Employment And Unemployment Class 12 Best Notes
Best CBSE Employment And Unemployment
Chapter 10
Employment And Unemployment
1. Some Basic Concepts Unemployment :
It refers to a situation when people are willing to work at the existing wage rate, and are able to work, but are not getting work.
Worker :
A worker is an individual who is engaged in some production activity.
workers are classified as :
Self -employed and Hired Workers
(1) Self -employed Workers :
These are those workers who are engaged in their own business or own profession.
Ex- A farmer working on his own farm.
(2) Hired Workers :
These are those workers who for others; they render their services to other and as a reward, get wages/ salaries.
Ex- A teacher working in a school.
Hired Workers are classified as :
Casual and Regular Workers
(1) Casual Workers :
Casual workers are like daily — wagers; not hired on regular basis. Casual workers are unskilled workers, like a worker working at the construction site.
(2) Regular Workers :
Regular workers are hired on regular basis; are on permanent rolls of the employers. A regular worker is usually a skilled worker, like an engineer working in a factory.
Labour Supply, Labour Force and Workforce
(i) Labour Supply :
It refers to the amount of labour that the workers are willing to offer corresponding to a particular wage rate.
It is measured in terms of man-hours of work .
(ii) Labour force :
It refers to number of workers actually working or willing to work. It is not related to wage rate.
(iii) Workforce :
It refers to the number of persons actually working, and does not account for thse who are willing to work (but not working). Thus,
Workforce = Labour force — No. of persons not working but are willing to work
No. of persons Unemployed = labour Force — Workforce
Rate of Unemployment
= Number of persons unemployed/ Size of labour force * 100
Participation Rate= Total Workforce/ Total Population * 100
2. Size Of Workforce In India
(i) India has a workforce of nearly 40 crore of persons.
(ii) 70 % of the workforce comprises of male worker. And 30 % are female workers.
(iii) 70 % of workforce found in rural areas ; urban workforce is only 30 % of the total.
(iv) Female workforce in rural areas is nearly 30 %, while 20 % in urban areas.
3. Rate Of Participation In India
(i) Rate of participation for the urban areas is about 43.5 % in 2015–16.
(ii) Rate of participation for the rural areas is about 53 % in 2015–16
(iii) In urban areas, rate of participation is about 69 % for men and 16.2 % for women.
(iv) In rural areas, rate of participation is about 77.3 % for men and 26.7 % for women.
(v) Overall rate of participation in the country is about 50.3 %.
There are some facts related to following observation:
(1) High Dependency Ratio :
Overall rate of participation in the country is not very high, implying not many people are engaged in production activity. It implies high dependency ratio.
(2) High Rate of Participation, but Low Level of Productivity in Rural Areas :
Rate of participation is higher in rural areas compared with urban areas. Implying that larger percentage of population is engaged in production activity in rural areas. But there is low level of productivity.
(3) High Rate of Participation for women in Rural areas:
4. Self- Employment And Hired Workers In India
Urban Areas :Self -employed 37.9 %, hired 62.1 %.
Rural Areas : Self-employed 45.7 %, hired 54.3 %.
5. Occupational Structure Or Distribution Of Workforce By Industry
Primary Sector 46.1 %, Secondary Sector 21.8 % , Tertiary Sector 32.1 %.
Higher percentage of employment in primary sector points to economic backwardness.
Occupational structure in India shows only a modest change over time.
Distribution of Male- female Workforce across Different Sectors
The following facts are emerge:
Female workers in the rural areas are willing to migrate for outside jobs.
They prefer to work at their place of residence even for a low wagw. However, they must work to supplement their family income for a meaningful subsidence.
This explains why a very high % of female workforce in rural areas is engeged in primary sector.
Only a Modest Change in Occupational structure
6. Jobless Growth
It is a situation when the level of output in the economy tends to rise owing to innovative technology without any perceptible rise in the level of employment.
Jobless growth leads to chronic unemployment, even when there is a rise in GDP.
7. Casualisation And Information Of Workforce
Casualisation:
It refers to a situation when the percentage of casually-hired workers in the total workforce tends to rise over time.
Informalisation
It refers to a situation when people tend to find employment more in unorganised (or informal) sector of the economy, and less in organised (or formal) sector of the economy.
8. Rural And Urban Unemployment
Rural Unemployment
Rural Unemployment is dominated by disguised and seasonal unemployment.
(1) Disguised Unemployment :
It is a situation when more people are engaged in a production activity than actually required.
(2) Seasonal Unemployment :
It occurs because of seasonal nature of crop production.
Workers engaged in seasonal activities which was occupied for few months in a year. Rest of the period, they remain unemployed.
Urban Unemployment :
Unemployment in urban sector is placed in two broad categories :
(1) Industrial Unemployment :
It includes those illiterate persons who are willing to work in industries, mining, transport, trade and construction activities, etc.
There are some principal causes of Industrial Employment as under :
(i) Rapid rise in population overtime, this leads to rise in the supply of labour.
(ii) Concentration of industry in Urban Areas, It means industrial unemployment occurs as a spillover of rural unemployment.
(iii) Industries in India are relying more on labour-saving western technology.
(2) Educated Unemployment :
In India the problem of unemployment among the educated people is also quite grave.
Principal factors accounting for educated unemployment are as :
(i) Expansion of educational institutions, viz., universities, colleges, schools. It implies increase in no. of educated persons.
(ii) Education system is only degree-oriented. consequently, degree-holders often fail to find jobs.
(iii) Increase in employment opportunities has significantly lagged behind increase in size of educated labour force.
Common Types of Unemployment across Rural and Urban areas
employment and unemployment class 12 notes
(1) Open Unemployment :
Open unemployment occurs when a worker is willing to work, and has necessary ability to work, yet not get work.
(2) Structural Unemployment :
Structural unemployment occurs due to structural changes in the economy.
Structural changes are broadly of two types :
(i) Changes in Technology
(ii) Changes in the pattern of demand
(3) Underemployment :
It is a situation in which a worker does not get a full time job.
Underemployment is of two kinds :
(i) Visible Underemployment :
In this case, people work lesser than the standard hours of work in a day.
(ii) Invisible Underemployment :
In this case, people work full time but their income is not proportionate to their abilities.
(4) Frictional Unemployment :
It occurs due to imperfections in the mobility of labour across different occupations.
(5) Cyclical Unemployment :
It occurs owing to cyclical fluctuations in the economy. Phases of Boom, recession , depression and recovery are typical characteristics of a market economy.
Boom related to high degree of employment
Recession is a phase when there is a liquidity crunch int he economy (funds/loans are not easy available).
Depression is a phase when aggregate demand decline, triggering a cut in output and employment.
Recovery is a phase when economic activity starts picking up : output starts reponding to increase in aggregate demand. Employment opportunities begin to rise.
Causes of Unemployment in India
(1) Slow Economic Growth :
The growth rate of Indian economy was very slow. Slow growth rate implies fails to generate employment opportunities for the rising labour force. Size of labour force was more then the available employment opportunities.
(2) Rapid Growth of Population :
Rising population is the grave problem in India. Despite the completion of twelve five year plans, the size of unemployment has continued to scale up. It implies less employment opportunities over more labour force.
(3) Agriculture-A Seasonal Occupation :
Agriculture is underdeveloped in India ans so offers seasonal employment. Farmers often remains idle for three to four months in a year. The size of disguised unemployed is estimated to be nearly 44 percent of total working population in agriculture.
(4) Lack of Irrigation Facilities :
irrigation facilities continue to be scant, covering only about 44 percent of agricultural area. For the want of irrigation,mono-cropping (only one crop a year) becomes compulsion.
In absence of multi-cropping, opportunities of employment remain limited.
(5) Joint Family System :
Joint family system is more prevalent in rural areas; hence high degree of disguised unemployment in these areas.
(6) Decay of cottage and Small Industries:
Emergence of large industry in place of the small industry after independence has failed to yield employment opportunities to the desired extent.
(7) Low Saving and Low Investment:
There is scarcity of capital and even the scarce capital has not been optimally used to eradicate unemployment.
(8) Limited Mobility of Labour:
There are some factors which hinders the greater of unemployment like diversity of language, religion and customs in different states. Lesser the mobility, greater the unemployment.
Suggestions to Solve the Problem of Unemployment in India
(i) Increase in production
(ii) Class struggle in productivity
(iii) High rate of capital formation
(iv) Help to self- employed persons
(v) Educational reforms
(vi) Technique of production
(vii) Cooperative industries
(viii) Importance to employment progrmmes in plans
Government Policy and Programmes
Government seeks to solve the problem of unemployment through its poverty eradication programmes, generating employment opportunities for poorer section of the society.
National Rural Employment Guarantee Act is a significant recent attempt of the government, offering guaranteed employment to those in the rural areas who are below poverty line.
Skill India, Make in India, Start-ups
The Skill Mission launched by the Prime Minister on 15 July 2015, has gathered tremendous steam under the guidance of Dr. Mahendra Nath Pandey, Minister for Skill Development and Entrepreneurship and Shri Raj Kumar Singh, Minister of State for Skill Development and Entrepreneurship.
The Indian startup ecosystem originated with software services startups serving Indian software needs, and later expanding to exporting software services. … The fourth wave started around 2007–2008, and comprised e-commerce, logistics, marketplaces, and advertising startups.
Make-in-India is a flagship program that was launched on September 25, 2014 by the Government of India.
Originally published at https://advanceshiksha.online.