Problem of unemployment in India
Unemployment is also part of Macroeconomics as it is aggregated with the economy as a whole.
The problem of unemployment gives rise to poverty. Because of the unemployment, the government borrows more, which causes a decrease in production and consumption of goods, which in turn creates more job loss and poverty.
Under monopolistic competition, the firms produce less than optimum output. As a result, the productive capacity is not used to the fullest extent. This will lead to the unemployment of human resources as well.
Farm mechanization because of the green revolution had created widespread unemployment among agricultural laborers in rural areas. The exception is Punjab and some extent in Haryana.
Small-scale industries provide employment opportunities for large people. Thus SSI reduces the unemployment problem to a great extent.
The Indian labour laws are inflexible and restrictive, and its infrastructure is poor
The Economist
At the time of Independence in 1947, the country suffered from the twin problems of rampant poverty and widespread unemployment, both resulting in a low standard of living.
Arguments against LPG – Extensive section of people continue to face basic economic problems such as poverty, unemployment, deprivation, poor healthcare, rising inflation, agricultural stagnation, food insecurity, and labor migration.
Even after monetary and financial sector reforms, the basic problems of unemployment, poverty, ill-health, and inequalities remain unsolved.
There are unemployment, seasonal unemployment, and underemployment in rural areas. Refers to the situation.
Unemployment refers to the situation of people with willingness and ability to work but is not getting employed.
Underemployment also called disguised unemployment is the situation of people employed in excess, over and above the requirement.
Disguised unemployment is a situation where people work but have no increase in production. Both situations are common in rural areas.
Since rural unemployment and rural poverty are interrelated, the creation of employment opportunities would support the elimination of poverty.
Poverty alleviation schemes and programmes have been implemented, modified, consolidated, expanded, and improved over time.
However, unemployment, begging, rag picking, and slumming continue. Unless employment is given to all the people poverty cannot be eliminated.
Poverty Eradication Schemes
- 20-Point Programme in 1975
- Integrated Rural development Programme (IRDP) in 1976
- Training Rural Youths for Self-Employment (TRYSEM) in 1979
- Food for work Programme (FWP) in 1977.
- National Rural Employment Programme (NREP) in 1980.
- Rural Landless Employment Guarantee Programme (RLEGP) in 1983
- Jawahar Rozgar Yojana (JRY) in 1989
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
- Pradhan Mantri Adarsh Gram Sadak Yojana (PMAGSY)
- Bharat Nirman Yojana in 2005
- Indira Awas Yojana in 1985
- Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in 2005
- Rajiv Awas Yojana (RAY) in 2009
- National Rural Health Mission in 2005
- National Rural Livelihood Mission in 2011
- National Food Security Scheme in 2013
Rural Unemployment
The unemployment problem in India is especially high in rural areas.
Unemployment is a situation in which a person is actively searching for employment but unable to find work at the prevailing wage rate.
It is a waste of human resources and underutilization of human resources.
As there is unemployment, social problems cannot be stopped, and the economy cannot achieve development.
Rural unemployment was 7.8 percent which is less than urban unemployment (10.1 percent) and all India’s unemployment rate is 8.5%.
We categorize rural unemployment in India into three classes: Open Unemployment, concealed Unemployment or underemployment, and seasonal unemployment.
Open Unemployment
Unemployed persons are identified as they remain without work. We find this type of unemployment among agricultural laborers, rural artisans, and literate persons.
Concealed Unemployment
It is difficult to identify who are underemployed; for many are employed below their productive capacity and even if they are withdrawn from work, the output will not diminish. It is also called Disguised Unemployment or underemployment.
We find this type of unemployment among small and marginal farmers, livestock rearers, and rural artisans.
This kind of unemployment situation is more serious in villages than in urban areas. Disguised unemployment in rural India is 25 percent to 30 percent.
Seasonal Unemployment
In seasonal Unemployment, employment occurs only on a particular season supported by natural circumstances, and the remaining period of a year the rural people are unemployed or partially employed.
In seasons like plowing, sowing, weeding, and harvesting there is a scarcity of labor and in the rest of the year, there is unemployment.
It is pathetic to note that a farmer who cultivates one crop in a year usually goes without a job for almost 5 to 7 months and commits suicide.
“The extent of underemployment is on average, 82 days of unemployment in a year for 84 percent of agricultural laborers”.
Agricultural Labour Enquiry Committee Report
Causes for Rural Unemployment problem in India
- Absence of Skill development and employment generation.
- Seasonal nature of Agriculture.
- Lack of Subsidiary Occupation
- Mechanization of Agriculture
- Capital Intensive Technology
- Defective System of Education
- Slow Economic growth
- Caste System
- Rapid increase in Population
Remedies for Rural Unemployment
- Subsidiary Occupation
- Rural works Programme
- Irrigation Facilities
- Rural Industrialization
- Technical Education
Unemployment in Tamilnadu
The national average unemployment rate stands at 50 and Tamil Nadu ranks 22nd with an unemployment rate of 42 per 1000. There are different unemployment with different economic implications.
Tamil Nadu is one of India’s richest states Since 1994, The state has seen a steady decline in poverty.
Today, Tamil Nadu has the lowest levels of poverty than most other states in the country. After 2005, Tamil Nadu was among India’s fastest-growing states, with growth being driven mainly by services.
