Unemployment

what is unemployment,types,causes,effects

1. UNEMPLOYMENT

2. Definition of Unemployment Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force.

3. Measurement Economists typically focus on the unemployment rate. The unemployment rate is expressed as a percentage, and is calculated as follows: Unemployment rate=unemployed worker/total labor force*1oo As defined by the International labor organization, "unemployed workers" are those who are currently not working but are willing and are able to work for pay, currently available to work, and actively searching for work.

4. Unemployment Rate Since 1960

5. OPEN UNEMPLOYMENT Open Unemployed refers to those individuals who are ready to work at current wage rate and possess qualifications but do not get any job are said to be openly unemployed . Generally , in developing countries like India where labour supply increases at higher rate than employment opportunities.

6. UNDER EMPLOYMENT When labourers cannot utilise their capabilities and for certain period accept less capable work compared to his qualification is said to be underemployed. They may be employed either on part-time basis, or undertake a job for which lesser qualification is required. For example a Post Graduate may work as a clerk for which only S.S.L.C. is enough.

7. SEASONAL UNEMPLOYMENT It occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts, ice factories etc., production activities take place only in some seasons. So they offer employment for only a certain period of time in a year. People engaged in such type of activities may remain unemployed during the off-season.

8. DISGUISED UNEMPLOYMENT It is a situation in which more people are doing work than actually required. Even if some are withdrawn, production does not suffer. Generally, when labourers are not paid in monetary terms, disguised unemployment take place.

9. STRUCTURAL UNEMPLOYMENT This type of unemployment arises due to drastic changes in the economic structure of a country. These changes may affect either the supply of a factor or demand for a factor of production.

10. Cyclical Unemployment Cyclical or demand deficient unemployment occurs when the economy is in need of low workforce. The demand for labor increases with the economy in the growth phase. Again, when the economy passes through depression, demand for labor decreases and the extra workers are released as the unemployed labor force.

11. Frictional Unemployment Frictional unemployment is a type of unemployment that arises when workers are searching for new jobs or are transitioning from one job to another. It is part of  natural unemployment  and hence is present even when the economy is considered at full employment.

12. Industrial Unemployment Those illiterate persons who are willing and able to work in factories or industries in urban areas but cannot find work fall in this category. As rural-urban migration increases, urban unemployment also does.

13. Educated Unemployment Educated unemployment  arises when a large number of  educated  people are  unemployed  or unable to secure a job. There has been an alarming phase of mass  unemployment  among the  educated  youth.

14. CAUSES OF UNEMPLOYMENT IN INDIA 1. Rapid growth of population. 2.Underdevelopment of the economy. 3.Slow growth in the agricultural sector. 4. Defective system of education. 5.Absence of manpower planning. 6.Degeneration of village industries. 7. Inappropriate technology. 8.Slow growth of industrial sector. 9. Immobility of labour. 10. Jobless growth.

15. CAUSES OF UNEMPLOYMENT IN INDIA 11.Absence of employment opportunities. 12.Seasonal Employment. 13.Joint Family System. 14.Insufficient Rate of Economic Progress.

16. EFFECTS OF UNEMPLOYMENT Financial insecurity. Stress / Worry about bills. Decline in self-confidence. Depression Anxiety Stress Tension

17. EFFECTS OF UNEMPLOYMENT Affects nutrition. Schooling leading to educational disadvantage. Fear of poverty Boredom can lead to drug or alcohol abuse Loss of income tax for the government Decline in population in rural areas. People forced to leave an area in search of employment

18. Suggestions to Solve Unemployment Problem   Change in industrial technique: Production technique should suit the needs and means of the country. It is essential that labour intensive technology should be encouraged in place of capital intensive technology .

19. Suggestions to Solve Unemployment Problem   Policy regarding seasonal unemployment: Seasonal unemployment is found in agriculture sector and agro based industries. To remove it: (a) Agriculture should have multiple cropping, (b) Plantations,dairy and animal husbandry should be encouraged

20. Suggestions to Solve Unemployment Problem More assistance to self employed people: Most people in India are self employed. They are engaged in agriculture, trade, cottage and small scale industries etc. These persons should be helped financially, providing raw materials and technical training.

21. Suggestions to Solve Unemployment Problem  Industries in co-operative sector: Industries in co-operative sector should be encouraged. Kerala Govt. set up a textile mill covering 600 unemployed persons on co-operative basis. This is a novel approach to fight against unemployment. Different State Govt. should take necessary steps in this direction.

22. Suggestions to Solve Unemployment Problem Full and more productive employment: The main objective of country employment policy should be to increase employment opportunities . Govt. should adopt a policy that provides employment to people.

23. Suggestions to Solve Unemployment Problem Population control: The growth of population should be checked in order to solve unemployment, problem. Family planning programme should be implemented widely and effectively.

24. Team members : L . VISHNU VARDHAN -17MIS1134 SYED UMER – 17MIS1120 Y.P SRINATH REDDY – 17MIS1157 K. SAI PRAKASH – 17MIS1152 D. HARSHA VARDHAN – 17MIS1160