Unemployment Rate in India: The Burning Issue of 21st Century.

Introduction

In today’s modernising era of technology, Unemployment is considered to be one of the most serious and burning issue not only in India but everywhere in whole world. There are thousands and lakhs of people all around the globe who doesn’t have job or way of earning to fulfil their needs.

Saying, India ranks at top 5 in list of most unemployed youth countries. This problem mainly arises due to the growing population resulting in demand for jobs which at last ends with more competition. However, neglecting this issue can let the nation to fail in youth development and employment rates.

Unemployment Rate and its types

Unemployment is a state where an individual has no job or has lost the one though having good skills and experience in his/her respective fields. Unemployment is considered to be doom not only for the youths but also for that country.

Unemployment is measured with a quantitative rate which is total number of unemployed people per labour force of a place. Its considered as Unemployment Rate.

Unemployment rate is categorised on various types:

1. Disguised Unemployment:

• It refers to a situation where employees more than required number are actually hired.

• It can majorly be seen in unorganized sectors like private jobs etc.

2. Seasonal Unemployment:

• It refers to situation where people suffers jobless condition for particular period of time.

• In India, agricultural sectors faces this problem majorly because the farmers don’t have work all throughout the year.

3. Structural Unemployment:

• This condition occurs when there’s availability of job but employees are of different skills and knowledge.

• It mainly occurs due to lack of education and training in particular field.

4. Cyclical Unemployment:

• This situation arises mainly in businesses and MNC’s where they face harsh conditions during economic recessions.

5. Technological Unemployment:

• This unemployment condition occurs when a job is snatched by a technology or machine.

• In India, an average of 35.96% of workers loose their jobs because of new machines every year.

Causes of Unemployment

Unemployment, in a particular area, is mainly caused by some reasons. Here are some of the discussed and common reasons which makes workers loose their jobs:

1) Population Growth:

• With increase in population, the demand of jobs increases because of increasing competition in markets.
• According to “The New York Times”, around 45.23%, on an average, growth of population occurs in every 5 years.
• In India, according to the difference in Census of 2001 and 2011, there was an average growth of almost 180 millions i.e. 10.56% of population.

2) No Proper Educational System:

• India ranks 26th in the list of Best Education System in World. But it’s because of higher education i.e. engineering and other education systems.
• Our country lags in primary education. The private schools of our country have their annual fees so high that a medium and lower class families can’t afford it.
• The government schools of our country are said to be demolished structures with an average of 1 teacher on 60 students. No proper education also adds a point to unemployment rate.

3) Caste System:

• Since ancient times, India runs at number 1 position in terms of caste privileges. Some working areas and educational institutions have reserved seats for lower caste people though having no skills and knowledge.
• Caste system plays a vital role in increase in unemployment rate of the youths since the skilled and experienced one lags in getting jobs and education because of these reservations.

4) Agricultural and Allied Sectors:

• Agricultural Sectors are said to be seasonal occupation because the farmers and associated staffs doesn’t have jobs all year. They work as per their season and time.
• In India, almost 65.89% of population is dependent on agricultural works. But due to its seasonal working, it gives rise to unemployment rate drastically.

5) Decrease in Cottage Industries:

• Small scales industries are called as cottage industries which mainly relies on the demands of the market for a particular product.
• Since the staring of 21st century, these industries have gone through a major breakdown since their works have been replaced by machines and large industries.
• Industrialisation, though developed the nation, but pulled the nation down in terms of unemployment rate.

Adverse Impacts of Unemployment

Unemployment brings a major breakdown not only to the growth rate of nation, but also to its development and mobility.

They have a major impacts on following points:

1. Poverty:

• Unemployment Rate drastically affects the rate of poverty. Poverty is nothing but a situation where an individual fails to fulfil his and his family’s demands.
• Unemployment rate makes an individual to have no work, thus making his boundaries and restrict his needs. This gradually increases the rate of poverty of a nation.

2. Crimes and Unethical Practices:

• An individual never thinks of becoming a criminal or do unethical practices. His situation makes him to do so.
• Unemployment rate and Poverty makes an individual to get indulged in criminal practices. He/she thinks that might this bring them financial help to fulfil their family’s demands and stomach.

3. Economic Growth Rate:

• Economic Growth Rate of a country majorly points on how and what percentage of its youth are working and indulged in job sectors.
• If unemployment rate of a country increases, it results in decrease in economic rate and GDP growth.
• If there is an increase of 2% in unemployment rate, the GDP rate falls with an average of 4% drastically.

4. Drugs and Alcoholic Consumptions:

• It’s usually noticed that an unemployed youth, most probably, gets addicted to drugs and alcohols.
• To get relief from stress and depression, youths end up to these ways that declines them, health wise and mentally as well.
• This makes a severe loss of human resource of a nation provoking the growth of unemployment rate.

Steps taken by Government

A nation knows that unemployment rate have an adverse and severe affects on its development growth.

India too has taken some steps in order to scratch out unemployment rate from the country:

1. IRDP:

• Integrated Rural Development Program, is a government taken initiative to make the employment opportunities in rural areas.
• It includes development in fields of agriculture, animal husbandry, pisiculture, horticulture etc.
• It was taken in to action in 1978-79 with a total amount of ₹ 500 crores investment.

2. DRAP:

• Drought Prone Area Program, an initiative taken by government in over 70 districts within 13 states which are prone to droughts.
• The main idea was to remove seasonal unemployment rate caused due to droughts which have been proved fruitful.
• Till date and 7th plan mission, almost ₹ 475 crores have been invested in this program.

3. JGSY:

• Jawahar Gram Samridhi Yojana, which was reconstructed as Jawahar Rozgar Yojana in April 1999, was one of the fruitful actions taken into account by government of India.
• This mission accounted to remove unemployment rate from rural areas by giving them extra knowledge and skills to all youths of that area.

4. SJRY:

• Swarna Jayanti Rozgar Yojana, an initiative that came into existence on December 1, 1997 to remove unemployment rate from urban areas.
• This mission aimed to provide self employment and waged employment to urban unemployed people, with 2 plans under its heading- Urban Self Employment Program and Urban Wage Employment Program.
• Till date an average of ₹ 345 crores have been spent on this mission.

5. NCSS:

• National Career Service Scheme, an initiative in which government started an online portal where job seekers can apply for jobs by updating their information.
• Not only private jobs, contract jobs by government are also available on the portal and will assign you job as per your skills and knowledge.
• It was launched by Ministry of Employment and Labours, India.

6. Various other programs like Deen Dayal Antyodaya Yojana, Pradhan Mantri Krishi Yojana, Pradhan Mantri Grameen Sewa Yojana, etc. Are also there which benefits our youths. Just we have to make them aware about these programs by which the unemployment rate decreases.

Corona & Unemployment

In 2015, according to “The Times of India”, around 46.98% of the population of our country, aged above 21 years, are unemployed. This rate gradually increased in the year 2020, when whole globe was struck by life taking disease- Corona.

Corona had been playing with the development rates of India as well as GDP of our country since March 2020, when a nation wide lockdown was imposed.

So the Union government decided to provide employment benefits to daily waged workers and workers who were in list of losing jobs in pandemic. This point of measure was also taken into account by some countries like U.S. to combat this Covid 19.

The Atal Beema Vyakti Kalyan Yojana provides unemployment rate insurance to all those workers who have been registered under ESI (Employees State of Insurance). Under this scheme, a worker when becomes unemployed gets a compensation of cabs amount up to 3 months. The major point of this scheme is that it can only be availed once in lifespan. They get cash up to 30% of their income. The impact of Coronavirus had left us with almost null options around us. In such situations, these schemes and helps from government side acts as a light source to all the jobless workers.

Conclusion

Unemployment had been in our country since ages. Though having more than 50+ schemes and actions for unemployment, it still exists and in greater amount. Eradication of Unemployment Rate and Poverty is only possible when people will know about it, when they will have awareness and knowledge about what are the schemes of government that can help them to sustain their life in such pandemic as well. India, ranking 86th in the List of Unemployment Rate, needs to be completely removed and eradicate unemployment from the country. We can say that the problem of unemployment rate has taken a wide and critical state of worries.

But seeing this problematic conditions, government as well as some private sectors have taken multiple actions and steps to handle this problem. Many actions have been taken into account to completely root out this unemployment rate from India. The main root to this problem of unemployment rate, population growth, has been taken into consideration to tackle the issue. We will soon be seeing India raking at No. 1 position in Employment Rate.

 

Also Read: Young Entrepreneurs of India.

Talk to Author: Nikhil Nivedan Vatsa.