This chapter focuses on some of the basic issues related to the problem of unemployment in India. It begins with defining some basic concepts such as economic activity, worker, employment, workforce relation between GDP growth and employment.
Some basis concept-
Worker- A worker is one who engaged in economic activity.
Economic activity- Those activities which contribute to the Gross national product.
Employed- one who gets at least 1 hour of work in half day.
Work force- No. of persons actually working.
Working population ratio- Divide the total worker by the total population in India and multiply it by 100.
Women in rural are more employed than women in urban area because Indian economy is agrarian so most of the rural women are engaged in agriculture. Other reasons are poverty, illiteracy etc.
Self employed-are those who are engaged in their own business or own profession.
*Hired workers are those who work for other as a reward get wages, salaries.
*Casual workers are daily wages
*Regular salaried employed are those who get wages in regular basis.
Relationship between Growth of Indian economy and the Employment generation from 1952-2000.
During the 50 yrs of independence the growth rate of GDP has always been positive and on an average it grow around 3 to 6 percent. But the growth rate of employment remains stable around 1% it started at 0.39%. This period is known as jobless growth. During 90's the Indian economy grew at 6% and growth rate of employment less then 1% i.e. 0.98%.
Informalisation of Indian Workforce-
Informalisation of worker means transfer of worker from formal sector to informal sector.
Necessity to create employment in formal sector because
1. It provide various security benefits.
2. It provides regular income.
3. Job Security
Unemployment-it means when a person is ready and willing to work at the prevailing rate of wage but does not get work.
Reasons for unemployment-
1. Increase in population.
2. Poverty.
3. Lack of infrastructure.
4. Slow growth of industrialization.
5. Lack of demand.
Types of unemployment-
1. Disguised unemployment is a situation when the no. of workers engaged in a job is much more than actually required. If some of them are withdrawn from job, total production will not get affected.
2. Seasonal Unemployment-work in agriculture is seasonal, no employment opportunity for remaining months.
3. Frictional Unemployment - when a person move from one job to other, but in the process of change may remains unemployed for sometimes.
4. Structural unemployment-it occurs due to structural changes in the economy structural changes are of two types.
1. Changes in technology.
2. Change in demand.
5. Cyclic Unemployment- Due to Business cycles.
