Technological Unemployment: It is the result of certain changes in the techniques of production which may not warrant much labour. Frictional: Such unemployment exists in almost every economy all the time. Obviously this state of affairs arises because of the insufficiency or non availability of work. Hence it is called upon unemployment. Moreover, the slow rate of capital formation is also responsible for the hindrances in the path of realisation of growth potential in agriculture, industry and infrastructure sector. Sowing and harvesting season ranges between five and seven months. Hence, the employment generation strategy of the Eleventh Plan is based on the reduction of underemployment and movement of surplus labor in agriculture sector to higher wage and more gainful employment in non-agricultural sector.
It occurs when a person is ready and willing to work, but cannot find employment because none is available or they lack the skills to be hired for the jobs that do exist. In brief, their degrees exist only on papers while graduates possess no skills to match their qualifications and job market demands. The major reason for this type of unemployment is lack of demand in the economy and slowdown of economic activity. However, where there is no compensating increase in demand, the unemployment is of the structural type. At the end of each Five Year Plan, the backlog of unemployment in India has been increasing as the volume of employment generated cannot match this additional number of labour included in work force. Unemployment rates varied sharply across states.
So they offer employment for only a certain period of time in a year. There are enough proofs that the scheme has helped to a great extent in getting the small and very small farmers a better produce by increasing land productivity and water conservation. Under this scheme, a part of wages those workers engaged in rural works was paid in terms of food grains. This type of unemployment is mostly visible in urban areas. Measure of Unemployment in India Usual Status Approach Weekly Status Approach Daily Status Approach Usual Status approach records only those persons as unemployed who had no gainful work for a major time during the 365 days preceding the date of survey and are seeking or are available for work.
In this programme State Governments received central assistance both in the form of food grains and cash for undertaking productive works in the rural areas. It is generally estimated that nearly 50 per cent of the total population of the country requires employment although in many countries like China, Thailand etc. People engaged in such type of activities may remain unemployed during the off-season. Despite excellent job opportunities available in different states, a large number of qualified women and men do not wish to take jobs outside their town or city. . Even then it is quite important to point out some of the positive and negative aspects of the policy of employment followed by the government. Crime-related unemployment is a very serious issue in India.
This type of unemployment may be caused due to a number of reasons. The implementing agencies were made responsible for the payment of minimum wages according to the standard of performance under the scheme. Faulty education system, mass output, preference for white collar jobs, lack of employable skills and dwindling formal salaried jobs are mainly responsible for unemployment among educated youths in India. With rapid expansion of general education in the country the number of out-turn of educated people is increasing day by day. Underemployment is the most dangerous kind of unemployment in an economy. Structural unemployment usually occurs due to the mismatch of skills.
Unfortunately, a lot of organizations in India tacitly enforce the caste system: while they willingly hire people from matching castes, they reject jobseekers from other communities as unsuitable for the job. Agriculture still remains as the biggest employer in the country. Disguised unemployment commonly found in rural areas of India, though some examples are also evident in large metros. Expert feels that despite only a marginal growth in employment between 2009-10 and 2011-12, the main reason for the decline in unemployment levels could be that an increasing proportion of the young population opts for education rather than participating in the labour market. Regional: Globalization and relocation of jobs also leads to unemployment as workers are often unable to move to the new location where the employers currently hold positions.
Moreover, in India, the major portion of additional employment generation has come from unorganised sector and the organised sector has a little contribution in this regard. It is customary to characterise involuntary unemployment, not voluntary as unemployment proper. The global recession has seriously affected some of our export oriented industries leading to huge laying off of workers. The assumption was that growth in economy will automatically generate enough employment. In India, however, this type of unemployment is usually observed in agriculture. Calamity unemployment occurs when people from one region are forced to migrate to another geographical location due to natural or human-made disaster. Lack of Investment: Inadequacy of capital investment persists heavily in India and that has been a key contributor in not generating enough industry that in turn provides employment to the labour force.
Total employment generation under this programme during the Sixth Plan was 1,775 million man-days. It is part of natural unemployment. A part of the wages were paid in the form of food grains not exceeding 50 per cent of the wages in cost. Unorganised sector provided employment at poor wage rates and was also relatively insecure as compared to organised sector. Hidden Unemployment: This form of unemployment is sometimes known as disguised unemployment. So their removal will not affect the volume of total production.