Nature and Causes of unemployment in India

Nature and Causes of unemployment in India

Nature of unemployment in India

Meaning of unemployment: Unemployment is a stage in demography where in human resources are willing to perform their services but the services to be performed do not exist.

Nature rural unemployment: The nature of unemployment that exists in rural areas is called rural unemployment. Rural unemployment is widely prevalent in agricultural sector in the form of disguised unemployment. Rural Employment is seasonal as well as cyclical.

Nature of urban unemployment: The nature of unemployment that exists in urban and semi-urban areas such as towns and cities is called urban unemployment. Urban unemployment is largely a derived form of rural unmployment. Rural work force migrate to urban areas in search of labour and remain unemployed for most part of the year. A large number of skilled educated youth remain unemployed for most part of the year. The rate of unemployment is higher among the educated class.

Causes of unemployment in India

Unemployment is a stage in demography where in human resources are willing to perform their services but the services to be performed do not exist.

Causes for unemployment: The main causes for unemployment in a developing country are –

1. Pressure of population,

2. Slow growth of agricultural sector,

3. nature of technology used in the agricultural sector,

4. The type of educational system practiced and

5. The techniques of planning used.

1. Overgrowth of Population increases unemployment: Rapid increase cf population is the main cause for unemployment; Primary sectors are not job creators. The pressure on land forces the responsibility of creating job opportunities to secondary and tertiary sectors of economy. The proportion of increase in the population is commensurate with proportion of increase in job opportunities. Thus, population growth has an adverse impact on the employment.

2. Slow growth of agricultural sector does not generate enough employment: Agriculture sector is the backbone of a developing economy. The sector has been growing at a slow pace resulting into lower productivity. Low productivity indirectly influences creation of employment. Presence of disguised and seasonal employment in the agricultural sector has become the main cause for unemployment in the developing economy.

3. Modernization of agricultural sector absorbs lower labour: Small landholders use primitive technology. Primitive technology does not support higher productivity. Secondly, agriculture sector in developing economy is mainly controlled by large farmers who have consolidated land holding. Technological progress has increased the productivity; but machines have greatly replaced the labour force. This resulted in lower absorption of labour force in agricultural sector.

4. The system of education is not completely job oriented: The system of education that is prevailing in developing countries is mainly knowledge based and not completely job oriented. The present system of education is concentrating on producing more clerks and officers and less entrepreneurs. The skills required for self-employment is rarely taught in schools and colleges. This has resulted in more men and women chasing fewer jobs. Present youth have become job seekers than job creators.

5. Planning strategies not adequate to generate more employment: The economic planning adopted by the-planning authorities is not very encouraging to the rural mass. Employment opportunities in rural areas have dwindled. People migrate from rural areas to urban areas in search of jobs and better civic amenities. People so migrated put pressure on urban employment. Thus, planning strategies force more people to chase fewer jobs.

Measures to solve urban unemployment in India

The nature of unemployment that exists in urban and semi-urban areas such as towns and cities is called urban unemployment. Urban unemployment is largely a derived form of rural employment. Rural work force migrate to urban areas in search of labour and remain unemployed for most part of the year. A large number of skilled educated youth remain unemployed for most part of the year. The rate of unemployment is higher among the educated class.

Measures to solve the problem -

1. Introduction of radical reforms in the system of education would greatly help to solve the problem of urban unemployment.

2. Delibrate promotion of low capital intensity projects in industrial production increases the job opportunities.

3. Promotion of labour intensive methods of production in industries reduces unemployment.

4. Investment in industries with short-term gestation period has a direct effect on job creation.

5. Promotion of industrial activities in urban backward areas promotes employment in those regions.

6. Promotion of small-scale industries and greater encouragement for self-employment would bring down urban unemployment.

7. More investment in consumer goods industries than producer goods industries will generate more employment.