Employment And Unemployment – Indian Economy

Employment And Unemployment


Employment And Unemployment

● Unemployment – it refers to a situation when people are willing to work at the existing wage rate and are able to work but are not getting work

● Workers – A worker is an individual who engage in some production activity,contributes to GDP by the rendering services


Self employed worker and hired worker

Self employed workers – workers who are engaged in their own business or Enterprises

Hired workers – workers who are hired by the others and are paid in form of Wage and salary


Casual and regular worker

Casual workers – workers who are not employed on regular basis and these employees do not get job security

   • No permanent jobs

   • No security

Regular workers – when workers are paid regularly then are known as regular worker or salaried employees

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   • Permanent jobs

   • Provide security, pension, bonus

Labour supply, labour force and workforce


Labour supply – amount of workers that are willing to do work at particular wage rate

Labour force – sum total of persons who are willing and able to work at an existing wage rate in an economy

Work force – a part of labour force who are actually engaged in some productive activity


# Jobless Growth – Situation where GDP of an economy grows faster than the employment opportunity.

# Casualisation of employment – When the percentage of casual hired workers in total workforce tends to rise over line


Information of employment

1. Formal sector

it refers to the organised sector of the economy

a. It includes all public and private establishment which hire 10 or more workers

b. Workers of these sectors are entitled to social security benefits

c. These workers are protected by labour laws

2. Informal sector

it refers to the unorganised sector of the economy


a. It includes all such private establishment who higher than 10 worker’s

b. These workers does not entitled to any social security benefits

c. Workers of this sector are not protected by labour laws


Types of Unemployment


In Rural unemployment

1. Disguised unemployment/Hidden unemployment

The number of worker engage in a job is much more than the number of people actually required

2. Seasonal unemployment

Seasonal unemployment refers when people are unemployed at particular times of the year when demand for labour is lower than usual.


In Urban unemployment

1. Industrial unemployment

Those persons who are willing and able to work in industries in urban areas but cannot find work fall in the category as the rural urban migration increase urban unemployment

2. Educated unemployment

Those person who educated and not able to find a suitable and efficient job for himself this also occurs when there is large number of graduate or postgraduate but limited jobs opportunities and the Limited companies.

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Common types of unemployment


1. Open unemployment/involuntary unemployment

Open unemployment occurs when a worker is willing to work and has the necessary ability to work, yet he does not get work


2. Structural unemployment

Structural unemployment is caused by a mismatch of skills between the unemployment and available jobs. Structural unemployed is caused by changes in the economy


3. Frictional unemployment

Frictional unemployment that occurs from the the inevitabletable times delay in finding new opportunities employment in a free market.it is also called search unemployment. It relates to time taken


4. Cyclical unemployment

Cyclic unemployment related to the cyclical tends in the industry of the business cycle.


Causes of unemployment

1. Slow economic growth

2. Rising population

3. Agricultural – seasonal occupation employment only seasonal crops

4. Destroy of small scale industries

5. No more job formation


Suggestions to solve the problems of unemployment

1.  increase in production

2. Control over population

3. Education reforms

4. Technique productions

5.  self employment

6. Importance to employment program in plans


Conclusion: In this article we learn that ‘Employment And Unemployment’. This Article Is Very Important For All students who adopt ‘Indian Economy’ Subject.

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