There are many aspects of an economy of a world or a specific country some of whom affects directly & some of them affect Implicitly (Indirectly) to their contribution towards world GDP or GDP of that specific country. Unemployment is one of the major aspects of the economy which affects the population of the country by affecting their per capita income. So let\’s understand the concept of unemployment.
What is Unemployment ?
Unemployment is a situation where an Individual person stays in an Unemployed Situation for an uncertain amount of time. For ex. Mr X graduated from university named Y, now he is looking for a job for his income generation but he is unable to find a job (The Reasons may Vary). This situation is generally called Unemployment, & we can say that Mr x is an \’Unemployed\’ person.
The unemployment problem of the country can affect the fiscal policy of the country, so we assume that the problem of unemployment is an important problem to face. In the macroeconomic part of the economy \”Unemployment\” has a separate section for the researchers, students and individuals who are enthusiasts about the economy.
Classical unemployment is a type of unemployment where the number of job applicants are higher than the number of vacancies available for the job. Due to lower levels of wages that are being paid at factories, or offices, as compared to the level of wages which are essential for living, where the labour force chooses to walk out from working at a factory & later they don\’t seek for jobs or work. This is a typical example of \’classical unemployment\’. Like classical unemployment there are several other types of unemployment such as Cyclical unemployment, frictional unemployment, structural unemployment (a situation where market is unable to provide the jobs to the labour force who want to work because of the lack of skills that are necessary for working) so we can see that there are different causes of unemployment.
CAUSES :- Unemployment is a jobless situation of an individual which can be caused by some of the following reasons given below.
• As we\’ve already seen in the previous paragraph structural unemployment is one of the major reasons of unemployment where the skills of a worker individual or group of workers who wants to work doesn\’t match the job skills.
• On the other hand cyclical unemployment is also a cause of unemployment, recession is also the reason behind cyclical unemployment.
If we take a look at the effects of unemployment we could come to the conclusion that unemployment can affect the economy in the long-run. It also affects working individuals which results in individuals become unable to earn money during unemployed situation. Any kind of unemployment can affect working individual persons mainly cyclical, structural and so on.
Unemployment in India : As a developing country economy of India also faces the problem of unemployment at certain stages, more of we can say that the unemployment problem in India is a long run problem to face. The NSSO (National sample survey office) is an organisation who collects statistical data related to economic activities , according to NSSO\’s data the unemployment rate in India in 2020 is 6.7%. There are different perspectives or opinions about the unemployment problem of India among the Economists, researchers of Indian Economy. The situation of unemployment among labourers who are unemployed, it generally happens because of Either lack of resources which are scarce to provide jobs to all labour force or the lack of job skills which are required for the actual job. so the government of India has started some policy measures to overcome the problem of unemployment in India and to make economic growth like MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act 2005) under which government provides 100 day guarantee of employment , National Career Service Theme is a web portal, a platform provided by government of India where unemployed individuals can seek for job to generate income source. As well as National Rural Employment programme is also a scheme for providing employment vacancies in rural areas of the country as a measuring step towards stopping the migration of labour forces from rural to urban areas in search of employment opportunities.
We can say that unemployment is a vast problem in developing countries like India, in present scenario COVID- 19 Epidemic is also affected to the industries at certain levels who have large numbers of actively working labour force unlike in the other countries, due to epidemic there are numbers of working individuals who lost their jobs. So unemployment is a long- standing problem and the measures to overcome this problem are taking according to the type of unemployment the labour force is facing. In order to achieve economic growth the rate of unemployment must be declined, and in order to decline the unemployment rate there is need of N number of job vacancies available in the market, and for the job vacancies who can serve the large population of India, number of skilled labours and the demand for the consumption must be increased in the market.
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-© Rushikesh Panchwadkar