Wednesday, August 3, 2022

What are the root causes of unemployment?

UNEMPLOYMENT 


What are the root causes of unemployment?


(1):- Getting employment to every person who wants to work is a sign of an inclusive and prosperous economy. Progress has been made in this direction in India but it is not satisfactory due to many reasons.


(2):- The biggest reason is the huge population of this country, in which only a gradual increase is being recorded. Since the burden of population is very high relative to the availability of resources,it is almost impossible for everyone to get quality employment.


(3):- After adopting the process of liberalization, privatization and globalization in the economy, a discourse emerged that India's huge population is not a burden but it can be converted into boon; This was called the 'demographic dividend'.


(4):- The implication of this idea is that due to the large population, labor is available cheaply in India, which will reduce the cost of production of goods and services in India as compared to other countries. This will give India an edge in the competition in the global markets.


(5):-Now if we look at how true this has been, we find that India has certainly taken advantage of cheap labor available due to overpopulation, especially in the service sector; But it did not live up to the potential inherent in India.


(6):-The question arises that why did not live up to the possibilities.The simple answer is that we have not developed human resources as per the requirement. To take advantage of the 'demographic dividend', it was necessary that our education system was in line with the market system and focused on skill development of the job seekers.


(7):- It is a great misfortune that we have adopted the market system, but we are not able to prepare the curriculum and provide proper training accordingly. Both these works were done on a limited level, so its benefit was also limited.


(8):- Among the root causes of unemployment, the second major reason is related to the nature of economic growth of the country which is commonly termed as 'jobless growth'.

The implication of this is that even though the Indian economy is registering a growth rate of more than 7%, jobs are not being created accordingly.


(9):- Indeed, employment generation in line with GDP growth is possible only when the labor intensive manufacturing sector accounts for the largest share of growth, as in China. Being a leader in the manufacturing sector, China continues to dominate the world market and the employment situation there is also good.


(10):- India lags behind in the development of the manufacturing sector, which we have to bear in the form of deficit in foreign trade and creation of less employment opportunities.


(11):- The third root cause of unemployment is related to agriculture. The agriculture sector in India may be huge but we could not harness the employment generation potential in the agriculture sector. Initiatives in this direction began in the 1970s in the form of the Green Revolution. Efforts were made to achieve self-reliance and employment generation in agriculture by mechanization of agriculture, expansion of irrigation facilities, use of quality seeds and fertilizers and pesticides etc.


(12):- These efforts proved to be less in harnessing the potential of the agricultural sector because the Green Revolution spread to a limited area of ​​the country, leaving the eastern part of the country almost untouched by it.


(13):- At the same time, the size of the land holdings kept on shrinking with the increase in population; And people who are more engaged in agriculture than necessary could not be transferred to non-agricultural activities.


(14):- Agriculture in India was basically dependent on the monsoon and due to the involvement of more people in it than necessary, unemployment also increased rapidly.


(15):- The fourth root cause of the unemployment crisis has been our policies in which, instead of emphasizing on the development of the rural economy, the expansion of industrial activities was allowed to be confined to the cities. Despite the fact that the majority of India's population lives in villages, we focused on making cities the engine of economic activity.


(16):- Despite the abundance of resources in the villages, less attention was paid to adopting necessary measures like capital investment, infrastructure development,human resource development etc. for its economic exploitation.If economic activities were expanded in the villages as well as the  cities, then the problem of unemployment would have been removed to a great  extent, as well as migration would have been curbed and the burden on  the cities would not increase beyond capacity.


(17):-  In the course of discussing the root causes of unemployment, it is also necessary that we should also discuss the immediate reasons due to which the unemployment crisis seems to be increasing in recent times. One reason for this is 'the conditions arising out of demonetisation' and the otheris 'increasing automation'.


(18):- The cash crunch created in the process of demonetisation affected the activities of India's micro, small and medium enterprises and also the construction-manufacturing sector. These are the sectors in which employment is generated in abundance. The direct impact of the slowdown in these sectors is visible in the form of rising unemployment.


(19):- Similarly, increasing automation has posed a new challengeto the employed people not only in India but globally. According to an estimate, by the year 2025, one-fourth of the people working in various sectors may be victims of automation. This threat is increasing rapidly, especially in technology-based enterprises.


(20):- India lags behind in the development of the manufacturing sector, which we have to bear in the form of deficit in foreign trade and creation of less employment opportunities.


Conclusion:- Challenges of employment generation in the country The Indian economy is growing rapidly, but the level of employment remains a problem. The challenges at the level of employment generation are due to Concentration of economic activities in big cities only  Lack of diversification in economic activities Decreased quality of education and training 

                          The challenges have been analysed on the basis of the above points. This situation of employment is when many programs like 'Make in India' and 'Skill India' are being run by the government for employment generation. Apart from this, major schemes like National Rural Employment Program, Integrated Development Programme, Jawahar Rozgar Yojana,Swarna Jayanti Gram Swarozgar Yojana, Sampoorna Gramin Rozgar Yojana, MahatmaGandhi National Rural Employment Guarantee Scheme (MNREGA) are already begin at time.













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