Unemployment - Lord J. M. Keynes

February 28, 2022

Types of unemployment in economics

'Unemployment - Lord J. M. Keynes

'Unemployment is the prevailing situation in the labor market when people are unable to find work despite their willingness and ability to work at the prevailing wage rate. '

Teaching Objectives

To enable the students to get acquainted with the understanding the problem of Indian Economy i.e. unemployment and the measures taken by Govt.

Preface

In recent times, the Indian economy has become one of the fastest-growing economies in the world. Unemployment is one of the most serious economic and social problems facing our country. Unemployment is a problem in rural as well as urban areas. Unemployment wastes human resources in the country. The saying 'Empty mind is Satan's house is really true. Unemployed persons are usually involved in anti-social and anti-national activities like gambling, mutiny, robbery, cheating, crime, extortion, land encroachment,

etc. Unemployment reduces the national income of the country and the society remains poor and backward. Unemployment threatens the security and stability of the economy.

The meaning of unemployment

Unemployment is a situation where a person is willing to work at the prevailing wage rate, but does not get a job. Unemployment in the broadest sense is the lack of employment or work. People between the ages of 15 and 59 do not get paid work even though they are eligible to do so. (Unemployment means not getting a job even if you have the desire and qualification to work at the prevailing wage rate.)

In short, unemployment is the state of a person's inability to actually get a job despite his or her willingness to work, qualifications, and willingness to work at the prevailing consciousness.

3.2 The concept of unemployment

1. Involuntary unemployment

This unemployment is also called visible or overt unemployment. Unemployment is a condition in which people are qualified to work and are willing to work, but do not get the job. This situation is due to the excess supply of labor and the relatively low demand for labor. In India, such unemployment is found in rural as well as urban areas.

2. Optional unemployment

It is a form of unemployment where a person is eligible to work but does not want to work. It is not just unemployment, it is a state of inactivity. E.g. Wealthy people are unwilling to work or beggars refuse to work or educated people are waiting for a white-collar business.

3. Justice semi-unemployed

Arthakari is a condition that has to be completely eradicated. Completion of this postgraduate work

4. Full employment

Utilizing the means of production available in the manufacturing sector in the country means full employment. When land capital in the economy is obtained at the prevailing wage rate of these productive means, it is full employment. Physical people in the country can't be considered economical.

Types of unemployment

1) Rural

A) In season

B) Disguised unemployment

2. Body

Unemployment of educated people
Frictional unemployment
Cyclic unemployment
Creative unemployment

1. Rural Unemployment

Unemployment is mainly seen in rural areas. This is a serious problem. These include the following types.

A) Seasonal unemployment

Most of the farmers in India depend on rainfall (natural) for cultivation, so only one crop can be harvested in a year. This gives rural agricultural laborers only four to five months of work, leaving them idle during the rest. Guides, wedding musicians.

E) Concealed unemployment (hidden)

Unemployment is a fundamental problem in an underdeveloped and developing country with a large population. In this type of disorder, where fewer people are needed to work, more people work than God needs The marginal productivity of surplus workers remains zero. E.g. 20 kg on one size of land. Bar workers are required to produce rice. Suppose six workers are working on the same land and 20 kgs. If rice is being produced, the extra labor will be hidden, as it does not add to the production.

2. urban unemployment

Unemployment that is found in urban areas is called urban Sakari. The following are the types of unemployment.

(a) educated unemployment

"A person who is educated but does not get the job despite his or her desire to work is called a well-educated job. Unemployed people who are educated but do not get a job are called educated unemployed. Many educational institutions have been set up in urban areas. The unemployment of such well-educated people is largely due to a lack of employment for those who can do it.

b) Tantric unemployment

Unemployment that is created due to changes in production techniques is called technical unemployment. In urban areas, manufacturers prefer machines to workers. This reduces production costs and increases profits. Manufacturing using high-quality technology or using capital-oriented technology reduces the number of workers. This leads to technical unemployment. E.g. Increased use of computers in nationalized work has led to widespread technical unemployment. Unemployment is on the rise as mechanized humans are being used instead of workers.

C) Frictional unemployment

In this type of unemployment, economic struggles cause workers to become temporarily unemployed. Workers are laid off due to breakdowns, shortage of raw materials, power cuts, etc. In such a situation workers have to remain unemployed from leaving one job to accepting another job, hence it is called frictional unemployment. Because of this unemployment, they have struggled with the situation.

d) cyclical unemployment

Unemployment caused by a lack of effective demand in a post-boom recession is called cyclical unemployment.

This type of unemployment is caused by the trade cycle. Lack of effective demand during a recession slows down economic activity, leading industry owners to reduce production. As a result, workers are laid off. E.g. The recession of 2008 led to similar cyclical unemployment in the IT sector.

e) structural unemployment

Unemployment occurs when structural and technological changes occur in the economy. When the backward and traditional economy undergoes structural changes and becomes modern and developed, there is a fundamental change in demand. This leads to structural unemployment. This unemployment is a long-term Patna. E.g. With the economic development of the cities, the Podagadi became obsolete and when the auto-rickshaws on diesel came into existence, the horse cart owners had to endure structural unemployment.

The unemployment situation in India (current status)

It is an indisputable fact that a large number of workers in rural and urban India are forced to remain unemployed against their will. It is difficult to estimate exactly how many people are unemployed. The Planning Board, the Director-General of Census Reporting General Employment and Training as well as the Service Planning Centers, as well as the Central Statistical Organization of the Statistical Institute of India, or the National Sample Committee do not have accurate information in this regard. Some of the predictions in this regard can be given as follows -

Unemployment in urban and rural areas Percentage of the labor force

Survey period

rural part
urban area

Open Image and see details

Survey period rural part urban area

Unemployment Rate Source National Sample Water Institute Report based on prevailing daily conditions (Dat & Sundaram No. 9429 A. Indian Economy)

Reasons for unemployment

Sometimes awake
Backward techniques of agricultural cultivation
Inheritance Rights Act
Joint family practices
The slow pace of economic growth
production system
( But (struggle)
Poor financial planning
Migration of rural population
Dissemination of education

1. High rate of population growth

After independence, India's population began to grow rapidly. As a result, the labor force increased. Due to the economic development of Apu, this additional workforce could not be accommodated in the second and third sectors, which is why unemployment increased rapidly.

2. Backward techniques of agricultural cultivation

Due to ignorance and illiteracy, farmers in India use traditional methods in agriculture. As a result, land productivity remains low and employment does not increase. As a result, unemployment rises.

3. Inheritance Rights Act

Due to Barsa Rights Act, agricultural land is being divided and fragmented. This makes land holding unprofitable. Such a holding area cannot feed the family. As a result, landholders are forced to become unemployed and this creates unemployment.

4. Joint family practices

The joint family system is to some extent the cause of latent unemployment in rural areas. Some family members are working on the farm unnecessarily even though they do not need to work on the farm. This leads to disguised unemployment.

5. The slow pace of economic growth

India is a developing country. Due to the low economic growth rate in the country, the growing labor force cannot be accommodated. As a result, the backlog of unemployment has been increasing year by year.

6. production system

The process of globalization uses techniques that require the least amount of labor in industries. Therefore, there is a rift between the industrial workers.

7. Friction

Industrial disputes, power shortages, scarcity of raw materials, Frictional baking in urban areas due to machine breakdown, lockout Is created,

8. Poor financial planning

Economic planning in India has failed to create employment opportunities. This also led to unemployment in urban areas.

9. Migration of rural population

Large numbers of the rural population are migrating to urban areas in search of employment. As a result, the number of unemployed in urban areas is increasing.

10. Dissemination of education

Institutions offering higher education have been established in large numbers in urban areas. Therefore, the number of well-educated people is different. Chad was, But job opportunities have not been created for them. At the same time, lack of manpower planning, lack of labor prestige, lack of coordination skills, lack of vocational and professional guidance centers led to increasing in unemployment in urban areas.

Unemployment Results

Resulting in unemployment

financial results.
social consequences

When you talk about unemployment and underemployment, they don't triangle-based Organization Installation policy We are aware of inadequate use of human resources. Due to improper use of each many economic and social It is evening. They are explained as follows.

Economic Outcome

1. Waste of resources

Human resources are essential for the economic development of a nation. When there is unemployment, productive human resources are consumed. When jobs are provided to the unemployed, these human resources work and contribute to the national income. However, inadequate utilization of human resources will reduce the production of goods and services abroad and will adversely affect the quality of life.

3. Difficult to implement welfare schemes

If people get affordable employment, national income will increase. As a result, the government will be able to collect more revenue from taxes and this collected revenue can be used for development schemes like water supply, beyond the poor In fact, this is not the case.

3. Poverty and income inequality

Prof. In the words of Michael Todaro, "there is a strong link between high levels of unemployment, half-employment, widespread poverty and unequal distribution of income."It seems that the poor get poorer and the rich get richer. Thus inequality in income leads to poverty.

4. The growth of the informal sector

When the villagers are unemployed, they have to migrate to the city for employment. These unemployed migrants live in the city and earn their living by doing low-income retail jobs. E.g. Car wash, guards at the housing society, peddlers, etc. It increases poverty.

5. An increase in financial crime

Unemployed and semi-unemployed people are attracted to drug dealing, trafficking, trafficking, and cybercafe crime Occur.

6 Increasing burden of unproductive population

In a country with a large population like India, the population of unproductive people (men and children) is higher. With that More and more people are unemployed. This increases paralysis.

Social consequences

When people are unemployed, they grow. So their mentality breaks down, so antisocial young people are attracted.

1. Social tensions and unrest

Unemployment increases tension in society and social unrest increases.

2. Lack of human values

Unemployment makes young people feel inferior and makes them feel inferior.

3. Argument in leanness

Instead of accepting life's challenges, unemployed youth run away from home. They blame fate for their failures, so unemployment is detrimental to society.

Government action to eradicate unemployment in India

Government measures

Rural Employment Program (RWP)
Marginal Farmers and Agricultural Workers (MEALA)
Integrated Drought Affected Agriculture Development Program (IDLADP)
Agricultural Service Center (ASC)
A program (CP)
Government of Maharashtra Employment Guarantee Scheme (EGS)
National Rural Employment Program (NREP)
Rural Landless Employment Hami Yojana (RLEGP)
Jawahar Rozgar Yojana (JRY)
Training of rural youth for self-employment
Ninth Five Year Plan
Eighth Five Year Plan
Other measures

1) Rural employment program

Employment is created for the rural people by constructing roads, farm dams, etc.

2. Marginal Farmers and Agricultural Workers Association

Under this scheme, concessional loans are provided to minority farmers and agricultural laborers for starting self-employment.

3. Integrated Drought-Affected Agriculture Development Program

Under this scheme, permanent employment, as well as rural development works, are provided to the laborers in the areas of land conservation programs, land improvement, etc.

4. Agricultural Service Centers

Unemployed graduates and diplomats are given assistance to start agri-shops and agri-services.

5. Dhadak Plan (Short Term Plan)

Unemployed people are provided employment for 10 months in a year by undertaking rural programs like irrigation schemes, land conservation, road construction, etc.

6. Government of Maharashtra Employment Guarantee Scheme

This scheme was started by the Government of Maharashtra in 1972-73. The scheme is based on the principle of 'Right to Work' and is limited to unskilled human workers above 18 years of age.

7. National Rural Employment Program

'National Rural Employment to Grain Scheme in exchange for work The event was renamed.

8. rural landless employment humi scheme

The scheme was legalized in rural areas on 15th August 1983 It was started to create employment-generating capital and raise the standard of living in rural areas.

9. Jawahar Rozgar Yojana

Former Prime Minister Rajiv Gandhi announced the Java Rozgar Yojana on April 28, 1989. The scheme is mainly for those living below the poverty line, especially the Scheduled Castes, Scheduled Tribes, Unemployed, and 30% for women.