Necessity For Work

Karl Marx, one of the influential figures of world history says that the production of too many useful things results in too many useless people.

Unemployment means only involuntary unemployment wherein a person who is willing to work at the existing wage rate does not get a job.

Types of Unemployment in India:

1. Open Unemployment:

Open unemployment is a situation where in a large section of the labor force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons. The labor force expands at a faster rate than the growth rate of economy. Therefore all people do not get jobs.

2. Disguised Unemployment:

It is a situation in which more people are doing work than actually required. Even if some are withdrawn, production does not suffer. In other words it refers to a situation of employment with surplus manpower in which some workers have zero marginal productivity.

So their removal will not affect the volume of total production. Overcrowding in agriculture due to rapid growth of population and lack of alternative job opportunities may be cited as the main reasons for disguised unemployment in India.

3. Seasonal Unemployment:

It is unemployment that occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts, ice factories etc., production activities take place only in some seasons. So they offer employment for only a certain period of time in a year. People engaged in such type of activities may remain unemployed during the off-season.

Causes of Unemployment in India:

The important causes of Unemployment in India are as follows:

1. Rapid growth of population and increase in labor force.

2. Underdevelopment of the economy.

3. Slow growth in the agricultural sector.

4. Defective system of education.

5. Absence of manpower planning.

6. Degeneration of village industries.

7. Inappropriate technology.

8. Slow growth of industrial sector.

9. Immobility of labor.

10. Jobless growth.

Solutions to solve unemployment

·Reducing occupational immobility

·Tax reform

·Reducing geographical immobility of labor.