Hardships of unemployment

Despite successfully completing 7 decades after the glorious independence, India still has to go in order to accomplish many of our basic goals. One of them is to tackle unemployment. India’s unemployment rate has abruptly risen to a worrying 7.2% in 2020 from 5.27% in 2019. The lowest unemployment rate in India was 3.4%(in July 2017). It is true that COVID 19 has a huge role to play in this saddening situation. But we must never forget the fact that India due to many reasons could never eliminate unemployment from its subcontinent through these years and all efforts to tackle this is nearly futile.

What is unemployment?

Unemployment is a term referring to individuals who are employable and actively seeking a job but are unable to find a job. Included in this group are those people in the workforce who are working but do not have an appropriate job.

Types of unemployment

There are basically four types of unemployment: (1) demand deficient, (2) frictional, (3) structural, and (4) voluntary unemployment.

👉1.Demand deficient unemployment

Demand deficit unemployment is the biggest cause of unemployment that typically happens during a recession. When companies experience a reduction in the demand for their products or services, they respond by cutting back on their production, making it necessary to reduce their workforce within the organization. In effect, workers are laid off.

👉2.Frictional unemployment

Frictional unemployment refers to those workers who are in between jobs. An example is a worker who recently quit or was fired and is looking for a job in an economy that is not experiencing a recession. It is not an unhealthy thing because it is usually caused by workers trying to find a job that is most suitable to their skills.

👉3.Structural unemployment

Structural unemployment happens when the skills set of a worker does not match the skills demanded by the jobs available, or alternatively when workers are available but are unable to reach the geographical location of the jobs.

An example is a teaching job that requires relocation to China, but the worker cannot secure a work visa due to certain visa restrictions. It can also happen when there is a technological change in the organization, such as workflow automation that displaces the need for human labor.

👉4.Voluntary unemployment

Voluntary unemployment happens when a worker decides to leave a job because it is no longer financially compelling. 

An example is a worker whose take-home pay is less than his or her cost of living.

Long and short term unemployment

Unemployment that lasts longer than 27 weeks even if the individual has sought employment in the last four weeks is called long-term unemployment. Its effects are far worse than short-term unemployment for obvious reasons, and the following are noted as some of its effects:-
👉Some 56% of the long-term unemployed reported a significant decrease in their net worth.
👉Financial problems are not the only effects of long-term unemployment as 46% of those in such a state reported experiencing strained family relationships. The figure is relatively higher than the 39% percent who weren’t unemployed for as long.
👉Another 43% of the long-term unemployed reported a significant effect on their ability to achieve their career goals.
👉Sadly, long-term unemployment led to 38% of these individuals losing their self-respect and 24% seeking professional help.

Causes of unemployment

1.Due to rapid increase in population:-There are employment opportunities in India but due to rising population problem, unemployment is also increasing. If the population grows in the same rate the next generation will face more problems of unemployment. Ex:-If there is vacancy for 1 position while 100 or 1000 will apply for that position then only one will get the job and others remain unemployed.

2.In India, a person don’t take jobs which are below their grades. Many find it difficult to work at the below qualification level job.

3.Low wages or salary below the market rate.

4.Many big industries look for the skilled candidate only, for their company.
5.Many Employers give preference to the experienced candidates only and not the fresher.

6.Defective system of education.

7.Inappropriate technology

Effects of unemployment

1.Unemployment and poverty goes side by side. The problem of unemployment gives rise to the problem of poverty.
2.Young people after a long time of unemployment find the wrong way to earn money.
3.To get rid from the unemployment stress, they accept alcohol or drugs.
4.Unemployed youths accepts suicide as the last option of their life.
5.Lower economic growth
6.Increase rate in Crimes. As the employed youth don’t have anything to do they start doing robbery, murder etc.
7.Health issues, i.e. it affects person mentally as well as physically.

Suggestions to decrease unemployment

1.The quality of Indian education should be improved. The current education system is not upto the level. Government should keep a strict watch on the education system and try to implement new ways to generate skilled labour force.

2.Also today’s youth should join the institute or select the course where proper training is given and the course is as per the current industries requirements. Take the course as per your interest and which will bright your future.

3.Rapid Industrialization should be created.

4.Government should allow more foreign companies to open their unit in India, so that more employment opportunities will be available.

5.Government should encourage and develop the agriculture based industries in rural areas so that the rural candidates don’t migrate to the urban areas. More employment should be generated in rural areas for the seasonal unemployment people.

Hii friends, here the blog ends.

I(Shreyansh Totla) hope that you like this blog and plz

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