy. It would open many avenues for work.  This would bring increase in output and generation of employment opportunities and thus helps in solving the problem of unemployment. 7. Implementation of Employment Programmes  Government should initiate and implement special employment programmes to achieve wage employment and self-employment.
  29. 29. 29 | P a g e 29  Government can do this through employment exchanges to direct the unemployed person to the possible work areas.  Some areas where such programmes can be initiated are irrigation are irrigation, power, agriculture, soil conservation etc 4.2 Government Policies and Programmes in Employment Generation Since India got freedom, the central and state government have stressed upon generating employment opportunities in their policies. The efforts of government can be broadly classified into two categories: 1. Direct Efforts  Government employs people in various departments for administrative purposes.  It runs industries, hotels, and transport companies and hence provide employment directly to workers.  People working in government schools, government hospitals, government offices, are some of the examples of direct employment by the government. 2. Indirect Efforts  When production of goods and services by government enterprises increases, then private enterprises which provide raw material to the government enterprises will also be able to increase production of goods and services produced by them.  It will generate employment opportunities in private sector too because of increase in their sales and output. For example, when a government owned steel company increases its output, it will result in increase in output and employment in private companies also which purchased steel from the government company.
  30. 30. 30 | P a g e 30 4.3 Special Measures Undertaken by The Government To solve Unemployment Many programmes that the government has implemented aim at alleviating poverty through employment generation. Many programmes that governments implement with the aim of alleviating poverty through employment generation are called employment generation programmes. All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, nutrition, assistance for people to buy income and employment generating assets, development of community asserts by generating wage employment, construction of houses and sanitation, assistance for constructing houses, laying of rural roads, development of wastelands/degraded lands etc. Following are specific programmes aiming at generation of employment: 1. Rural Employment Generation Programme (REGP) (Self- Employment) This programme aims at creating self-employment opportunities in urban areas. It was implemented by Khadi and Village Industries Commission. Under this programme, one can get financial assistance in the form of bank loans, to set up small industries that generate employment. 2. Prime Minister’s Rozgar Yojana (PMRY) (Self-Employment) The educated unemployed from low-income families in rural and urban areas can get financial help to set up an enterprise that generates employment under PMRY. It generated employment by setting up 7 Lakh micro-enterprises during the 8 th plan. With effect from April 2008, Rural Employment Generation Programme (REGP) and Prime Minister’s Rozgar Yojana (PMRY) have been merged and a new scheme called Prime Minister Employment Generation Programme (PMEGP) has been introduced. Its main objectives are: a. To generate employment opportunities in rural and urban areas by setting up new self-employment ventures. b. To provide self-employment opportunities to traditional artisans and employed youth.
  31. 31. 31 | P a g e 31 3. Swarna Jayanti Shahari Rozgar Yojana (SJSRY) (Self-Employment and Wage- Employment) Swarna Jayanti Shahari Rozgar Yojana (SJSRY) mainly aims at creating employment opportunities for both self-employment and wage employment in urban areas. The cost of the programme is shared between the centre and the state in the ratio 75:25. In December 1997, two schemes, urban self- employment programme and urban wage employment programme were started under SJSRY. 4. Swarnajayanti Gram Swarozgar Yojana (SGSY) (Self-Employment) The SGSY is elf-employment programme, launched with effect from April 1, 1999. It aims at encouraging micro-enterprises and to bring the assisted poor families(swarozgaries)above the poverty line, by organising them into Self-Help Groups (SHGs). Earlier under self-employment programmes, financial assistance was given to families or individuals. Since the 1990s, this approach has been changed. Under this programme, people who wish to benefit from the scheme are encouraged to form self-help groups (SHGs). Initially they are encouraged to save some money and lend among themselves as small loans. Later, through banks, the government provides partial financial assistance to SHGs, which then decide, whom the loan s to be given, for self-employment activities. This has now been restructured as National Rural Livelihoods Mission (NRLM). A similar programme called National Urban Livelihoods Mission has also been in place for urban poor. 5. Sampoorna Grameen Rozgar Yojana (SGRY) (Wage employment) This scheme was launched with effect from September 2001.The scheme aims at providing wage employment to poor unskilled workers in rural areas. This programme encourages labour intensive work among rural people who are willing to render manual or unskilled services. The cost of the programme is to be shared between the centre and the state.
  32. 32. 32 | P a g e 32 6. Mahatma Gandhi National Rural Employment Guarantee Act,2005(Wage employment) The act was passed in 2005 and the scheme, that is, National Rural Employment Guarantee Scheme or NREGS was launched in February 2006.The aim of the act is to provide guaranteed wage employment to every household whose adult volunteer is to do unskilled manual work for a minimum of 100 days in a year. Under this act all those (among the poor) who are ready to work at the minimum wage can report for work in areas where this programme is implemented. This act also includes National Food for Work Programme (NFFWP). It is 100% centrally financed programme implemented in 150 backward districts of the country to generate wage employment. Since independence, the Union and State Government have played an important role in generating employment or creating opportunities for employment generation. Their efforts can be broadly categorised into two i.e., direct, and indirect.  Direct Employment, in this government employs people in various departments for administrative purposes. It also runs industries, hotels and transport companies and hence provides employment directly to workers.  Indirect Employment It can be understood as when output of goods and services from government enterprises increases, then now private enterprises which receive materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. This is the indirect generation of employment opportunities by the government initiatives in the economy.
  33. 33. 33 | P a g e 33 CONCLUSION Recent study on the contemporary employment situation in India, has provided a more complete understanding of various concepts such as employment, unemployment, causes of unemployment, consequences of unemployment, policies undertaken by government etc. The National Sample Survey Office (NSSO) has been the key governmental agency in India at the national and state levels to study employment and unemployment rates through sample surveys. The consequence of unemployment is discussed under Economic consequences, Social consequences. The efforts of government have stressed upon generating employment opportunities – both direct and indirect efforts. Special measures such as REGP, PMRY, SJSRY, SGSY, SGRY and MNREGA are implemented by the government with the aim of alleviating poverty through employment generation. We must admit the bitter fact that no government can provide jobs to all unemployed youth. More government measures cannot solve such an enormous problem. Still, the government should adopt measures to create opportunities for self-employment. By completing this project, I came to know that unemployment affects the countries overall income. Through completing this project, I can understand that industrialization can affect unemployment positively as well as negatively. Lack of skills is also an important cause of unemployment. The primary reason for unemployment is the lack of technical education and the interest of youth towards white-collared jobs. Through doing this project gives me more awareness of effects, measures, causes, etc, on unemployment.
  34. 34. 34 | P a g e 34 BIBILIOGRAPHY Latest CBSE Contemporary Employment Situation in India | Easy Class 12th Economics Project Practical - YouTubewww.youtube.com contemporary employment situation in india project - Google Searchwww.google.comniti.gov.inEmployment-in-India-Structural-Problems.pdfwww.rgics.org India's employment rate improved by 3.3% for week ended June 14: CMIE - The Economic Timeseconomictimes.indiatimes.com contemporary employment situation in india - Google Searchwww.google.com Contemporary employment situation in india project … | Homework Help | myCBSEguidemycbseguide.com India Unemployment Rate: India’s Employment Situation Is Distressing, Says CMIEwww.bloomnersg Unemployment project - YouTubewww.youtube.com12 th Class Economics Project On Unemployment - YouTubewww.youtube.comClass 12th Economics Project File on" Contemporary Employment Situation In India" - YouTubecontemporary employment situation in india - Google Searchwww.google.comcontemporary employment situation in india - Google Searchwww.google.comLatest CBSE Contemporary Employment Situation in India | Easy Class 12th Economics Project Practical - YouTubewww.youtube.com

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