Consequent to the use of high capital-intensive technologies in our industries the labour productivity has been increasing while employment has been growing at a snail pace. Measures in the education system to mitigate the problem of the educated unemployed: Make education at the secondary level more career-oriented, which would endow individuals with not only education but also the requisite skills for gaining successful employment. Finally, the group of the worst performers includes Ireland, some Balkan countries, and primarily the olive-belt countries badly hit by the Crisis, among which Greece and Spain stand out with youth unemployment close to or above 50%. The methods suggested to overcome these disabilities are socialized health services, adequate wage provisions to maintain health, vocational rehabilitation, vocational education and educational planning, workmen’s compensation and other social security schemes and new vocational opportunities. Reduce Unemployment. Planned development by accelerating industrialization, removing the deficiency of demand, stabilizing the rate of domestic investment and consumer demand can fight the problem of unemployment. Unemployment is a major cause of poverty because the unemployed have little income, relying on state benefits. No wonder that there has been a fall in investment or capital formation in agriculture both by the private and public sectors. More schools, hospitals, health care clinics in the rural and urban areas will not only create employment during their construction but also, and more important, when they start working to provide education and health services. Here we detail about the six employment strategies used to reduce employment. HOPES of life returning to normal have been boosted by the news that UK flu cases are 90% down on a normal year. Prime Minister’s Rozgar Yojana was introduced in August 1993 to provide self-employment opportu­nities to the educated urban youths. In this case there is bound to be some loss of workers’ productivity. The other services such as finance, insurance, trade, hotels, and restaurants have also a lot of employment potential. Lastly, the expansion of education and health care not only promotes accumulation of human capital and thereby contributes to growth of output, it will also generate a good deal of employment opportunities. According to Madan, the personal disabilities include illness, physical handicaps, old age and inexperience. In order to meet the problem of unemployment, the following measures are to be taken: i. 2. Privacy Policy 8. In our view due to the seriousness of unemployment problem some output growth should be sacrificed for the sake of more employment. In fact there is widespread under-employment and disguised unemployed. Accelerating Economic Growth 2. Unemployment means a person willing to work but unable to find a qualified job. It is worth noting that investment not only generates employment directly but also has a multiplier effect which operates through backward and forward linkages. Different economists to remove the serious problem of poverty suggest following measures: ... 3- Government should provide more facilities to investors to increase the investment to reduce the unemployment. Content Guidelines 2. Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is persons above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period.. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour … Before publishing your Articles on this site, please read the following pages: 1. Government should motivate people to have small families. Create well-targeted programmes: If the goal is to reduce homicides, then programme selection should be located in hotspot areas and focused … Besides there is urgent need for diversification of agriculture. Therefore, UPA government’s Common Minimum Programme (CMP) which provides for stepping up of investment in agriculture and rural infrastructures is a greatly welcome step for employment generation. The policies to reduce unemployment are highlighted below: In 1979 the government launched TRYSEM – Training of Rural Youth for Self-Employment The objective of this scheme was to help unemployed youth of rural areas aged between 18 and 35 years to acquire skills for self-employment. Both the public and private sector investment in agriculture has declined since the early nineties. Although unemployment soared in response to covid-19 in some nations, the policy measures undertaken by others have prevented many workers from becoming technically unemployed. There are a number of ways by which the natural rate of unemployment can be solved. Therefore, a higher allocation of resources is required to be made for them in government budgets and in our future plans. A rapid increase in population The failure of the organised industrial sector to generate enough employment opportunities is due to the use of capital-intensive technologies imported from abroad. Prohibited Content 3. Share 6. This inability is generally related to the lack of some basic quality that would permit the individual to maintain himself. Capital has become relatively cheap due to various fiscal concessions such as liberal depreciation and investment allowance and low interest rates on borrowed funds for investment. 2. Speedy Development of Infrastructure 4. To suggest ways to reduce unemployment. iv. Welcome to EconomicsDiscussion.net! Copyright 10. Suggest any 2 measures to reduce unemployment in India. Ensuring political stability; Enhancing the educational standards 2. Despite more than five decades of planned industrial development, agriculture continues to be principal source of employment in the Indian economy. But unfortunately, we are lacking to provide adequate measures to reduce this unemployment rate. For this, the government should guide the small-scale industries in financing and marketing. They increase spending on government projects, as happened in the New Deal and the Economic Stimulus Program. In fact, agriculture continues to be the parking lot of the unemployed in the country. The announcement by the government to furnish more credit to farmers at lower than market rates of interest from commercial banks will also ensure that the small and medium farmers will be able to buy fertilizers, other high-yielding inputs, and arrange for their irrigation. Although there are many causes of this constant issue, some of the major bases of the problems are following. TOS 7. 3. Content Filtrations 6. Strategy 1# Use of Labour-intensive Technology: Both the organised and un-organised sectors must adopt labour-intensive technology if sufficient employment opportunities are to be generated in … It is essential that labour intensive technology should be encouraged in place of capital intensive technology. In addition to this, promotion of agro-processing industries for export purposes has a large employment potential. For example, there is an urgent need for a relative shift from growing of crops to horticulture, vegetable production, floriculture, animal husbandry, fisheries etc. Second, an important reason for slow growth of employment in agriculture and rural sector has also been a shortfall in investment or capital formation in agriculture. Planned development by accelerating industrialization, removing the deficiency of demand, stabilizing the rate of domestic investment and consumer demand can fight the problem of unemployment. 2. Their working provides employment to both the educated and unskilled persons. Content Guidelines 2. The other factor responsible for the use of higher capital intensive technologies is the factor-price distortions such as cheap capital and relatively higher wages of workers who have strong labour unions. The best unemployment solutions are increased spending on public works and education. This is an important reason why employment opportunities in agriculture have not risen much causing increase in rural unemployment. Emphasis should also be laid on the development of small-scale and cottage industries to relieve the pressure on land. Unemployment can be reduced through both supply-side policies, such as free training schemes for those who are structurally unemployed. Measures to Minimize Unemployment in India as follows: It is disturbing as well as distressing to find that the standard of living of man is still below the desired level and unemployment is on the increase. Image Guidelines 5. Share Your PPT File. III. iii. To address this persistent issue we should dig deep into the reasons behind this prevailing unemployment. To analyze the government initiatives for reducing unemployment. In 1993-94 to 1999-2000, next to the construction sector the employment elasticity of output growth in services was higher and was estimated at about 0.50. ADVERTISEMENTS: The nine important measures which should be taken to reduce poverty in India are as follows: 1. Report a Violation, Unemployment Problem in India: 5 Main Causes, Measures Adopted for Eradicating Unemployment. For solving unemployment problem in the urban areas, the organised industrial sector must also absorb a sufficient number of workers. Of special importance from the viewpoint of employment generation is investment in irrigation, rural roads, flood control projects, power generation and other infrastructure. But a good number of persons engaged in agriculture and related activities are not productively employment. CURRENT SCENARIO OF UNEMPLOYMENT IN INDIA Among the states and Union Territories of India, Gujarat had the lowest unemployment rate of 1.2% followed closely by Karnataka at 1.8%, Maharashtra For the rapid growth of employment opportunities in agriculture and related sectors and agro-processing industries, investment in infrastructure including irrigation, rural reads, power supply, and development of agricultural markets are required. Unemployment claims jumped last week as … Evaluation on Unemployment Policies. According to a recent report by the youth advocacy organization Young Invincibles, youth unemployment is costing American taxpayers $25 billion annually. We have to build industries where more people are required even with gaining profit. ii. Increasing mechanization of agriculture in various states has lowered the employment elasticity of growth of agricultural output. Now, UPI (United Progressive Alliance) government with Dr. Manmohan Singh as Prime Minister, has set before itself the task of making substantial investment in agriculture so as to generate enough employment opportunities in this sector. Before publishing your articles on this site, please read the following pages: 1. In India, the surplus labour power can be utilized for various public works programmes, affor­estation and expansion of cottage industries and so on. Both the organised and un-organised sectors must adopt labour-intensive technology if sufficient employment opportunities are to be generated in both the rural and urban sectors of the economy. The solution for unemployment is, of course, to create new jobs. Officially, the unemployed are people who are registered as able , available and willing to work at the going wage rate but who cannot find work despite an active search for work. 1 When unemployment creeps above 6% to 7% and stays there, it means the economy can't create enough new jobs. The timing of austerity measures is everything. This, in turn, would suggest that high unemployment may be associated with a low degree of self-employment. Economic reforms initiated in 1991 have by and large neglected agriculture which even now does not get enough credit from commercial banks. Education and training to help reduce structural unemployment. Unemployment policies are designed to. Geographical subsidies to encourage firms to invest in depressed areas. Improve skills / human capital to make people more flexible in the workplace; Provide stronger incentives to look for and accept work; Increase the occupational and geographical mobility of labour; Maintain a sufficiently high level of demand to create enough new jobs The Employment Assurance Scheme (EAS) was designed to provide employment in the form of manual work in the lean agricultural season. Self-employment schemes for the unemployed youth have to be launched to enable them to start their own business or small-scale firm, which can also generate employ­ment for many others. The growth of services in India has a large employment potential. The numbers, largely due to increased flu jabs and the same social distancing measur… Therefore, for raising labour intensity, suitable monetary and fiscal measures need to be adopted to discourage the use of capital-intensive techniques. v. Providing temporary work for those who have lost employment. Growth of Non-Farm Employment 6. The government itself is an important component of GDP. Share with your friends. Several policies have been initiated by the government to reduce the unemployment problem in the economy. iii. TOS4. Share Your Word File The government has also launched some programmes namely Training for Rural Youth for Self-Employment (TRYSEM) and Jawahar Rozgar Yojana. 3. Following are some measures that can be incorporated in the education system to mitigate the problem of educated unemployed: 1. Encourage entrepreneurship. These not only help in creating employment opportunities but also check the rate of migration from rural to urban areas. This will raise their productivity and tend to reduce under­employment and disguised unemployment. According to a 2010 study, unemployment benefits increased employment on average by 1.6 million jobs each quarter from mid-2008 through mid-2010. Therefore, this will involve some trade-off between employment and output. 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