Unemployment is a serious issue. There are many factors which are responsible for this. Some of these include lack of proper education, lack of good skills and skills, inability to perform, lack of good employment opportunities and rapidly growing population. A look at unemployment stability, unemployment consequences and measures taken by the government to control it further.
Unemployment related statistics in India
The Ministry of Labor and Employment in India maintains unemployment records in the country. Unemployment figures are calculated based on the number of people who had no work for a substantial period of time during the 365 days prior to the date the figures were matched and are still seeking employment.
From 1983 to 2013, the unemployment rate in India was the highest at 9.40% with an average of 7.32 percent and in 2013 it was a record of 4.90%. In the year 2015-16, the unemployment rate was 8.7% for women and 4.3 percent for men.
Result of unemployment
There are serious socio-economic issues due to unemployment. This affects not only one person but the whole society. Some of the major consequences of unemployment are explained below:
- Rise in poverty
This statement is absolutely true that the increase in the unemployment rate has increased the poverty rate in the country. Unemployment is mainly responsible for inhibiting the economic development of the country.
- Crime rate increase
Unemployed unable to find a suitable job usually takes the path of crime as it is an easy way to make money. Unemployment is one of the main causes of the rapidly increasing cases of theft, robbery and other heinous crimes.
- Exploitation of labour
Employees generally take advantage of the lack of jobs in the market by offering lower wages. People unable to find a job linked to their skills usually settle for a low-paid job. Employees are also forced to work for a specified number of hours each day.
- political instability
Lack of employment opportunities results in a lack of trust in the government and this situation often leads to political instability.
- mental health
The level of dissatisfaction increases among unemployed people, which gradually leads to anxiety, depression and other mental health problems.
- Loss of skill
Staying out of a job for a long period of time leads to dull life and loss of skills. This reduces a person’s confidence to a great extent.
Government initiative to reduce unemployment
The Government of India has started several programs to reduce the problem of unemployment as well as to help the unemployed in the country. Some of these include Integrated Rural Development Program (IRDP), Jawahar Rozgar Yojana, Drought Prone Areas Program (DPAP), Training for Self-Employment, Nehru Rozgar Yojana (NRY), Employment Assurance Scheme, Prime Minister’s Integrated Urban Poverty Alleviation Program (PMIUPEP), employment offices, employment in foreign countries, development of small and cottage industries, employment guarantee scheme and Jawahar Gram Samridhi Yojana etc. Not.
Apart from providing employment opportunities through these programs, the government is also sensing the importance of education and providing skill training to unemployed people.
- Self-employment training
The program, started in 1979, was called the National Scheme of Training of Rural Youth for Self Employment (TRYSEM). It aims to reduce unemployment among youth in rural areas.
- Integrated Rural Development Program (IRDP)
To ensure full employment opportunities in rural areas in the year 1978-79, the Government of India launched the Integrated Rural Development Program. 312 crores were spent on this program and 182 lakh families benefited from it.
- Employment in foreign countries
The government helps people in getting employment in foreign companies. Special agencies have been set up in other countries to hire people.
- Small and cottage industries
In an effort to reduce the issue of unemployment, the government has also developed small and cottage industries. Many people are earning their living with this initiative.
- Golden jubilee employment scheme
The program aims to provide self-employment and wage-employment opportunities to the urban population. It consists of two schemes:
- Urban self-employment program
- Urban wage employment program
- Employment assurance scheme
This program was started in 1994 for 1752 backward classes in the country. Poor unemployed people living in rural areas were provided unskilled manual work for 100 days under this scheme.
- Drought prone area program (DPAP)
The program was launched in 13 states and covered 70 drought-prone districts with the aim of eliminating seasonal unemployment. The government spent Rs 474 crore in its seventh plan.
- Jawahar Rozgar Yojana
The program, launched in April 1989, was intended to provide at least one member in each poor rural family with the employment of fifty to one hundred days for a year. Employment opportunities are provided in the vicinity of the individual and 30% of these opportunities are reserved for women.
- Nehru Rozgar Yojana (NRY)
There are a total of three schemes under this program. Under the first scheme, the urban poor is subsidized to set up micro-enterprises. Under the second scheme, wage-employment is arranged for labourers in cities with a population of less than 10 lakh. Under the third scheme, the urban poor in cities is given employment opportunities matching their skills.
- Employment guarantee scheme
The unemployed people are provided financial assistance under this scheme. It has been started in many states including Kerala, Maharashtra, Rajasthan etc.
Apart from this, several other programs have been launched by the government to reduce unemployment.
Unemployment in India can be divided into several categories:
When people more than required is hired for a job. This condition is called as the hidden unemployment as removing these people will not affect the work.
As the name suggests this type of Unemployment is only in a specific season of the year. Usually works related to agriculture, Ice factory, resorts and sports industries are affected by this.
This means when labour in large number is not able to get a job which provides them with regular income. This situation arises when physical labour increases more as compared to the economy
This situation arises due to the increasing technical machines and instrument to replace human work.
This type of unemployment occurs due to a major change in the economic structure of the country. It is the result of technological advancement and economic development.
A decrease in the overall level of business activity leads to cyclical unemployment. However, this incident is only for a short time.
Inability to find a suitable job, lack of employable skills and faulty education system are some of the reasons that educated unemployed remain.
In this type of unemployment, people either work on a part-time basis or do the kind of work for which they are more qualified.
This occurs when the demand for the labour force and its supply are not properly coordinated.
Long term unemployment
Long term unemployment is one that continues in the country due to rapid growth in population and low level of economic growth.
Such unemployment occurs due to a sudden drop in demand, short term contracts or shortage of raw materials.
Factors that can increase unemployment in India
- Increase in population
The rapid increase in the country’s population is one of the major causes of unemployment.
- Manda Economic Development
The slow economic growth of the country results in fewer employment opportunities for people, leading to unemployment.
- Seasonal business
A large part of the country’s population is involved in agriculture. Being a seasonal business it only provides work opportunities for a certain time of the year.
- The slow growth of the industrial sector
The growth of the industrial sector in the country is very slow. Thus employment opportunities in this sector are limited.
- The decline in cottage industry
Production in the cottage industry has fallen drastically and due to this many artisans have become unemployed.
Possible solutions to end unemployment
- Population control
This is the right time when the Indian government takes drastic steps to control the population of the country.
- Education system
The education system in India focuses on theoretical aspects rather than skill development. The system has to be improved to generate skilled manpower.
The government should take steps to promote the industrial sector to create more employment opportunities for people.
- foreign companies
The government should encourage foreign companies to open their units in the country to create more employment opportunities.
- Job opportunities
Employment opportunities should be created in rural areas for those who remain unemployed for the rest of the time by working at a certain time.
Unemployment is the root cause of various problems in society. Although the government has taken the initiative to reduce this problem, the measures taken are not effective enough. Due to this problem, various factors need to be studied thoroughly to see effective and integrated solutions. It is time that the government should recognize the sensitivity of the matter and take some serious steps to reduce it.