Unemployment

Submitted To:Prof. Pooja Arora

Unemployment

Submitted By: Umesh Kumar Puneet Mokta FA1

First of all let us know what is Full Employment…

Full employment is a condition of the national economy, where all or nearly all persons willing and able to work at the prevailing wages and working conditions are able to do so.

Then what is Unemployment…

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

--International Labour OrganizationHi, I am here

for a job…

Unemployment is more in…

Educated population in overall unemployed population

Agriculture Sector than other sectors

Men than Women

Urban areas than Rural areas

Classification of Unemployment…

Unemployment

Involuntary

Cyclical

Disguised

Structural

Seasonal

Frictional

Voluntary

•A person is out of job because of his ow

n desire to not to w

ork on the prevalent or prescribed w

ages.Voluntary •

A person is separated from

remunerative w

ork and devoid of w

ages although he is capable of earning his w

ages and is also anxious to earn them

.

Involuntary

• Part of the capitalistic system and a part of trade cycle.• There is a greater unemployment and when there is a

depression a large number of people are rendered unemployed.

Cyclical Unemployment

• Certain industries and traders engage workers for a particular season.

• When the season ends workers are rendered unemployed. e.g. Sugar Industry

Seasonal Unemployment

• The time period between jobs when a worker is searching for, or transitioning from one job to another.

Frictional Unemployment

• When labour market in unable to provide jobs for everyone.

• Reasons:- population overgrowth and mismatch between expectation of employers and skills of unemployed

Structural

• When more people are engaged in work than actually required e.g. agriculture sector

Disguised

Reasons…

Labour force growth rate 2.5 % annually

Employment Growth rate 2.3 % annually

..

..

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Employment & unemployment scenario in India

Category 1993-1994 1999-2000 2004-2005Total labour Force 382.0 406.0 469.9Total Employment 374.0 397.0 459.1Open unemployment 7.5 9.0 10.8

Unemployment rate as percentage of Total labour Force

1.9 2.2 2.3

Employment in organized sector

28.0 28.0 26.5

Employment in unorganized sector

346.0 369.0 432.6

Jobs created per annum

- 4.6 12.4

Working Poor - 122.0 130.0

Unemployment rate in India is 9.4% …(2011)

Government initiatives

Prime Minister’s Employment Generation Programme(PMEGP)

Swarnjayanti Shahari Rozgar Yojna (SJSRY)

Swarnjayanti Gram Swarozgar Yojna (SGSY)

The Mahatma Gandhi National Rural Employment Gurantee Act (MGNREGA)

Actions that can be taken …

• Increase access to credit to encourage entrepreneurship

• Provide incentives for new initiatives

• Strengthen or enforce legislation

• Publicize opportunities in the media

Suggestions….

Family planning programmer and development plans should be reformed.

Provide skill training to the new entrants to the labour force