Slide 1: Unemployment in India Issues and experiences since 1950s. Slide 2: PRESENTED BY :-
UTKARSHI What it is…… : What it is…… Unemployment as defined by the ILO- occurs when people are without jobs and they have actively looked for work within the past four weeks
unemployment rate is a measure of the prevalence of unemployment , calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force. Slide 4: 4 Identified features of unemployment The incidence of unemployment is much higher in urban areas than in rural areas.
Unemployment rates for women are higher than those for men.
The incidence of unemployment among the educated is much higher than the overall unemployment.
There is greater unemployment in agricultural sector than in industrial and other major sectors. Classification of unemployment : Classification of unemployment 5 Voluntary unemployment : Voluntary unemployment 6 Involuntary unemployment A person is separated from remunerative work and devoid of wages although he is capable of earning his wages and is also anxious to earn them. In this type of unemployment a person is out of job because of his own desire to not work on the prevalent or prescribed wages. Slide 7: 7 Cyclical unemployment Part of the capitalist system and a result of trade cycle.
There is greater unemployment and when there is depression a large number of people are rendered unemployed. Seasonal unemployment Certain industries and traders engage workers for a particular season.
When the season has ended the workers are rendered unemployed. Sugar industry is an example of this type of seasonal unemployment. Sudden unemployment Prevalent in industries, trades and business where people are employed for a job and suddenly when the job has ended or due to some changes they are asked to go. Types of unemployment in india : Types of unemployment in india STRUCTURAL unemployment
- occurs when labour market is unable to provide jobs for everyone
- reasons : mismatch b/w skills of unemployed and expectation of employers
- population overgrowth Types of unemployment in india : Types of unemployment in india DISGUISED unemployment
-occurs when more people are engaged in work than required actually.
- common in agriculture sector in our country Effects of unemployment : Effects of unemployment At INDIVIDUAL LEVEL
- mental stress
- loss of self esteem
- directly linked to poverty and malnutrition Effects of unemployment : Effects of unemployment At SOCIAL LEVEL
- civil unrest
- law and order problem
eg.- naxalites,thefts etc.
- trade barriers / protectionism in case of high unemployment , for immigrants Some implicit benefits… : Some implicit benefits… Help AVERT INFLATION
-reason : excess labourers , keep wages in check
generally increases existing labourers productivity Reasons for this mess… : Reasons for this mess… Reasons for this mess… : Reasons for this mess… UNSKILLED workforce
over 70% of total labour force is illiterate or educated below primary level
Rise of Organised sector Reasons for this mess… : Reasons for this mess… Lack of complimentary factors of labours i.e.
technology too is a factor but benefits outweight side effects. Reasons for this mess… : Reasons for this mess… AGRICULTURE
- backward /traditional farming
- 70% population dependent on it
Disguised unemployment Reasons for this mess… : Reasons for this mess… lack of ADDITIONALS like :
- poultry farming
- dairy farming
- bee keeping
have worsened the situation
india lives in villages – an impediment in inclusiveness. Reasons for this mess… : Reasons for this mess… GOVT’S MEASURES
- not effective
- red taped approach
difference in criteria for calculating unemployed as following aren’t included:
- those who have become discouraged overtime, from actively looking for work Reasons for this mess… : Reasons for this mess… -voluntary retirement holders who still want to work
-housewives who prefer to work
-involuntary part time workers in search of full time jobs Slide 20: factors 2004-2005
Total Population as on Jan. 2005 1092.96 m
Total Labour Force 469.94 m
Total Employment 459.10m
Unemployment rate 2. 3 %
Employment in Organised Sector 26.4m UNEMPLOYMENT SCENARIO IN INDIA Slide 21: factors 2004-2005
7. Employment in Unorganised 432.7 m
8. No. of Jobseekers Registered with 39.3m
9. Persons working but
living below poverty line 130m
10. Persons below poverty line 42%
(acc. To world bank ,2005) Slide 22: Employment & Unemployment Scenario in India Slide 23: Unemployment rate in India is 10.7% as on 2009. Slide 24: The Census projection report shows that the proportion of population in the working age group (15-59 years) is likely to increase from approximately 58% in 2001 to more than 64% by 2021. Sector wise absorption of labour : Sector wise absorption of labour Slide 28: The Labor Bureau of the Government of India has conducted a survey on unemployment, and has come up with an unemployment rate .
The survey was conducted in 28 States/UTs spread across the country in which about 99 per cent of the country’s population reside.
The overall unemployment rate is 9.4%, and it is split out as 10.1% in rural areas, and 7.3% in urban areas.
A key thing to remember about unemployment rate is that it is calculated as a percentage of labor force, and not the total population. So, this means that 9.4% of that part of population which is interested in working is unemployed, and not 9.4% of the entire population is unemployed. Slide 29: Agriculture sector is projected to generate no additional employment during the Eleventh Plan period. Employment in
manufacturing is however expected to grow at 4 per cent while construction and transport & communication are expected to grow at around 8.2 per cent and 7.6 per cent, respectively.
The projected increase in total labour force during 11th Plan is 45 million. As against this, 58 million employment opportunities are targeted to be created during the Eleventh Plan. This is expected to reduce unemployment rate to below 5 per cent.
The labour force participation rate is estimated to be 359 persons per 1000 in the population.
The worker population ratio (WPR) is estimated at 325 persons per 1000 persons. Employment and Unemployment Situation Slide 30: Within the employed population, self employment is the dominant category. Out of 1000 persons employed, 439 persons are self employed, 168 persons are regular wage/salaried and the rest 393 persons are employed as casual labour at the overall level.
The survey results reveal that 455 persons out of 1000 persons employed are employed in agriculture, forestry and fisheries group at the overall level, followed by 89 persons in the manufacturing group, 88 persons in the wholesale & retail trade, etc, 84 persons in the community services group and 75 in the construction group of industries. the way out … : the way out … primarily two main issues namely :-
1. How to provide employment to the new entrants ??
2.How to improve quality of employment ?? Slide 32: Basic Assumption Economy has the capacity to provide gainful employment to all the persons in the labour force
The workforce is not able to get decent work because of non availability of skill required in the labour market Slide 33: GOVERNMENT
INITIATIVES Slide 34: SWARNJAYANTI GRAM SWAROZGAR YOJANA
The persons taking up Self-Employment are called swarozgaris.
Swaranjayanti Gram Swarojgar Yojana (SGSY) . a holistic programme for promoting self employment of rural poor.
The SGSY is being implemented by the District Rural Development Agencies (DRDAs), with the active involvement of Panchayati Raj Institutions (PRIs), the Banks, the Line Departments and the Non-Government Organisations (NGOs). SwarnaJayanti Shahari Rozgar Yojana(SJSRY) : SwarnaJayanti Shahari Rozgar Yojana(SJSRY) Implementation of SJSRY begins from 1st December 1997 under funding pattern of Centre and State in 75:25 basis.
Gainful Employment to Urban Poor, Unemployed and Underemployed.
Setting up self Employment ventures and provision of wage-employment.
Community Empowerment through creation of suitable community structures on UBSP pattern.
Capability Building, Women's Group for small enterprises, Women's Thrift-cum-Credit Societies. Prime Minister’s Employment Generation Programme (PMEGP) : Prime Minister’s Employment Generation Programme (PMEGP) The Rozgar Yojana (PMRY). The programme directly creates
Self-employment by providing credit linked subsidy for setting up of
micro enterprises.The scheme is for implementation from 2008-09 to
2012-13 with an estimated expenditure of Rs. 4735 crore towards
margin money and Rs. 250 crore towards backward and forward
linkages with the target for generation of 37.37 lakh employment
opportunities. Ministry of Micro, Small & Medium Enterprises is
implementing the Prime Minister's Employment Generation
Programme (PMEGP) which was launched in August, 2008. The
programme came into existence after merger of two earlier
schemes namely Rural Employment Generation Programme (REGP) and
PradhanMantri The Mahatma Gandhi National RuralEmployment Guarantee Act‟ (MGNREGA) : The Mahatma Gandhi National RuralEmployment Guarantee Act‟ (MGNREGA) The Mahatma Gandhi National Rural Employment
Guarantee Act aims at enhancing the livelihood security
of people in rural areas by guaranteeing hundred days of
wage-employment in a financial year to a rural
household whose adult members volunteer to do
unskilled manual work. Action taken to tackle Issue No-1 : Action taken to tackle Issue No-1 Economic growth and employment growth are correlated
more GDP growth rate employment opportunities
five years plan focuses on employment generation targets.
-against a target of 10 million per year , 12 million
persons per year were provided employment in 2000-2005
NREGA is step in right direction. Action taken to tackle Issue No-2 : Action taken to tackle Issue No-2 Provide skill training to the new entrants to the
Improving skill level of existing work force. Formal Skill Training : Formal Skill Training Training imparted in trades primarily to suit organised sector
Around 2.5 million get trained each year
Industries are also associated with training along with govt. Informal Skill Training : Informal Skill Training cann’t be avoided
Skills thus obtained require testing and certification.
eg. Construction industry specific training Available Modes of Action : 42 Available Modes of Action Increase access to credit to encourage entreneurship
Provide incentives for new initiatives
Strengthen or enforce legislation
Publicize opportunities in the media Where are the untapped potentials : 43 Where are the untapped potentials Raise farm productivity Renewable energy
Agro-industrial linkages Service sector
Employability skills Application of IT Slide 44: 44 To solve this massive problem efforts should be made to rectify the mistake in the development move on one hand, and to mitigate the high population growth, on the other reselect its programmers‘s and reconstruct its plans so as to make the development move rural oriented.
This will bring about fast agricultural development, uplift of village life and revival of village industries, artisanship and handicraft to check the massive rural-urban migration. As regards to the check on high population growth the prevailing family planning programme has been proved insufficient and incomplete Suggestion Slide 45: 45 Concludes that to solve the unemployment problem of India the development plans and the family planning programmer, both, should be reformed on the lines suggested herein above whereby the extra employment opportunities will be generated fast, on one hand,
And population growth will be checked, on the other, in such a way that growth of employment opportunities would considerably exceed to the population growth. Suggestion(Contd.) References : References 46 www.visualeconomics.com
www.labour.nic.in Any questions ??? : Any questions ???