{"id":313,"date":"2020-06-08T08:10:11","date_gmt":"2020-06-08T08:10:11","guid":{"rendered":"https:\/\/www.competitionreview.in\/blogs\/?p=313"},"modified":"2020-06-08T08:10:11","modified_gmt":"2020-06-08T08:10:11","slug":"unemployment-problem","status":"publish","type":"post","link":"https:\/\/www.competitionreview.in\/blogs\/2020\/06\/08\/unemployment-problem\/","title":{"rendered":"UNEMPLOYMENT PROBLEM"},"content":{"rendered":"\n<p>India as a nation is faced with a massive\nproblem of unemployment. Unemployment can be defined as the state of being\nwithout any work both for an educated and uneducated person, for earning one\u2019s\nlivelihood. Unemployment may be elaborated as a state of not finding work by an\nindividual who is fit and willing to work. It is usually measured in\npercentage; the number of individuals without work out of the total \u201clabour\nforce\u201d of the country or specific social groups.<\/p>\n\n\n\n<p>Unemployment casts some short-term ripples\nthroughout the economy by reducing an individual\u2019s contribution in terms of\nservices and taxes. The unemployed also does not possess purchasing power, thus\nin effect contributing to bringing down the demand for goods in the market and\ncreating more unemployment. This vicious cycle creates a cascading effect\nthroughout the economy and trickles down to different social strata. India\ncurrently has a population of about 1.25 billion. According to a recent United\nNations Development Programme (UNDP) report, during the period of 1991 to 2013,\nthe Indian economy has experienced maximum growth and yet less than half the\nnumber of Indians seeking jobs have managed to land one during this period.\nStatewise figures reveal that Tripura has the highest unemployment rate in the\ncountry at 19.7 percent while Gujarat has the lowest at 0.9 percent in 2015-16.\nOn the other hand, the unemployment rate is higher among women at 8.7 percent\nversus 4.3 percent among men. Women unemployment rate is higher in the rural\nareas than in urban sectors of the country. Experts fear that at present, India\nis experiencing a jobless growth with not enough jobs being created for its\nworking-age population (15-64 years). There is ample scepticism afloat about\nthe country not being able to cash in on its demographic bonus, predicted to be\n869 million by the year 2020\u2014the world\u2019s largest.<\/p>\n\n\n\n<p>Our economy has grown and there has been\ndevelopment but not enough to generate a sufficient number of jobs. Another\nfactor that has led to unemployment is the growth in population. Ours is a\nthickly populated country with the population increasing by leaps and bounds.\nBut jobs and gainful avenues of employment cannot be generated in the same\nproportion. The jobs are restricted in number, but the people applying for them\nare many. So, a large section of people are left without a job.<\/p>\n\n\n\n<p>The population of our country is ever-rising.\nThe abnormal rise in population has intensified the problem of unemployment in\nIndia. That is why the issue of unemployment has been getting more and more\nacute every year. It is the responsibility of the State to provide work to the\npeople. But the number of the unemployed persons in India is increasing at an\nalarming rate. More than one-third of the total population still lives below\nthe poverty line. The number of registered unemployed, not to speak of those\nwhose names are not in the register, is quite shocking. The number of job\nseekers also on the register of employment exchanges is increasing by leaps and\nbounds. There are three classes of employment here. In the villages, those\npeople who live on agriculture work for four or five months in a year, idle\naway the rest of the time. During that period they practically remain\nunemployed. In the towns and cities, there is another class of unemployed\npeople who find no employment in the factories due to the setting up of big\nmachines there. Lastly, there are a large number of educated people who are\nunemployed. The masses, the uneducated and even the illiterate adopt some way\nor the other using which they can earn their living. The educated, however,\ncannot do this.<\/p>\n\n\n\n<p>The problem of unemployment among the educated\nyouth is a serious one. For every vacancy, there are dozens of applicants. Out\nof many candidates who are interviewed, only a few get the job. A student\ndedicates several years of his life to studies. It is a worrisome condition\nthat even after getting Bachelors and Masters Degree, India\u2019s youth is facing\nunemployment.<\/p>\n\n\n\n<p>The root of the problem can be traced to a host\nof reasons that contribute collectively towards this problem.<\/p>\n\n\n\n<p><strong>1. Economic Growth without\nadequate Employment Opportunities:<\/strong> India\u2019s GDP\nprojections for the year <br>\n2017-18 is 7.5 percent but that growth does not currently translate into\ncreating more employment opportunities for the labour force of the country. In\na survey conducted among a sample of 1,072 companies across the nation and\nacross various sectors, during the financial year 2014-15, only 12,760 jobs\nwere created compared to 1,88,371 jobs in the year 2013-2014. In the year 2016,\nIndia\u2019s rural unemployment rate stood at 7.15 percent whereas unemployment rate\nin urban areas stood at 9.62 percent.<\/p>\n\n\n\n<p><strong>2. Education:<\/strong> Although literacy rates have risen in the last few decades, there\nstill remains a fundamental flaw in the education system in India. The\ncurriculum is mostly theory-oriented and fails to provide vocational training\nrequired to match with the current economic environment. The degree-oriented\nsystem renders itself redundant when it comes to producing human resources\nadept at fitting into specific profiles within the economy.<\/p>\n\n\n\n<p><strong>3. Population Growth:<\/strong> Rapid growth of population has often been labelled as the major\nreason for increasing unemployment in the country. In the last ten years\n(2006-2016), India\u2019s population has increased by 136.28 million <br>\nand unemployment was at a five-year high in the financial year of 2015-16.\nCurrent survey data reveals that at the all-India level, 77 percent of families\ndo not have a regular salaried person.<\/p>\n\n\n\n<p><strong>4. Faulty Employment Planning:<\/strong> The Five-Year Plans implemented by the government have not\ncontributed proportionately towards the generation of employment. The\nassumption was that growth in the economy would automatically generate enough\nemployment. But in reality, the situation does not quite match up to the\nassumption and there have remained gaps between the required number of jobs and\nthe actual numbers generated.<\/p>\n\n\n\n<p><strong>5. The drawback of Agriculture\nInfrastructure:<\/strong> According to current\nstatistics, agriculture remains the biggest employer in the country\ncontributing to nearly 55 percent employment. But ironically, the sector\ncontributes a meagre 17 percent to the country\u2019s GDP. The problem of disguised\nunemployment has turned out to be the most significant contributor behind this\ndeficit. Also, the seasonal nature of employment in this sector builds up\nrecurring cycles of unemployment for the rural population. Lack of proper\nirrigation infrastructure and the use of outdated cultivation methods render\nmost of the agriculture land in India usable for cultivating just one crop a\nyear. This is another contributing factor towards seasonal nature of\nunemployment in the sector.<\/p>\n\n\n\n<p><strong>6. Alternative Opportunities:<\/strong> There has been a definite push towards providing the people employed\nby the agriculture-based industries with alternate methods of employment during\nthe lull seasons. Skill-based training for their employment in other sectors is\nlacking till date.<\/p>\n\n\n\n<p><strong>7. Slow Industrialisation:<\/strong> The industrial position in India is still slow to flourish.\nAgriculture remains the most prominent employer in the country. People are not\nyet keen towards self-employment, especially in the rural sector, depending on\nexisting employment opportunities.<\/p>\n\n\n\n<p><strong>8. Lack of Investment:<\/strong> Inadequacy of capital investment persists heavily in India and that\nhas been a critical contributor in not setting up enough industry that in turn\nemploys the labour force.<\/p>\n\n\n\n<p><strong>9. Immobility of Labour:<\/strong> One more factor that leads to unemployment is people not being\ninterested in moving for jobs. Responsibility and attachment to family,\nlanguage barrier, religion and lack of transport are key contributing factors\nin this regard.<\/p>\n\n\n\n<p>The problem of unemployment is mainly an\neconomic one. It is essential, therefore, that the economic policy of the country\nbe overhauled. In our country, labour is available in abundance. We should\nprovide avenues for employment for them through the cottage and small-scale\nindustries. Besides this, stress must be laid on family planning. Every effort\nmust be made to check the rapid rise in population. This will help a great deal\nin the solution of this problem.\n\nThe villages should become self-sufficient in their economy so that the\nvillagers would not run to the cities in search of jobs. The government should\nencourage and develop the agriculture-based industries in rural areas so that\nthe rural candidates do not migrate to the urban areas. More employment should\nbe generated in rural areas for the seasonal unemployment people. This would\nensure that the large cities are not overcrowded with a huge population. It\nwould help maintain the balance between the job\/vacancy and the job seekers.\nThe present education system should also be changed radically. Instead of\ngiving only theoretical education, the students should be given vocational\ntraining so that they can start some work after they finish their education.\nThese institutes prepare students with skill and knowledge for a particular\ntrade. There is growing demand for skilled people in various industries. The\ncountry should promote industrialisation so that more job opportunities can be\ncreated for the workers. The focus should be on heavy industries that employ\nthousands of employees of various skills. Last, but not the least, to solve the\nproblem of unemployment in India, the government must smoothly streamline its\nliberalisation policy. This initiative would encourage foreign companies to\nstart their manufacturing units in India, which in turn, would increase the\nemployment opportunities.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India as a nation is faced with a massive problem of unemployment. Unemployment can be defined as the state of being without any work both for an educated and uneducated person, for earning one\u2019s livelihood. Unemployment may be elaborated as a state of not finding work by an individual who is fit and willing to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/posts\/313"}],"collection":[{"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/comments?post=313"}],"version-history":[{"count":1,"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/posts\/313\/revisions"}],"predecessor-version":[{"id":314,"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/posts\/313\/revisions\/314"}],"wp:attachment":[{"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/media?parent=313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/categories?post=313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.competitionreview.in\/blogs\/wp-json\/wp\/v2\/tags?post=313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}