Unemployment

in India
Topic
Submitted to
Dr. Pinki
Assit. Prof. of Commerce
Indira Gandhi University,
Meerpur
Submitted by
BHAWNA SAINI

TARUNA KOCHER

MONIKA GUPTA

MADHUBALA

M.COM HONS 5
TH
semester

Contents
Meaning of unemployment
Defination of unemployment
Effects of unemployment
Causes of unemployment
Types of unemployment
Suggestions to solve unemployment problem
Steps taken by Government to increase Employment
Employment in Eleventh five year plan



Pigou


Definition of Unemployment
Loss of
Human
Resour-ces
Increase
in Poverty
Socials
Problems
Effects of
Unemployment
Political
Instability
Exploitatio-
n of
Labourers

Rapid
growth of
population
Automation Agriculture, a
seasonal Industry
Defective
Education System
Less saving and
investment
Lack of
employment
policy
Slow progress of
Industrialisation
Slow economic
growth
Open Unemployment
Under Unemployment
Educated Unemployment
Industrial Unemployment
Rural Unemployment
Urban Unemployment
Seasonal Unemployment
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment

Types of Unemployment
Open Unemployment
Under Unemployment
Educated unemployment


When educated people do not get job according to their
educational standard it is called educated
unemployment.
With the rapid growth of population and
urbanisation, more people seek employment in
industries. Because of seasonal nature of
agriculture, people from village come to urban areas
in search of industrial jobs.





Rural unemployment
It is characterised by seasonal
unemployment and under
unemployment.


Urban unemployment
It is characterised by educated
unemployment, open
unemployment and industrial
unemployment.
It means a person is employed in
a particular season and is
unemployed in another season.
In India, it is very common in
agriculture. Here persons get
work in cropping and
harvesting season and in other
months of the year, they
remain unemployed. It is
estimated that a farmer who
sows a single crop in a year
remains unemployed generally
for 5 to 7 months.
This unemployment of
temporary nature. It arises
due to market
imperfections. When
people shifts one place to
another and there they
seek jobs; there many be
unfilled vacancies at that
place ,but it takes some
time to match the unfilled
vacancies.
This unemployment is because
of technology changes or
change in the demand pattern
of goods. It is possible that
demand of new type of goods
has increase or technological
advancement has taken place
and labour does not have right
skills to manufacture new type
of goods or work with new
technology.
In every economy, trade cycles
prevail, i.e. period of boom
depression. In the period of
boom, there are many
economic activities. More
persons jobs in the period of
boom. While in the period of
depression, there are lesser
economic activities like
decrease in demand.
Check on population
National employment policy
Strengthening Information Technology
sector
Promoting rural non farm Activities
More Industrialisation
Promotion of Exports
Change in the Education system
Steps taken by government to
increase employment
Swaranjayanti Gram Swarozgar
yojana(SGSY)
It is the single self employment programme for the rural
poor. It was launched in Apirl, 1999.It aims at
establishing a large number of small enterprises in
the rural areas. The expenditure on SGSY is shared by
the central and state government in the ratio of 75:25.
For north- eastern states this ratio is 90:10.The SGSY is
implemented by District Rural Development
Authority through the Panchayat Samitis.The SGSY
has now been restructured as National Rural
Livelihood Mission (NRLM).

Sampoorna grameen rozgar yojana(sgry)
It was launched on the 1
st

september, 2001. The main
objectives of this yojana are
to provide opportunity of
employment to surplus
labour , to provide food
security, development of the
basic infrastucture.This
yojana has set a target of
creating 100 crore man days
of employment. In this
yojana part of wages are
paid in terms of food.
Micro, small and medium
enterprises
With a view to reducing unemployment,
government has made special efforts to
develop micro, small and medium
enterprises. In 2009-10, as many as 695
lakh persons were employed in these
industries. Special incentives are given
to these enterprises in 11
th
five year plan.
Development of organised sector
Many people are getting
employed in organised
public and private
sectors, such as,
industries, mining,
transport, construction
activities etc.In the year
2008-09, it provided
employment to 2 crore
and 81 lakh persons
employment in foreign
countries

Government also helps people to get employment aboard.
Special agencies have been set up to recruit people to
serve in foreign countries like Kuwait, Saudi Arabia,
Iran, Canada, Australia, etc.
NATIONAL FOOD FOR WORK
PROGRAMME
In November 2004, Government has started
National food for work programme in 150 most back
ward districts of the country. In this programme
wages are distributed in the form of foodgrains. This
scheme is aimed at rural poor.

Swaranjayanti shahari rozgar yojana
This yojana provides employment to
urban unemployed. It came into
operation from 1
st
december, 1997.
it comprises of two special
schemes;
Urban self employment
programme(USEP)
Urban wage employment
programme(UWEP)
In urban self employment
programme the person starts his
own work/business and earns
profit while in urban wage
employment programme the
person takes employment as
employee with some other person
and get wage/ salary for his work.
Mahatma gandhi national rural
employment guarantee
act(mgnrega)
Government enacted MGNREGA in 2005 and in
year 2006-07, this act has been implemented in
200 districts of the nation. It provides atleast 100
days of guaranteed wage employment in every
financial year to the poor persons living in rural
areas to atleast one adult person in every house
hold.Now, this act has been extented to all 640
districts.
Creating 58 million new employment oportunities
Reducing unemployment rate to below 5 per cent
Creating quality jobs in organised sectors
Creating non agriculture work oportunities by
creating jobs in industrial and service sectors
Special programmes aimed at target groups such as
weavers, artisans, craftmens etc.