UNEMPLOYMENT

THE CURSE

NAME – PAMELA BID

ROLL NO -19202096
SECTION – B
MANAGERIAL ECONOMICS – II
ASSIGNMENT
KIIT
 “UNEMPLOYMENT THE CURSE”
Unemployment is an integral part of normal capitalist system. The Indian
economy has declined a lot presently. According to Centre for Monitoring
Indian Economy (CMIE) India’s unemployment rate in October 2019 rose
8.5% higher since August 2016.The Urban unemployment rate for 2019 stood
at 8.9% still slightly higher than the rural unemployment rate of 8.3%. So
what is the actual cause of unemployment- Is it government intervention or
production or lack of skill? Let’s find out the reason behind Increasing rate of
unemployment in our Nation.

 Demonetization and its consequences

Demonetization which was considered as a master stroke in Indian political
history that would have eliminated the black economy in India itself
backfired and caused the biggest damage to the Indian Economy. Every
sector of the society was affected by this move specially the and micro scale
enterprises of our country. Demonetization bought many small scale
industries closer to digital, the micro industries had to go through a very
unstable condition; still now 74.2% workforce in India resides in rural areas.
Suppose a food stall owner at road side, a daily wage earner, a technician all
of them are earning on a daily basis and in cash and they are not using net
banking. This sudden announcement of Demonetization bought a huge
impact on their business. Where as many small and medium scale
organization became very organized. Most of the workers in micro scale
industries moved back to their villages many factories were shut down many
people lost their job. The unorganized sector consists 45% of GDP the growth
rate decreased almost by 2%.In the production and agricultural sector sale of
rice in India dropped to 61% and in many places winter crops were not sold
because they were cashless that point of time. But while our economy has
gone down but there was a sudden drift of people to organized sector big
bazaar, Spence, reliance grew more.

 Negligence towards agriculture-An important factor responsible foR r

slow growth of employment opportunities is the neglect of agriculture
for generating employment opportunities.
 Lack of manufacturing and people losing jobs-Many people in the
manufacturing arena are losing jobs because factories are now using
 robots instead of human labour. Factory shop floors are purchasing
robots from china and japan which are available in a much cheaper
price and replacing human labour. And the growth of manufacturing
sector is also very stagnant in India
 Overpopulation
India is a clear display of increasing population. Whether you are in a
metro station, airport, railway station, road, highway, bus stop, hospital,
shopping mall, market, temple, or even in a social/ religious gathering,
we see all these places are overcrowded at any time of the day. This is a
clear indication of overpopulation in the country. According to the Indian
census, carried out in 2011, the population of India was exactly
1,210,193,422. This is the second most populous country of the world
after China and the various studies have projected that India will be
world’s no 1 populous country, surpassing China, by 2025.And more
population means more problem in creation of jobs.
Current scenario of unemployment in our country
India’s total job outlook is decreasing each passing day as small scale firms
across several sectors cut production and low consumer demand. The
slowdown has occurred over the past two quarters has forced cash strapped
companies to serve notices to existing employees. While contractual
employees mid to junior level are becoming the first casualties of the
slowdown. If this effect last for a long time unemployment will increase
more. Workers across various sectors are asked to leave jobs because of lack
of production. India’s auto sector which employees over 3.5 crore employees
has already laid off almost 3 lakh employees. More millions of jobs can lose if
further implications are not made. Me automobile manufacturers are
shutting production on some days to reduce cost. In the 2 nd quarter of 2019
the $57 billion auto industry saw a huge decline.Real estate is another sector
that is also going through a rough phase for instance Mesolithic Developers
formerly known as LODHA group already handed pink slips to 400
employees. Meanwhile lower consumer demand in the real estate sector has
directly impacted thousands of daily wage workers who have ended up
without any source of income. Lakes of jobs are lost the last 1 yr. specially
that of contractual and daily wage belabour. IT giants Data Consultancy
Services (TCS) and Infernos, two of the country’s largest IT companies,
reduced their headcounts for the first time ever , 56000 employees were laid
of from this companies Around 65000 sector workers lose their jobs mainly in
the customer support and financial functions.
GOVERNMENT INTERVENTIONS TO REDUCE UNEMPLOYMENT

Governments first intervention should be to reduce the population of

India the 2 child policy of family planning should be implemented in
the manner so that it is fruitful. strict laws related to having more than
2 children should be implemented by the Indian government, because
if population keeps on increasing in this way our resources will end and
employment opportunities also. Special family planning measures
should be conducted more by the Indian Central government as well as
the state government to aware more and more people. Family
planning and reduction in increasing population should be given major
emphasis in the 5 years’ plan.
 Increasing the production and agricultural sector in India.
Introducing various schemes for the welfare of farmers and providing
them a proper source of livelihood. Setting a price below which people
can’t buy raw products from farmers.
 Increasing the manufacture base in our country. Rather than buying
good from other countries following the concept of “Make in
India”. Government can start skill development centre for training
more and more people so that the current employment
opportunities in our country increases. Japan is one of the most
developed Nations because they follow this concept.
 Setting up of more private setups micro enterprises will also lead to
decrease in Unemployment rate
 And last but not the least Increasing our literacy rate educating
people will definitely lead to decrease in unemployment.
 In five year plans more importance should be given to employment.
The programmes like irrigation, roads, flood control, power,
agriculture, rural electrification can provide better employment to
people.
 More employment exchanges should be opened. Information
regarding employment opportunities should be given to people.