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Unemployment in india and methods of overcoming

Paper Type: Free Essay Subject: Economics
Wordcount: 2328 words Published: 1st Jan 2015

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In this assignment iam planning to do about the unemployment in india, And how the government overcome this unemployment here, and what are the cost of of unemployment, For more details we can see the following:

UNEMPLOYMENT IN INDIA

India is a nation with massive unemployment problems faced. Unemployment can work as a state of inactivity for a man fit and ready to be defined. It is a condition of involuntary and voluntary idleness. Some features of unemployment were identified as follows: 

1. The incidence of unemployment is significantly higher than in urban areas in rural areas. 

2. The unemployment rate for women than for men. 

3. The incidence of unemployment among the educated is much higher than the overall unemployment. 

4. There is more unemployment in the agricultural sector than in industry and other important areas. 

Economists and social scientists, thinkers have divided into different types of unemployment. Generally, unemployment can be divided into two types: 

(1) Voluntary unemployment 

predominate in this type of unemployment a person not from the work of his own desire on the prescribed wages, or work. Either he wants higher wages, or does not want at all.It does indeed social problem to social disorganization. Social problems and forces, such as a revolution, a social revolution, a class struggle, a financial or economic crisis, a war between nations, mental illness, political corruption, mounting unemployment and crime, etc. threaten the smooth functioning of society. Social values ​​are often seen as the dynamic forces of society. They contribute to the strength and stability of social order. But due to rapid social change come new values ​​and decrease some of the old values. At the same time, people are not able to reject the old and fully accept the new total. Here is the conflict between the old and new, the inevitable result that leads to social disorganization imposed in situation. In economic terminology, this situation is voluntary unemployment.

(2) voluntary unemployment 

In such a situation, the person who is unemployed is to say nothing. It means that a person is separated from the supply of employment without pay, although he is able to earn his wages and also trying to earn it. Forms and types of unemployment are to Hock.

(3) Cyclical unemployment – This is the result of the economic cycle, which is a part of the capitalist system. In such a system there is more unemployment and depression when it made a large number of people unemployed. Since such an economic crisis is the result of the economic cycle, unemployment is a part of it.

(4) Sudden unemployment – If at the point where workers have been employed, there are some changes, a large number of unemployed persons. It all happens in industry, trade and business, where people are employed in a job and suddenly, when the job is finished they will be asked to leave.

(5) Unemployment caused by failure of some industries – in many cases, to close a business, a factory or an industry has. There, various factors may be responsible there are disputes between the partners, companies may be huge loss or the business can not prove to be useful and so on.

(6) Unemployment caused by a deterioration in business and industry – in different industries, trade or business, sometimes there are worse. This deterioration is due to various factors. In efficiency of the employer, sharply lower profits competitions etc. are some of the factors leading to a deterioration in the industry and the company.

(7) Seasonal unemployment – certain industries and traders involved workers for a given season. If the season has ended the workers are made unemployed. Sugar industry is an example of this type of seasonal unemployment. 

The problem of unemployment has a colossal. Various issues have caused this problem. There are individual factors such as age, disability and physical disabilities, to limit the people. External factors include technological and economic factors. There is enormous increase in the population. Each year India adds to its population again. be more than this every year about 5 million people are eligible for securing jobs. Business area is subject to ups and downs of economic cycles and globalization. Economic depression or sick industries are often close compelling their employees become unemployed. Technological progress contributes to economic development. But unplanned and uncontrolled growth of technology is havoc on job opportunities. The computerization and automation has led to technological unemployment. Strikes and lockouts are inseparable aspect of the industrial world. Because these industries often face economic and production is lost. Since the employee does not receive any salary or wages during the strike they are suffering from economic difficulties. You are permanently or temporarily unemployed. Today young people are not ready to jobs that are considered socially or degrading low increase. Our education system has its own irreparable defects and their contribution to the unemployment is preparing an open truth.Our education is not the minds of the young generation to become self-employed, on the contrary, it makes them dependent on government agencies, which are difficult to obtain. Our state of the start of the five-year plans has several employment measures and programs over the years, but generating, in the absence of proper implementation and monitoring have failed, introduced to achieve the required goals. Recently UPA government with Rural Employment Guarantee Programme, to come provide the minimum days of employment to people living in the villages. This is a laudable program, if sincere, because it will provide employment for people reacted during natural disasters such as drought, floods, etc. The measures to reduce unemployment may be more emphasis on creating opportunities for self-employment, increase productivity and incomes of the laity the working poor, trying to shift emphasis from the creation of relief type of employment for the construction of durable productive assets in rural areas and, instead, something can be accelerated back to protectionist measures, the pace of privatization

HOW THIS UNEMPLOYMENT OVERCOME

Problem of unemployment can be resolved in India by launching corporate agriculture system, improving the marketing system, social security for farmers, subsidiaries 

Indian agriculture is an area that can solve future unemployment situation in India, but this is the most neglected area of ​​politicians and government officials. 

Now I will list down a few key points, this can be done. 

Introducing Corporate farming system 

The Soviet method of farming can not fit. The solution could be corporate agriculture, in which corporations invest their money and share technology in agriculture, the gains are with the farmers. Improving the most important thing, the agricultural scene in India, is water. For this we need to build large dams. 

Agriculture in India needs more support from industry. Food processing machinery too.In India, only 2% of agricultural production is processed. In developed countries it is as high as 80%. This is better to give back to the farmers from their fields and also to remove, as the industry middlemen buy direct from the farmers. The government also needs to irrigation to invest technology and more efficient, reliable and cost-effective credit system. 

Improving the marketing system and social security 

The marketing system should also be improved. Social Security must be brought in for every person in India. That will mean at least that people do not live in acute poverty if their crop fails or they lose their jobs. But at the same time it should be clear that without employment generated by the services and manufacturing sectors. 

We can also help farmers, where traditional cultures have been a failure due to water shortages by offering them help plant crops such as jatropha, which needs only a small amount of water, and would also help direct the corporate world, as in the productionhelps biofuel. 

Subsidization of farmers and implement crop insurance scheme 

Other suggestion would be complete crop insurance and farm subsidies are used instead of the consumer. The government needs to subsidize farmers heavily in order to reduce the situation, the price of food, and it is on the market at a competitive price available, rather than the procurement of the farmers and sell them cheaply to the public.

Government has to subsidize everything at first. Improved irrigation system must be created. We are good at production, but if an efficient system is down, it would be much better. Irrigation is the key. We have the natural resources so that we have to use it better. For example: completed in Gujarat, after the Sardar Sarovar project, it would not only drinking water to Saurashtra / Kutch region, but also opportunities for a better agricultural products in the not-so fertile land in the region. So there must be an increased effort on the part of government in the layout of a better infrastructure for agriculture. 

Increasing storage 

The government should create more storage for the harvest, as Indian granaries are overflowing and rot, while people can not afford the food die of starvation. We need to figure out a system by which we can better process the food business and better. 

Why do farmers commit suicide? 

Most farmers who commit suicide make a bad choice of plants and grow high-risk crops such as cotton, tobacco, etc. drought and pests, these plants much more easily than others devastate. The government can do about it much (and I know it’s working).You should read our research and counseling services and advice to farmers to plant what and what not. In addition, much emphasis should be placed on research to find the plants that are grown to diversify. Fruit crops, some cereals, pulses need less water and less resources sensibly. The education of farmers about these “non-traditional” opportunities and possibilities is really important. 

Tightening of agricultural credit system 

The agricultural credit system should be so tight that farmers credit only if they get to make informed decisions. In this way, farmers will not be in serious debt and not be forced to kill himself. 

I think if these steps are implemented effectively in agriculture, then the agriculture in India can provide employment for millions of people in rural and urban areas of the country as the people, the urban areas have come to gain employment in other areas will return to their villages and hard work in agriculture, the basic living conditions of their business in their area to do. 

I invite all of not only the Indian community, but also the global Internet community, the inputs to share in this concern.

COST OF UNEMPLOYMENT

Most economists agree that high unemployment is not only costly to individuals and families directly affected, but also local and regional economy and the economy as a whole. We can distinguish between the economic costs of people without work and the social costs of making the often follow. 

Lost output of goods and services 

Unemployment leads to a waste of scarce economic resources and reduces the duration of growth potential of the economy. An economy with high unemployment is to produce within its production possibility frontier. The hours that work the unemployed can not never be won. 

   

But if unemployment can be reduced, total national output to rise, leading to an improvement in welfare.

Fiscal costs of government 

High unemployment has an impact on government spending, taxes and the amount of debt each year 

A rise in unemployment leads to higher pension payments and lower tax revenues.When individuals are unemployed, they receive not only treatment but also pay no income tax. 

Because they spend less they contribute less to the government in indirect taxes. 

This increase in government spending and the decline in tax revenue can lead to higher public debt requirement (known as a public net cash requirement) Score 

Welfare loss of investment in human capital 

Unemployment waste some of the scarce resources in the training of workers employed. Furthermore, workers who are unemployed for long periods of de-skilled as their skills are increasingly in a rapidly changing labor market dates. This reduces the chances of employment in the future, which in turn the economic burden for the state and society. Check out the review on page Long-term unemployment 

Social costs of UNEMPLOYMENT 

Rising unemployment is a social and economic disadvantage are – there is some relationship between rising unemployment and rising crime and increasing social dislocation (increased divorce, the decline in health and lower life expectancy). 

Areas with high unemployment and a decline in real income and expenditure and a growing number of relative poverty and income inequality. Than younger workers are more geographically mobile than older workers, there is a risk that areas with higher than average unemployment is suffering from an aging workforce potential – making them less attractive as investment locations for new businesses.

CONCLUSION

From the above we can see what are the unemployment take place in india and what are various type of unemployment in india, and what are the steps taken by the government to overcome this unemployment in india and also we see what are the cost of unemployment

 

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