EMPLOYMEN’ ENT: GROWTH INFORMALISATION AND OTHER ISSUES iuTRODUCTION asic CONCEPTS 12 aTIGPATION OF PEOPLE IN EMPLOYMENT 1 yeAnNG OF EMPLOYMENT 1 ystRIBUTION OF EMPLOYMENT 2 GaowTH AND CHANGING STRUCTURE OF EMPLOYMENT 1 NFORMALISATION OF INDIAN WORKFORCE t's MEANING OF UNEMPLOYMENT | 1) TYPES OF UNEMPLOYMENT IN INDIA s10 CAUSES OF UNEMPLOYMENT vt REMEDIAL MEASURES FOR UNEMPLOYMENT rp GOVERNMENT POLICIES AND EMPLOYMENT GENERATION 14 INTRODUCTION Work plays an important role in our lives, embers of society. Every rational man aims to get engaged in rain work to earn a living. Some work on farms, in factories, tanks, shops and few others work at home. as individuals and as Vlork at Home includes not only traditional work like weaving, lace rrakngor variety of handicrafts, butalso modern jobs like programming wok inthe IT industry. Earlier factory work meant working in factories located in cities, whereas, now technology has enabled people to jilages. During Covid-19 produce those factory-based goods at home in vi pandemic, millions of workers delivered their products and services Many MNCs sellfootballs made in the houses of Jalandhar, Punjab through work from home. Important Points about Work * People work for ‘earning’ a living’. Employie! of livelihood. 7 int isan activity from which a person earns means ik i7.2 dian Economic De » Some people get money by inheriting it. However, it does not Se ok Satisfy an, : Being employed in work gives us a sense of self-worth and enables us 0 Felate our meaningfully with others. oo Every working person contributes to national income by engaging In various econ, activities, » We work not only for oui elves, but also for those who depend on us, like our fami, lk gives us a sense of accomplishment when we work to meet their requirements, © The study of working people gives us insights into the quality and nature of employmer, in our country and helps in understanding and planning our human resources, © Ithelps in analyzing the contribution made by different industries and sectors towards national income. © Italso helps us to address many social issues such as exploitation of marginalised section, of the society, child labour, etc. 7.2 BASIC CONCEPTS — Let us first understand few basic concepts relating to employment, such as worker, labo: force and work force. Meaning of Worker A worker is an individual, wlio is involved in sonic economic activity, to earn a living. + A worker contributes to the process of gross domestic product (GDP) by rendering his productive activities. + Some examples of workers are: farmers, managers, labourers, doctors, barbers, professoss, ete. Gross Domestic brpdiichand Gross National Product Gross Domestic Product (GDP): GDP refers to total money value of all goods and services | Produced in a county in a year. | Gross National Product (GNP): When net earnings** are added to GDP, we get GNP. Those activities which contribute to GNP are called economic activities. “Net Earnings: The difference between imports payments and exports receipts is termed as net earnings for the country. | Net Earnings can be: | + Positive, when receipts trom exports are more than payments for imports. | » Zero, when receipts from exports are equal to payments for imports. tt _» Negative, when receipts from exports are less than payments for imports. } Who all are included in ‘Worke Itis generally beli is not true loyer are workers. However thsmont Growth, Informalisation and Other Issues guy vos 73 « jralso includes self-employed persons, like shopkee pers, barbers, cobblers, etc. clude those people who re: 1 - tpalso inchide those people who remain temporarily absent from work due to illness, injury or other physical disability, bad weather, f some other reasons, 4 Thalso includes those people who help the main workers, It means, all those who are engaged in economic activities, in whatever capacity, are workers festivals, social or religious functions or the term workers include all those people, who are engaged in work, whether for others jc. paid workers) or for themselves (self-employed workers). ature of Employment in India is Multifaceted «Some get employment throughout the year, while others get employed for only a few months in a year, like seasonal workers, + 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. Number of Workers * During 2017-18, the total number of workers in India was 471 million persons. Since majority of our people reside in rural areas, the proportion of workforce residing there is higher. So, out of 471 million workers, nearly two-third were rural workers. «© Around 77% of total workers are male workers and the rest are female workers. « Rural women participate in larger number in productive activities as compared to urban women. Among the rural workers, the share of female workers is more than one-fourth, whereas share is around one-fifth in case of urban workers. * Inrural areas, many women carry out works like cooking, fetching water and fuel wood and participate in farm labour. They are either not paid wages in cash or are paid in the form of grains. For this reason, these women are not categorised as workers. However, it is often argued that these women should also be called workers, abour Force ill persons, who are working (have a job) and though not working, are seeking aud are available or work, are deemed to be in the labour force. Labour Force = Persons working + Persons seeking and/or available for work, nother words, Labour Force is the total of employed and unemployed persons, tow to calculate labour force? © get the labour force handicap]Indian Economie . Sore 7.4 MEANING OF EMPLOYMENT Employment isan activity whieh enable a person to carn means of Living. 1 rej, i . | a ny arrangement, by which a person earns income or means of livelihood. Employmeng m either in the form of self-employment or wage employment. rT mete CNAs ak Ni dea UM MAT Pe Miua)d ‘ olf-Employmont Wage Employment (nnanangoment in whih worker oso (anareangomont noha wor cle his own rosourcos to mako a ivhng) Melba and oa wages natu) vy 1 Regular Workers Casual Workers (Workor ongagod by (Worker vito is casuaty somoono and ts paid engaged and gets wagos on roqular basis) romuncraion lor werk dora Sell-Employment Anarrangement in which a worker use Workers who own and operate an enterprise to earn their livelihood are known as self-employes © About 52.2% of workforce in India belongs to this category (Refer Table 7.2). his own resources to makea living, is known as slf-emplo + Self employment is a major source of livelihood for both men and women. © In case of self-employment, a person makes usi 5 of his own land, labour, capital ani entrepreneurship, lo make a living. «© For cwunple, shopkeepers, traders, businessmen, etc, Wage Employment ‘An arrangement in which a worker sells his labour and earns wages in return, is known as wy employment. Under wage employment, worker is known as employce (or hired worker) a! buyer of labour is termed as employer. * Workers do not have any other resources (land, capital and entrepreneurship), ep their own labour, * They offer their labour services to others and in return get wages. © For esaniple, a. doctor running his own clinic is an example of self-employment. Hower if the doctor is employed by a hospital, then it will be wage employment. * Wage employment is of two types: (i) Regular Workers;nformalisation and Other Issues 77 squat Workers (Regular Salaried Employees) “on a worker i engaged by someone or by an enterp Mi orket is known as regular salaried employee, sie" Workers are hired on a permanent basis and also provident fund, etc.). + Regular workers account for just 22.8% of India’s workforce (Refer Table 7.2), cw le, Professors, Teachers, Civil engineer working in the construction company, etc. rise and is paid wages on a regular basis, then get social security benefits (like pension, casual Workers | srkers who are casually engaged and, in return, get remuneration for he work done, are termed as casual workers, « Casual workers are not hired on a permanent basis. It means, they do not have: (i) Regular income; (ii) Protection or regulation from the government; (iii) Job security; and (iv) Social benefits. + Casual workers account for 25% of India’s workforce (Refer Table 7. , Brick-making: ‘Aform of casual work ‘able 7.2: Employment Distribution (2017-18) Nature of Employment a | _ Percent =a Self-Employed 52.2 } Regular Workers 22.8 CasualWorkers | 25.0 Total, 100.0 7.5 DISTRIBUTION OF EMPLOYMENT bution of Employment by Gender The given figure shows the distribution of employment by gender: Male Workers, Female Workers [DE set Employed Casual Workers Rogular Salaried EmployeesOo" 7.8 Indian Economic a From the Pie diagrams, the following points are noticed: © Self-employment is a major source of livelihood for both men (52%) and women (53. © Casttal workers account for the second major source for both men (24%) and women gs” + Incase of regularsalaried employment, men are found in greater proportion (24%), ihe Wwomten form only 21%, Lesser women are found in regular salaried employment becay., (i) Jobs generally require skills and a higher level of literacy. se Gi) Lack of mobility among women in India due to social constraints, Distribution of Employment by Region Distribution of employed workers by region enables us to know the quality of employmey and the attachment of workers to their jobs. © Sel Pmp srou ILis a major source of livelihdbd in rural areas (58%) and second majo, source of livelihood in urban areas (38%). Int Case of rural areas, self-employed workers aye greater as majority of rural people are engaged in farming on their own plots of land. # Cassa! Workers: Inv ease of rural areas, casual workers account for second major source ‘of employment with 29% of work force. Casual workers in urban areas account for 15%, luyied Piplovees: In urban areas, it is the major source with 47% of work force, Urban people have a variety of employment opportunities because of their educational attainments and skil © Regular S: In urban areas, the nature of work is different and enterprises require workers on a regular basis. However, only 13% of rural people are engaged as regular salaried employees due to illiteracy and lack of skills. Y Seale: 1 em=20 Percent 100 a [HD sett employee 80 i Casual Workers, 47% 29% Regular Salaried Employees Percentage 8 40 x Urban Workers. Rural Workers Distribution of Employment by Region Distribution of Employment in Different Sectors In the course of economic development of a country, labour flows from agriculture and other f thisp workers migrate from rural to urban ares or begins to lose its share of total employmet*ant Growth, Informalisation and Other issue lover es 79 iy) Agriculture (31) Mining and Quarrying ji) Manufacturing (ix) Electricity, Gas and Water Supply -) Construction (vi) Trade | iy Transport and Storage (vit) Services, sorsoplicity al he working persons engaged in these divisions can be clubbed into three major sectors: 4, Primary Sector: Itincludes (i) and (ii), ie. Agriculture and Mining and quarrying gp, seconilary Sector Hineludes (ii), (iv) and (v),.e. Manufacturing, Electricity, gas and water supply and Construction. 4g, levtiary Sector: Heineludes (vi), (vii) and ( .c. Trade, Transport and Storage, and services. The distribution of employment in different sectors is presented in following figure: (Also Refer Table 7-3): 31% | 44.6% | [EG Primary Sector ‘Secondary Sector 24.8% Tertiary Sector Distribution of Employment in Different Sectors (2017-18) From the given figure, the following results are drawn: 1, Primary sector is the main source of employment (44.6%), for majority of workers in India. 2. Secondary sector provides employment to only 24.4% of workforce. 3. 31% of workers are engaged in the service sector. Table 7.3: Distribution of Workforce by Industry, 2017-18 (in %) Industrial Category Place of Residence ‘Sex | Total i [ale | Female Primary Sector 40.7 | S74 44.6 Secondary Sector 26.5 177 24.4 Terliary/Service Sector 828 | 252 31.0 ee 100.0 | 100.0 100.0 Distribution of Rural - Urban Employment in Different Sectors The distribution of Rural-Urban employment in the different sectors is depicted through Talv0 Indian Econom|c Developmen, Rural Employment Urban Employment 94.9% 59.1% (Primary Sector on Secondary Sector Tortiary Sector Distribution of Rural - Urban Employment in Different sectors (2017-18) Lmplovment in Rural Areas 1. 59.8% of the workforce in rural areas are engaged in primary sector (agriculture and mining and quarrying). . 20.4% of rural workers are working in secondary sector (manufacturing industries, construction and other divisions). 3. Service sector or Tertiary sector provides employment to 19.8% of rural workers. Employment in Urban Areas 1. Incas of urban areas, primary sector has the least share with just 6.6%. So, activities like agriculture or mining are not the major source of employment in urban areas. 2. The secondary sector gives employment to about 34.3% of urban workforce. 3. People are mainly engaged in the service sector with 59.1% of urban workers. Distribution of Employment (Male-Female) in Different Sectors Theshare of male-female employment in different sectors is shown with the help of Percentage bar diagram depicted in the following figure (Also Refer lable 7.3): Y Scale: 1 em = 20 Porcent [59] Primary Sector 25.2% 32.8% ‘Secondary Sector A77% Tertiary Sector 26.5% 87.1%, male) In Different Sectors (2017-18)aor Growth fomiasaton and Other Issues io" TM given figare, the following conclusions are joa th interpreted: woe ployment ale a 407% ‘of male population is concentrated in the primary sector. 3 wsreof male workers are engaged in the secondary sector. » cco sector provides employment 10 32.8% of male workers jenite Employment | wvomen workers concentration is also very high in the y primary sector. 57.1% of the female workforce is employed rr the primary sector, whereas only 40.7% of males work in that sector. It happens because men get opportunities in poth secondary and service sectors. 2 Only 17.7% of female workforce are employed in the secondary sector. be Garment Workers: Factory Employment for Women 4, The service sector gives employment to 25.2% of female workers. 7.8 GROWTH AND CHANGING STRUCTURE OF EMPLOYMENT Growth of Employment and Gross Domestic Product (GDP) Fifty years of planned development have always aimed at expansion of the economy through increase in national product and employment. « During 1930-2010, GDP of India grew positively and was higher than the employment growth, «+ There was always fluctuation in the growth of GDP, but employment grew at the rate of not more than 2%. + However, in the late 1990s, employment growth started declining and reached the level of growth that India had in the early stages of planning. * During these years, the gap between the growth of GDP and employment was widening, This trend is termed as ‘Jobless Growth. « Jobless Growth refers to a situation when the economy is able to produce more goods and services without a proportionate increase in employment opportunities, .e. economy tends torise due to technology without any increase in the level of employment, + In other words, it is a situation when there is an overall acceleration in the growth rate of GDP in the economy without corresponding expansion in employment opportunities,| 7412 Indian Economia Der0pm| 9. GDP Employment a7 ie Zo 7 Es 83 ee & “8 2 4 ‘ - Saf % Nee a 34 g ‘ 220 3 298 21190 ae 179 199 XN 3 —— nas = 2 os, 039 5 1961-66 1966-69 1969-74 1974-79 1980-85 1985-90, 1990-92 1997-2000 1999-2005 ‘Years Growth of Employment and GDP, 1951-2012 (%) Let us now study the changes in the employment pattern of the people in various sectors and | their status over the last thirty years. It will enable us to understand the types of employment generated in our country. Changing Structure of Employment We know, India is an agrarian nation. A major section of our population lives in rural areas and is dependent on agriculture as their main livelihood. The developmental strategies in many countries, including India, have always aimed at reducing the proportion of people depending on agriculture. Let us now understand the effect on different sections of workforce, due to growth pattern of employment and GDP with the help of Table 7.4, Table 7.4: Trends in Employment (Sector-Wise) Sector 1972-73 | 1993-94 2011-12 2017-18 Primary Sector i 640 =| agg t”st*« Seconds 9 5. 24.3 | 24.4 8 100.0 100.0 ary sector, which declined to 446% on-farm work,vont. Growth, informalisation and Other teu 7.13 dary and service sectors are s! ‘ ‘ « Secondary are showing Promising future for the Indian workforce shares of these sectors have increased from 10.9% to 24.4% and fi 14.8 3a Ks 4% from 14.8% to 31% respectively. discuss the distribution of workers etus now 5 Soll-employod, regular salarie wen gular salaried employees and casual asualisation of Workforce cer the last three decades (1972-2018), there has been considerable shift of self-employed dj regular salaried employed to casual wage work (sce Table 7.5). The process of moving m self-employment and regular salaried employment to casual wage work is known as “ualisation of workforce. Table 7.5: Trends in Employment (Status-Wise) satus 1972-73 | 1993-94 | 2011-12 2017-18 sett Employed ee er 520. | 622 "Regular Salaried Employee | 15.4 | 13.6 | 18.0 | 22.8 casualWorkers, 8B 300 | 8.0 = Total 00.0 || 1000 =| ~=St000 S| S100 «Sol Employment: Although, it continues tobe the major employment provider, butits share declined from 61.4% in 1972-73 to 52.2% in 2017-18. © Regular Salaried Eniployees: There is an increase in share from 15.4% in 1972-73 to 22.8% in. 2017-18. © Casual Workers: Their share has increased from 23.2% in 1972-73 to 25% in 2017-18. For “Reasons for Increasing Casualisation’, refer Power Booster Section. 7.7 INFORMALISATION OF INDIAN WORKFORCE Since Independence, the main objective of Indian Planning is to raise the standard of living of the people, by providing job and job security. It has been stressed that industrialisation would bring surplus workers from agriculture to industry with better standard of living. + However, even after 70 years of planned development, more than half of Indian workforce depends on agriculture as the major source of livelihood. * Over the years, the quality of employment has also deteriorated. Even after working, for ‘more than 10-20 years, some workers. do not get maternity benefit, provident fund, gratuity and pension. * Eny i i lower salary as compared to employees doing the ™on a Indian Economie Oo, * The employment structure in India can be studied with respect to two kinds of ; (i) Formal or Organised Sector; (ii) Informal or Unorganised Sector. ors Informalisation of Workforce refers to a situation whereby the proportion of worktorcy in informal sector to total workforce increases. he Formal or Organised Sector All the public enterprises and private establishments which employ 10 or more hired : orkers are called formal sector establishments. ‘ * Workers who work in such establishments are known as formal sector workers, * Formal workers enjoy social security benefits and earn more than those inthe infer sector. * The government protects them in various ways through its labour laws and they can form ‘Trade Unions’ to protect their interests. * However, the organised sector provides work to just 6% (approx.) of the total work force For “Reasons for fall in Employment in Organised Sector’, refer Power Booster section. Informal or Unorganised Sector Informal sector includes all those private enterprises which hire less than 10 workers, Workers who work in such enterprises are known as informal sector workers, For ex farmers, agricultural labourers, owners of small enterprises, etc. Italso includes all non-farm casual wage labourers who work for more than one employer such as construction workers and headload workers. In India, around 94% employment is found in the unorganised sector, viz., small farms, household industries, shops and other self-employment units. * In the informal sector, male workers account for 70% of the workforce. Workers and enterprises in the informal sector do not get regular income. They do not have any protection or regulation from the government. Such workers have the risk of being dismissed without any compensation. Employment of informal sector workers depend on the nature of market. They are hire! when the market conditions are favourable and they are fired when there is slowdown in the economy. for exoniple, during Covid-2019, millions of workers of informal sector lost their jobs. « Workers of this sector live in slums and are squatters (persons who unlawfully occupy u ild r diland).weaning social Security Benefits tapour Laws rede Unions Eamings i Formal Sector Workers Workers who work in Organised Sector are. known as Formal Sector Workers, They are entitled to social security benefits suchas provident fund, gratuity pension ete. Economic interest of workers in formal sector is protected through Labour Laws. Workers can form Trade Unions to protect their interests, They eam more than the informal sector workers. Formal Sector Workers account for just 6% (approx.) of total work force. in Formal and I 745 Informal Sector Workers Workers who work in Unorganised Sector are known as Informal Sector Workers. They are not entitled to social security benefits. ‘There are no such Labour Laws of workers of informal sector. No such trade unions exist for informal ‘sector workers. They eam less than the informal sector workers. Informal Sector Workers account for approx 94% of total work force. a! Sectors Asthe economy grows, more and more workers should become formal sector workers and the proportion of workers engaged in the informal sector should decrease. However, the situation in India is very discouraging (Refer Table 7.5). ‘Table 7.6: Distribution of Workforce in Formal and Informal Sector, 2011-12 Category Number of Workers (in Millions) Male Female Total Formal Sector eect cen 30 informal Sector 310 133, 443 » Formal Vs Informal: Out of total of 473 million workers in the country » 30 million workers are in the formal sector and the remaining 443 million are employed in the informal sector. » Itmeans, only the informal sector. + Male Vs Female | In the formal sector, out of 30 million workers, 24 million (80%) are male workers and only 6 million (20%) are women. | Inthe informal sector, out of 443 million workers, male workers account for 310 million (70%) and remaining 133 million (30%) are women. formal Secto mployment, India started paying attention to he efforts of International Labour Organisation tion of informal sector enterprises and provision ‘of people are employed in the formal sector and the rest 94% are in718 Indian Ec 7.8 MEANING OF UNEMPLOYMENT | | | | Unemployment problem is one of the mo: serious problems, ormally found in each and every country of the world, irrespective of economic development. (Pr it woas known as National sation) defines Unemployment as a situation in ck of wor re not working but either , intermediaries, friends or tations to prospective employers or express itu for work under the prevailing condition nerations. Unemployed workers oes waiting for casual jobs chan of work and rem In short, Unemployment refers to a situation in which people are wil ling and able to work at the existing wage rate, but do not get work. Unemployment is confined not only to unskilled workers, rather a sizable number of skilled workers fail tg get jobs for long periods. it must be noted that all those people who are NOT willing to work at the re not considered as unemployed. There area variety of ways by which an unemployed person is identified. According to some economists, “Un: yed Person is the one who is not able to get employment of even one hour in halt a day’ + From the point of view of the economy, unemployment means inefficient utilization of human resources, lower production and lower standard of living of people. Besides reducing the standard of living, unemployment also adversely affects the morale of the worker and undermines his self-confidence. | + With prolonged unemployment, the worker may also lose his skills and work habits and may become unemployable. ment is Temporary even in India In India, people cannot remain completely unemployed for very long because of their desperate economic condition. Asa result, they are forced to accept unpleasant, dangerous jobs in unclean or unhealthy surroundings. Sources of Unemployment Data There are three sources of data on unemployment: 1. Reports of Census of India; 2. National Statistical Office's Reports of Employment and Unemployment Situation; 3. Directorate General of Employment and Training data of Registration with Employment Exchanges.th, Informalisation and Other Issues re! pes OF UNEMPLOYMENT IN INDIA eee 19 Joyment problem in Inclia is mostly : | ly structural in nature. Let us di nee of unemployment in our country Uralin nature. Let us discuss some of eo is a loyment ‘Seasonal Unempl oye pisguised Unemp! :mployment 0, ‘more people are unemployment that Which persons are able and in work than are occurs at certain seas prevail nora clea ons willing to work at prevailing et the year) wage rate, but fail to get work) peqisd Unemployment (Hidden Unemployment) iequised Unemployment is a situation where in the number of workers engaged in a work is ore that actually / optimally required. It is also known as Hidden Unemployment. ‘fv evmiple, if two workers are needed on a piece of land and five workers are engaged on the same job, then three |) workers are disguised unemployed. + [tis the most predominant form of unemployment in the agricultural sector of developing countries like India. + Inthe late 1950s, about one-third of agriculture workers in India were disguisedly unemployed. + The main problem of disguised unemployment is that apparently all seem to be employed, but marginal fs : a Disguised Unemployment productivity of the surplus labour is zero, ie. contribution is common in case of of extra workforce is zero. ‘sugareane cutters * Causes of Disguised Unemployment: (i) Non-availability of alternative job opportunities outside agriculture compels people to work on family farms, which leads to disguised unemployment. (i) Small Land Holdings with increase in size of family further increases the possibility of disguised unemployment. (ii) In case of Joint Family, people continue to work on their family land, which further leads to disguised unemployment. Seasonal Unemployment Unemployment that occurs at certain seasons of the year is known as seasonal unemployment, * InIndia, seasonal unemployment is predominantly associated with agriculture. “In agriculture, work is seasonal and there are no employment opportunities in the village there is no work to do on farms, men go to urban areas home villagesas soon as the rainy'season begins. ies from state to state, depending upon the type and number of crops grown, ete. mt vari i the7.18 Indian Econom De, Open Unemployment Open Unemployment refers to that economic phenomenon in which persons are able and yi, to work at the prevailing wage rate, but fail to get work. Itis cal Hed open unemployment berauy? such unemployment can be seen and counted in terms of the number of unemployed Prope Open Unemployment is different from Disguised Unemployment. In case of o, 1 incase of disguised unemployment were unemployment, workers are totally idle. Howe: appear to be working and do not seem to be idling away their time. For ‘Other Types of Unemployment in India’, refer Power Booster Section. 7.10 CAUSES OF UNEMPLOYMENT The reason for existence of widespread unemployment in India is not due to any single factor, It is the cumulative result of many causes. The important causes of the unemployment problem, in India are: 1. Slow Rate of Economic Growth: [Stor Rate of Economic Growth The actual growth rate always Population Explosion lies far below the rate targeted Underdeveloped Agricuture in the five decades of planning. Employment opportunities created under the plans could [ BG a Sto Groh ot ndstry not keep pace with the additions | pect or Coage ae emai 6 to the labour force. | ndosties 2, Population Explosion: The rapid rate of population growth Inadequate Employment Planning has been another cause of increasing unemployment in the country. It has not been possible to generate so many employment opportunities to absorb the large growing labour force. 3. Underdeveloped Agriculture: Heavy pressure of population on land and the primitive methods of agricultural operations are responsible for massive rural unemployment and underemployment in the country. 4, Defective Educational System: The prevailing education system in India is full of defects. The large number of engineering, management and other educational institutes provide numerous engineers, MBAs, etc. But due to lack of technical and vocational training, such educated people are unable to meet the requirements of the firm and remain unemployed 5, Slow Growth of Industry: Due to shortage of capital and lack of modern and advanced technology, industrial sector could not gain its momentum and could not generate sufficient employment opportunities in the country. 6. Decline o£ Ge - Defective Educational System Faulty Planning — Low Capital Formation of traditional village and cottage @ in the demand preferences and ult, a large number of people haveuth, dnformarsation and Other Issues 719 Planning: ‘The plans could not stop the migration of the rural population into areas. The plans were unable to encourage use of labour-intensive techniques of jtural and industrial production, The plans have failed to put due emphasis on nt generating programmes like development of dairies, fisheries and poultry entinfrastructure facilities (power, transportation, communication, roads, greatly hampered the expansion of work opportunities, *yinployment Planning: Low priority has been given to employment objective There has been complete absence of any legal provision to implement amployment generating schemes, fy Capital Formation: Low rate of capital formation has hampered the growth potential * in the agricultural and industrial sectors. Consequently, job-creation capabilities of both the sectors have been affected adversely. DIAL MEASURES FOR UNEMPLOYMENT ment problem in India can be solved with the help of following measur g, faully qe ban jgrietl yer i. Insulficie compl jarmil ote) have inadequate in the plans. — at RENE! he unemploy! ‘accelerating Growth Rate of GDP ‘Special Employment Programs Control of Population Growth j Improvement of Employment Exchanges TSS SS NSGSa oa) UNEMPLOYMENT, i — Creation of Self-employment opportunities of Agricultural Sector Development encouragement to Smal-scale Enterprises Reform of Educational System & Skill Growth Improvements in Infrastructure Manpower Planning Jerating growth rate of GDP: The aggregate employ! f accelerated growth. Growth rates of GDP between 8% and 9% are 1s, to achieve a significant improvement in the employment 4, Accel ment problem can be solved through the process 0 needed over the next ten yea situation. 2. Control of population growth: down, so that the additional jobs created do ni market, Therefore, itis necessary to adopt an effective and meaningful popul. policy, like family planning programmes. 3, Development of agricultural sector: Acceleration of agricultural growth is important to increase labour productivity and quality of employment for large numbers of the existing labour force. There is a need for agricultural revolution through improved techniques, extension of irrigation facilities, reform of land laws, increase in public investment, etc, 4. Fncouragement to small-scale enterprises: The small-scale sector needs to be encouraged through multiple initiatives like liberal finance, technical training, supply of raw material, infrastructural facilities and marketing of their products. The infrastructural facilities like health, education, | for overall development of the economy. Better and industry sector to produce to their full The rapid growth rate of population should be slowed .ot fall short of new entrants to the labour lation control 5. Improvements in Infrastructure irrigation, electricity, roads, ete. are critica infrastructural facilities enable agriculture capacity. This will generate more employment.ed 7.20 In ‘onamie De 6 Special Employment Programs: Special employment programs, which aim at 1 Pi Provig; wage employment or self-employment opportunities, should be implemented ing 7 Improvement of Pmployment Exchanges: The employment exchanges Spread alj , the country are of great assistance in directing the job seckers to the possible teas 7 of employment. The functioning of such employment exchanges should be improy, 8. Creation of selF-employment opportunities: Government should provide various fc like financial assistance, training of skills, supply of inputs, marketing of products w, generate more self-employment opportunities. a 9 Reform of Educational System & Skill Growth: The present system of educational SYSten, should be made more vocational and work-oriented. Educational facilities should bem. diversified and a sustained programme of training is necessary, to develop skills amon, the educated unemployed through special training or apprenticeship courses, Indian Government launched Pradhan Mantri Kaushal Vikas Yojana (PMKVY) oF Skill India. 16 July, 2015 asa skill development initiative scheme for recognition and standardisstn of skills. Under this scheme, the trainees are offered a financial reward and a governmen. certification on successful completion of training and assessment, which will help thes in securing a job for a better future. 10. Manpower Planning: The future requirements of educated manpower should be forecasted and accordingly, intake into different professional courses should be determined, As : result, excess manpower in market of educated labour will be eliminated. Letus now discuss the measures taken by the government to overcome the problem of unemployment 7.12 GOVERNMENT POLICIES AND EMPLOYMENT GENERATION Government has taken many initiatives to generate acceptable employment, ensuring at least minimal safety and job satisfaction. or «xmple, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. MGNREGA aims at enhancing the livelihood security of people in rural areas by guaranteeing 100 days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. This scheme is one of the ‘many measures, which the government has implemented to generate employment for those who are in need of jobs in rural areas. Since independence, the Union and State Governments have played an important role in generating employment or creating opportunities for employment generation. Their efforts can be broadly categorised into tivo aspects:: + Government provides ‘Direct Employment’ by employing people in various departments for administrative purposes, Italso runs industries, hotels and transport companies and hence provides employment directly to workers. ‘Dam construction work is 2 Vith increase in output of g dserv Bee emment ban sonsrietcn wot rial to generation by the gover72 lemented a number of “Employment like National Rural Employment 05 Prime Minister's Rozgar Yojana, Swama programmes aim at providing employment, 2 primary health, education, rural shelter, etc. services se programmes also aim to assist people in buying number ardlow cost masks jgome and employment generating assets, developing to people for prevention of coronavirus, the Jeevan Shakti Sty assets and construction of houses and sanitation. are advised to refer “Poverty Alleviation Programmes in Indias Me Pra \Cnecter: i : with a view tg increase the seasceun raster Poveny,torevisetheprogammesandpolcies, emaymen epgarantionoh intaed by te goverment. women entrepreneurs in urban areas of the state. con hee as been 8 change in the structure of workforce in India. er With the expansion of the service sector, Due to advent of high technology, now efficient small-scale exterprises , and individual enterprises work along with MNCs. g6 r Outsourcing involves contracting out an activity to an outside specialised agency (sometimes situated even in other countries), which undertakes complete responsibility to handle it using its own manpower. For example, many companies have sired outsourcing sanitation and housekeeping functions, which were earlier performed by their in-house staff. Due to changes in work methods, ithhas now become a common practice for many people to work from their home. Internet has become an amazing mean for work “ctor: The nature of employment has become more informal ‘with only limited availability of social security measures to the workers. an In the last two decades, there has been but without simultaneous increase in , up initiatives in generating = GDP, but not in e7 pie nent opportun