Q :58. Would 0% unemployment be a good thing?

Introduction

Problem of unemployment and under–employment is a very grave and complex in India.

By economist means “a situation in which people are willing to work, at the existing rate of wages, but they do not get work”.

In simple words:- one standard person year (SPY) means a person working 8 hours per day For 273 days in a year, he is not unemployed.

Types of unemployment

Nature of unemployment in india is multi-dimensional. It is difficult to understand the nature of unemployment

Ø Open employment:- The person willing to work, have necessary calibre,skills, capabilities, but they are not ablr to find work.

Ø Frictional unemployment:- is caused by people entering the workforce and leaving their jobs for various reasons. When somebody graduates from college or high school, they usually don't find a job right away. People quit their job because they don't like it. People go back to work after raising a child.

Ø Structural unemployment:- this unemployment is because of technological changes or change in demand pattern.

Ø Cyclical unemployment:- occurs when there are too few jobs available due to an economic slowdown. Due to low demand for goods and services,

Ø Disguised unemployment:- refers to state more people are engaged in a given job then they are really needed.

Discussion

If we talk about 0% unemployment, I would say impossible. There are always people who quit when looking for a better job, or seasonal unemployment in certain industries, even in the best economic climate.

0% unemployment is not desirable - it would push the economy toward capacity in which case the pressure on wages and prices would cause inflation without a gain in output. In reality, the dynamics of the economy are such that it would be impossible that there wouldn't be workers unemployed by some percentage at any given time - in reality full employment (which is the presence of structural unemployment) is on the order of 3-5%.

How could we bring this into 0% unemployment, where the market is unrealistic and unreliable

0% unemployment is theoritically impossible. Some skills more in demand and some in less.

There is a continuing debate in India among economists, planners and policy-makers on the best measure of labour force participation and utilization. This is despite the fact that the Committee of Experts on Unemployment Estimates, constituted by the Planning Commission in 1968 under the chairmanship of Prof. M.L. Dantwala, has clearly indicated1 that it would not be justified to aggregate labour force, employment and unemployment into single dimensional magnitudes in view of inherent socio-economic conditions prevailing in the country.

The problem of unemployment has becoming a colossal. Various problems have caused this problem. There are individual factors like age, vocational unfitness and physical disabilities which restrict the people. External factors include technological and economic factors. There is enormous increase in the population. Every year India adds to her population afresh. More than this every year about 5 million people become eligible for securing jobs. Business field is subject to ups and downs of trade cycle and globalization. Economic depression or sick industries are often close down compelling their employees to become unemployed. Technological advancement contributes to economic development. But unplanned and uncontrolled growth of technology is causing havoc on job opportunities. The computerization and automation has led to technological unemployment. Strikes and lockouts have become inseparable aspect of the industrial world today. Due to these industries often face economic loses and production comes down. Since workers do not get any salary or wages during the strike period they suffer from economic hardships. They become permanently or temporarily unemployed. Today young people are not ready to take jobs which are considered to be socially degrading or lowly. Our educational system has its own irreparable defects and its contribution to the unemployment is an open truth. Our education does not prepare the minds of young generation to become self-employed on the contrary it makes them dependent on government vacancies which are hard to come. Our State right from the beginning of Five year plans has introduced several employment generating schemes and programmes over the years but in the absence of proper implementation and monitoring have failed to achieve the required targets.

If there is no control on unemployment or failed to maintain minimum level as near about 2%, then it will bring bad results.

We should also consider main causes which rising unemployment in India like:-

1-Rapid growth of population, 2- automation/mechanisation, 3- agricultural- a seasonal industry-in which only 42% of the total cultivated area is arrigation, 4- defective education system- where 71% of children in 15-19 age group have not completed secondary education, 5- joint family system- where disguised unemployment is availing, 6- slow economic growth, 7- increasing participation of females- means increasing job seekers in india ,etc..

Conclusion

Our government is trying their best possibilities to increase the economic growth rate which incourages more job oppurtunities in a country And further they come up with increased in labour force is expected to 65 million in his 11^th five year plan period. More on Prime Minister's Employment Generation Programme also succed. Like.

· Khadi & Village Industries Commission (KVIC)

We in KVIC having track record of providing employment to about 47 lakhs Rural populace are determined and want to reach every household in rural area and provide additional employment of 37 lakhs persons by the end of 2011-12 through PMEGP(Prime Minister's Employment Generation Programme) , the new scheme of employment generation launched on 15th August,2008 to ensure inclusive society identifying the potential entrepreneurs, preparing project profiles and ensuring hassle free loans by Banks. KVIC is transforming the rural scenario in many ways.

Recently UPA Government has come up with Rural Employment Guarantee program which aims to provide minimum days of employment to people living in the villages. This is a laudable programme if implemented sincerely because it will provide employment to people during natural calamities like drought, floods etc. The remedial measures for reducing unemployment may lay greater emphasis on creation of opportunities for self -employment, augmentation of productivity and income levels of the working poor, shift in emphasis from creation of relief type of employment to the building up of durable productive assets in the rural areas and instead of attempting to revert somewhat to protectionist policies the pace of privatization may be accelerated.
The problem of unemployment in India can be solved by adopting a multi dimensional strategy. Vocational education should be given more importance. More labour intensive industries should be set up to create more jobs. Measures should be taken to reduce seasonal unemployment. Activities allied to agriculture should be developed which would provide additional employment to the agricultural labour force through out the year.
The unemployment issue must be tackled with utmost care. The future of the country lies in the hands of youth. Their betterment would tantamount to the betterment of the country as a whole.

We should also put efforts to solve unemployment are like- 1- check on population, 2- national employment policy, 3- strengthening information technology-sector, 4- promotion of exports, 5- expansion of employment exchange, 6-cahnge in education system, 7- encourage small scale industries and cottage industries.

Submitted to:- Prof. Gurdeepak singh

Submitted by:- Sourabh goyal (MBA-1c) (Q:-58).