Unemployment in India

by - November 22, 2019

     Unemployment is now one of the major problems of the Indian economy. People want jobs. So every Govt. should create opportunities. That's the first thing to do. Former Reserve Bank of India (RBI) Governor Raghuram Rajan said this in an interview. 
Raghuram Rajan
      In this regard, Chicago's Nobel laureate US economist Paul Krugman said last week that the country's growth rate should be such that it generates a large number of jobs. Those who are leaving school and college, who are leaving agriculture, should get employment.
    The young generation that can be the wealth of the country, do not become a 'curse'. India's National Sample Survey Office (NSSO) leaked report says the unemployment rate in the country was the highest in the last forty-five years. The allegations against the Central Government of India are raising the issue, which opponents are constantly calling for. Six economists and sociologists have raised objections to political interference in the statistics. It is alleged that the statistics, which are not in the mind of the Center, show different criteria either being pushed or changed. Former RBI governor Rajan feels that there is no good information about jobs in India for a long time. Therefore, the method of data collection should be fixed first. But EPFO or any other statistics will not work for that.
What is unemployment? 
    In a country or region, when there is a lack of work according to the will or power of the people, it is called unemployment. That is, unemployment is a situation when a large number of healthy and functioning people in a country who have the ability and age to work, are not able to work at the prevailing wage rate or get paid according to their wages.
1. Organizational unemployment
     This indicates the state/level of the country when all job candidates are unable to offer jobs. Because the country's resources are limited. This situation arises when investment does not increase in line/growth with the population. It is not immediate, but a lengthy one. The solution requires a lot of investment and training of workers in new industries.
2. Educated unemployment 
Educated unemployment
     This type of unemployed person much observed in the township area. When a high and well-educated person not getting the jobs according to their educational qualification, called educated unemployment.
3. Open unemployment
    Mainly in developing countries (China, India), in the urban areas, if a worker does not work intentionally or involuntarily, it is considered as open unemployment.
4. Cyclical unemployment
     This type of unemployment usually takes precedence over the capitalist or market tantric economy. It depends on the business cycle (up-down).
Cyclical unemployment
5. Seasonal unemployment 
    Most of the unemployed in the developing country are seasonally unemployed. Such as after sometimes doing agricultural work, large portions of the population are virtually unemployed for the rest of the year or did not get the job according to their ability.
     Besides above, there are some other types of unemployment - such as hidden unemployment, part-time unemployment, disguised unemployment etc.
Part-time/seasonal unemployment 
Present Condition of India
      In the period of Prime Minister Narendra Modi's government, new employment opportunities have been created, far from being worrisome, the number of jobs has dropped alarmingly. According to one opinion-theory, the number of jobs in India has decreased by at least 90 lakh in the last six years, from 2011-12 to 2017-18. This is the first in independent India. At the same time, the unemployment rate is increasing in the country. In October this year, the unemployment rate in India has risen to 8.5 percent. 1.3 percent higher than September. The number of jobs in the country was 47 million 40 lakh in 2011-12. In the year 2017-18, it has reduced it to 46.50 million. That means the number of jobs has decreased by 90 lakh in the last six years. 
      At the same time, the unemployment rate in the country is increasing. In October this year, the unemployment rate in India has risen to 8.5 percent. The highest since August 2016. The US think tank company 'Center for Monitoring Indian Economy (CMIE)' released this worrying information in their latest report released.      
In particular, the economic downturn that India has witnessed in the last three years since the demonetization, experts say, is the inevitable consequence of rising unemployment rates. Industrial and infrastructure sectors have also started to fall behind in India due to severe economic slowdown. Infrastructure sector production in September last year was down by 5.2 percent in September. And last August, the pace of industrial production in the country is the highest in a slowdown for the last 6 years.
      Right now the Indian economy is undergoing a severe economic downturn. Due to lack of demand, production is hitting. As a result, the rate of growth in industrial production is down. Instead of opening the door to new employment, workers are being trimmed at wholesale rates in different sectors. Opponents are constantly gunning down the government by manipulating the whole issue. Small businessmen were most affected by the cancellation of Narendra Modi's 500 rupee and 1000 rupee notes. The GST was implemented soon after this. This increases the cost of small business owners.
     Unemployment has increased despite thousands of job opportunities Again, many are not truly unemployed, partly unemployed can't understand, right? According to the report, 82 percent of men and 92 percent of women earn less than Rs.10000 per month. In India, the number of unemployed has increased exponentially in the last 20 years For policymakers, this is a challenge.
     Report of India brings some information about the job market in India Which highlights the horror of unemployment History shows that only 1 percent of people have been employed. In most of India, the wages of people are less than ten thousand. As per the guidelines of the Seventh Pay Commission, the minimum wage for employees should be Rs. 18000. Therefore, according to the report data, it is seen that the workers do not get the minimum wage for living.
Leftist thinking
        In the 73 years of independence, people of the country have heard of many development models in the center-state The 'Nehru Model', Indira's 'Garibi Hatao Model', 'Rajiv Gandhi's Model', Atal Bihari's 'Phil Good Model', 'Manmohan Singh's Globalization Model', Modi's 'Vibrant Gujarat Model' - were called every time the capital flows. There will be a large number of factories Massive employment will be deployed. The economy will develop rapidly Not only high level, but financial development will also happen very soon up to the most marginal level of the society Financial disparity will be eliminated. But in reality, it was just the opposite image reducing unemployment disparity is far from over. But what is this fate? Is it not possible to solve the problem of unemployment? Is there no way to get rid of it? Before the revolution on November 1917, people thought unemployment was impossible to solve! Financial discrimination is permanent. The great socialist revolution of Soviet Russia showed that unemployment problems could be solved Financial discrimination can be eliminated. 
       As the great philosopher Karl Marx said, in the capitalist economy, the attitude of labor not only changes in society but also the purpose of production. In all previous periods, production was mainly for consumption. The exchange also happens to be mainly for enjoyment. But the purpose of capitalist production is profit, in fact, the highest profit.
What is the highest profit or profit source? Bourgeois economists say the owner earns profit by selling the product at a lower price. Marx has shown that this is absolutely false In fact, the owner's profit is only by stealing the labor of the worker. How does he steal a worker's labor? The capitalist who pays the labor force the wages, the more he spends the labor, the more he returns. This surplus value created by the labor of the laborer, which the worker is supposed to receive, is either the gain or profit of the owner. As the profits increase, the wealth of the owner increases, and the hardworking people become less helpless Inequality increases. 
Karl Marx
      Marx also showed that the more the unemployed people can absorb the workers, the more the employer can increase the profit. The situation in India is similar to that of the capitalist regime of seventy years. The unemployment problem has become a major feature of capitalism and has increased steadily. In India, GDP growth is increasing with unemployment problems increasing. That is why this development is called 'jobless growth'
     The abundance of development requires advanced to advanced technology. Advanced technology is also used in capitalist industrial production. In the capitalist system, the owner uses the machine to reduce the number of workers employed and maximize his profit by extending work hours. And in socialist, the use of machines reduces the amount of labor required by the labor force. Therefore, advanced technology diligence in capitalism comes as a curse on people's lives.
Causes of unemployment in India
1. Agriculture–A Seasonal Occupation Agriculture is largely a seasonal activity and offers seasonal jobs. Those engaged in farming remain idle in a year for three to four months. 
2. British government's decline in Small Scale and Cottage Industries Industrial policy curtailed small-scale and cottage industry growth. Independent India's preference for large-scale industry and the 1990's new industrial policy led to a decline in small-scale industries.
3. Joint Family System Promotes veiled poverty. Many such individuals are in large families with large business establishments who do not do any work and are relying on the family's joint income. In rural areas, the common family system is more prevalent; hence, there is a high level of disguised unemployment. 
4. Education system The prevailing education system has failed to generate trained and efficient self-employed labor force. The country produces a large number of graduates and graduates who are only capable of white-collar jobs. Since the supply of such jobs is less than their demand, the obvious result is unemployment.
5. Mobility of labor in India is very small. People generally avoid commuting to far-off areas of work because of their family loyalty. Perhaps contributing to low mobility are factors such as cultural diversity, ethnicity, and customs. Lower mobility leads to higher unemployment.
   In addition to these, high growth rate of population, slow rise in employment opportunities, low rate of savings and investment, public sector inefficiency, negligence of private sector, also plays a great role to create huge unemployment in India. 

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