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Unemployment occurs when people are without jobs and they have actively looked for work within the past four weeks.

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

The National Sample Survey Organization (NSSO) has 3 concepts of unemployment:
1. Chronic Unemployment
2. Weekly Unemployment
3. Daily Status Unemployment

Types of unemployment:
Structural unemployment – in such a situation the productive capacity is inadequate.
Seasonal unemployment - such as that affecting the rain-fed agricultural farmers who remain out of work for four to six months in a year.
Open unemployment – their is a migration of people from rural areas to urban areas in search of work.
Frictional unemployment – generation of unemployment due to change in market conditions.
Disguised unemployment – a situation in which more persons are involved in a certain job than needed in which case the marginal productivity of labour is 0.

Features of unemployment

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.

Types of Unemployment

Economists and social thinkers have classified unemployment into various types.

Generally unemployment can be classified in two types:

(1) Voluntary unemployment
(2) In voluntary unemployment

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.

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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

Employment & Development Programmes

Community Development Programme - 1952 - Overall development of rural areas with people’s participation.

Intensive Agriculture Development Programme - 1960-61 - To provide loan, seeds, fertilizer, tools to the farmers.

Employment Guarantee Scheme of Maharashtra - 1972-73 - To assist the economically weaker section of the rural society.

Twenty Point Programme - 1975 - Poverty eradication and raising the standard of living.

Food for work Programme - 1977-78 - Providing food grains to labour for the work of development.

National Rural Employment Programme - 1980 - To provide profitable employment opportunities to the rural poor.

Development of women & children in Rural Areas - 1982 - To provide suitable opportunities of self-employment to the women belonging to the rural families who are living below the poverty line.

Rural Landless Employment Guarantee Programme - 1983 - For providing employment to landless farmers & labourers.

Self-employment of the Educated Unemployed Youth - 1983-84 - To provide financial and technical assistance for self-employment.

Council for Advancement of People’s Action & Rural Technology - 1986 - To provide assistance for rural prosperity.

Self-Employment programme for the Urban poor - 1986 - To provide self employment to urban poor through provision of subsidiary and bank credit.

Jawahar Rozgar Yojana - 1989 - To provide employment to rural unemployed.

Nehru Rozgar Yojana - 1989 - To provide employment to urban unemployed.

Scheme for Urban Micro Enterprises - 1990 - To assist the urban poor for small enterprises.

Scheme for Urban Wage Employment - 1990 - To provide wages employment after arranging the basic facilities for poor people in the urban areas where population is less than one lakh.

Scheme for Housing and Shelter Up-gradation - 1990 - To provide employment by means of shelter up-gradation in the urban areas where population is between 1 to 20 lakhs.

Employment Assurance Scheme - 1993 - To provide employment of at least 100 days in a year in villages.

Swaran Jayanti Shahri Rozgar Yojana - 1997 - To provide gainful employment to urban unemployed and under employed poor through self employment or wage employment.

Swarna Jayanti Gram Swarozgar Yojana - 1999 - For eliminating rural poverty and unemployment and promoting self employment.

Pradhan Mantri Gram Sadak Yojana - 2000 - To line all villages with Pacca road.

Sampurna Gramin Rojgar Yojana - 2001 - Providing employment & food security.

Jai Prakash Narain Rozgar Guarantee Yojana - 2002-3 - Employment guarantee in most poor districts.

Rural Employment Guarantee Yojana - 2005-6 - 100 days assured employment.



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