Unemployment

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The problem of unemployment and the viability of NAREGA

Definition:

Definition Unemployment , as defined by the International Labour Organization , occurs when people are without jobs and they have actively looked for work within the past four weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force . Unemployment Rate = Unemployed Workers / Total Labour Force

History :

History Recognition of unemployment occurred slowly as economies across the world industrialized and bureaucratized. The recognition of the concept of "unemployment" is best exemplified through the well documented historical records in England.

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Estimated U.S Unemployment Rate from 1890-2010

Types Of Unemployment:

Types Of Unemployment Classical unemployment Cyclical or Keynesian unemployment Full employment Structural unemployment Frictional unemployment

Problem of Unemployment:

Problem of Unemployment The problem of unemployment is a world-wide reality. The developed countries like the U.S., England, France, Germany, Italy, etc. also suffer from this problem, but it is more pronounced in India. With the passage of time it has become worse. It has become a threat to India's economic well-being and social development. It is one of the major causes of our poverty, backwardness, crimes and frustration among the people. India is the second largest country after China in terms of populations and man-power. But because of large scale unemployment there is no suitable employment for them. They are forced to remain idle.

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There are millions of young men and women waiting and waiting for job opportunities. This chronic problem of unemployment is not confirmed to any particular class, segment or society. It is all pervading. There is massive unemployment among educated, well-trained and skilled people, and it is also there among semi-skilled and unskilled laborers, small and marginal farmers and workers. Then there is underemployment. The jobs being created have miserably failed to keep pace with the ever increasing number of job-seekers. It is a problem which presents a great challenge to leaders, thinkers, planners, economists, industrialists

Measures To Control Unemployment :

Measures To Control Unemployment Our education system should be reviewed and changed according to our present needs. Like factories our universities, colleges and schools are still producing on a large scale, a rich crop of graduates fit only for white collar jobs in these offices. These graduates are fit only for such jobs as those of clerks, assistants, officers and bureaucrats sitting at tables in the offices. These educated but unemployed youths numbering millions and millions are a source of great anxiety and concern.

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Our education should be work-oriented. It should be such as enables a person to stand on his own feet instead of depending on others. It is really an irony that our highly educated and trained personnel like engineers, doctors, scientists etc. run after the government jobs. It is perhaps because of the education system started by the Britishers long ago, which has totally lost its relevance and still prevails. They depend too much on the government and lack the courage and inspiration to stand on their own feet. There should be more and more emphasis on vocational education. There should be more and more technical institutions and training centers. Indiscriminate and unplanned admissions in colleges and universities should also be checked. Higher education should be reserved only for those who really deserved it.

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To alleviate this problem of unemployment and under-employment in villages a progressive employment scheme called Jawahar Rozgar Yojana was introduced in 1989. Over 440 lakh families living under the poverty-line are likely to benefit from it. More such schemes are need to create gainful employment opportunities for scheduled tribes, scheduled castes and other backward classes and communities in the rural areas of the country. The rural unemployment has been a major contributory factor of this highest incidence of poverty in spite of our efforts towards development and industrialization

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NAREGA

Introduction:

Introduction The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) is an Indian job guarantee scheme, enacted by legislation on August 25, 2005. The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work -related unskilled manual work at the statutory minimum wage of 100 ( US$ 2.17) per day in 2009 prices. The Central government outlay for scheme is 40,000 crore ( US$ 8.68 billion) in FY 2010-11.

Objective Of NAREGA:

Objective Of NAREGA This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or un-skilled work to people living in rural India, whether or not they are below the poverty line . Around one-third of the stipulated work force is women. The law was initially called the National Rural Employment Guarantee Act (NREGA) but was renamed on 2 October 2009

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It has been five years since the launch of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) launch from Anantpur in Andhra Pradesh on February 2, 2006. The act has been instrumental in raising the productivity, increasing the purchasing power, reducing distress migration, creating durable assets while ensuring livelihood opportunities for the needy and poor in rural India. The act is aimed 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. These works include water conservation, drought proofing, irrigation, land development, rejuvenation of traditional water bodies, flood control and drainage work, rural connectivity and work on the land of SC/ST/BPL/IAY beneficiaries/land reform beneficiaries/ individual small and marginal farmers.

Provisions:

Provisions Adult members of a rural household, willing to do unskilled manual work, may apply for registration in writing or orally to the local Gram Panchayat The Gram Panchayat after due verification will issue a Job Card. The Job Card will bear the photograph of all adult members of the household willing to work under NREGA and is free of cost. The Job Card should be issued within 15 days of application.

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A Job Card holder may submit a written application for employment to the Gram Panchayat, stating the time and duration for which work is sought. The minimum days of employment have to be at least fourteen. Wages are to be paid according to the Minimum Wages Act 1948 for agricultural labourers in the State, unless the Centre notices a wage rate which will not be less than 60 ( US$ 1.3) per day. Equal wages will be provided to both men and women. Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 km, extra wages of 10% are payable to meet additional transportation and living expenses

Funding Of NAREGA:

Funding Of NAREGA MNREGA started with an initial outlay of $2.5bn(Rs 11300cr) in year 2006-07.The funding has considerably been increased as shown in the table below: Year Total Outlay (TO) Wage Expenditure Percent of TO) 2006-07 $2.5bn 66 2007-08 $2.6bn 68 2008-09 $6.6bn 67 2009-10 $8.68bn 70 2010-11 $8.91bn 71

Work And Activities:

Work And Activities The MGNREGA achieves twin objectives of rural development and employment. The MGNREGA stipulates that works must be targeted towards a set of specific rural development activities such as: water conservation and harvesting, afforestation, rural connectivity, and protection much as construction and repair of embankments, etc. Digging of new tanks/ponds, percolation tanks and construction of small check dams are also given importance. The employed are given work such as land leveling, tree plantation, etc. First a proposal is given by the Panchayat to the Block Office and then the Block Office decides whether the work should be sanctioned.

Performance :

Performance Employment provided to 4.1 crore households in 2010-11 up to Dec.10. Women constitute 47%  while Scheduled Castes account for 28 %, and Scheduled Tribes 24% of the workers under Mahatma Gandhi NREGA in 2010-11. Average Wages per day under MGNREGA has gone up from Rs. 65 in 2006-07 to Rs. 100 in 2010-11. Expenditure on wages Rs. 74677 crores.

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Wage rates enhanced by 17-30% by linkage with Consumer Price Index for Agricultural labour calculated on the basis of Rs. 100 or the actual wage rate, whichever is higher as on April 1,2009. Around 10 crore accounts of Mahatma Gandhi NREGA beneficiaries opened in post offices/banks contributing to financial inclusion. Allocation of funds for 2010-11 raised to Rs. 40,100 crores. Water Conservation, irrigation and land development account for over  75 % of work taken up in 2010-11 Over 68 lakh works taken up under MGNREGA  so far.

Initiatives and Innovations:

Initiatives and Innovations Enhancement of  MGNREGA wage rates by 17-30 % by linking it with Consumer price index for agricultural labour calculated on the basis of Rs. 100 or the actual wage rate, whichever is higher as on April 1 st , 2009. The new wage rates which come in to effect from January 1,2011 are higher than the prevailing wage rates under MGNREGA at present in many states. Wage disbursement to Mahatma Gandhi NREGA workers through Banks/Post Office accounts has been made mandatory. Around 9.38 bank/post office accounts have been opened so far.

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On line Monitoring : Job cards, muster rolls, wage payments, number of days of employment provided and works under execution have been put up on the website www.nrega.nic.in for monitoring and easy public access for information. District Level Ombudsman : Set up to receive complaints from Mahatma Gandhi NREGA workers and others on any matters, consider such complaints and facilitate their disposal in accordance with law. Social Audits made mandatory : Gram Panchayats have been asked to organize Social Audits once in every six months. Reports on Social Audits uploaded on the MGNREGA website. 73 % Gram Panchayats have reported to have undertaken Social Audits in 2010-11 so far.

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Thank You