MCom I Semester Business Environment Unemployment Notes study Material

MCom I Semester Business Environment Unemployment Notes study Material : Definitions and meaning or Unemployment Nature or Types or Unemployment  Features or Unemployment in India Causes of Unemployment in India Evils of Unemployment Programmers Implemented by the Government For Reduction of Unemployment in India Educated unemployment in India Employment Long Answer Questions Short Answer Questions Objectives Questions :

CTET Paper Level 2 Previous Year Science Model paper II in Hindi

Unemployment

Unemployment is very often a characteristics of underdeveloped economie A fast increase in population aggravates the situation by adding a large number of entrants to the labour force every year. In the absence of appreciable rise in industrial investment and with the population growth unchecked, unemployment increases by leaps and bounds. In the words of Bhagwati Committee on employment “Unemployment and under employment are the biggest challenges of the day and we are sitting on volcano.”

DEFINITIONS AND MEANING OF UNEMPLOYMENT

By unemployment economists mean a situation in which people are willing to work, at the existing rate of wages, but they do not get work.

1 In the words of Pigou, “A man is unemployed only when he is both without a job or not employed and also desires to be employed.”

2. “It is a kind of situation where the unemployed person do not find any meaningful or gainful job inspite of having willingness and capacity to work.”

3. According to Keynes, “Full employment is a situation in which aggregate employment is inelastic in response to an increase in effective demand for its output.”

It is clear from the above definitions that employment would be full literally, when every able-bodied adult worked the number of hours considered normal for a fully employed person at the current wage level. This level of employment normally appears to be unattainable in private enterprise economies, Pigou defined full employment as one when, “everybody who at the running rate of wage wishes to be employed and is in fact employed.”

The classical economists defined full employment as the absence of involuntary unemployment. Voluntary unemployment exists when workers are not willing to accept wages slightly less than the current wages. Voluntary unemployment may also exists when workers refuse to work at all at the current wages. But involuntary unemployment exists when jobs are not available to the workers even though they are ready to accept them at current wages.

According to Prof. William H.Beneridge,”Full employment means having always more vacant jobs than unemployed men, not slightly fewer jobs, it also mean that the jobs should be at fair wages, of such a kind and so located that unemployed individuals can reasonably be expected to join them.”

Unemployment Notes study Material

NATURE OR TYPES OF UNEMPLOYMENT

The different types of unemployment that afflict on advanced capitalist economy may be classified as follows:

1 Structural unemployment: It is that type of unemployment which arises due to structural changes in the economy of the country. For example, if there is a long term decline in the export trade of a country, this may be considered as the structural change in the economy of that country. The resultant unemployment in the export industries shall be referred to as structural unemployment.

2. Cyclical unemployment : This type of unemployment is due to the operations of the business cycle. It is so called because business depression occurs of more or less regular intervals. During times of depression, business activity is at a low ebb and unemployment increases. Some people are thrown out of employment altogether and others are only partially employed.

This type of unemployment arises because of too much’ capital for a short while in relation to demand for goods and services.

3. Technical unemployment : It is that type of unemployment which is caused by changes in the techniques of production. Technical changes are taking place constantly, leading to the discovery of new production methods involving a goods deal of mechanization. This naturally results in displacement of labour and resultant unemployment.

4. Underemployment : It is that type of unemployment when persons willing to accept job are unable to get it according to their ability. The major cause of unemployment in underdeveloped countries like India is the deficiency of stock of capital in relation to the needs of the growing population.

5. Seasonal unemployment: It is that type of unemployment which is due to seasonal variation in the activities of particular industries as caused by the climatic chages or the inherent nature of such industries. Indian agriculture is a seasonal occupation so that the farmers have not sufficient work to do during the slack season. Other example of seasonal industry are ice factories, rice mills, sugar factories etc.

6. Educated Unemployment: This problem is very much acute among the middle class people. The universities are turning out number of graduates each year who enter the job market. But the pattern of education is not job oriented. Hence education does not promote job-worthiness of a person. Consequently, many fail to find employment and add to the category of unemployed.

7. Rural unemployment : Rural area is suffering from various types of unemployment such as underemployment, disguised unemployment seasonal employment etc.

8 Disguised unemployment: In disguised unemployment apparently it seems that everyone is employed but in reality sufficient full time work is not available for all. Disguised unemployment is a situation wherein the number of workers engaged in job is much more than actually required to accomplish it. If some workers are withdrawn, total production of the family firm will remain unchanged. That is why they are called disguished employed.

FEATURES OF UNEMPLOYMENT IN INDIA

The features of unemployment in India can be studied under the following heads:

1 Low Rate of Labour Force Participation : Labour force participation rate in India is quite low. In 2011. this rate was about 52 percent for maleg around 28 percent for females and a little above 40 percent for all persons. Le males and females taken together. This rate of labour force participation in India includes in its calculation of labour force even children below 15 years of age who are economically active. This compares quite unfavourably with the rates in advanced countries. It is over 50 percent in USA, Japan, Denmark and well over 50 percent in almost all developed countries. This is due to rapid growth of population, low female participation in labour under enumeration and omission of unpaid family workers even when according to the accepted concept they are to be classified as workers.

2. Unemployed Labour Force : The difference between the labour force and work force is called unemployed labours. The data relating to labour force, workforce, number of persons unemployed and employment rate is given in the following table :

Table : Data Relating to Employment and Unemployment

The above table shows that:

(i) The total labour in India was 44.04 crore in 2011-12.

(ii) Out of it 41-57 crore are employed.

(iii) The number of unemployed persons in 2011-12 was 2-47 crore.

(iv) It is observed that at the end of year 2011-12 unemployment rate increased in the economy. It increased due to growth driven by capital intensive technology like more use of computers, automation etc. At the end of Twelfth Five Year Plan in the year 2016-17, unemployment rate is expected to come below 2 percent.

3. Rate of Unemployment: The estimate of unemployment rate based on the 66th round is available. A comparative study of different estimates of unemployment during 2009-10 indicate that the CDS estimate of unemployment rate being the broadest is the highest. The higher unemployment rates according to the CDS approaches indicate a high degree of intermittent unemployment (see table below):

Table : All-India Rural & Urban Unemployment Rates Estimate

It would be observed from the table that the incidence of unemploym much higher in urban than that in the rural areas.

that the incidence of unemployment is The total number of unemployed person declined by 6-5 million p from around 34:5 million in 2004-05 to 28 million in 2009-10.

4. Statewide Variations in Rate of Unemployment: The unemploy rates in some of the states are as follows:

Table : Statewide Rate of Unemployment (Year 2009-10)

 

Unemployment Notes study Material

It is obvious from the figures of the table that (i) In 2009-10, Unemployment rate was maximum at 16-7 percent in the state of Kerala.

Kerala, which has performed well in terms of most literate, performs less well in terms of unemployment (both rural and urban). This may be due to the higher level of education in Kerala resulting in people not opting for manual jobs as observed by some studies.

(ii) The unemployment rate was minimum in the state of Rajasthan at 3:3 percent. The low unemployment rate in rural areas in Rajasthan may partly be due to high absorption of Mahatma Gandhi National Rural Employment Gurantee Act (MGNREGA) funds in the state.

(iii) All India average rate of unemployment was 6-6 percent.

5. Employment is Unorganised Sector : According to NSSO survey, in the year 2009-10 the total employment in both organised and unorganised sectors in India was 40.09 crore, Out of this 37.28 crore workers are employed in unorganised sector. In the unorganised sector, 51 percent workers are selfemployed. Majority of workers are engaged in agricultural sector, constructions work, small-scale industries, petiy trade, etc.

6. Employment in Organised Sector : Employment growth in the organized sector, public and private combined, has increased by 1 percent in 2011, which is lower than the annual growth for the previous year. The annual growth rate for the private sector was much higher than that for the public sector. However, in respect of both sectors, annual increase in employment had slowed-down in 2011 vis-a-vis 2010. The share of women in organized sector employment was 20.4 percent in 2010 March end and has remained nearly constant in recent years.

Only 15.6 percent of the total workforce had regular wage employment/ salaried work during 2009-10 while 33.5 percent was casual labour and 51 percent was self-employment.

7. Unemployment Rate for Social Groups : As per NSSO Survey all India unemployment rate of social groups for current daily status 2004-05 to 2009-10,

Table : Unemployment Rate for Social Groups Rural

Conclusion: From the analysis of data regarding unemployment following conclusions can be drawn:

(i) In 2011-12, unemployment rate has reduced to 5-6 percent.

(ii) The unemployment among the educated is much higher than the overall unemployment

(iii) Agriculture sector has greater unemployment than in industrial and other major sectors.

(iv) Unemployment rates for women are higher than those for men.

(v) Percentage of unemployment in urban areas is much higher than in rural areas.

(vi) There are wide inter-state fluctuations in the unemployment rates.

(vii) More persons are employed in unorganised sector as compared to organised sector.

(vii) Unemployment rate among social groups by CDS in 2009-10 was highest 7.8 percent in SCs.

Unemployment Notes study Material

CAUSES OF UNEMPLOYMENT IN INDIA

Some of the causes responsible for unemployment in India are as follows:

1 Increase in population : Since independence, death rate has rapidly declined and the rate of population growth rose to 1.6 percent per annum as a consequence, rate of increase in unemployed labour force also rose to 5-6 percent per annum. Over the years mortality rate has declined and the country has thus registered an unprecedented population growth. This was naturally followed by an equal expansion in labour force.

2. Lack of national employment policy: Planning in India, in operation since 1951, has not contributed adequately to the solution of this problem. This is largely because of the lower priority accorded to the employment objective and under rating of human resources.

3. Defective education system: The education system in India is defective. It is, in fact, the same education system which Macaulay had introduced in this country during the colonial period. According to Gunnar Myrdal, India’s educational policy does not aim at development of human resources, with the expansion in the number of institutions which impart this kind of education, increase in employment is inevitable, it is so because education in arts, commerce and science will not ensure employment on account of its limited utility for productive purpose.

4. Lack cottage, and village industries: The traditional handicrafts and village industries which provided employment and livelihood to village crans men and rural artisans declined under the impact of unfavourable policies of British rulers. No doubt, in the post independence era, the government of India has done a lot to promote small scale and cottage industries, nonetheless a large number of rural workers remain unemployed even now.

5. Lack of mobility among labourers : The Indian labourers lack in mobility. They do not want to leave their villages for employment. Nliteracy, attraction for family and land and other social causes are responsible for lack of mobility among labourers.

6. Traditional agriculture : Our five year plans have not done well in the sphere of irrigation, waste-land reclamation, soil conservation high variety of seeds is also not developed in India. There is low productivity in agriculture for which many institutional and technical reasons such as joint family system, heredity law, use of old methods are responsible.

7. Slow growth of economy : Economy provides job to the job seekers, inspite of five decades of development Indian economy is not well-developed. Two-third of working population is still dependent on agriculture. Limited development of secondary and tertiary sectors has increased the pressure on agriculture.

8. Government policy towards private sector: Inspite of liberalisation policy of the government towards private sector has not been well-developed. Additionally, rate of taxation is also very high.

9. Lack of infrastructural facilities : Inspite of five years planned development, infrastructural of facilities like supply of electricity, water, communication system etc. have not been developed adequately in India. The constraint of financial resources is stated to be responsible for unemployment. During plan-period industries were well developed, comprehensively but these failed to provide employment and adequately cope up with the growth of population and labour force. In all those areas which lack irrigation facilities, are dependent on rains. Due to dearth of capital, lack of proper technology, scarcity of raw material, shortage of electricity, lack of labour intensive technology, industrial sector could not gain its momentum and also could not generate employment opportunities in the country.

10. Emphasis on capital-intensive technique : Since the beginning of Second Five Year Plan, industrial development in the country has been based mainly on the adoption of capital intensive techniques of production which have failed to generate sufficient employment opportunities. The industries in India have been constantly resorting to modernisation, market manipulation, rationalisation, automation, mechanisation and other labour saving devices and thus the process of replacement of human labour by machines has been a continuous one.

According the W.A. Lewis, in all those countries where unskilled labour is available in excess supply, great care is needed in exercising choice in respect of techniques. Lewis asserted that investment in such a situation in capital equipment may be profitable to individual capitalist, but it is certainly not beneficial to the society, because it increases unemployment and not production.

Unemployment Notes study Material

PROGRAMMES IMPLEMENTED BY THE GOVERNMENT

FOR REDUCTION OF UNEMPLOYMENT IN INDIA

The government did not take any direct step to solve the unemployment problem upto the Third Five Year Plan. Some special programmes were launched arter Fourth Plan to promote employment opportunities. Some of these progra mmes are as follows:

1 National Rural Livelihood Mission (NRLM) : This was launched after restructuring Swaranjayanti Gram Swarozgar Yojna (SGSY) on 1 April, 2012. It aims at organizing all rural poor households and continuously nurturing and supporting them till they come out of abject poverty, by organizing one woman member from each household into affinity-based.

2. National Urban Livelihood Mission(NULM) : Swaranjayanti Shahari Rozgar Yojna (SJSRY) which has been restructured into NULM, aims at organizing urban poor into self-help groups. Imparting skill training to urban poor for self and wage employment and helping them to set up selfemployment venture by providing credit on subsidized rate of interest. In addition, shelters for urban homeless and infrastructure for street vendors can also be taken up under this mission.

3. Support to Training and Employment Programme (STEP): This scheme is intended to benefit women who are in the age group of 16 years and above by providing skills to them for their employability.

4. Prime Minister’s Empoyment Generation Programme (PMEGP): The Central Government on August 14, 2008 announced this scheme to create over 37 lakh jobs by merging the Prime Minister’s Rozgar Yojana (PMRY) and the ‘Rural Employment Generation Programme’ (REGP).

The beneficiaries will, inter alia be identified with the help of the panchayats and at special awareness camps, and provided a mandatory Enterpreneurship Development Programme training for two-three weeks.

5. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: After the notification of the National Rural Employment Guarantee Act on September 7, 2005 a new scheme named “National Rural Employment Gurantee Scheme (NREGS)” (which later on the Act changed with the name Mahatma Gandhi National Rural Employment Guarantee Act) has been launched on February 2, 2006.

The salient features of “MGNREGA” are as follows:

(i) Right Based Framework : For adult member of rural household willing to do unskilled manual work.

(ii) Time Bound Guarantee : 15 days for provision of employment, else unemployment allowance.

(iii) Guarantee Employment : Upto 100 days of guaranteed wage employment in a financial year per household depending on the actual demand.

(iv) Decentralized Planning:

(a) Gram Sabhas to recommend works.

(b) At least 50% of works by Gram Panchayat for execution.

(c) Principal role of PRLs in planning, monitoring and implementation.

(v) Work Site Facilities: Creche, drinking water and first aid provided at work sites.

(vi) Other Features : (a) Wages in this scheme are paid at statutory minimum wage rate.

(b) The district collector is responsible for enforcement of provision of this act at district level.

(c) In MGNREGA, at least 33 percent of the total beneficiaries have to be

Criticisms of MGNREGA : The main criticisms of MGNREGA in short, are:(i) Widespread corruption, (ii) Lack of staff, (iii) Delayed payments of wages, (iv) Irregularities in implementation, and (v) Unproductive projects.

In short while the continuation of MGNREGA is desirable, it requires a district overhaul of the scheme with greater transparency and accountability through social audits.

6. Establishment of Employment Office : Employment offices were established available through out the country to provide information related to employment opportunities. At present, the total number of the employment exchanges is 977. These offices register the job-seekers and provide them guidance for the job as well.

EVILS OF UNEMPLOYMENT

Following are the evils of unemployment:

1 Cultural demerits : From the cultural point of view, the problem of unemployment is chronic, due to the lack of job they are unable to satisfy their basic needs as a result the efficiency gets affected adversely.

2. Economic demerits : From the economic point of view unemployment is a curse. Unemployment results in low standard of living and people even find it difficult to meet their daily needs what to speak of other financial requirements. They are forced to approach the village money-lenders, since a vast section of community remains out of job. National income, per capita income etc. too are affected resulting in poor and miserable living conditions of the people.

3. Political demerits: The government headed by various political parties today is faced with the problem of stability. The unemployed sections of the society criticise the policies of the government and even resort to the violence thereby tension arises among those with whom they come in contact and question the capability of the government to rule the nation.

4. Social demerits: ‘An idle mind is the devil’s work-shop’. An unemployed person, i.e., a person who is willing to do the job; if he does not get it, he may not hesitate to do any type of anti-social activity in order to gain money. He may create problem for the society, by resorting to violence, robbery, murder,etc. Thus, the unemployment can create law and order problem.

5. Moral demerits : In addition to the aforesaid evils, there are certain other moral factors which have also made the problem all the more serious. An unemployed person can do any immoral activity without any hesitation. He may get involved in the activities like prostitution, drinking, gambling, bribery etc. Thus, the problem of unemployment is growing more and more serious and matters have gone from bad to worse.

Unemployment Notes study Material

SUGGESTIONS FOR CONTROLLING UNEMPLOYMENT

Unemployment in India is present in different forms. India is a developing country where employment arises due to deficiency of capital. Though the Planning Commission has laid down a number of laudable goals and ambitious targets in various fields, the number of unemployed persons increased steeply from plan to plan. Large scale unemployment represents waste of human resources, hence it is necessary to adopt measures to eradicate unemployment. Some suggestions to increase employment are discussed ahead :

1 Adoption of labour intensive technique : India has surplus labour force and is deficient in capital. So it becomes essential to adopt labour intensive technology in different production processes. The government should apply a concrete and appropriate policy in this regard.

2. Encouragement to small enterprises : Often it is said that India lacks in entrepreneurship. So it becomes essential to promote the small scale and cottage industries. It requires less efficient entrepreneurs. In a developing country this sector will provide more employment and requires less capital. For fuller utilisation of manpower and resources the existing strategy needs to be speeded up for increased productivity, by providing assistance to small and marginal farmers, rural industrialisation, rural electrification, development of village handicrafts and rural credit.

3. Change in pattern of production : The investment pattern since the Second Plan has been based in favour of industrialisation, particularly of heavy industry type. It is high time now to focus attention towards increasing investment in essential consumer goods industries and labour intensive industries. It may generate more employment on the one hand and on the other, increase in supply of consumer goods can help to arrest the rising price level. Such a policy shall foster not only economic stability but also social stability.

4. Decentralisation : The lack of employment in small areas has led to the migration of people to the big cities in search for alternative employment. In order to diminish the concentration of employment in big cities action will have to be taken to promote decentralisation and dispersal of industrial activity and mere policy declaration will not do, they have to be accompanied by follow-up action and a continuous watch on progress in implementation.

5. Utilisation of existing capacity : Employment oriented strategy of industrial development can, to a great extent, eradicate unemployment and under employment in India. Therefore, it needs fuller utilisation of existing capacity. The industrial units are not undertaking the production at their optimum capacity. The reasons behind it are-short supply of electricity, paucity of raw materials, backwardness of transportation etc. These hindrances should be removed.

6. High rate of savings and investment : Savings, investment and employment move in the same direction. There is direct relationship in these factors. Slow rate of capital formation in India has contributed to intensify the problem of unemployment in India. In India the propensity to consume is high and rate of capital formation is very low.

Small savings scattered in rural areas should be mobilised through banking and financial institutions. Such small savings should be effectively utilised.

7. Need for manpower planning : Manpower planning means estimation and balancing of demand and supply of each category of personnel as correctly as circumstance permit, so that all the men of working age (15 to 59) and all women who have to work in the national plan of development may be given opportunities suited to their ability, training, and as far as possible, aptitude. For this purpose, it is essential to have a plan of finding suitable employment for all workers.

8. Fiscal policy : Government taxation policy, public debt policies should be such as to encourage investment and employment. Liberal taxation policy helps in the expansion of industries. Subsidies should be given to export-oriented industries, small scale and labour-intensive industries.

9. Control on population growth. The problem of unemployment in India will be hard to solve unless there is population planning and control phenomenal rate, at which labour force is increasing in the country, can not be provided gainful employment by any means. The addition made to the already existing population creates very grave problems in our efforts to reduce unemployment and also nullifies the efforts of our economic planning. The employment on the whole is increasing in the country but a rise in the labour force makes the solution of the problem all the more difficult. A fast growth rate of population implies expenditure on their bringing up, education and the provisions of basic requirements of life etc. This results in the sluggish rate of economic development of the country what to talk of absorbing the addition made to the number of job seekers. It is, therefore, imperative that adequate measures should be taken to propogate the need for family planning.

10. Intensive agricultural development: Indian agriculture provides only of living rather than being a profitable occupation. Therefore, it needs overhauling and reconstruction towards making an economic pursuit. Methods of cultivation should undergo a radical change according to the local conditions and needs. Irrigation facilities should be improved so that agriculture should not be at the mercy of monsoon. Institutional framework and agrarian relations should be vigourously be adopted to provide social justice and economic equality. Multiple cropping should be encouraged, projects suitable to a quick increase in agricultural production such as small and medium irrigation and drainage works, the construction of the storage facilities and the development of local transport should be encouraged.

11. Monetary policy: Fiscal policy as well as the monetary policy should be employment oriented, labour intensive industries should be provided loans and other financial facilities at lower interest rate.

12. Other suggestions : Other suggestions to eradicate unemployment are as follows:

(1) With the industrialisation of the Indian economy, new type of trained personnel are needed in new industries. It is therefore necessary that education and training courses are properly diversified.

(ii) To bring equilibrium between the demand and supply of labourers, labour mobility should be increased.

(c) Mineral wealth form the base for commerce and industries, therefore, natural resources should be fully utilized.

Unemployment Notes study Material

EDUCATED UNEMPLOYMENT IN INDIA

Educated unemployment is, by and large, a part of urban unemployment. This clearly suggests not only non-utilization of scarce resources put in for educating the people but also shows “a mismatch between the kind of job opportunities that are needed and that are available in the job market.”

There are many causes of educated unemployment. The defective education system, with its theoretical bias, lack of aptitude and technical qualification for various types of work among job-seekers and mal-adjustments between demand and supply of educated workers are some well-known causes of educated unemployment. In fact, supply of educated workers has consistently moved ahead of demand and as a result educated unemployment has not diminished. This happened largely because of wide gap between the private cost of education and the expected return from it. They have one dimensional approach, that is, they Simply wish to improve their employment prospects, but in doing so they create conditions which render lesser educated persons as unemployed. According to Blaug, Layard and Woodhall, the unemployment, in itself, is no proof of over investment in education. Since it is caused by market imperfections, “the appropriate remedy might, therefore, involve on ‘active man power policy designed to improve the functioning of labour markets rather than a contraction of upper secondary and high education.”

EMPLOYMENT POLICY

In the draft outlines of various five years plans the Planning Commission also estimated the magnitude of unemployment in India. At the time of the formulation of the First Plan (1951-56), there were harely any statistical data on employment and unemployment. The Second Plan furnished fairly good estimates of unemployment for the first time. The backlog of unemployment at the beginning of the First Plan was put at 33 lakhs to which were added 90 lakhs new entrants during this period. The plan provided additional employment to 70 lakhs, thus leaving a backlog of 53 lakhs at the beginning of the Second Plan. In the subsequent plans, the backlog of unemployment has been continuously increasing since the new jobs created during each plan period invariably fell short of the new entrants to the labour force. At the beginning of the Ninth Plan in 2001-02 the backlog of unemployment was estimated at 348 lakhs.

If we assume the highly unlikely growth rate of 8% in Tenth Five Year Plan, the rate of unemployment is expected to increase from 9.2% in 2002 to 9.79% in 2007 and the number of unemployed from 348 lakhs to 445 lakhs.

The Eleventh Plan estimated that agriculture sector is not expected to generate any increase in employment during the plan. Employment in manufacturing is expected to grow at 4 percent while employment in construction, and transport and communication is expected to grow at 8.2 percent and 7-6 percent respectively. “Since the labour force will increase by 85 million in this period, a substantial part of the surplus labour that exists at the commencement of the Eleventh Plan could get observed into gainful employment by the end of the period. The unemployment rate at the end of the Twelfth Plan period is projected to fall to a little over percent. The Eleventh Plan aims at generation of 58 million work opportunities in twenty-one high growth sectors so that the unemployment rate falls to 4.83 percent by the end of plan.

Unemployment Notes study Material

EXERCISE QUESTIONS

Long Answer Questions

1 Give the definition of unemployment. Discuss the causes of unemployment in India.

2. What do you understand by unemployment ? Give suggestions for removing unemployment.

3. Define employment. What are the main forms and causes of unemployment ?

4. What is unemployment ? Suggest some measures to attain the objective of full employment.

5. Discuss the problem of unemployment in India. What measures has the government taken to mitigate it?

Short Answer Questions

1 Give the definition of unemployment.

2. What do you understand by unemployment?

3. Can there be full employment?

4. What remedies would you suggest for removing unemployment ?

5. Write the types of unemployment.

6. Explain the Mahatma Gandhi National Rural Employment Guaran Objective Questions

(I) Select the Correct Alternatives :

1 In post-independence period, the education spread in India :

(a) very much

(b) very low

(c) all around

(d) none of these.

2. To eradicate unemployment the government, in every district has established:

(a) Industry centre

(b) District industrial centre

(c) Small scale and cottage industries

(d) All of above.

3. Besides fiscal policy which other policy should be job oriented :

(a) Employment policy

(b) Monetary policy

(c) Export and Import policy

(d) None of these.

4. Among the following which should be encouraged to reduce unemployment: (a) Large scale industries

(b) Decentralisation of industries

(c) Investment

(d) Small scale industries.

[Ans. (1) c, (2) b, (3) b, (4) d]

(II) Write True or False :

1 When a person is willing to do work but fails to find work, he is unemployed.

2. Educated unemployment is found in rural area.

3. In rural areas, whereas on account of growing labour force unemployment has increased mainly in disguised form, in urban it is open and visible.

4. Most of the unemployment in developing countries is structural

Ans.(1) True (2) False (3) True (4) True.

Unemployment Notes study Material

(III) Fill in the blanks :

1 India also suffers from the problems of .

2. Unemployment has acquired serious dimensions in India.

3. Unemployment results in a low standard of living and people are unable to meet their

4. The ever increasing ……………. which has reached explosion stage adversely affects the employment situation.

[Ans.

(1) under employment

(2) Educated

(3) basic requirements

(4) population.)

Unemployment Notes study Material