UNIT 11
INDIAN ECONOMY
Unemployment, or being unemployed, is that the outcome when a private is trying to find employment but cannot find one
While it is a negative event for both the individual and therefore the economy, an individual can become unemployed in several ways:
Voluntarily leaving employment .
The individual was fired or laid-off from employment .
The individual's job was phased out for a spread of reasons; currently technology may be a big think about job replacement-related unemployment.
The individual left the workplace for private reasons, like maternity leave, injury or illness.
The collective picture of all unemployed Americans is compiled by the U.S. Department of Labor and made public via the monthly percentage . That rate is calculated by dividing the amount of jobless workers across the U.S. By the amount of U.S. Adults currently within the labor pool .
The unemployment number may be a key component in regularly measuring the health of the U.S. Economy.
Unemployment isn't defined as one factor. Instead, it's defined as having multiple components and multiple definitions. Three sorts of unemployment are most ordinarily referenced by economists when calculating the unemployment number - structural unemployment, cyclical unemployment, and frictional unemployment.
1. Structural Unemployment
This form of unemployment is essentially defined as unemployment that results from perceived value and skills that a private brings to employment against the needed, different skills required by an employer to try to to the work correctly.
Job skills are, after all, dynamic, and over time new skills replace current but aging skills not needed by an employer. These newer skills are required by employers to achieve the marketplace.
Consider an auto brake pad manufacturer that supplies restraint and components to automobile manufacturers, auto parts stores and car repair businesses. Within the past 10 years, robotics has advanced the performance of brake pad production and installation, to the purpose where the necessity for human brake pad specialists aren't as necessary as they wont to be. That definitely hurts the work prospects for long-time brake pad makers.
Yet correspondingly, that very same brake pad manufacturer, now presumably producing components at a faster and fewer expensive clip, sees sales rise, and now needs employees with different but now necessary skills - think sales and marketing professionals, customer service representatives, and technology specialists to make , maintain, and repair those automated break pad manufacturing systems.
In this scenario, structural unemployment for the manufacturing line operator goes up, while the unemployment figure for technology specialists and sales professionals goes down, as demand for his or her services rises.
2. Cyclical Unemployment
Cyclical unemployment is analogous to structural unemployment therein the trade cycle is very dynamic too, and changes all the time. When the economy is on the upswing, companies hire more workers, and therefore the percentage spikes upward. Conversely, when the economy is spiraling downward, the unemployment rises, as companies let workers go, and stop hiring at an accelerated rate, as they might in robust economic periods.
3. Frictional Unemployment
Short-term factors involved in deciding the nation's percentage fall into the term "frictional unemployment."
This form of unemployment relates to the jobless rate that moves upward as career professionals drift between jobs for a spread of reasons, including:
Workers who move to a different state, city, or town and are trying to find a replacement job.
Workers who leave their jobs with a goal of finding a far better one.
College graduates with advanced degrees who, after earning a post-graduate degree, return to the workforce once they find a replacement job associated with their studies.
Consider a university graduate who's spent a couple of years after graduation performing at a financial services company as a knowledge analyst. But that college graduate starts hearing more about AI and after performing some research, decides that is the field for him. Consequently, he takes two years faraway from the workforce to earn a academic degree in science and technology, specializing in AI .
The time spent between his last job as a Wall Street data analyst and his new job as a man-made intelligence product developer is deemed to represent frictional unemployment.
Since full frictional unemployment never goes away, it's to be factored into the national unemployment equation. Time, like money or diamonds, may be a commodity, too - and taking time between jobs to urge back to the workforce makes frictional unemployment a key component of the U.S. Unemployment picture.
Three Other sorts of Unemployment
There are other, less common, sorts of unemployment that are important, too.
These unemployment categories can also be factored into unemployment conditions within the U.S.
1. Seasonal unemployment
Specific industries may only be open for business at a selected period during the civil year (think a Christmas tree seller operating out of a mall parking zone , an frozen dessert shop by the beach that closes down after Labor Day , or, on a bigger scale, an Iowa farm that produces corn seasonally.) Unemployment for seasonal industries rises in off-peak periods, and the U.S. Unemployment numbers reflect that seasonality issue in their monthly numbers.
2. Regional unemployment
Regional or maybe state-by-state unemployment may be a big issue, as well. Agricultural, fishing, tourism, and other industries are hooked in to their geographical boundaries, the weather, and consumer demand. No doubt, Southern Florida sees a drop faraway from tourists after mid-April, when the weather starts improving in Northern states. That results in a drop-off in demand for in-season workers, and a better percentage for regional employees.
3. Voluntary unemployment
Some workers, for a spread of reasons, elect to not participate within the workforce. Consider a software industry worker who takes an enormous severance package from her last firm, and may live comfortably for 6 months on the cash . She may take 90 days off, and spend subsequent 90 days trying to find work. Or, someone on welfare may decide they'd rather collect government benefits like welfare that enter the workforce. Fair or unfair, it happens, and it's reflected within the voluntary unemployment category.
Unemployment is a crucial Statistic
All of the above factors play some role within the nation's unemployment story, as calculated by the monthly jobless number produced by the federal .
It's a crucial economic benchmark, and an honest barometer of just how well the U.S. Financial and economic picture looks at a given time.
Prime Minister’s Employment Generation Programme
Prime Minister’s Employment Generation Programme (PMEGP) has been created by merging two schemes, Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP), which were operational till 31.03.2008.
It is a credit linked subsidy programme being implemented by Ministry of Micro, Small and Medium Enterprises.
It aims at generating self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth.
The scheme are going to be implemented by Khadi and Village Industries Commission (KVIC) at the national level and by KVIC directorates, Khadi and Village Industries Board and Districts Industries Centres at the state level.
The Government subsidy under the scheme are going to be distributed to the beneficiaries/entrepreuners through identified banks by KVIC.
Individuals above 18 years aged , Self Help groups, Institutions registered under Societies Registration Act, 1860, Production Co-oerative Societies and Charitable Trusts are eligible for subsidy to line up projects under PMEGP.
Swarnjayanti Gram Swarojgaar Yojana (SGSY)
Swarnjayanti Gram Swarojgaar Yojana (SGSY) started on 01.04.1999 may be a major on going programme for self employment for the agricultural poor. The programme was developed after reviewing and restructuring the erstwhile Integrated Rural Development Programme (IRDP) and allied programmes namely
Training Rural Youth for Self Employment (TRYSEM)
Development of girls and youngsters in Rural Areas (DWCRA)
Supply of Toolkits in Rural Areas (SITRA)
Ganga Kalyan Yojana (GKY)
Millions Wells Scheme.
The other programmes are not any more operational with the launching of SGSY. The essential objective of the SGSY is to bring the assisted poor families above the poverty level by providing them income-generating assets through a mixture of bank credit and governmental subsidy. The SGSY is being implemented by the District Rural Development Agencies (DRDAs) with the active involvement of Panchayati Raj Institutions, the Banks, the road Departments and therefore the Non-Government Organisations. The programme is financed on 75 : 25 cost sharing basis between the Centre and therefore the States. The SGSY aims to hide all aspects of rural employment, the chiefly the subsequent
Social mobilisation i.e. organisation of the poor into Self Help Groups (SHGs)
Activity Cluster, Planning and Selection i.e identifying and selecting a key activity in terms of its economic viability in a neighborhood .
Financial Assistance within the sort of credit and subsidy during which credit may be a major component.
Training of Swarozgaris through well-designed training courses.
Infrastructure Development
Marketing and Technology Support
The National Rural Employment Guarantee Act, notified in 200 districts within the first phase on Candlemas , 2006 was renamed Gandhi National Rural Employment Guarantee Act (MGNREGA) on 02 Oct 2009. 130 districts were notified in 2007 and with the notification of the remaining districts on 01 April 2008, the whole country has been covered. Exception is given to district with 100 percent urban population. The Act seeks to reinforce livelihood security in rural areas by providing a minimum of 100 days of guaranteed wage employment during a fiscal year .
Salient Features:
Adult members of a rural household willing to try to to unskilled manual work are eligible to hunt employment under the act.
Employment is to tend within 15 days of application for work, otherwise daily unemployment allowance has got to paid by the respective State.
Wages are to be paid consistent with Minimum Wages Act 1948 for agricultural labourers within the State unless otherwise notified by the centre
Equal wages are to be paid to both men and ladies .
At least one-third beneficiaries are to be women.
No conractors and machinery is allowed.
The MGNERGA may be a paradigm shift from previous wage employment programmes, the many aspects which are given below:
It provides a statutory guarantee of wage employment.
It provides a rights-based framework for wage employment.
The Act provides incentive to the State Govt for providing employment as 90% of the value is borne by the Centre and at an equivalent time discentive within the sort of Unemployment Allowance falls on the State Govt which fails to supply employment within the stipulated time of 15 days of applying for work.
Transparency safeguards are provided within the sort of
Job cards within the custody of workers which monitor entitlements.
Issue of dated receipts on application for work
Citizen Information Boards at worksites.
Vigilance Monitoring Committees.
Hunar Se Rozgaar Tak
Hunar Se Rozgaar Tak is an employment scheme launched by the Tourism Ministry, Govt. Of India in 2009 for youth within the 18 - 25 years age bracket and who are a minimum of 8th pass. These are training programmes to make employable skills in hospitality sector under the Capacity Building Scheme of Ministry of Tourism. Initially the programme was to be conducted by 25 Institutes of Hotel Management and Food Craft Institutes sponsored by the Ministry of Tourism. Subsequently the programme has been allowed to be conducted by certain starred hotels. The programmes is meant to supply short but quality training courses covering i) Food & Beverage Service and ii) Food Production. The programme will target the youth of weaker sections of societies who have an interest in joining the hospitality industry and are in got to acquire skills facilitating employment.
Swarna Jayanti Shahari Rojgaar Yojana
The Swarna Jayanti Shahari Rojgaar Yojana (SJSRY) originally launched in Dec 1997 may be a unified Centrally Sponsored Scheme launched a fresh in lieu of the erstwhile Urban Poverty Alleviation Programmes viz., Nehru Rojgar Yojana (NRY), Prime Minister's Integrated Urban Poverty Eradication Programme (PMIUPEP) and concrete Basic Services for the Poor (UBSP).
The SJSRY has been comprehensively revamped with effect from 01.04.2009. The SJSRY has three key objectives namely:
Addressing urban poverty alleviation through gainful employment to the urban unemployed or underemployed poor.
Supporting skill development and training to enable the urban poor have access to employment opportunities provided by the market or undertake self-employment Empowering the community to tackle the problems of urban poverty through suitable selfmanaged community structures and capacity building programmes.
The scheme is proposed to be implemented through Urban Local Bodies and community structures.
The revamped SJSRY has five major components, namely
Urban Self Employment Programme (USEP)
Urban Women Self-help Programme (UWSP)
Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)
Urban Wage Employment Programme (UWEP)
Urban Community Development Network (UCDN)
References
1. Indian Economy - Rudra Dutt & Sundarram
2. Bhartiya Arthashastra – L. M. Roy
3. Indian Economy – Uma & Kapila
