Types

Unemployment

Extent

Causes

Effects

measures

Types/ Nature of unemployment

RURAL UNEMPLOYMENT
OPEN UNEMPLOYMENT DISGUISED UNEMPLOYMENT SEASONAL UNEMPLOYMENT

URBAN UNEMPLOYMENT
INDUSTRIAL EDUCATED FRICTIONAL STRUCTURAL TECHNOLOGICAL

Extent of Unemployment
Usual Principal Status (UPS): unemployed for the major part of the year, chronic Current Weekly Status (CWS): no work even for 1 hour during survey week Current Daily status (CDS) : unemployment for a day (>4hrs) or few days in survey time. according to Planning Commission, fully employed person is the one with work of 273 days and 8 hours per day in a year.

 All India Rural and Urban Unemployment Rates in 2009-10 (percentage)

estimate

rural

urban

total

UPS CWS CDS

1.6 3.3 6.8

3.4 4.2 5.8

Economic survey 2011-12

2.0 3.6 6.6

Total (2004-05) 2.3 4.4 8.2

Observations: Unemployment has fallen in 09-10 compared to 04-05 Urban unemployment at UPS and CWS is more than rural unemployment. Urban unemployment at CDS is less than rural unemployment that shows high degree of disguised and seasonal unemployment

Unemployment among females more In 2004-05 at UPS : Rural Males 2.1% & females 3.1% Urban Males 4.4% & females 9.1% Unemployment among young is more (age 15-29) (99-2000) 12.1%
UNEMPLOYMENT RATE AMONG EDUCATED YOUTH (15-29) US BASIS. %

YEAR
1993-94 1999-2000

SECONDARY & ABOVE

18.5 14.8

TECHNICAL
27.3 23.7

Source: Planning Commission Report on Labor & employment

UNEMPLOYMENT RATES PER 1000 IN STATES 2009-10, Usual Status

states Gujarat Andhra P Maharashtra

rural 8 12 6

urban 18 31 32

Source: Eco Survey 2011-12

International Comparison 1996 CWS basis India 4.4 China 3.0% Malaysia 2.6
Causes of rural unemployment.
Population, population pressure on land, Outdated methods of production,decline Of village industries, poverty, shortage of Capital, joint family system, sub-division & fragmentation of land

urban unemployment.
Population, migration, more no. Of educated, industrial sickness, New technology, slow industrialization, inadequate Inputs, lack of labour mobility

Effects of unemployment
ECONOMIC
Wastage of human resources, low Income, Low savings, low capital formation, low living standard, low labor productivity,

SOCIAL
Wide gap between rich & poor, class conflicts, social unrest, More illegal activities.

Govt. measures
The Planning Commissions Task Force on Employment Generation Accelerated economic growth around 8% - savings & investment, infrastructure Sector specific policies: agriculture. Food processing, SSI, service sector Employment Schemes: like..( at least 7-8)
1) Sampoorna Gramin Rojgar Yojna 2001 rural areas, wages paid in cash & foodgrain. Cash component share 75:25; foodgrain 100%. 2) National Rural employment Gurantee Programme february 2006 infrastructural projects; rural employment of not less than 100 days. 3) Jai Prakash Rojgar Gurantee Yojna employment in most distressed districts.

Introduction of vocational education Liberalization, Privatization, Globalization

MODULE 1 CHP. 5: URBANIZATION URBAN AREAS.

PLACES WHICH HAVE A MUNICIPALITY, CORPORATION, CANTONMENT BOARD OR A NOTIFIED AREA. OTHER AREAS WITH MINIMUM POPULATION 5000 - DENSITY 400 PERSONS PER SQUARE KM. - 75% MALE IN NON-AGRO ACTIVITIES.
SLOW URBANIZATION - 1901, 11% urban population & 2001, 27.8%

year

as % of populatio n - rural
89.0 82.7 82.0

urban %

1901 1951 1961

11.0 17.3 18.0

1991
2001

74.3
72.2

25.7
27.8

TSO 2009-10

Number of cities with more than 1 million Population 23 in 1991 to 35 in 2001

 Urbanization: urban population: 30% of total population (2010) rate of urbanization: 2.4% annual rate of change (2010-15 est.)

Positive effects
1) 2) 3) 4) 5) Development Industrialization & more GDP Job opportunities More economies of scale reduces social friction

negative effects
1) slums 2) poverty, unemployment 3) social unrest 4) labor scarcity in rural areas