<–2/”>a >Nature, types and Problems of Unemployment in India:-Unemployment may be defined as “a situation in which the person is capable of working both physically and mentally at the existing wage rate, but does not get a job to work”.
India is one of those ill-fated underdeveloped countries which is suffering from a huge unemployment problem. But the unemployment problem in India is not the result of deficiency of effective demand in Keynesian term but a product of shortage of capital equipment’s and other complementary Resources accompanied by high rate of Growth of Population.
Present unemployment problem in India is mostly structural in nature.
Unemployment problem of the country can now be broadly classified into:
(a) Rural unemployment and
(b) Urban unemployment.
(a) Rural Unemployment:
In India the incidence of unemployment is more pronounced in the rural areas.
Rural unemployment is again of two types:
(i) Seasonal Unemployment and
(ii) Disguised or perennial unemployment.
(i) Seasonal Unemployment:
agriculture, though a principal occupation in the rural areas of the country, is seasonal in nature. It cannot provide work to the rural population of the country throughout the year. In the absence of multiple Cropping system and subsidiary occupation in the rural areas, a large number of rural population has to sit idle 5 to 7-months in a year.
Seasonal Unemployment is also prevalent in some agro- based industries viz., Tea Industry, Jute Mills, Sugar Mills, Oil Pressing Mills, Paddy Husking Mills etc.
(ii) Disguised or Perennial Unemployment:
Indian Agriculture is also suffering from disguised or perennial unemployment due to excessive pressure of population. In Disguised Unemployment apparently it seems that everyone is employed but in reality sufficient full time work is not available for all.
In India, about 72 per cent of the working population is engaged in agriculture and allied activities. In 1951 more than 100 million persons were engaged in the agricultural and allied activities whereas in 1991 about 160 million persons are found engaged in the same sector resulting in as many as 60 million surplus population who are left with virtually no work in agriculture and allied activities.
(b) Urban Unemployment:
Urban unemployment has two aspects:
(i) Industrial unemployment and
(ii) Educated or middle class unemployment.
(i) Industrial Unemployment:
In the urban areas of the country, industrial unemployment is gradually becoming acute. With the increase in the size of urban population and with the exodus of population in large number from rural to the urban industrial areas to seek EMPLOYMENT, industrialization because of slow growth could not provide sufficient employment opportunities to the growing number of urban population.
Thus the rate of growth of employment in the Industrial Sector could not keep pace with the growth of urban industrial workers leading to a huge industrial unemployment in the country.
(ii) Educated or middle-class Unemployment:
Another distinct type of unemployment which is mostly common in almost all the urban areas of the country is known as educated unemployment. This problem is very much acute among the middle class people. With rapid expansion of general Education in the country the number of out-turn of educated people is increasing day by day.
But due to slow growth of technical and vocational educational facilities, a huge number of manpower is unnecessarily diverted towards general education leading to a peculiar educated unemployment problem in the country. The total number of educated unemployment increased from 5.9 lakh in 1962 to 230.50 lakh in 1994.
• Types of Unemployment
The most accepted Classification of Unemployment recognizes two broad types: Voluntary and Involuntary Unemployment.
Voluntary unemployment arises when an individual is not under any employment out of his own desire not to work. Could be from their total apprehension towards the concept itself, or it may be that an individual is unable to find work paying his desired wages and he doesn’t want to settle.
Involuntary unemployment encompasses all those factors that prevent a physically fit individual willing to work from getting an appointment. According to John Maynard Keynes, “involuntary unemployment arises due to insufficiency of effective demand which can be solved by stepping up Aggregate Demand through government intervention”. Involuntary Unemployment is further categorized into subheads;
1. Structural: Such employment stems from any structural change in the economy that leads to decline of specific industries. Long term changes in the market conditions, reorganization of the same, and sudden changes in the technological sector, creates a Skill Gap in the existing workers.
2. Regional: Globalization/”>Globalization-3/”>Globalization and relocation of jobs also leads to unemployment as workers are often unable to move to the new location where the employers currently hold positions.
3. Seasonal: In some industries production activities are season best and employment occurs only in peak seasons. Agro-based industries and tourism industries are examples of this form of unemployment.
4. Technological: This type of unemployment is either generated following the introduction of technologically advanced mechanization that renders manual labour redundant, or through inclusion of technology that the current labour force is ill-adapted to.
5. Frictional: This type of unemployment happens when the labour is either transitioning between jobs or is trying to find a job more suited to their skill set. Friction is generally referred to the time, energy and cost that a person invests while searching for a new job.
6. Educated: This form of unemployment happens when people with advanced degrees are unable to procure an engagement that is suited to their level of training.
7. Casual: Some occupations can only offer temporary employment to individuals and their engagements are subject to termination as soon as the demand subsides. Daily labourers who work on a day-to-day basis are example of such types of unemployment.
8. Cyclical: This type of unemployment refers to the periodic cycle of unemployment associated with cyclical trends of growth in business. Unemployment is low when business cycles are at their peak and high when the gross economic output is low. Several external factors like wars, strikes and political disturbances, natural calamities that affect business cycle are also contributors to cyclical unemployment.
9. Disguised: This is a scenario when more people are employed in a job than is actually required for it. This is hallmark of developing economies where availability of labour is abundant. It is primarily a feature of the agricultural and unorganized sectors.
Problems caused due to unemployment
Unemployment and POVERTY goes side by side. The problem of unemployment gives rise to the problem of poverty.
Young people after a long time of unemployment find the wrong way to earn Money.
To get rid from the unemployment Stress, they accept alcohol or drugs.
Unemployed youths accepts suicide as the last option of their life
Lower economic growth
Increase rate in Crimes. As the employed youth don’t have anything to do they start doing robbery, murder etc.
Health issues i.e it affects mentally as well as physically,
Unemployment is a major economic and social problem that affects people all over the world. It is defined as the Percentage of the labor force that is unemployed, meaning that they are actively looking for work but have not been able to find a job.
There are many different causes of unemployment, including cyclical, structural, frictional, seasonal, technological, and discouraged worker unemployment. Cyclical unemployment is caused by fluctuations in the business cycle. When the economy is in a Recession, there is less demand for goods and Services, which leads to businesses laying off workers. Structural Unemployment is caused by changes in the economy, such as the decline of manufacturing jobs in the United States. When industries decline, workers in those industries may not be able to find new jobs in the same industry. Frictional Unemployment is caused by the normal movement of workers between jobs. When workers quit their jobs to look for new ones, or when they are laid off and then find new jobs, they are considered to be frictionally unemployed. Seasonal unemployment is caused by changes in the demand for labor over the course of the year. For example, construction workers may be laid off during the winter months when there is less construction activity. Technological unemployment is caused by the introduction of new technologies that make some jobs obsolete. For example, the development of self-driving cars may lead to the loss of jobs for truck drivers. Discouraged worker unemployment is caused by people who have given up looking for work because they believe that they will not be able to find a job.
Unemployment has a number of negative consequences, both for individuals and for the economy as a whole. Individuals who are unemployed may experience financial hardship, stress, and social isolation. Unemployment can also lead to crime and other social problems. For the economy, unemployment can lead to a decrease in consumer spending, which can slow economic growth. It can also lead to a decrease in tax revenue, which can make it difficult for governments to provide essential services.
There are a number of policies that can be used to address unemployment. Monetary Policy is the use of interest rates and other tools to control the Money Supply. Fiscal Policy is the use of government spending and Taxation to influence the economy. Active labor market policies are programs that provide training and other assistance to help people find jobs. Passive labor market policies are programs that provide income support to people who are unemployed.
Unemployment is a complex issue with no easy solutions. However, by understanding the causes of unemployment and the consequences of unemployment, we can develop policies that can help to reduce unemployment and its negative effects.
The global labor market is constantly changing, and the nature of work is evolving. Automation and new technologies are changing the way that work is done, and this is having a significant impact on the global labor market. In some cases, automation is leading to job losses, as machines are able to do jobs that were previously done by humans. However, automation is also creating new jobs, as businesses need workers to operate and maintain machines. The gig economy is another trend that is having a significant impact on the global labor market. The gig economy is a term used to describe the growing trend of people working freelance or on short-term contracts, rather than in traditional full-time jobs. The gig economy is being driven by a number of factors, including the rise of online platforms that make it easier for people to find freelance work, and the increasing number of people who are looking for more flexibility in their work arrangements. The gig economy has both positive and negative implications for the global labor market. On the positive side, it gives workers more flexibility and control over their work. It also allows businesses to hire workers on an as-needed basis, which can save them money. However, the gig economy can also lead to instability and insecurity for workers, as they may not have a steady income or benefits.
The future of work is uncertain, but it is clear that the global labor market is changing rapidly. Automation, new technologies, and the gig economy are all having a significant impact on the way that work is done. It is important to understand these trends and their implications for the future of work, so that we can develop policies and programs that can help to ensure that everyone has the opportunity to succeed in the changing economy.
What is unemployment?
Unemployment is a situation where people are willing and able to work but cannot find a job.
What are the causes of unemployment?
There are many factors that can contribute to unemployment, including:
- Economic recessions: When the economy is in a recession, businesses often cut back on production and lay off workers.
- Technological change: New technologies can sometimes make some jobs obsolete, leading to job losses.
- Changes in government policy: Changes in government policy, such as tax cuts or changes to the minimum wage, can also affect the level of unemployment.
What are the effects of unemployment?
Unemployment can have a number of negative effects on individuals, families, and communities. These include:
- Financial hardship: Unemployed workers may not be able to make ends meet, which can lead to poverty and homelessness.
- Mental and physical health problems: Unemployment can be stressful and can lead to anxiety, depression, and other health problems.
- Social isolation: Unemployed workers may feel isolated from their friends and family.
- Crime: Unemployment can increase the risk of crime, as people may turn to illegal activities to make ends meet.
What are the solutions to unemployment?
There is no one-size-fits-all solution to unemployment. However, some possible solutions include:
- Economic stimulus: Governments can use fiscal policy to stimulate the economy, which can lead to job creation.
- Job training: Governments and businesses can provide job training to help unemployed workers develop the skills they need to find jobs.
- Unemployment benefits: Governments can provide unemployment benefits to help unemployed workers meet their basic needs while they are looking for work.
- Social safety nets: Governments can provide social safety nets, such as food stamps and housing assistance, to help unemployed workers and their families meet their basic needs.
What is the future of unemployment?
The future of unemployment is uncertain. Some experts believe that automation and Artificial Intelligence will lead to mass unemployment in the future. Others believe that new technologies will create new jobs, offsetting the job losses from automation. The truth is likely somewhere in between. It is important to prepare for the future of work by developing skills that are in demand and by being adaptable to change.
Which of the following is not a reason for unemployment?
(A) A recession
(B) A decline in the demand for labor
(C) A decrease in the supply of labor
(D) A decrease in the productivity of laborWhich of the following is a type of unemployment that is caused by a mismatch between the skills of workers and the skills that employers are looking for?
(A) Frictional unemployment
(B) Structural unemployment
(C) Cyclical unemployment
(D) Seasonal unemploymentWhich of the following is a type of unemployment that is caused by changes in the business cycle?
(A) Frictional unemployment
(B) Structural unemployment
(C) Cyclical unemployment
(D) Seasonal unemploymentWhich of the following is a type of unemployment that is caused by changes in the seasons?
(A) Frictional unemployment
(B) Structural unemployment
(C) Cyclical unemployment
(D) Seasonal unemploymentWhich of the following is a policy that can be used to reduce unemployment?
(A) Monetary policy
(B) Fiscal policy
(C) Supply-side policy
(D) All of the aboveWhich of the following is a type of government program that can be used to help unemployed workers?
(A) Unemployment insurance
(B) Job training programs
(C) Public works programs
(D) All of the aboveWhich of the following is a negative economic consequence of unemployment?
(A) A decrease in aggregate demand
(B) A decrease in Aggregate Supply
(C) A decrease in the standard of living
(D) All of the aboveWhich of the following is a positive economic consequence of unemployment?
(A) A decrease in the cost of living
(B) An increase in the bargaining power of workers
(C) An increase in the rate of innovation
(D) None of the aboveWhich of the following is a social consequence of unemployment?
(A) Increased crime rates
(B) Increased poverty rates
(C) Increased family instability
(D) All of the aboveWhich of the following is a psychological consequence of unemployment?
(A) Decreased self-esteem
(B) Increased anxiety
(C) Increased depression
(D) All of the above