Unemployment grp 9

What is Unemployment?

Unemployment as defined by the ILO :It occurs when people are without jobs and they have actively looked for work within the past four weeks.

Unemployment (or joblessness) occurs when people are without work and actively seeking work

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

Unemployment rates for women are higher than those for men.

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

There is greater unemployment in agricultural sector than in industrial and other major sectors.

Identified features of unemployment

High Population growth.Economic InflationEconomic RecessionSeasonal Employment.Welfare PaymentsChanging TechnologyIncreasing turnout of students from Indian

Universities.Slow Development of Industries.Job DissatisfactionEmployee Values

Causes of Unemployment

Unemployment

Voluntary

Involuntary

Cyclical

Sudden

Seasonal

Structural

Disguised

Frictional

Technological

Classification

Voluntary : In this type of unemployment a person is out of job because of his own desire to not work on the prevalent or prescribed wages.

Involuntary : A person is separated from remunerative work and devoid of wages although he is capable of earning his wages and is also anxious to earn them.

Voluntary and Involuntary Unemployment

Cyclic Unemployment Part of the capitalist system and a result of trade cycle. There is greater unemployment and when there is recession, a

large number of people are rendered unemployed

Disguised Unemployment Unemployment that does not affect aggregate output. Common in overpopulated countries Low/zero marginal productivity of labour Underemployment due to underdevelopment

Sudden Unemployment Prevalent in industries. Trades and business where people are

employed for a job and suddenly when the job has ended or due to some changes they are asked to go.

Structural unemploymentOccurs when labour market is unable

to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed workers and the skills needed for the available jobs

•Technological unemploymentIt occurs due to replacement of labour

due to new trends in technology.

Seasonal unemploymentCertain industries and traders engage

workers for a particular season.When the season has ended the

workers are rendered unemployed.

Frictional unemploymentIt is the time period between jobs

when a worker is searching for, or transitioning from one job to another.

Help Avert Inflation - excess labourers, keep wages in check

Generally increases existing labourers productivity

Some implicit benefits

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force.

Unemployment Rate =

What is Unemployment rate?

Unemployment rate

Labor Force Participation Rate: Percentage of working-age persons in an economy who:

Are employed Are unemployed but looking for a job

LFPR=

What is Unemployment rate?

Labour Force Participation Rate(1948-2012)

On IndividualMental stress, loss of self esteemDirectly linked to poverty and

malnutritionOn Society

Civil unrest, law and order e.g. Naxalites, thefts.

trade barriers/protectionism in case of high unemployment, for immigrants

Effects of Unemployment

Effects of unemployment on EconomyWhen unemployment is high, consumer spending is low and economic growth is slow. This can lead to a recession. During times of low unemployment, consumer spending is high and the economy is growing at a rapid pace, which often leads to inflation.

Effects of unemployment on BankingIf there is high unemployment people might withdraw the deposits which reduces the money supply of the bank. Also there is an increased risk that people who have taken loan will default . In short high unemployment will lead to low revenues.

Primarily two main issues..

How to provide employment to the new entrants??

How to improve quality of employment??

The way out…

For issue 1. Economic growth and employment growth are

correlated. More GDP growth more the employment opportunities.

Government planned initiatives i.e. five year plan focuses on employment generation targets.

Some initiatives are MGNREGA, PMEGP, SJSRY, SGSY.

For issue 2 Provide skill training to the new entrants to the labour

force. Improving skill level of existing work force. Formal and informal skill level of training.

A Change in the pattern of investment.Encouragement to small enterprises as

against big enterprises.Problem of Choice of technology.Encouragement of New Growth Centers

in Small Towns and Rural Areas.Subsidies on the Basis of Employment.Reorientation of Educational Policy.

Basic SolutionSome Basic solutions

Conclusion

Thank YouPresented By: -Anurag JosephChandra Mohan DubeyJatin KaushalNitin KantPartha Pratim RaiRavi PalShrinath Nimje