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Concept Of Unemployment
In a common sense , unemployment is a situation characterized when any
one is not gainfully employed in a productive activity. It means that an
unemployed person is one who is seeking any work for wages but is
unable to find any job suited to People willing to work but not
presently working. The "unemployed" comprise all persons above a
specified age who during the reference period were:
(a) "without work", i.e. that hadn't a paid employment or a self-
employment;
(b) "currently available for work", i.e. were willing to accept a paid
employment or a self-employment during the reference period;
(c) "seeking work", i.e. had taken specific steps to seek paid employment
or self-employment. The specific steps may include e.g. registration at
a public or private employment exchange; application to employers;
answering or placing newspaper advertisements. his capacity.
Kinds Of Unemployment
• Structural Unemployment
• Under-Employment
• Disguised Unemployment
• Open Unemployment
• Educated Unemployment
• Frictional Unemployment
• Seasonal Unemployment
Structural Unemployment
A longer-lasting form of unemployment caused
by fundamental shifts in an economy.
Structural unemployment occurs for a number
of reasons – workers may lack the requisite
job skills, or they may live far from regions
where jobs are available but are unable to
move there. Or they may simply be unwilling
to work because existing wage levels are too
low. So while jobs are available, there is a
serious mismatch between what companies
need and what workers can offer.
Underemployment can refer to:
• "Over qualification" or "over education", or the employment of
workers with high education, skill levels, or experience in jobs that
do not require such abilities. For example, a trained medical doctor
who works as a taxi driver would experience this type of
underemployment.
• "Involuntary part-time" work, where workers who could (and would
like to) be working for a full work-week can only find part-time
work. By extension, the term is also used in regional planning to
describe regions where economic activity rates are unusually low,
due to a lack of job opportunities, training opportunities, or due to
a lack of services such as childcare and public transportation.
• "Overstaffing" or "hidden unemployment" (also called "labor
hoarding", the practice in which businesses or entire economies
employ workers who are not fully occupied—for example, workers
currently not being used to produce goods or services due to legal
or social restrictions or because the work is highly seasonal.
• Disguised unemployment --- exists where part of
the labor force is either left without work or is
working in a redundant manner where worker
productivity is essentially zero. An economy
demonstrates disguised unemployment where
productivity is low and where too many workers
are filling too few jobs.
• Open unemployment – It is a situation where in a
large section of the labour force does not get a
job that may yield them regular income. This type
of unemployment can be seen and counted in
terms of the number of unemployed persons.
The labour force expands at a faster rate than the
growth rate of economy. Therefore all people do
not get jobs.
• Educated Unemployment: Among the educated
people, apart from open unemployment, many are
underemployed because their qualification does not
match the job. Faulty education system, mass output,
preference for white collar jobs, lack of employable
skills and dwindling formal salaried jobs are mainly
responsible for unemployment among educated
youths in India. Educated unemployment may be either
open or underemployment.
• Frictional unemployment is caused due to improper
adjustment between supply of labour and demand for
labour. This type of unemployment is due to immobility
of labour, lack of correct and timely information,
seasonal nature of work. etc.
Seasonal Unemployment
It is unemployment that occurs during certain
seasons of the year. In some industries and
occupations like agriculture, holiday resorts,
ice factories etc., production activities take
place only in some seasons. So they offer
employment for only a certain period of time
in a year. People engaged in such type of
activities may remain unemployed during the
off-season.
Causes of Unemployment in India
The important causes of Unemployment in India are as
follows:
1. Rapid growth of population and increase in labour force.
2. Underdevelopment of the economy.
3. Slow growth in the agricultural sector.
4. Defective system of education.
5. Absence of manpower planning.
6. Degeneration of village industries.
7. Inappropriate technology.
8. Slow growth of industrial sector.
9. Immobility of labour.
10. Jobless growth.
Statistics About Unemployment In
India
Unemployment Rate in India decreased to 4.90
percent in 2013 from 5.20 percent in 2012.
Unemployment Rate in India averaged 7.32
percent from 1983 until 2013, reaching an all
time high of 9.40 percent in 2009 and a record
low of 4.90 percent in 2013. Unemployment
Rate in India is reported by the Ministry of
Labour and Employment, India.
According to “Annual Employment And
Unemployment Survey Report 2013-14” the rates
of unemployment on Usual Principal State (UPS)
in the country as follows.
• Aggregate Unemployment Rate – 4.7%
• Unemployment Rate in rural areas- 4.9 %
• Unemployment Rate in urban areas- 5.5 %
• State having maximum unemployment people
Sikkim
• State having the least unemployed people –
Chhattisgarh
• State having maximum unemployment rate –
Kerala
Steps To Reduce Unemployment
• Reconstruction Of Agriculture
• Adoption of Labour-intensive Techniques
• Rapid Industrialization
• Population Control
• Reorientation Of Education System
• Encouragement Of small enterprises
• Guiding centres and more employment
exchanges.
Government Policy Measures to
Reduce Unemployment
• National Rural Employment Programme
• Rural Landless Employment Guarantee
Programme
• Integrated Rural Development Programme
• Food For Work Programme
• Training Rural Youth For Self Employment
• Operation Flood II
• Employment Guarantee Scheme

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Unemployment in india

  • 1. Concept Of Unemployment In a common sense , unemployment is a situation characterized when any one is not gainfully employed in a productive activity. It means that an unemployed person is one who is seeking any work for wages but is unable to find any job suited to People willing to work but not presently working. The "unemployed" comprise all persons above a specified age who during the reference period were: (a) "without work", i.e. that hadn't a paid employment or a self- employment; (b) "currently available for work", i.e. were willing to accept a paid employment or a self-employment during the reference period; (c) "seeking work", i.e. had taken specific steps to seek paid employment or self-employment. The specific steps may include e.g. registration at a public or private employment exchange; application to employers; answering or placing newspaper advertisements. his capacity.
  • 2. Kinds Of Unemployment • Structural Unemployment • Under-Employment • Disguised Unemployment • Open Unemployment • Educated Unemployment • Frictional Unemployment • Seasonal Unemployment
  • 3. Structural Unemployment A longer-lasting form of unemployment caused by fundamental shifts in an economy. Structural unemployment occurs for a number of reasons – workers may lack the requisite job skills, or they may live far from regions where jobs are available but are unable to move there. Or they may simply be unwilling to work because existing wage levels are too low. So while jobs are available, there is a serious mismatch between what companies need and what workers can offer.
  • 4. Underemployment can refer to: • "Over qualification" or "over education", or the employment of workers with high education, skill levels, or experience in jobs that do not require such abilities. For example, a trained medical doctor who works as a taxi driver would experience this type of underemployment. • "Involuntary part-time" work, where workers who could (and would like to) be working for a full work-week can only find part-time work. By extension, the term is also used in regional planning to describe regions where economic activity rates are unusually low, due to a lack of job opportunities, training opportunities, or due to a lack of services such as childcare and public transportation. • "Overstaffing" or "hidden unemployment" (also called "labor hoarding", the practice in which businesses or entire economies employ workers who are not fully occupied—for example, workers currently not being used to produce goods or services due to legal or social restrictions or because the work is highly seasonal.
  • 5. • Disguised unemployment --- exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. An economy demonstrates disguised unemployment where productivity is low and where too many workers are filling too few jobs. • Open unemployment – It is a situation where in a large section of the labour force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons. The labour force expands at a faster rate than the growth rate of economy. Therefore all people do not get jobs.
  • 6. • Educated Unemployment: Among the educated people, apart from open unemployment, many are underemployed because their qualification does not match the job. Faulty education system, mass output, preference for white collar jobs, lack of employable skills and dwindling formal salaried jobs are mainly responsible for unemployment among educated youths in India. Educated unemployment may be either open or underemployment. • Frictional unemployment is caused due to improper adjustment between supply of labour and demand for labour. This type of unemployment is due to immobility of labour, lack of correct and timely information, seasonal nature of work. etc.
  • 7. Seasonal Unemployment It is unemployment that occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts, ice factories etc., production activities take place only in some seasons. So they offer employment for only a certain period of time in a year. People engaged in such type of activities may remain unemployed during the off-season.
  • 8. Causes of Unemployment in India The important causes of Unemployment in India are as follows: 1. Rapid growth of population and increase in labour force. 2. Underdevelopment of the economy. 3. Slow growth in the agricultural sector. 4. Defective system of education. 5. Absence of manpower planning.
  • 9. 6. Degeneration of village industries. 7. Inappropriate technology. 8. Slow growth of industrial sector. 9. Immobility of labour. 10. Jobless growth.
  • 10. Statistics About Unemployment In India Unemployment Rate in India decreased to 4.90 percent in 2013 from 5.20 percent in 2012. Unemployment Rate in India averaged 7.32 percent from 1983 until 2013, reaching an all time high of 9.40 percent in 2009 and a record low of 4.90 percent in 2013. Unemployment Rate in India is reported by the Ministry of Labour and Employment, India.
  • 11. According to “Annual Employment And Unemployment Survey Report 2013-14” the rates of unemployment on Usual Principal State (UPS) in the country as follows. • Aggregate Unemployment Rate – 4.7% • Unemployment Rate in rural areas- 4.9 % • Unemployment Rate in urban areas- 5.5 % • State having maximum unemployment people Sikkim • State having the least unemployed people – Chhattisgarh • State having maximum unemployment rate – Kerala
  • 12. Steps To Reduce Unemployment • Reconstruction Of Agriculture • Adoption of Labour-intensive Techniques • Rapid Industrialization • Population Control • Reorientation Of Education System • Encouragement Of small enterprises • Guiding centres and more employment exchanges.
  • 13. Government Policy Measures to Reduce Unemployment • National Rural Employment Programme • Rural Landless Employment Guarantee Programme • Integrated Rural Development Programme • Food For Work Programme • Training Rural Youth For Self Employment • Operation Flood II • Employment Guarantee Scheme