Unemployment Overview Quiz

Unemployment

• Unemployment is a significant economic and social issue.
• It involves individuals willing and able to work but unable to find employment.
• Rural Unemployment:
  • Seasonal unemployment occurs in agriculture due to seasonal work variations.
  • Disguised unemployment happens when individuals appear employed but don't engage in productive work that matches their skills.
• Urban Unemployment:
  • Educated unemployment is when educated individuals with skills can't secure suitable jobs.
  • Industrial unemployment arises in the industrial sector due to factors like technological advancement, slow growth, or lack of training.
    • Technological unemployment results from job displacement caused by technological advancements.
    • Frictional unemployment happens due to temporary factors like strikes, power failures, or job-seeking time.
    • Cyclical unemployment occurs due to economic fluctuations, with job losses in recessions.
    • Structural unemployment arises from long-term economic changes like shifts in demand or policies.
• Causes of Unemployment in India:
  • Job creation rate is slower than economic growth, not creating enough jobs for workforce increase.
  • Rising labor force due to declining death rates and stable birth rates.
  • Increased use of capital-intensive technology reduced labor demand.
  • Inadequate skill development programs, a gap between workforce skills and industry needs.
  • Aspiration for white-collar jobs without matching entrepreneurial spirit.
  • Seasonal agriculture is a major employer, but has idle periods.
  • Slow economic development limits industries and job opportunities.
  • Rural-to-urban migration increases urban unemployment.
• Effects of Unemployment:
  • Human resource wastage, difficulty with welfare schemes, poverty, income inequality and informal sector growth.
  • Social unrest, loss of dignity, and helplessness.
• Measures to Reduce Unemployment:
  • Agricultural development, alternative occupations, infrastructure, educational reforms, tourism, and IT development.
  • Adopting labour-intensive techniques, vocational training, rural industrialization, inspiring self-employment.
  • Government schemes like EGS, SGSY, SJSRY, PMRY, TRYSEM, JRY, MGNREGS, and others are specific initiatives for job creation.

Poverty

• Poverty is a significant economic and social problem characterized by resource deprivation, hindering basic needs fulfillment.
• Concepts of Poverty:
  • Absolute poverty is based on minimum calorie intake needs.
  • Relative poverty compares living standards within a society.
• Poverty Line: An expenditure threshold distinguishing the poor from the non-poor, calculated based on monthly per capita consumption.
• Objectives of the poverty line:
  • Estimate population below the poverty line.
  • Identify poor based on household consumption expenditure.
  • Track poverty changes over time and across regions.
  • Estimate expenditure needed for poverty alleviation programs.
• Extent of Poverty in India: Measured by the poverty ratio (poor population percentage).
• Estimates: The government appointed committees review the poverty line. The 2012 Expert Group, chaired by Dr. Rangarajan, provided poverty lines based on monthly per capita consumption in 2011-12. Data is provided in a table.
• State-wise Poverty Ratios: Varied considerably, with higher poverty in Uttar Pradesh and Bihar, and lower in Kerala.
• Causes of Poverty:
  • Population explosion, slow economic growth, unemployment, economic inequalities, inadequate infrastructure, inflation, regional imbalances, and the vicious circle of poverty.
• Effects of Poverty:
  • Slow economic progress, low national income, low living standards, low savings and investment, conflicts between classes, social issues, environmental degradation. and government burden
• Measures for Poverty Eradication:
  • Population control, agricultural support, rural work, rural industrialization, minimum wages, public distribution system, nationalized banks, progressive taxes, education, affordable housing, and health facilities.

Sustainable Development Goals (SDGs)

• The UN SDGs, adopted in 2015, address social, economic, and environmental issues globally.
• They aim to end poverty in all forms.
• There are 17 SDGs and 169 targets to be achieved by 2030.
• India, a signatory to the UN, played a role in shaping the SDGs
• Goal 1 focuses on eradicating poverty by 2030.