lIndia as a nation is faced with massive problem of unemployment.

Unemployment can be defined as a state of worklessness for a man fit and willing to work. It is a condition of involuntary and not voluntary idleness. Some features of unemployment have been identified as follows:
1. The incidence of unemployment is much higher in urban areas than in rural areas. 2. Unemployment rates for women are higher than those for men. 3. The incidence of unemployment among the educated is much higher than the overall unemployment. 4. There is greater unemployment in agricultural sector than in industrial and other major sectors.

Economists and social thinkers have classified unemployment into various types. Generally unemployment can be classified in two types: (1) Voluntary unemployment In this type of unemployment a person is out of job of his own desire doesn't work on the prevalent or prescribed wages. Either he wants higher wages or doesn't want to work at all. It is in fact social problem leading to social disorganization. Social problems and forces such as a revolution, a social upheaval, a class struggle, a financial or economic crisis a war between nations, mental illness, political corruption mounting unemployment and crime etc. threaten the smooth working of society. Social values are often regarded as the sustaining forces of society. They contribute to the strength and stability of social order. But due to rapid social change new values come up and some of the old values decline. At the same time, people are not is a position to reject the old completely and accept the new altogether. Here, conflict between the old and the new is the inevitable result which leads to the social disorganization in imposed situation. In economic terminology this situation is voluntary unemployment. (2) In voluntary unemployment In this type of situation the person who is unemployed has no say in the matter. It means that 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. Forms and types of unemployment according to Hock are.
a. Cyclical unemployment - This is the result of the trade cycle which is a part of the capitalist system. In such a system, there is greater unemployment and when there is depression a large number of people are rendered unemployed. Since such an economic crisis is the result of trade cycle, the unemployment is a part of it. Sudden unemployment - When at the place where workers have been employed there is some change, a large number of persons are unemployed. It all happens in the industries, trades and business where people are employed for a job and suddenly when the job has ended they are asked to go. Unemployment caused by failure of Industries - In many cases, a business a factory or an industry has to close down. There may be various factors responsible for it there may be dispute amongst the partners, the business may give huge loss or the business may not turn out to be useful and so on. Unemployment caused by deterioration in Industry and business - In various industries, trades or business, sometimes, there is deterioration. This deterioration may be due to various factors. In efficiency of the employers, keen competitions less profit etc. are some of the factors responsible for deterioration in the industry and the business. 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.

b.

c.

d.

e.

The problem of unemployment has becoming a colossal. Various problems have caused this problem. There are individual factors like age, vocational unfitness and physical disabilities which restrict the people. External factors include technological and economic factors. There is enormous increase in the population. Every year India adds to her population afresh. More than this every year about 5 million people become eligible for securing jobs. Business field is subject to ups and downs of trade cycle and globalization. Economic depression or sick industries are often close down compelling their employees to become unemployed. Technological advancement contributes to economic development .But unplanned and uncontrolled growth of technology is causing havoc on job opportunities. The computerization and automation has led to technological unemployment. Strikes and lockouts have become inseparable aspect of the industrial world today. Due to these industries often face economic loses and production comes down. Since workers do not get any salary or wages during the strike period they suffer from economic hardships. They become permanently or temporarily unemployed. Today young people are not ready to take jobs which are considered to be socially degrading or lowly. Our educational system has its own irreparable defects and its contribution to the unemployment is an open truth.Our education does not prepare the minds of young generation to become self-employed on the contrary it makes them dependent on government vacancies which are hard to come. Our State right from the beginning of Five year plans has introduced several employment generating schemes and programmes over the years but in the absence of proper implementation and monitoring have failed to achieve the required targets. Recently UPA Government has come up with Rural Employment Guarantee program which aims to provide minimum days of employment to people living in the villages. This is a laudable programme if implemented sincerely because it will provide employment to people during natural calamities like drought, floods etc. The remedial measures for reducing unemployment may lay greater emphasis on creation of opportunities for self -employment, augmentation of productivity and income levels of the working poor, shift in emphasis from creation of relief type of employment to the building up of durable productive assets in the rural areas and instead of attempting to revert somewhat to protectionist policies the pace of privatization may be accelerated.

INDIA UNEMPLOYMENT RATE

The unemployment rate in India was last reported at 9.4 percent in 2009/10 fiscal year. From 1983 until 2000, India's Unemployment Rate averaged 7.20 percent reaching an historical high of 8.30 percent in December of 1983 and a record low of 5.99 percent in December of 1994. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalised and those serving in the military. This page includes: India Unemployment Rate chart, historical data and news.

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What are the causes of unemployment in India?

It is obvious that the unemployment situation is grim indeed. It has, therefore, to be tackled with appropriate measures and on an urgent basis. However, before we discussed the ways and means of removing unemployment, it is necessary that we understand the causes that given rise to it. The major causes which have been responsible for the wide spread unemployment can be spelt out as under. 1) Rapid Population Growth: It is the leading cause of unemployment in Rural India. In India, particularly in rural areas, the population is increasing rapidly. It has adversely affected the unemployment situation largely in two ways. In the first place, the growth of population directly encouraged the unemployment by making large addition to labour force. It is because the rate of job expansion could never have been as high as population growth would have required. It is true that the increasing labour force requires the creation of new job opportunities at an increasing rate. But in actual practice employment expansion has not been sufficient to match the growth of the labor force, and to reduce the back leg of unemployment. This leads to unemployment situation secondly; the rapid population growth indirectly affected the unemployment situation by reducing the resources for capital formation. Any rise in population, over a large absolute base as in India, implies a large absolute number. It means large additional expenditure on their rearing up, maintenance, and education. As a consequence, more resources get used up in private consumption such as food, clothing, shelter and son on in public consumption like drinking water, electricity medical and educational facilities. This has reduced the opportunities of diverting a larger proportion of incomes to saving and investment. Thus, population growth has created obstacles in the way of first growth of the economy and retarded the growth of job opportunities. 2) Limited land: Land is the gift of nature. It is always constant and cannot expand like population growth. Since, India population increasing rapidly, therefore, the land is not sufficient for the growing population. As a result, there is heavy pressure on the land. In rural areas, most of the people depend directly on land for their livelihood. Land is very limited in comparison to population. It creates the unemployment situation for a large number of persons who depend on agriculture in rural areas. 3) Seasonal Agriculture: In Rural Society agriculture is the only means of employment. However, most of the rural people are engaged directly as well as indirectly in agricultural operation. But, agriculture in India is basically a seasonal affair. It provides employment facilities to the rural people only in a particular season of the year. For example, during the sowing and harvesting period, people are fully employed and the period between the post harvest and before the next sowing they remain unemployed. It has adversely affected their standard of living.

4) Fragmentation of land: In India, due to the heavy pressure on land of large population results the fragmentation of land. It creates a great obstacle in the part of agriculture. As land is fragmented and agricultural work is being hindered the people who depend on agriculture remain unemployed. This has an adverse effect on the employment situation. It also leads to the poverty of villagers. 5) Backward Method of Agriculture: The method of agriculture in India is very backward. Till now, the rural farmers followed the old farming methods. As a result, the farmer cannot feed properly many people by the produce of his farm and he is unable to provide his children with proper education or to engage them in any profession. It leads to unemployment problem. 6) Decline of Cottage Industries: In Rural India, village or cottage industries are the only mans of employment particularly of the landless people. They depend directly on various cottage industries for their livelihood. But, now-adays, these are adversely affected by the industrialisation process. Actually, it is found that they cannot compete with modern factories in matter or production. As a result of which the village industries suffer a serious loss and gradually closing down. Owing to this, the people who work in there remain unemployed and unable to maintain their livelihood. 7) Defective education: The day-to-day education is very defective and is confirmed within the class room only. Its main aim is to acquire certificated only. The present educational system is not job oriented, it is degree oriented. It is defective on the ground that is more general then the vocational. Thus, the people who have getting general education are unable to do any work. They are to be called as good for nothing in the ground that they cannot have any job here, they can find the ways of self employment. It leads to unemployment as well as underemployment. 8) Lack of transport and communication: In India particularly in rural areas, there are no adequate facilities of transport and communication. Owing to this, the village people who are not engaged in agricultural work are remained unemployed. It is because they are unable to start any business for their livelihood and they are confined only within the limited boundary of the village. It is noted that the modern means of transport and communication are the only way to trade and commerce. Since there is lack of transport and communication in rural areas, therefore, it leads to unemployment problem among the villagers. 9) Inadequate Employment Planning: The employment planning of the government is not adequate in comparison to population growth. In India near about two lakh people are added yearly to our existing population. But the employment opportunities did not increase according to the proportionate rate of population growth. As a consequence, a great difference is visible between the job opportunities and population growth. On the other hand it is a very difficult task on the part of the Government to provide adequate job facilities to all the people. Besides this, the government also does not take adequate step in this direction. The faulty employment planning of the Government expedites this problem to a great extent. As a result the problem of unemployment is increasing day by day.

Essay On The Problems Of Unemployment In India.

MILAN CHATERJEE ESSAY

The problem of unemployment means the problem of providing work to those who are willing to work. A large number of educated and uneducated people, who are capable of work and are also willing to do it, roam here and there without any job. So the problem has assumed an acute form. There is a large number of people who are either partly employed or wholly unemployed. The lives of such people, as well as of their families, are extremely miserable. India cannot claim to be a welfare state so long as this problem remains unsolved. Before discussing the ways and means of solving this problem, let us first examine the causes which have created it. It is a well known fact that ours is a thickly populated country. The population is increasing by leaps and bounds. But jobs and gainful avenues cannot be created in the same proportion. So, naturally, a large section of the people is left unemployed. Moreover, our education system is also responsible for this problem. The problem of educated unemployment is peculiar to India. India is only country in the world where even highly educated persons fail to to get employment. Every year thousands and thousands of graduates pass out of schools and colleges. They are unfit for any work, except office work. All of them cannot be absorbed in services. This increases employment. The problem of unemployment is mainly an economic one. It is essential, therefore, that the economic policy of the country be overhauled. In our country, labor is available in abundance. We should provide avenues for employment for them through cottage and small-scale industries. besides this, stress must be laid on family planning. Every effort must be made to check the rapid rise in population. This will help a great deal in the solution of this problem. More stress should be laid on technical and vocational education. The present bookish education which produces clerks alone should be restricted. When people get technical and vocational education, they will not hanker after services on completing their education, they will come out well prepared to stand on their own legs. The problem will be half-solved, if this suggestion is implemented. Our joint-family system is gradually breaking down. This may be a good social change from certain points of view, but front the point of view of unemployment it is harmful. When we live jointly, some family members get employed in family professions. One who gets a job, supports others who may not be equally fortunate. We should not be hasty in breaking down this system. Our country cannot advance economically, politically, or socially, unless this problem is solved. Many a social evil is spread through the unemployed. Frustration, drug-addiction, even suicides are, by and large, the evil results of unemployment. Unrest and disorder increase in society. It is, therefore, the duty of the Government to make every possible effort to solve this problem. However, we may stress again that the problem cannot be solved till the population explosion is not checked. The two are closely inter-linked, and the people must be made to realize this through and adequate process of social education. We are happy to note that the government has come out with a plan to provide employment to educated young men during the ninth plan period.

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Numbers always tell a story. Economic statistics are quite adept at that. Colorful, vivid stories.And sometimes scary ones. 416 Positions Available.Number of applicants? North of 1,00,00. With odds like those, you are a 100 times more likely to be admitted into Harvard, a school which prides itself on exclusivity and has a bit of a thing about being the most selective university in the world. If you, like me thought that the 1,00,000 people would be applying for something real special, maybe a lottery ticket to star right next to AishwariyaRai, youd have completely missed the mark. The 1,00,000 was comprised mostly of the youth hoping to get a shot at one of the personnel jobs that were being offered by the Indo-Tibetan Border Police, a moderately volatile region. A quick list of personnel jobs?Washerman.Barber.Stable hand.Cook.Provisions stocker. The salary?Rs. 5,000 a month. While an intense surge of patriotism among the young blood of Bareiley in Uttar Pradesh cant be discounted, taking a moment to reflect on the fact that the area is considered to be moderately stabledoesseem to put things about the current unemployment epidemic into perspective.

Isnt the Unemployment Rate in India Under Check?

How would we know? We werent even measuring the unemployment rates in India before 2008. Yes, there were statistics but they were all guesstimations sprinkled with data gathered form the Statutory and Voluntary Returns that were blended into the Usual Principal Status Basis.

As far as internationally accepted norms of unemployment measures go, the Labour Bureau of the Government of India put out its first ratified report with a survey on the unemployment levels in India in 2009. This is the first report of its kind both in scope of process and with regards to casting the statistical net wider than what the National Sample Survey Organization, which would provide data to the Labor Bureau in the past would have done.

The Unemployment Percentage in India for 2009 is 9.4%

A quick list of things that the report does not (and can not) completely take into account: 1. Disguised Unemployment 2. Frictional Unemployment 3. Part-time employment 4. Any kind of seasonal/predictive input from the individuals surveyed So what did the mammoth report truly indicate the percentage of the population that were chronically unemployed? There were 40,000,000 people in 2009 who were capable and willing to work, but couldnt find work after more than 90 days looking for work! Less than .01% of that number is estimated to be the number of people whore capable of working but choose not to do so. Since the calculation of unemployment is a reductive process we first calculate the employment and then subtract that number from the total to get to the unemployment numbers, it is inevitable that the data will be slightly dirty.

And The Unemployment Rate In India For 2011 is

10.9% s reported by the American CIA World Factbook which is an estimation of an estimation. And the official Indian Labour& Statistics number?Non-existant. Apparently, the difficulties with regularly reporting and measuring the Indian unemployment rate are deemed to be greater than the benefit that is to be had by having these numbers at hand. What we get instead is an essay on unemployment in India in the form of sectorized quarterly updates the latest of which is the Tenth Quarterly Report On Effect Of Economic Slowdown On Employment in India for the period of January to March, 2011. While the data presented is not as comprehensive as the 2009 report, the different industry sector breakdowns are useful as far as predicting the trend vector goes.

Causes of unemployment in india

With a population as big as ours, with wealth distribution as it is, pointing out a generalized list of things that cause unemployment in India is an affront to good economic study. Instead of focusing on the causes, it is infinitely more beneficial to study the different factors that contribute to the double digit unemployment in India. Working with such a framework lets us study bot the contributing factors as well as their interconnected consequences.

N1. There arent enough jobs

The most obvious, yet the biggest defining symptom of the state of unemployment in India is the fact that there arent enough jobs. The major contributing factor to this problem would be the one-two punch delivered by the slow pace of development and the recent shift in resource allocation for existing resources. Case in point, the decline in manufacturing jobs in the Punjab and the rise in services jobs in Gurgaon & the NCR. Compound that with the fact that there arent enough new job vacancies being created.

N2. Fewer new jobs & Youth Unemployment In India

If the problem of the existing workforce being benched wasnt bad enough, the unchecked (and still rising) population of the country is putting a heavy load on the infrastructure of the country which includes the capitalist and industrial mechanism as well. The growth rate of the population wouldnt be so bad if a considerable portion of them werent plagued by malnutrition, rampant illiteracy and succumbing poverty. While the economy might be growing by a decent sum, the population, more importantly the uneducated and unhealthy are growing at a faster rate. This is something we, as a country just cant work our way out of. A good lead in this direction, one that has been promised by the Indian government, would be similar to Chinas One Child, One Family Law. The Indian motto of Hum Do, Hamare Do was an unequivocal disaster compared to the Chinese initiative. While there are slightly plutocratic loopholes left open in the Chinese programme, the biggest reason why it works out so well is now that individuals have only one child, all their resources time, money and attention are focused on one single individual instead of half a dozen. And were not even considering the uptick in the mothers long term health.

N3. Shifting Industry Priorities Have Exacerbated the Problem of Unemployment in India

The times, theyre a chaining. And for once, India is managing to keep up with the rest of the world, even lead the charge if you ask some economists. The worlds industrial hubs have been divided between the BRICS countries and the demarkation of the where the industries are heading is clear as daylight to anyone paying attention. Manufacturing is divvied up between Brazil, South Africa and China with the lions share of the manufacturing of the world going to China. India, obviously has become the software and services out-sourcing hub of the world. If youre looking for Indias Brazil, then youll have to go beyond the confines of the BRICS. The Philippines comes in at a distant second. If India were to ever lose out place as the leader in services and software outsourcing, it would be of our own accord. So isnt this supposed to push the employment levels up? Yes, it sure does. Except now we have close to 30% of the youth growing up illiterate, and a greater deal more unable to read and write high-school level English.

N4. Unemployment Problems in India as a result of the commoditization of the green revolution
Hooray! There is new demand in the country. All the programmers and call center employees have to eat dont they? The local farmer is about to strike gold! Unless Monsanto comes in.Or if the farmer with the larger bits of land decides to import American combine-tractors by the score. What do you do then? Since you cant afford the money for the tractors, or get a loan, you decide to put everyone in your family on the job. The slow growth rate of agriculture and the influx of larger corporations has lead to a form of unemployment endemic to India and is one of those things that truly characterizes poverty and unemployment in India.

N5. Educated Unemployment in India Can read and write but unable to find a stable job?
The thing about the educated unemployed is that theyve been served up the short end of the stick. The state of W.E. literacy in India is so dismal educated and literate are used interchangeably. Whileeducation and unemployment in India, along with poverty have long been the proverbial albatross around our nations neck, the dynamic that these three problems share is evolving rapidly.

This is a problem that has however become limited to Tier 3 cities over the last decade. In many cases, as long as you can read and write, you should be able to start at about twice as much as the Indo-Tibetan Border Police form the leading paragraph is offering up.

N6. Rural-Urban Migration And Why Figuring Out Indian Agriculture Can Solve Indias Unemployment
The sixth factor contributing to unemployment in India is the rise in the migration of rural workers to the metros. Armed with a high school education and sometimes a degree, there are a number of people whod rather make Rs. 10,000 as a clerk than Rs. 20,000 working at managing their fields. The factors of labor are not intensively involved outside a certain strata and this has become quite the thorn in the administrations side. Another thing that has gone unnoticed by most living in the metros is the impact the rise in food inflation has had for everyone in the rural areas. Therefore, we end up with lesser smaller farmers and bigger farming corporations who have been accused of a range of infarctions from suicide seeds to price fixing and anti- competitive farmers which results in higher food prices. Not a formula for feeding a growing economy, wouldnt you say? However, there is a way out, and it is nothing new for a veteran of Indian Economic policy. Ill invoke a set of numbers once again and just like the first one, they have a story to tell that is thoroughly captivating. Less than 3% of the Indian agricultural produce is processed in India. Compared to first world countries, this number is a rounding error. Close to 90% of the aggregate agricultural produce of the first world countries is processed. And there is a good chance that the 10% that isnt is consumed by the organic foods brigade.

Value Addition As An Solution To Indias Unemployment Rise

It is all about Economics 101. And we already have examples of enterprises in India that have not only been successful as corporations but have managed to achieve extreme levels of social good. I give you, Amul. A cooperative that has positively affected the lives of more than 100,000 dairy producers and farmers. They make excellent butter and they market it pretty well. Except, a massive number of educated individuals are employed by Amul to perform the marketing, sales, retail and distribution. An atypical illustration of what is known as the multiplier the cascading effect that an addition to those with expendable income produces.

Processing raw agricultural material is one of the most basic steps involved in economic growth and we are trending towards such an enormous demand that ignoring it is akin to butchering the gift horse.

The Indian Speciality Types of Unemployment in India

Along with owning the state when it comes to being the worlds largest democracy and being on track to win the trophy for the worlds most populated country, we have also managed to spearhead a new kind of unemployment disguised unemployment. In addition to all the standard categories of unemployment, we have combinations of different categories of them. Since we arent a large manufacturing base, most of the kinds of unemployment that India suffers from are combinations of the more generic types of unemployment. Case in point, with the cyclical union instabilities suffered by the Maruti Suzuki Motor Corp., we get a combination of seasonal unemployment which is disguised as a cyclical form of voluntary unemployment.

The Many Flavors of Rural Unemployment In India

While the urbane forms of unemployment that India suffers from are pretty much close to their ideal definitions, when it comes to rural unemployment a lot more study is required. Looking at all the data I could get my hands on, Ive sorted the types of rural unemployment into four different categories. 1. Seasonal Unemployment Isnt the farmer going to be busy tilling his land in the offseason? Not if youre part of the 70% of farmers who own so little land that theyre done with all of their off-season duties regarding in under a month. That means that in order to support their family, they often have to work as sessional employees on other peoples farms or as daily wage laborers, often at renumeration that is far lower than what they would have earned had they owned more land. 2. Disguised Unemployment Unless you skipped a weeks worth of Indian Social Studies classes, this is probably the most well know form of unemployment in India. What many of us werent taught was that despite the reported rate of disguised unemployment going up, there is a rising number of people whore inefficiently employed in rural India who arent factored in the reported numbers.

For the uninitiated, disguised unemployment is when on a field that can adequately be farmed by 2 people, 4 are employed. In most cases, the 4 usually belong to the same family and since they have an idle pair of hands, they all got o work not he same field. 3. Cyclical Unemployment The import duty on tractors just got cut by half! The price of diesel and electricity is going to be subsidized for farming next month! What do the bigger farm-owners do now? Buy a Rs. 50,000/yr tractor or keep aging twice of that amount to the laborer? It is obvious where this is going, but why this would contribute to unemployment without adversely affecting production is a different story altogether. Rememberer the 70% farmer who was burdened by seasonal unemployment? Well, he just lost his off-season job! Of course, policy changes and technological improvements are inevitable and they have been taking away jobs since the industrial revolution began. However, developing a failsafe for the willing-to-work will require a few tricky policy maneuvers, for example, SEZs. The reason that this kind of unemployment is known as cyclical unemployment is because it is caused by macro-scale cycles that are outside the control of the individual and in many cases, entire industries. These cyclic iterations include policy changes, technological innovation as well as the bane of the small farmer rainfall. 4. Structural Unemployment While this might be considered a part of cyclical unemployment, it merits its own category because it is something that is easier to tackle. For example, the use of synthetic cotton blends with rayon are becoming popular (I blame Lycra), which means that a big consumer of the cotton production the clothing industry would be changing the factors involved in the production of their goods. While the farmers will face the brunt of the decreased demand, many of the individual doing manual labor on the farm itself can be retrained for production level jobs in the garment industry quite easily. Combine that with a few policy based incentives and tax cuts to corporations and youll see a perceptible jump in the general welfare of the local community.

Why I Wont Be Shorting India any time soon ?

Take your pick! That fact that we hardly had a rising number of jobs just over two decades ago. Or that fact that unlike China (or like Brazil) we are completely capable of consuming what we produce by ourselves.

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Unemployment, according to me is when a person is well-qualified and ready to work but is unable to get a job in the market. I have also observed that people try to get rid of this being-unemployedsyndrome by taking up jobs just to get employed or either start doing a course that will supplement their already acquired talent in a hope to get a job. Still others go for completely different things just to get rid of this syndrome to keep themselves and their minds occupied. And there are still some who get depressed and start losing faith in themselves. That doesnt sound economics, right? Yes, this is just the social economics or I would say the economics of a human heart. So, let us come to the real economics. Unemployment is a problem that has gripped not just under-developed and developing countries but also developed countries. Though the grip isnt that strong in the latters case, it is more prominent as well as severe in the former. India which is the second most populous country in the world has huge manpower resources but this manpower is forced to sit idle at home. It should also be noted that this crisis hasnt targeted a particular section of the society. Its an all-encompassing phenomenon. Its a great challenge for the Indian economy as well as the government, economists, academicians, intellectuals and policy-makers at large. One of the main issues underlying this problem can be identified as our education system. Though not completely, but our education system needs to be revamped. It needs to be more focused on being job-oriented. The government should bring in stringent measures to put a check on the indiscriminately growing universities and colleges that have demeaned the value of higher education as a whole. It should only be available to those who deserve it. Its deeply saddening today to see how the majority of youth in India is unemployed and dejected. Manpower is not being tapped to its full potential and that is harming Indian the economy in a way. There is an urgent need to open up more vocational training institutes and institutes to impart

technical knowledge. This alone wont do any good as there is a simultaneous need to create more and more job opportunities for the same. Some major features of unemployment that have been observed are listed below: 1. The incidence of unemployment is much higher in urban areas than in rural areas 2. Unemployment is found to be much higher amongst women as compared to men (thats obviously due to discrimination of one sort or the other) 3. Unemployment is much higher among the educated than the overall unemployment 4. There is greater unemployment in agricultural sector than in industrial or other sectors (because of the seasonal character of the former) Though there has been some good news on the economic front regarding employment trends but the number of unemployed people has also increased at the same time. Unorganized labour is another big issue and these people face many problems in India. According to International Labour Organization (ILO), vulnerable population is often characterized by inadequate earnings, low productivity and difficult conditions of work that undermine workers fundamental rights. It also found that in India informal employment is much higher than in any other equally poor countries and it is growing as a proportion of total employment. This issue also needs to be tackled thoughtfully and tough laws need to be made. The disease of unemployment is itself a cause of many others like poverty, backwardness, increase in crime rate, dejection and depression among youth etc. This disease that is plaguing Indian society may require a lot of time to get eliminated but its not an impossible task if real efforts are made. It will not only boost up the economy but also bring back lost self-confidence of the younger generation and a renewed hope in their hearts which is still trying to comfort itself and saying aalizz well!

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The Indian economy at the time of independence showed all the signs of stagnation. About 47% of the population was below the poverty line in 1951.This figure went up in 1964-65, came down and again went up in 1977-78. Presently the World Bank estimates that a third of the global poor reside in India. At the time of independence 72% of the work force was employed in agriculture and it contributed to nearly 50% of the national income. Industrialization was at a very low level with only 2% of the work force employed in industries. In addition to this there was hardly any investment in industries. The only industries which existed were cotton and jute industries. They also suffered a major setback, as at the time of partition major jute producing areas went to Pakistan and as a result there was a shortage of raw material. Thus, at the time of Independence, low agriculture output, little industrialization, low figure of national income, high poverty and unemployment, slow economic progress were the features of Indias economy.

The government under our first Prime Minister Pt.Jawaharlal Nehru was focused on development of indigenous industries which had been completely destroyed under the British rule. The emphasis was on state control in finance, a strong public sector and import substitution. Pandit Nehru was fascinated by the Soviet Unions Piatiletka or Five-year plan and tried implementing the same for the Indian economy. He wanted India to have the best combination of socialism and capitalism and tried to implement Democratic Socialism in India. Annual growth rate of the Indian economy averaged around 3.5% from 1950-1980.

With Rajiv Gandhi coming to power many changes started taking place. There was emphasis on delicensing. Under P.V.NarsimhaRaos regime economic liberalization policies came into force in 1991. Now the focus was on privatization and globalization. Most industries didnt require

government approval and were thrown open to the private sector. Since 1991 the Indian economy has been growing constantly except during a few phases.

The GDP growth rate for the 2008-09 period has been 6.7%. Despite improvement in many areas it is true that poverty, unemployment and illiteracy are major stumbling blocks to the nations development. Before competing with China to become the biggest and most powerful economy, we have to realize that there are many problems within the country which need to be tackled first. Benefits of economic reforms seem limited to urban centers while the condition in rural areas is going from bad to worse. It is imperative that the villages of India be made self-sufficient as they once were. More initiatives like Grameen Bank which provide micro credit to the poor need to be encouraged. On their part, the government should make sure the funds allocated for rural development are utilized efficiently. The Indian youth which is madly running after MNCs and 6 digit salaries needs to stop and think about the rest of the country, how some people dont get even 2 square meals a day and play an active role in the developmental process.

This is our country, every citizen is a stakeholder in the nations interest and therefore its problems will also have to be solved jointly and in cooperation with one another.

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Overview of unemployment Sector-wise absorption of labour Trends in Labour Force Participation Labour Force Projections by Age Groups Projections of work opportunities Home

Underemployment Age structure of population: 1997-2002 Participation in labour force by age & sex Population &Labour Force: 1997-2012 Population, Labour Force & Employment

Overview Economic reforms may have given a boost to industrial productivity and brought in foreign investment in capital intensive areas. But the boom has not created jobs. This was not unexpected. According to a report by the Washington-based Institute of Policy Studies (IPS), the combined sales of the world's top 200 MNCs is now greater than the combined GDP of all but the world's nine largest national economies. Yet, the total direct employment generated by these multinationals is a mere 18.8 millions -one-hundredth of one per cent of the global workforce. India's Ninth Five-Year Plan projects generation of 54 million new jobs during the Plan period (1997-2002). But performance has always fallen short of target in the past, and few believe that the current Plan will be able to meet its target. India's labour force is growing at a rate of 2.5 per cent annually, but employment is growing at only 2.3 per cent. Thus, the country is faced with the challenge of not only absorbing new entrants to the job market (estimated at seven million people every year), but also clearing the backlog. Sixty per cent of India's workforce is self-employed, many of whom remain very poor. Nearly 30 per cent are casual workers (i.e. they work only when they are able to get jobs and remain unpaid for the rest of the days). Only about 10 per cent are regular employees, of which two-fifths are employed by the public sector. More than 90 per cent of the labour force is employed in the "unorganised sector", i.e. sectors which don't provide with the social security and other benefits of employment in the "organised sector." In the rural areas, agricultural workers form the bulk of the unorganised sector. In urban India, contract and sub-contract as well as migratory agricultural labourers make up most of the unorganisedlabour force. Unorganised sector is made up of jobs in which the Minimum Wage Act is either not, or only marginally, implemented. The absence of unions in the unorganised sector does not provide any opportunity for collective bargaining. Over 70 per cent of the labour force in all sector combined (organised and unorganised) is either illiterate or educated below the primary level. The Ninth Plan projects a decline in the population growth rate to 1.59 per cent per annum by the end of the Ninth Plan, from over 2 per cent in the last three decades. However, it expects the growth rate of the labour force to reach a peak level of 2.54 per cent per annum over this period; the highest it has ever been and is ever likely to attain. This is because of the change in age structure, with the highest growth occurring in the 15-19 years age group in the Ninth Plan period.

The addition to the labour force during the Plan period is estimated to be 53 millions on the "usual status" concept. The acceleration in the economy's growth rate to 7 per cent per annum, with special emphasis on the agriculture sector, is expected to help in creating 54 million work opportunities over the period. This would lead to a reduction in the open unemployment rate from 1.9 per cent in 1996-97 to 1.47 per cent in the Plan's terminal year, that is, by about a million persons - from 7.5 million to 6.63 million. In other words, if the economy maintains an annual growth of 7 per cent, it would be just sufficient to absorb the new additions to the labour force. If the economy could grow at around 8 per cent per annum during the Plan period, the incidence of open unemployment could be brought down by two million persons, thus attaining near full employment by the end of the Plan period, according to the Plan. However, there appears to be some confusion about the figure of open unemployment. The unemployment figure given in the executive summary of the Ninth Plan, gives the figure of open unemployment at 7.5 million while the annual report of the Labour Ministry, for 1995-96, puts the figure for 1995 at 18.7 million. An internal government paper prepared in 1997 put the unemployment figure at the beginning of the Eighth Plan at 17 millions and at 18.7 million at the end of 1994-95. Perhaps the Planning Commission referred to the current figure while the Labour Ministry figure referred to the accumulated unemployment backlog. Top Underemployment

Open unemployment is not a true indicator of the gravity of the unemployment problem in an economy such as India, characterised as it is by large-scale underemployment and poor employment quality in the unorganised sector, which accounts for over 90 per cent of the total employment. The organised sector contributes only about 9 per cent to the total employment. Underemployment in various segments of the labour force is quite high. For instance, though open unemployment was only 2 per cent in 1993-94, the incidence of under-employment and unemployment taken together was as much as 10 per cent that year. This, in spite of the fact that the incidence of underemployment was reduced substantially in the decade ending 1993-94. According to the Planning Commission, the States which face the prospect of increased unemployment in the post-Ninth Plan period (2002- 2007) are Bihar, Rajasthan, Uttar Pradesh, Kerala and Punjab. Top Sector-wise absorption of labour Agriculture Manufacturing & construction Services Sundry / miscellaneous jobs 62 per cent 16 per cent 10 per cent 12 per cent Top

Table 1 : Age structure of population: 1997-2002 Age-group 1997 2002 0 - 14 37.23% 33.59% 15 - 59 56.07% 59.41% 60+ 6.70% 7.00% Table 2 : Trends in Labour Force Participation Rates
(Per Thousand of Population)

Age Group

Period 1977-78 1987-88 1993-94 1977-78 1987-88 1993-94 1977-78 1987-88 1993-94 1977-78 1987-88 1993-94 1977-78 1987-88 1993-94

Male Rural 879 824 804 990 988 990 963 964 968 667 670 699 904 879 877 Urban 746 710 684 990 987 986 940 933 937 517 482 443 831 810 811 515 478 455 619 603 600 538 538 543 221 220 241 517 496 491

Female Rural Urban 257 211 204 324 301 300 291 275 283 130 123 114 269 239 238

15-29

30-44

45-59

60+

All (15+)

Note: Constituent shares in labour force in 1993-94 are Rural Male 0.499, Rural Female 0.270, Urban Male 0.182 and Urban Female 0.049.

Table 3: Participation in Labour Force by Age Groupand by Sex: 1997 - 2012

(per thousand of population)

Age 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60+

1997 517 871 975 988 996 986 981 961 914 637

Male 2002 2007 482 447

2012 412

(a)

1997 302 408 454 505 526 538 524 476 411 205

Female 2002 2007 282 261

2012 241

(a)

Note: (a) No change in labour force participation in age groups above 20 years.

Table 4 : Labour Force Projections by Age Groups 1997 2002 Growth Age Group (Million) (% p.a.) 15-19 40.31 45.03 2.24 20-24 55.45 62.91 2.55 25-29 56.89 61.47 1.56

30-34 35-39 40-44 45-49 50-54 55-59 60+ 15+

52.64 58.88 46.60 52.80 39.56 46.04 32.90 38.13 25.86 30.27 18.86 22.45 28.15 31.64 397.22 449.62 Table 5: Population and LabourForce: 1997 - 2012
(million - 1st April)

2.26 2.53 3.08 2.99 3.20 3.55 2.37 2.51 2012 1196.41 562.91

Population Labour Force

1997 951.18 397.22

2002 1028.93 449.62

2007 1112.86 507.94

Table 6 : Projections of Work opportunities 1997-2002 Sector Agriculture Mining & Quarrying Manufacturing Electricity Construction Wholesale & Retail Trade Transport, Storage & Communication Financing, Real Estate, Insurance and Business Services Community, Social and Personal Service All Sectors GDP Growth (% p.a.) 1997-02 3.9 7.2 8.2 9.3 4.9 6.7 7.3 8.5 7.1 6.5
(Million) 8th Plan 1978 (a) 1983 (b) 1994 (a) (1992-97) (f) 9th Plan (1997-02) (f) 10th Plan (2002-07) (f)

Work Opportunities (Million) 1997 238.32 2.87 43.56 1.54 14.74 34.78 11.96 4.55 38.98 391.30 2002 262.48 3.54 48.22 1.93 17.03 41.67 14.57 5.68 46.41 441.52

Table 7 : Population, Labour Force and Employment

Population (c) Labour Force Employment Unemployment Rate (%)

Notes:

637.6 255.8 249.1 6.7 2.63

718.2 (2.19) 286.6 (2.09) 281.2 (2.23) 5.4 1.89

895.0 (2.12) 368.5 (2.42) 361.5 (2.42) 7.0 1.89

951.2 (1.89) 374.2 367.2 7.0 1.87

1028.9 (1.58) 423.4 416.4 7.0 1.66

1112.9 (1.58) 478.8 474.7 (d) 4.1 (e) 0.86 (e)

1. Estimates of labour force and employment are on usual status concept and pertain to 15 years and above. 2. Figures in brackets are compound growth rates in the preceding period. (a) As on 1st January (b) As on 1st July (c) Population at the terminal year of the plan (d) Required to attain near full employment. (e) Unemployment reduces to negligible level by the year 2007 (f) Labour force, employment and unemployment are stated as annual averages during the Plan period. Top Home

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Agricultural and allied sectors accounted for about 52.1% of the total workforce in 200910.[76] While agriculture has faced stagnation in growth, services have seen a steady growth. Of the total workforce, 7% is in the organised sector, two-thirds of which are in the public sector.[154] The NSSO survey estimated that in 200405, 8.3% of the population was unemployed, an increase of 2.2% over 1993 levels, with unemployment uniformly higher in urban areas and among women.[155][156] Growth of labour stagnated at around 2% for the decade between 1994 2005, about the same as that for the preceding decade.[150] Avenues for employment generation have been identified in the IT and travel and tourism sectors, which have been experiencing high annual growth rates of above 9%.[157] Unemployment in India is characterised by chronic (disguised) unemployment. Government schemes that target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem, by providing financial assistance for setting up businesses, skill honing, setting up public sector enterprises, reservations in governments, etc. The decline in organised employment due to the decreased role of the public sector after liberalisation has further underlined the need for focusing on better education and has also put political pressure on further reforms.[158][159] India's labour regulations are heavy even by developing country standards and analysts have urged the government to abolish or modify them in order to make the environment more conducive for employment generation.[160][161] The 11th five-year plan has also identified the need for a congenial environment to be created for employment generation, by reducing the number of permissions and other bureaucratic clearances required.[162] Further, inequalities and inadequacies in the education system have been identified as an obstacle preventing the benefits of increased employment opportunities from reaching all sectors of society.[163] Child labour in India is a complex problem that is basically rooted in poverty, coupled with a failure of governmental policy, which has focused on subsidising higher rather than elementary education, as a result benefiting the privileged rather than the poorer sections of society.[164] The Indian government is implementing the world's largest child labour elimination program, with primary education targeted for ~250 million. Numerous non-governmental and voluntary organisations are also involved. Special investigation cells have been set up in states to enforce

existing laws banning the employment of children under 14 in hazardous industries. The allocation of the Government of India for the eradication of child labour was $21 million in 2007.[165] Public campaigns, provision of meals in school and other incentives have proven successful in increasing attendance rates in schools in some states.[166] In 200910, remittances from Indian migrants overseas stood at 250,000 crore (US$49.88 billion), the highest in the world, but their share in FDI remained low at around 1%.[167] India ranked 133rd on the Ease of Doing Business Index 2010, behind countries such as China (89th), Pakistan (85th), and Nigeria (125th).[168]