Abstract

The contemporary employment situation in India is marked by a complex interplay of

various factors including economic growth, technological advancements, demographic
shifts, and government policies. As one of the world's fastest-growing economies, India
has seen significant changes in its employment landscape over the past few decades.

One of the key features of India's employment scenario is the predominance of the
informal sector, which accounts for a substantial portion of the workforce. This sector is
characterized by low wages, lack of job security, and limited access to social security
benefits. While the informal sector provides employment opportunities for a large
number of people, it also poses challenges in terms of labor rights and welfare.

The formal sector, on the other hand, comprises industries such as IT, manufacturing,
finance, and services. This sector offers relatively better wages, job security, and access
to benefits. However, it faces challenges such as skill shortages, mismatch between
industry requirements and available talent, and issues related to labor laws and
regulations.

Technological advancements, particularly in automation and artificial intelligence, are

reshaping the nature of work in India. While these technologies offer opportunities for
increased productivity and efficiency, they also pose challenges in terms of job
displacement and the need for upskilling and reskilling of the workforce.

The demographic dividend, characterized by a large and youthful population, presents

both opportunities and challenges for India's employment scenario. On one hand, it
provides a vast pool of labor for industries to tap into. On the other hand, ensuring
meaningful employment opportunities for this demographic dividend requires
concerted efforts in education, skill development, and job creation.

Government policies play a crucial role in shaping the employment landscape in India.
Initiatives such as Skill India, Make in India, and Startup India aim to boost employment
generation, enhance skills, and promote entrepreneurship. However, there is a need for
greater policy coherence, implementation efficiency, and collaboration between the
government, private sector, and civil society to address the multifaceted challenges of
employment in India.

In conclusion, the contemporary employment situation in India is characterized by a

mix of opportunities and challenges stemming from economic, technological,
demographic, and policy factors. Addressing these challenges requires a holistic
approach that focuses on inclusive growth, skill development, innovation, and social
protection measures to ensure sustainable and meaningful employment for all
segments of society.
 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

The study of contemporary employment encompasses a broad range of topics

and issues related to the workforce, labor markets, and employment practices in
the present-day context. Understanding the scope and limitations of such a study
is essential for researchers and policymakers to effectively address the
challenges and opportunities in this field. Here are some considerations
regarding the scope and limitations of studying contemporary employment:

Scope:

1. Labor Market Dynamics: The study can encompass analyzing the dynamics of
labor supply and demand, including factors such as unemployment rates, labor
force participation, and wage trends.

2. Employment Patterns: Researchers can explore various employment patterns,

including full-time, part-time, temporary, gig, and informal work arrangements,
along with their implications for workers and employers.

3. Sectoral Analysis: The study may focus on specific sectors such as

manufacturing, services, technology, agriculture, and their respective
employment trends, challenges, and opportunities.

4. Skill Development and Training: Examining programs and policies aimed at

enhancing skills, improving employability, and bridging the gap between
education and industry requirements.

5. Impact of Technology: Investigating the effects of technological advancements,

automation, and digitalization on job creation, displacement, and the nature of
work.

6. Social and Economic Implications: Assessing the social and economic

consequences of employment trends, including income inequality, poverty, social
mobility, and overall societal well-being.
7. Policy Analysis: Evaluating the effectiveness of government policies, labor
laws, and regulations in promoting decent work, protecting workers' rights, and
fostering inclusive growth.

Limitations:

1. Data Availability and Quality: Limited availability and reliability of data,

especially in developing countries, may constrain the depth and accuracy of
analysis.

2. Complexity and Interconnectedness: The multifaceted nature of employment

issues and their interconnectedness with broader economic, social, and political
factors can make it challenging to isolate specific causal relationships.

3. Geographical Variations: Employment dynamics vary significantly across

regions and countries, making it difficult to generalize findings or apply uniform
policy solutions.

4. Temporal Dynamics: Employment patterns and trends are subject to change

over time due to economic cycles, technological advancements, and policy shifts,
requiring ongoing monitoring and analysis.

5. Methodological Constraints: Researchers may face methodological challenges

in measuring and analyzing employment-related phenomena, such as defining
and operationalizing key variables, selecting appropriate analytical techniques,
and addressing potential biases.

6. Policy Implementation Gap: Even well-designed policies may face challenges in

implementation due to bureaucratic inefficiencies, resource constraints, and
political factors, limiting their impact on the ground.

7. Ethical Considerations: Ethical concerns related to data privacy,

confidentiality, and the potential for unintended consequences of policy
interventions need to be carefully addressed in employment research.

Despite these limitations, studying contemporary employment is essential for

informing evidence-based policymaking, fostering social dialogue, and
promoting inclusive and sustainable development. By recognizing the scope and
limitations of such studies, researchers and policymakers can work towards
addressing key challenges and harnessing opportunities to improve the quality
of work and livelihoods for individuals and communities.
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.
 CAHPTER- 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.

Hired workers may again be of two types:

1. 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.

2. 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: Businesspersons, Shopkeepers, A Doctor Running His Own Clinic,

Cement Shop Owner Etc.

under CC BY-NC
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
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 theengagement 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.

Participation Ratio
Total Workforce
= x100
Total Population

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.
 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. Employes 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
includesnon-farm casual wage labourers who work for more than one employer
such as construction workers and head load workers.
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.
Rate of Unemployment

Number of Person Unemployed

= ×100
Size of Labour Force

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

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:
 Unemployment in India

Rural unemployment Urban unemployment

Open Disguised Industrial Technological

unemployment unemployment unemployment unemployment

Seasonal unemployment

Educated
unemployment

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.
  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
ayear, if grows just one crop in a year and because he cannot prepare his land for
anyother 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.
 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 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.
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.
 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.

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 labour saving 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.
 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.

 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..

11. 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

12. 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.

13. 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.

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.
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 mechanized. the labour productivity can be enhanced.
 There should be improvement in methods of cultivation, irrigational facilities,
land reforms, government support farmers etc.
 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.
 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.
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.
 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.
 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.
 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.
 BIBILIOGRAPHY

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