What is unemployment?
What is unemployment? Unemployment is a situation where there is a difference in the opportunities (demand for labor) of labor force (capital of labour). Unemployment is the result of the supply of workers being greater than the demand for them. Unemployment refers to a situation in which a person is ready to work at the current wage rate but does not get work.The state of unemployment in a country is that state in which there are many working people in the country but they are not getting work due to various reasons. Therefore, while estimating unemployment, only those persons who are (a) able to work are counted; (b) willing to work and (c) ready to work at present wages. persons who are not qualified to work; For example, sick, old, children, students etc. are not included in unemployment. Similarly, those who do not like to work are also not counted among the unemployed. Pro. According to Pigou , a person is said to be unemployed only when he has no means of employment but wants to get employment.
Unemployment Rate
The extent of unemployment refers to a situation in which a person is ready to work at the current wage rate but does not get work. The extent of unemployment in a country is that state in which there are many working people in the country but they are not getting work due to various reasons. Therefore, while estimating the extent of unemployment, only those persons who are (a) able to work, (b) willing to work and, (c) willing to work at the present wage.
Cause of Unemployment in India
(1) increase in population
The main reason for unemployment in India is the rapid growth of population. Here the population is increasing at the rate of 2.5 percent per annum but employment facilities are not increasing at this rate. The number of agricultural laborers in 1951 was 2.8 crore, which increased to 3.15 crore in 1961, 4.75 crore in 1971 and 5.15 crore in 2011.
(2) limited land
Agriculture is done on 143 million hectares of land in India. There has been very little increase in the extent of land, but the population is increasing at a fast pace, due to which the burden of population on the land is increasing and the land per capita is decreasing. In this, the utility of people has decreased, because the work that one person can do, two people are engaged in it.
(3) Seasonal nature of agriculture
Indian agriculture is a seasonal occupation, due to which workers do not get employment throughout the year in agricultural work. According to the survey of the Uttar Pradesh government, work is available for 258 to 280 days in a year in those areas where there are canals and in the eastern region, work is available only for three or four months in a year. According to the Economic Survey, the farmers of South India are busy for only 5 months in a year. In the free season, he works only for an hour or two.
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(4) Disorganized and unscientific agriculture
Indian agriculture is not properly organized and the way of doing agriculture is unscientific. Due to lack of good seeds, manure, fertilizers and improved equipment, the productivity per hectare is very low as compared to other countries. Therefore, the income of this business has been low, due to which it is not able to provide employment to more people.
(5) small and scattered fields
Farms in India are small and scattered. They are of non-economic holding and production is less on them. Due to small scale farming, unemployment increases.
(6) cottage industries
Lack of business, faulty and selfish policy of the British government and competition for machine-made goods led to the decline of cottage and small scale industries and the people engaged in them became unemployed. Secondly, due to the absence of ancillary industries in the villages, the agricultural laborer is unable to utilize his free time properly and remains idle.
(7) Mechanization of agriculture
The process of mechanization is increasing in both the industry and agriculture sectors in the country, the natural result of which is the increase of unemployment in the short run.
(8) Wrong economic planning
Economic planning in India started from 1951 AD, but due to the flawed economic planning, despite the programs to increase employment in these plans, the number of unemployment increases at the end of each plan. Slow pace of capital formation- Capital formation is happening at a slow pace in India. Population is increasing at a faster rate than capital formation. Hence, unemployment gets promoted.
Measures to reduce Employment
1. Development of ancillary and supplementary industries
The development of small and cottage industries is required to remove partial unemployment in the agricultural economy. Small and cottage industries are labor intensive and they can provide employment to a large number of idle and semi-useless workers. Therefore, in order to make the rural people happy and prosperous, it is necessary that there should be adequate development of small and cottage industries in India.
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2. Controlling the Growth of Population
According to the Planning Commission, in order to reach the position of maximum employment at the level of maximum income, it is necessary to control the growth of population. To achieve this objective, the family planning program should be spread at a more rapid pace.
3. Expansion of Social Services
The expansion of education, medical and other social services in rural areas in India will help in reducing the intensity of the existing unemployment problem.
4. Miscellaneous work in the field of nation building
Construction of roads and bridges, land conservation, tree plantation, building, land rejuvenation, construction of drains, etc.
5. Expansion of the area of agricultural land
In India, 1.54 crore hectares of total land area are cultivable barren land. This cultivable barren land should be made cultivable by plowing and cleaning it so that rural unemployed can be provided employment.
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6. Changes in the Education System
Changes should be made in the present education system in India. For which vocational education should be spread. Without making education vocational and employment oriented, it is not possible to reduce educated unemployment in the country.
7. Agricultural Allied Industries
Development of industries To remove unemployment in rural areas, more development should be done in the ancillary industries of agriculture, such as poultry, animal husbandry, fisheries, dairy farmers, horticulture etc.
8. Proper exploitation of natural resources
The natural resources have not yet been properly exploited in the country, due to which the pace of industrial development has been slow. Therefore, survey of natural resources and proper exploitation should be planned to generate more employment opportunities.
9. Promotion of investment of capital
Investment of capital should be encouraged in large amount to increase employment in the country. Factories and production units should be further expanded in the public sector as well as in the private sector.
10. Extension of Self Employment Scheme
The unemployed youth in India should be encouraged to clearly educate the unemployed that they should start their own employment, not run after jobs. Thus employment opportunities will increase.
11. Manpower planning
Manpower planning should be done in India. The meaning of manpower planning is that adjustment should be made between the demand and supply of labor in different production areas and training etc. should be arranged accordingly.
12. Other Measures
To solve the problem of unemployment in the country, extension of social reforms, training and guidance schemes, establishment of agricultural service centers, construction of roads on a large scale, establishment of power stations in rural areas, employment oriented planning in agricultural aids and roads etc. More emphasis should be given on measures.
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