OVERCOMING UNEMPLOYMENT
Unemployment is a term referring to individuals who are employable and actively seeking a job but are unable to find a job. Included in this group are those people in the workforce who are working but do not have an appropriate job.
CAUSES OF UNEMPLOYMENT
Slow Economic Growth:
Indian economy is underdeveloped and rate of economic growth is very slow. This slow growth fails to provide enough unemployment opportunities to the increasing population.
Increase in Population:
Constant increase in population has been a big problem in India. It is one of the main causes of unemployment. The rate of unemployment is 11.1% in the 10th Plan.
Agriculture is a Seasonal Occupation:
Agriculture is underdeveloped in India. It provides seasonal employment. A large part of the population is dependent on agriculture. But agriculture being seasonal provides work for a few months. So, this gives rise to unemployment.
Joint Family System:
In big families having a big business, many such persons will be available who do not do any work and depend on the joint income of the family.
Many of them seem to be working but they do not add anything to production. So, they encourage disguised unemployment.
Fall of Cottage and Small industries:
Industrial development had an adverse effect on the cottage and small industries. The production of cottage industries began to fall and many artisans became unemployed.
Slow Growth of Industrialisation:
The rate of industrial growth is slow. Though the emphasis is laid on industrialisation yet the avenues of employment created by industrialisation are very few.
Fewer Savings and Investment:
There is inadequate capital in India. Above all, this capital has been judiciously invested. Investment depends on savings. Savings are inadequate. Due to a shortage of savings and investment, opportunities for employment have not been created.
Causes of Under Employment:
Inadequate availability of means of production is the main cause of under employment. People do not get employment for the whole year due to shortage of electricity, coal and raw materials.
Defective Planning:
Defective planning is the one of the causes of unemployment. There is wide gap between supply and demand for labour. No Plan had formulated any long-term scheme for removal of unemployment.
Immobility of labour:
Mobility of labour in India is low. Factors like language, religion, and climate are also responsible for low mobility. Immobility of labour adds to unemployment.
Effects
The impact of unemployment can be felt by both the workers and the national economy and can cause a ripple effect.
Unemployment causes workers to suffer financial hardship that impacts families, relationships, and communities. When it happens, consumer spending, which is one of an economy’s key drivers of growth, goes down, leading to a recession or even a depression when left unaddressed.
Unemployment results in reduced demand, consumption, and buying power, which in turn causes lower profits for businesses and leads to budget cuts and workforce reductions. It creates a cycle that goes on and on that is difficult to reverse without some type of intervention.
Ways to Solve Unemployment Problem:
Unemployment can be solved if planned properly by the nation from the start. There are a number of ways by which the natural rate of unemployment can be solved.
Some possible ways by which the government and the people can work together to solve long term unemployment are
· Ensuring political stability
· Enhancing the educational standards
· Control of population growth in the nation
· Launch of new empowerment programs
· Encouraging self-employment/ entrepreneurship
· Ensuring access to basic education
· Reducing the age of retirement
· Being creative, positive and competitive
· Being positive to stop unemployment.
With all this, there should be few policies implemented that improve economic growth.
1. Lower taxes
2. Avoiding investing in unsuitable programs
3. Avoiding favourite programs
4. Avoiding over-regulation of industries
Monetary policies:
The expansive monetary policy is one main solution which can help avoid unemployment. There should be expansive monetary policy from the Federal Reserve since it’s quick, effective, and powerful.
When there are lower interest rates as mentioned above, they allow individuals to borrow in a cheap manner to purchase a car, consumer goods, and more.
By this way, the interest rates allow the business to borrow money at lower rates which also offers them with capital to hire employees in order to meet rising demands.
These are a few aspects that need to be followed in cooperation with the people and government in order to solve unemployment. National Unemployment rate can be decreased from the nation when planned and implemented in the right manner.
Following are the suggestions to solve unemployment problem:
(i) Change in industrial technique:
Production technique should suit the needs and means of the country. It is essential that labour intensive technology should be encouraged in place of capital-intensive technology.
(ii) Policy regarding seasonal unemployment:
Seasonal unemployment is found in agriculture sector and agro based industries.
To remove it:
(a) Agriculture should have multiple cropping,
(b) Plantations, horticulture, dairying and animal husbandry should be encouraged,
© Cottage industries should be encouraged.
(iii) Change in education system:
Educational pattern should be completely changed. Students who have liking for higher studies should be admitted in colleges and universities. Emphasis should be given on vocational education. Qualified engineers should start their own small units.
(iv) Expansion of Employment exchanges:
More employment exchanges should be opened. Information regarding employment opportunities should be given to people.
(v) More assistance to self-employed people:
Most people in India are self-employed. They are engaged in agriculture, trade, cottage and small-scale industries etc. These persons should be helped financially, providing raw materials and technical training.
(vi) Full and more productive employment:
The main objective of the county’s employment policy should be to increase employment opportunities and productivity of labour. Govt. should adopt a policy that provides employment to all people.
(vii) Increase in Production:
To increase employment, it is essential to increase production in the agriculture and industrial sectors. Development of small and cottage industries should be encouraged.
(viii) More importance to employment programmes:
In five year plans more importance should be given to employment. The programmes like irrigation, roads, flood control, power, agriculture, rural electrification can provide better employment to people.
(ix) High rate of capital formation:
Rate of capital formation in the country should be accelerated. Capital formation should be particularly encouraged in such activities which generate greater employment opportunities. Capital output ratio should be kept low.
(x) Industries in co-operative sector:
Industries in co-operative sector should be encouraged. Kerala Govt.’ set up a textile mill covering 600 unemployed persons on co-operative basis. This is a novel approach to fight against unemployment. Different State Govt. should take necessary steps in this direction.
(xi) Decentralisation of industrial activity:
Decentralisation of Industrial activity is necessary to reduce unemployment. If industrial activities are centralised at one place, there will be fewer employment opportunities in the underdeveloped areas. So, Govt. should adopt such policies which encourage decentralisation of industrial activity.
(xii) Population control:
The growth of the population should be checked in order to solve the unemployment, problem. Family planning programme should be implemented widely and effectively.
CONCLUSION:
As unemployment affects every individual in the nation, there needs to be proper economic conditions and maintenance by the government. The government should be prepared in order to take the right steps at times of recession which leads to unemployment. The unemployment solutions to the unemployment problem are also mentioned and hence unemployment is an aspect to be concentrated by all citizens of the country.
Unemployment is a major crisis and may bury the economic condition of the complete nation and hence be following the right procedure is mandatory. People who are unaware of unemployment and not sure about the inner details can run through these points and get benefited. Work towards developing a nation free from unemployment.
