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Unemployment

Unemployment is a major burden on any nation.

Unemployment can be classified into seasonal and disguised unemployment in rural areas and educated unemployment in urban areas.
 

Unemployment

Unemployment is enforced idleness of wage earners who are able and willing to work but cannot find jobs.

 

We have to first establish those who can be listed under being unemployed.

  • Sheela is a house-wife who is not interested working outside the house – She cannot be called unemployed though she is not earning any wages
     
  • Jeetu and Seetu are school-going children – They cannot be called unemployed as the are not in the working-age bracket.
     
  • Sakal’s grandparents are not working - They cannot be called unemployed as they are too old to work.
     
  • Chintu is 30 years old, and is a graduate, but he is not able to find a job – He is unemployed.
  • The workforce population includes people from 15 years to 59 years.
     

    Now we have a rough idea as to what unemployment is.

     

    "When people in the workforce population are willing to work at the going wages, but cannot find jobs, then they are called unemployed."

    Unemployment in the Rural areas


    In rural areas unemployment can be classified into:

  • Seasonal Unemployment
  • Disguised Unemployment
  • Seasonal Unemployment:

  • Seasonal unemployment is when people are not able to find jobs during certain months of the year. People who are dependant upon agricultural activities face seasonal unemployment.
  • They find employment only during the busy seasons when sowing, harvesting, weeding, threshing is done.
  • They are without a job or are unemployed the rest of the year.
  • Disguised Unemployment:

    • When we talk about disguised unemployment it is when people appear to be employed.
    • When work which requires the service of five people is done by eight people, then it can be called disguised unemployment.
    • That is all the eight people who are employed are working to a lesser capacity.
    • So it can be said, that as the field requires the service of only five people the three extra people are disguisedly employed.
    Unemployment in the Urban Areas
    • In Urban areas it is mostly educated unemployment.
    • Young people of the working age are not able to find jobs.
    • A study shows that there is surplus of manpower in certain areas and shortage of manpower in others.
    • Unemployment leads to wastage of manpower resource, thus people who are an asset for the economy of a country turn into a liability.
    • Unemployment tends to increase economic overload.
    • There is a feeling of hopelessness and despair among the youth who are unemployed.
    • Unemployed people do not have enough money to support their family.
    • The dependence of the unemployed on the employed population increases.
    • The quality of life of the unemployed individual as well as of society is adversely affected.
    • There is a general decline in the health status and rising withdrawal from the school system among the unemployed.

    Drawbacks of Unemployment

  • Unemployment tends to increase economic overload.
  • There is a feeling of hopelessness and despair among the youth who are unemployed.
  • Unemployed people do not have enough money to support their family.
  • The dependence of the unemployed on the employed population increases.
  • The quality of life of the unemployed individual as well as of society is adversely affected.
  • There is a general decline in the health status and rising withdrawal from the school system among the unemployed.
  • Outcome of Unemployment on a Nation
  • Unemployment has harmful impact on the overall economic growth of a nation.
  • Increase in unemployment is an indicator of a depressed economy.
  • Unemployment wastes ‘human resource’, which could have been gainfully employed.
  • If people cannot be used as a resource they naturally appear as a liability to the economy.
  • In India, statistically, the unemployment rate is low, but a large number of people represented with low income and productivity are counted as employed. They appear to work throughout the year but in terms of their potential and income, it is not adequate for them.

     

    Employment in the three economic sectors

    Primary or Agricultural Sector
    :

    It is the most labour absorbing sector of the economy. In recent years, some of the surplus labour from this sector has moved on to either the secondary or the tertiary sector.

     

    Secondary or Manufacturing Sector:

    Small scale manufacturing is the most labour absorbing sector.

     

    Tertiary or Service Sector:

    New services like Information Technology has made this sector a promising one in terms of employment.





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