Nature & Magnitude of Work Force and Unemployment in India

Un employment is a state of joblessness in an economy. This Unemployment usually measured in terms of unemployment rate. (UER)

UER where the number of unemployed individuals will be divided by the total number of employed individuals. Public above aged 16 and above will be called unemployed if they are out of work.

Based on the UER if the rate is around 6% or more, then the government will try to stimulate the economy and create jobs. UER is almost same in both in rural and urban areas. Whereas in urban areas more number of educated unemployed and in the rural areas, labor and agriculturists will be unemployed for almost 6 month in every year.

Types of Unemployment will include:cyclical structural,Frictional, Voluntary, hidden and long term unemployment.

Most of the unemployment in India is structural. Though presently there is a Keynesian type of involuntary unemployment remains a greater cause for anxiety.

Concepts of Unemployment: The three concepts of unemployment developed by NSSO are :

a) Usual statusb) Current weekly status c) Current daily status unemployment.

The usual status UER is a person rate and indicates chronic unemployment because all those who are found usually unemployed in the reference year are counted as unemployed.

Current weekly status concept determines the activity status of a person with reference to a period of proceeding seven days.

Current daily status concept considers the activity status of a person for each day of the proceeding seven days.

According to latest NSSO 68th round results, unemployment rate according UPS approach was 2.2% in 2011-12.

Compared to the UER in rural areas, UER was higher in urban areas. i.e., 1.7 % in rural areas and 3.4 % in urban areas.

UER estimated according to the CDS approach were the highest (5.7 %) in rural areas and 5.5% in urban areas and 5.6 % overall rate.

The 12th five year plan hopes to make the manufacturing sector a genuine engine of growth, which could generate 100 million work opportunities by 2022.

it is often argued that, a high rate of economic growth is a necessary condition, but not a sufficient condition to solve the unemployment problem in India.

In India, where employment elasticity is quite low, an annual growth rate of 8-9 percent can provide only a partial solution to the unemployment problem.

What are causes for unemployment:

1) Increasing population: India is the second largest country in population and this rate may be doubled in next coming decades. Program for family planning have so far not yielded desired results.

2) Limited land: land is not sufficient for the growing population.

3) Seasonal Agriculture: if provides employment to the rural people in a particular season only.

4) Fragmentation of land,

5) Backward method of agriculture

6) Decline in cottage industries

7) Defective education

8) lack of transport and communication system 9) inadequate employment planning

10) Technological advancements.

MAJOR EMPLOYMENT PROGRAM IMPLEMENTED TO REDUCE UNEMPLOYMENT IN INDIA

Swarna Jayanthi Gram Swarajgar Yojana

swanrna jayanthi shahari rojgar yojana

Prime minister rojgar yojana

The National rural employment guarantee program

The Rural landless employment Guarantee program

The Integrated Rural development program

The Scheme of Training Rural youth for self employment

Jawahar rojgar yojana

The employment assurance shceme

Mahatma Gandhi national rural employment guarantee program. -----The End-----