Unemployment is the most important neglected and the burning problem of our country. Due to rapid growth of population, every year, a large number of unemployed educated and uneducated youths come out in search of suitable employment. According to late president of India
V.V. Giri , “Unemployment is the problem of problems. Unemployment has made our youths Naxalites. Educated youths are deprived of all deserving comforts and their growing discontentment has given scope for the speedy growth of Naxalism.” It is the basic problem which has given birth to a number of disconnected problems, such as, poverty, social disorder , insecurity, maintenance of law and order etc. As a matter of fact, it is the prime duty of the Planning commission and the Government to provide suitable jobs to all those who are unemployed .But it is a matter of great regret that both of them have badly failed on this vital front. In a sense it is a colossal waste of human resources which further hurdles the tempo of economic development of a country. Since it is a basic problem of the country, it calls for an immediate remedial action at the earliest possible time before it is too late.

Nature of unemployment in India

The problem of unemployment in India is very crucial. The nature of unemployment is an underdeveloped country like India is quite different from that of advanced countries like the USA and the U.K. The most developed countries of the world usually suffer from cyclical unemployment due to lack of demand for industrial products. The factories just do not work due to industrial recession during certain periods. It is of a temporary nature. But in the case of an underdeveloped country like India, it is structural in nature. It arises primarily due to lack of capital as a complementary factor for labour. Thus it is of a chronic nature. There is also lack of other complementary factors of production such as land, entrepreneurship, management etc. In all the situations, unemployment refers to a situation in which all the workers who are capable of working, i.e., physically and medically fit for working and willing to work do not get employment. It amounts to a waste of the country’s labour force. Frictional unemployment is a temporary phenomenon, which occurs when people are changing jobs. The period incurred during the process of going from one job to another is the period of frictional unemployment. It is ignored for estimating full employment equilibrium .Cyclical unemployment, on the other hand, is a kind of involuntary unemployment in the advanced countries which occurs during recession or depression, caused by lack of effective demand for goods. This Problem can be solved by appropriate monetary and fiscal policies.

But in a country like India, problem is not that of lack of demand. Hence it cannot be easily solved through monetary and fiscal politics only.

EXTENT AND MAGNITUDE OF UNEMPLOYEMNT

Due to conceptual and statistical difficulties, the estimates of unemployment and under employment both in rural and urban areas are neither accurate nor reliable.

A Large number of worker in India are force to remain jobless both in rural and urban areas. Dantwala Committee (1969) appointed by Planning Commission subjected a new approach to the estimation of unemployment in India. The committee stated in its report, that in an Economy like India there is very little open or chronic unemployment, but there would be considerable seasonal unemployment and/or underemployment, particularly in rural areas. The report does not think it proper to add up seasonal disguised unemployment to arrive at an alarming big estimate of outright unemployment .The committee prefer to draw up a sharp line of demarcation between the out right and unemployment and unemployment of the reaming types, aggregation of the two being illogical.

The difference between the two seems to rest on the duration of unemployment at a stretch. As a matter of fact, neither the Planning Commission, nor Census Report , nor Director-General of Employment and Training ( D.G.E.T.) nor the Employment Exchange or ISI or the National Sample Survey Organization (N.S.S.O.) could give any dependable quantitative estimates of the magnitude of the problem .

The Task Force headed by Dr, Montek Singh Ahluwalia in its report of June 2001 adopted UPSS concept; while Special Group in the chairman ship of Dr. S.P. Gupta in its report of May 2002 adopted CDS concept .

As per the Task Force Report unemployment rate in India in 1999- 2000 was 2.2% (U.P.S.S. concept); while according to Special Group Report given in May 2002 it was 7.32% (CDS concept) Unemployment rates for the same states for 1993-94 and 1999-2000 (unemployed persons as ratio of labour force) are shown in the Table No. 1,along with employment- elasticity between 1993-94 to 1999-2000 (employment-growth rate divided by/GDP growth rate during this period )

The table explains that unemployment situation in Kerala, TamilNadu and West Bengal was very grave, both in 1993-94 and 1999-2000.

The number of unemployed in India increased from 2.01 crore in 1993-94 to 2.66 crore in 1999-2000 (Table no 2).The labour force in 1999-2000 was about 363.33 million (36.33 crore).The labour force in 2006-07 is likely to be 413.50 million (41.35 crore) on the assumptions that it will grow at the rate of 1.8% per annum during 10^th plan period. In 2006-07, unemployment rate is likely to be 9.79% , and the number of unemployed to be 21.2 million (2.12 crore). The share of organized sector in employment is about 8%, while that of unorganized sector it is 92% in India .India has a structural unemployment .The causes of unemployment, therefore, exist in the structural weakness of the economy. Since the Indian economy is underdeveloped it cannot absorb its huge and growing labour force. The opportunity of unemployment has not kept pace with the additions in the labre force of the country which are taking place as a result of rapidly increasing population in India. The galloping increase in the population of our country during last decade has further aggravated the unemployment problem in the country. As other employment opportunity are not available in sufficient quantity, agriculture is the principle area of unemployment in our country .Thus pressure on the land is high, as about 2/3^rd of the labour force is engaged in the agriculture . Land is thus overcrowded and a large part of work force is unemployed, this unemployment is disguised and seasonal. The main reason of this widespread unemployment and disguised unemployment has been backward and traditional farming in India .India lives in the villages and about 70% of the population still depends on agriculture with low productivity. The lack of additional like dairy forming, poultry farming fisheries, rope-weaving, bee- keeping, food-processing industry etc has led to worsening of the unemployment situation in the country . Different employment generation program imparted during the plan period where inadequate forgiving gained-ful employment to the rural poor government has taken several steps to promote employment in India but all of them proved to be inadequate.

Employment program for rural sector

As discussed above there is open unemployment disguised unemployment and seasonal unemployment in India this has always being a great concern to the policy makers and they are continuously searching some ways and means to solve it . Productive absorption of underemployed and surplus labour force in the rural sector has been a major force for planning for rural development in order to provide direct supplementary wage employment to the rural poor through public works, many programs were initiated by the Govt. of India , namely, National Rural Employment Program (NREP) Rural Landless Employment Guarantee Programme (RLEGP) and Jwahar Rojgar Yojana (JRY).

Currently Sampoorna Gramin Rojgar Yojana is being implemented all over the country with the objective to provide supplementary wage employment in rural areas create durable rural infrastructure and to ensure food security. Though the SJRY is providing some relief to the rural poor, its reach has been inadequate in view of the dimension of the unemployment in rural areas.

It has been indicated in the statement of the object and reasons annexed to the bill that the scale of the unemployment generation under SGRY in 2002-03 and 2003-04 was barely adequate to provide on an average 20 days and employment to each Below Poverty Line(BPL) house hold in the rural areas. Secondly, there is no guarantee that employment will be available tot he rural hose on demand as SGRY is an allocation programme. The situation of unemployment has been compounded by the absence of any social security mechanism.

Taking into account of the experience of 30 years gained under the Employment Guarantee Scheme in Maharastra the Parliament has approved the National Rural Employemnt Bill, 2005 seeking to provide 100 days assured every year to every rural house hold in 200 district . This landmark legislation was past by LoakSabha on Aug 23,2005 and the Rajya Sabha on Aug 24,2005 .This new employment guarantee scheme provides and indispensable lifeline to the millions of poors in the rural areas of the country. This social security measure, for the first time make the right to work a fundamental legal right- a new radical deal for India’s poor .

The legislation constitute a pioneer endeavor to secure wage employment for the house holds in the rural areas as a guaranteed entitlement on this scale . the bill drafted after wide consultation fulful a measure promise of the UPA’s National Common Minimum Programme . The legislation has wide support among political parties, social movements and public at large.

Intervening at the debate on the bill in the Rajya sabha Prime Minister Dr , Manmohan Singh argued for rationalizing subsidies, improving the investment climate and accelerating the pace of inductralization to maintain the economic growth of 7 to 8% to fund scenmes such as Rural Employemnt guarantee. He described it as most important piece of legislation in independent India it marked a new beginning in the efforts for social inequity and justice. He hoped that in the next four or five years it would cover all rural districts.

It is said that this legislation bill gives bargaining power to the poorest of the poor and help those belonging to the schedule caste, schedule tribes landless class and women’s. A gainful employment will be offered by this legislation to the poor which will fetch Rs. 500 per month for a family briging them in social safety. It is said that village Panchayat would play pivotal role in the implementation of the National Employment Guarantee Scheme . Initially, the scheme would be implemented in 200 district across the country which would be extended to 600 distt. 1/3^rd of the proposed jobs would be reserved for women. The minimum wage as applicable in various states under the Minimum Wages Act 1948 would apply to the programmes. However the Centre would step into ensure a minimum rate of not less than Rs 60 a day in states, where it was lower . The minimmum wage offered for manual work in states currently varies from Rs25 Nagaland to Rs 134 in Kerela. The bill also provides for unemployment allowances if the job, under the scheme , is not provided within a specified period. The minimum daily wage has been fixed at Rs 60 .

In the current financial year Rs 10,000 crores have been made available for implementation the scheme . Considering that a programme of this kind being contemplated on such a massive scale for the first time, it has to be necessarily implemented in phases so as to eventually cover all rural areas of the countries subject to the economic capacity of the centre and the state Govt.

Salient Features of the Legislature

Some of the salient features of the legislation are that the State Government shall, in such rural areas in the state and for such period has may be notified by the central Govt. , provide to every household guaranteed wage employment in unskilled manual work at least for a period of 100 days in a financial year in accordance with the providence made in the legislation .This employment will be provided at the wage rate to be specified by the center Govtt. For a area, the wage rate fixed under the minimum wage act 1948 for agriculturer laborers shall be considered as the wage rate applicable to that area if this wage is not provided then it will be obligatory on the part of the state Govtt. To pay unemployment allowance at prescribed rate.

A central Employment Gurenatee Council at the central level and state Employement Gurenttee Council in all states where the legislation is made applicable will be constituted for review , monitoring and effective implementation of the legislation in there respective areas .

The Standing Committee of the Distt. Panchayat Distt. Programme Coordinator , Progrmamme officers and Gram Panchayats have been assigned specific responsibilities in implementation of various provisions of the legislations at the Gram Panchayats/ Block and Distt. Levels.

A National Employemnt Guarenttee fund will be established for this schem.

The state Govtt. may constitute state employment guarantee funds. Provisions for transparency and accountability, audit ,establishment of grievance and redressal mechanisms and penalty of non- compliance are also envisaged.

Conclusion

The problem of unemployment that exist in India today is the cumulative result of number of factors, namely Lopsided inadequate industrial development before independence, the rapid growth of population after 1921, the decay of small scale and cottage industries leading to greater pressure on land , the low level of investment resulting I lack of in expansion of the secondary and tertiary sectors of the Economy etc.

Unemployment can be removed by raising level of investment in the Indian Economy and accelerating the process of industrialization planning should also be employment oriented. Over and above without controlling the population the unemployment will continue.

The key to job guarantee legislation lies in the world guarantee;. India abounds in scheme for the poor- all two often instruments for the state to display its munificence whenever political expediency demands it.

A guarantee seeks to take this power away from the hands of the politicians and their pretenders. It has the potential to profoundly alter the way bureaucrats treat the people they are supports to serve. The employment guarantee scheme will be different from the many employment generation programme . It is because they were implemented a programmes . Subject to budgetraty constraints and rules and regulations to suite implementing authorities. With the present bill, the states fulfill the right of the poor to be lively hood. Although implementation of employment guarantee progrmamme will require money but it saves social and economy cost of the poverty .

There is a genuine fear on large scale corruption in such progrmames , but the genuinely cannot be challenged on this ground .This bill would have to been seen against background of the improved Right to Information Act which would enable social audits and greater public scrutiny of the programmes. It will insure greater accountability of Panchyat bodies as Distt. Bodies as well now muster rolls will no longer be sacred and budget and works will in public knowledge all this will insure that only those who really need will employed , and only those schemes require by the committee are taken up.

(CDS basis) (SG Report, May 2002)

EMPLOYEMENT SCENARIO FROM 8% GROWTH PER ANNUM

(Based on Actual Elasticity (1994-2000)- CDS 1.8% Per Annual Growth in L.F.)

	Unit	1999-2000	20011	20021	2007	2012	Employement Growth over 10th Plan per annum
1.Labour Force 1.8% per annum growth 2. Employment2 3.Unemployment Rate 4.No.ofUnemployment	Million Million (%) Million	363.33 336.75 7.32 26.58	371.52 340.82 8.26 30.70	378.21 343.31 9.21 34.85	413.50 373.03 9.79 40.47	451.53 405.52 10.63 siliconindia Most Read Important Motor Insurance Terms You Should Know Well 4 Significant Implications of AI in SME Business Tactics Inventory optimization through Turbodata 7 Great Ways To Improve Communication With Your Employees 5 Tips to Enter the Investing World How to Use an Email Signature as a Marketing Tool Top 10 Business Intelligence Trends for 2018 Make Your Business Ideas a Reality Tips and Tools to unhide non-system files Plug and play forecasting analytics using data compression and sql reduction Latest postings blogs by this author TIPS TO DEVELOP CONFIDENCE AND GET IT... EDUCATION MATRIX OF INDIA MBA PROFESSIONAL REPORT view all>> More from NewIndia blogs World Peace Development And Research Found... 13th Global Film Festival Will Emphasize S... Are You Meeting The Right Guys? A Glimpse Inside Pharmaceutical Quality !! Women & The Logistics Industry view all>>