Unemployment in India
- Unemployment simply means a situation when able and willing people are not getting jobs as per their own capabilities.
Types of Unemployment
Structural Unemployment
- This type of unemployment is associated with economic structure of the country, i.e., productive capacity is inadequate to create a sufficient number of jobs. Rapidly growing population causes this.
- This type of unemployment is of long run nature. Indian unemployment is basically related to this category of unemployment.
Under Employment
- Those laborers are under-employed who obtain work but their efficiency and capability are not utilized at their optimum and as a result they contribute in the production up to a limited level.
- A country having this type of unemployment fails to exploit the efficiencies of its laborers.
Open Unemployment
- When the laborers live without any work and they don’t find any work to do, they come under the category of open unemployment. Educated unemployed and unskilled labor unemployment is included in open unemployment.
- The migration from rural to urban areas in search of work is very often found in India which is an example of open unemployment.
Disguised Unemployment
- If a person does not contribute anything in the production process or in other words, if he can be removed from the work without affecting the productivity adversely, he will be treated as disguisedly unemployed. The marginal productivity of such unemployed person is zero.
- Agriculture sector of underdeveloped/developing economies possesses this type of unemployment at a large scale.
Frictional Unemployment
- The unemployment generated due to change in market conditions (change in demand and supply conditions) is called frictional unemployment.
- Agriculture is the main occupation in India. The supply conditions still depend upon weather’s mood and similarly demand conditions depend upon availability of resources. Any change arising either of any or both creates a diversion from the equilibrium which results in frictional unemployment.
Seasonal Unemployment
- It appears due to a change in demand based on seasonal variations. Laborers do not get work round the year. They get employed in the peak season of agricultural activities and become unemployed when these activities are over.
- Indian agriculture ensures employment for only 7-8 months and laborers remain unemployed in the remaining period. This temporary type of employment gives birth to seasonal unemployment.
Employment Generation: 11th Plan Viewpoint
- The Approach paper to the Eleventh Plan targets generation of additional employment opportunities in services and manufacturing, in particular, labor intensive manufacturing sectors such as food processing, leather products, footwear and textiles, and in service sectors such as tourism and construction.
It calls for elimination of distorting fiscal incentives which foster capital intensity; infrastructure investment; removal of distortions that hinder competition, prevent entry and discourage graduation from unorganized to organized status; and greater emphasis on vocational training and skill development to improve employability of youth.
As Village and Small Scale Enterprises (VSE) will have to provide most of the new employment during the Eleventh Plan, the Approach Paper also calls for redressing the problems faced by VSE units and home based workers, particularly women, such as non-availability of timely and adequate credit, unreliable or absence of power supply, requirement of permission from a number of government agencies and burden of multiple inspections.
India Women Labour
- Women constitute a significant part of the workforce of India but they lag behind men in terms of level and quality of employment. The Census of India (2001) has registered 25.60 percent of female population as workers numbering 127.22 million in absolute terms out of a total female population of 496 million. The majority of women workers are employed in the rural areas.
- Amongst rural women workers, 87 percent are employed in agriculture as laborers and cultivators. Amongst the women workers in the urban areas, 80 percent are employed in unorganized sectors like household industries, petty trades and services building and construction, etc. The employment of women in the organized sector (both public and private sectors) as on Mar 31, 2002, was about 4.935 million.
- This constitutes of 17.8 percent of the total organized sector employment in the country. The distribution of women employees in major industries reveals that community, social and personal services sectors continued to absorb the majority of women employees.
Child Labour
- The problem of child labor is a major social concern. The number of working children in the country declined from 2 percent of the total population and 6 percent of the total workforce in 1981 to 1.34 percent of the population and 3.59 total workforces in 1991.
- According to the census 2001 figures, there are 1.25 crore working children in the age group of 5-14 as compared to the total child population of 25.2 crore, of which 1.07 crore working children are in the age group of 10-14.
- Children continue to be employed in the unorganized and home-based industries and domestic services. The state with the highest child labor population in the country is Andhra Pradesh. Other states having a child labor population of more than a million are Madhya Pradesh, Maharashtra and Uttar Pradesh.
- Government has adopted two schemes namely National Child labor Project Scheme (NCLP) arid Grant-in-aid to voluntary organizations for taking up action oriented programs in the field of rehabilitation of child labor.
Swarnajayanti Gram Swarozgar Yojana (SGSY)
- Started on April 1, 1999. It has replaced the following programs.
- Integrated Rural Development Programme (IRDP) : Started in 1978 – 1979.
- Development of Women and Children in Rural Areas (DWCRA) : Started in 1978 – 1979.
- Ganga Kalyan Yojana (GKY) : Started in 1997.
- Million Wells Scheme (MWS) : Started in 1989.
- Supply of Improved Tool – kits to Rural Artisans (SITRA) : Started in 1992.
- The Yojana takes into account all the strengths and weaknesses of the earlier self – employment programs.
- It AIMS at establishing a large number of micro – enterprises in the rural areas.
- Every assisted family will be brought above the poverty line. It is proposed to cover 30% of the rural poor in each block.
- To target at least 50% Scheduled Castes and Scheduled Tribes, 40% Women and 3% disabled.
- Shared 75 : 25 by Centre and States.
Pradhan Mantri Gramodaya Yojana (PMGY)
- It was introduced in 2000 – 2001 with the objective of focusing on village level development in five critical areas, i.e., Primary Health, Primary Education, Housing, Rural Roads and Drinking Water and Nutrition with the overall objective of improving the quality of life of people in rural areas. Rural electrification was added as an additional component from 2001 – 2002.
- It has the following components.
Pradhan Mantri Gram Sadak Yojana (PMGSY)
- It was launched on December 25, 2000 with the objective of providing road connectivity through good all weather roads to all rural habitations with a population of more than 1000 persons by the Year 2003 and those with a population of more than 500 persons by the Year 2007.
National Rural Employment Guarantee Scheme(NREGS)
- It was launched on February 2, 2006. The on – going programs of Sampoorna Grameen Rozgar Yojana (SGRY) and National Food for Work Programme (NFFWP) were subsumed within the NREGS in the 200 districts identified in the initial stage. All the districts in the country are covered under the scheme now. The features of the scheme are :
- State Government to provide at least 100 days of guaranteed wage employment in every financial Year to every household whose adult members volunteer to do unskilled manual work.
- Until such time as a wage rate is fixed by the Central Government, the minimum wage for agricultural laborers shall be applicable for the scheme.
- An applicant not provided employment within fifteen days, to be entitled to a daily unemployment allowance as specified by the State Government subject to its economic capacity, provided such rate is not less than quarter of the wage rate for the first thirty days during the financial Year and not less than a half of the wage rate for the remaining period of the financial Year.
Sampoorna Gramin Rozgar Yojana (SGRY)
- It was started on September 25, 2001, with the mergence of the Employment Assurance Scheme (EAS) and the Jawahar Gram Samriddhi Yojana (JGSY). Earlier Jawahar Rozgar Yojana, which started in 1989, was merged with Jawahar Gram Samriddhi Yojana.
- This scheme has been subsumed in National Rural Employment Guarantee Scheme.
Bharat Nirman Yojana
- Accepting the policy ‘a step towards village’, Union Government launched a new scheme, named ‘Bharat Nirman Yojana’ on December 16, 2005. This scheme aims at developing rural infrastructure. The duration of implementing this scheme has been determined for four Years with the expected expenditure of Rs 1,74,000 crore. The major six sectors and their targets for next four Years are :
- Irrigation : To ensure irrigation for additional one crore hectare of land by 2009.
- Roads : To link all villages of 1,000 populations with roads and also to link all ST and hilly villages up to 500 populations with roads.
- Housing : Construction of 60 lakh additional houses for the poor.
- Water Supply : To ensure drinking water to all remaining 74,000 villages.
- Electrification : To supply electricity to all remaining 1,25,000 villages and to provide electricity connection to 2.3 crore houses.
- Rural Communication : To provide telephone facility to all remaining 66,822 villages.
Swarnajayanti Shahari Rozgar Yojana (SJSRY)
- The SJSRY came into operation in December 1997, through a restructuring and streamlining of the earlier urban poverty alleviation programs, the Nehru Rozgar Yojana (NRY), the Urban Basic Services for the Poor (UBSP) and the Prime Ministers Integrated Urban Poverty Alleviation Programme (PMIUPEP).
- It seeks to provide employment to the urban employed or underemployed living below poverty line and educate up to IX standard through encouraging the setting up of self – employment ventures or provision of wage employment.
- It is funded by the Centre and States on 75 : 25 bases.
Antyodaya Anna Yojana
- Launched on December 25, 2000, the scheme aims at providing food security to poor families.
- The Scheme contemplates identification of 10 million poorest of the poor families and providing them with 35 kg of food grains per family per month at a low price of Rs 2 per kg of wheat and Rs 3 per kg for rice.
Annapurna Yojana
- Inaugurated on March 19, 1999.
- Initially the scheme provided 10 kg food grains to senior citizens who were eligible f0r old age pension but could not get it due to one reason or the other. Later on, it was extended to cover those people also who get old age pensions.
- Food grains are provided to the beneficiaries at subsidized rates of Rs 2 per kg of wheat and Rs 3 per kg of rice.
Prime Minister’s Rozgar Yojana (PMRY)
- The scheme was launched on October 2, 1993 and initially was in operation in Urban areas From April 1, 1994, the scheme is being implemented throughout the country.
- Under this scheme every selected educated unemployed youth in the age group of 18 – 35 Years and having family income below Rs 40,000 is provided a loan of up to Rs 1 lakh for opening his own enterprise and Rs 2 lakhs for other activities.
- Projects involving two or more than two partners may be given a loan up to Rs 10 lakhs. Under this scheme, 15% of the total project cost (maximum Rs 15,000) is given to the beneficiary as subsidy. 5% of equity is to be invested by the beneficiary himself and the remaining cost of the project is financed by the concerned bank.
- The entrepreneurs of these tiny units are provided adequate training and also given assistance of raw material and marketing, if required.
- Micro – enterprises from commercial sector should not comprise more than 30 percent. This scheme is being administered by Union Industry Ministry. SC/ST and other backward classes have been given reservation of 22.5% and 27% respectively.
Sarva Shiksha Abhiyan
Launched in 2001. The goals of Sarva Shiksha Abhiyan are as follows :
- All 6 – 14 age children in School / Education Guarantee Scheme Centre / bridge course by 2003.
- All 6 – 14 age children complete five Year primary education by 2007.
- All 6 – 14 age children complete eight Years of schooling by 2010.
- Focus on elementary education of satisfactory quality with emphasis on education for life.
- Bridge all gender and social category gaps at primary stage by 2007 and at elementary education level by 2010.
- Universal retention by 2010.
The assistance under the program of SSA was on a 85:15 sharing arrangement during the Ninth Plan, 75:25 sharing arrangement during the Tenth Plan, and 50:50 sharing thereafter between the Central Government and State Government.
SSA addresses the needs of 194 million children in the age group of 6 – 14 Years. Under the scheme, 9.72 lakh existing primary and upper primary schools and 36.95 lakh existing teachers have been covered.
Mid-Day Meal Scheme for School Children
Poverty in India| Anti Poverty Programs in India| Various Development and Employment Program
- The National Program of Nutritional Support to Primary Education (NPNSPE), popularly known as the Mid-Day Meal (MDM) Scheme, was formally launched on August 15, 1995. The objective of the program is to give a boost to universalisation of primary education by increasing enrolment, attendance and retention, and also improving nutritional status of children in primary classes.
- Under the MDM scheme, cooked mid-day meal with a nutritional content or 450 calories and 12 grams protein is served to children studying at primary level.
- MDM scheme has helped in promoting school participation, preventing classroom hunger, instilling educational values and fostering social and gender equity.
- About 12 crore children studying in over 9.50 lakh schools are presently covered under the scheme. In order to improve the quality of meal, the scheme was last revised m June, 2006.
- The cooking cost norm has been fixed at Rs.2 per child per school day, with Rs.1.80 as Central assistance for North East States and Rs.1.50 for other States and UTs. Assistance to States has been provided at the rate of Rs.5,000 per school to procure / repair kitchen devices.
Capart
In order to encourage, promote and assist voluntary action in rural development with focus on injecting new technology inputs for enhancement of rural prosperity, the Council for Advancement of People’s Action and Rural Technology (CAPART) was formed on September, 1, 1986.
Capart is a registered body under the Ministry of Rural Development. Its head office is at New Delhi. It has nine Regional Committees / Centres at Jaipur, Lucknow, Ahmedabad, Bhubaneshwar, Patna, Chandigarh, Hyderabad, Guwahati and Dhanwad.
The Regional committees are empowered to sanction projects proposals to voluntary Unties up to an outlay of Rs.25 lakh in their respective regions. Its main objective is to encourage and assist the voluntary activities for implementing projects for rural prosperity.
Some important features related to it are :
- Capart extends assistance to Jawahar Rojgar Yojana, Organization or the Beneficiaries of Poverty Eradicating Program, Integrated Rural Development Program, Development of Women and Children in Rural Areas and other related organizations.
- The Rural Development Department of the Indian Government provides the required funds to Capart.
SGSY (Swarnajayanti Gram Swarojgar Yojana)
- Launched: April 1, 1999
- SGSY = IRDP (Rural Debt) + DWCRA (Women & Children) + TRYSEM (Rural Youth) + MWS (wells) + GKY(farmer) + SITRA (Artisans)
- Cost sharing basis- 75:25
- Self Employment programme, focusing on poverty alleviation Promotes self help group; development of micro enterprises (asset creation) through bank credit and government subsidy)
- 50% benefit to SCs and STs; 40% for women, and 3% for disabled
SGRY (Sampoorna Grameen Rojgar Yojana)
- Launched in September 2001
- Cost sharing basis- 87.5:12.5
- SGRY=SGRY+JGSY(villagework) + EAS (employment), from April 1,2002
- To provide wage employment in rural areas; ensuring of food security; creation of durable community; social and economic infrastructure
- Implementation through Panchayati Raj system.
PMGY (Pradhan Mantri Gramodaya Yojana)
- Launched in 2000-01
- Lunched in all states & UT's in order to achieve the objective of sustainable human development at the village level.
- Village level development in 6 crucial areas: Primary health, primary education, rural shelter, rural drinking water, nutrition and rural electrification
- Some of its areas got impetus through the Bharat Nirman Scheme.
PMGSY (Pradhan Mantri Gram Sadak Yojana)
- Launched on 25th December 2000
- To provide road connectivity by good quality all weather roads to 1.60 lakh Unconnected Habitations with a population of 500 persons or more in the rural areas (250 in the case of hilly area) by the end of the Tenth Plan period (2007). Source for funding of PMGSY is the diesel cess, 50% of which is earmarked for PMGSY
- Estimated cost, Rs 60,000 crore
- Bharat Nirman Yojana has also taken the road construction objective.
PMGSY (Pradhan Mantri Gram Sadak Yojana)
- Launched on 25th December 2000
- To provide road connectivity by good quality all weather roads to 1.60 lakh Unconnected Habitations with a population of 500 persons or more in the rural areas (250 in the case of hilly area) by the end of the Tenth Plan period (2007). Source for funding of PMGSY is the diesel cess, 50% of which is earmarked for PMGSY
- Estimated cost, Rs 60,000 crore
- Bharat Nirman Yojana has also taken the road construction objective.
Pradhan Mantri Gramodaya Yojana (Gramin Awaas)
- Launched: April 2000
- Sustainable habitat development in rural areas; to meet housing needs of poor. Pradhan Mantri Gramodaya Yojana - Rural Drinking Water Project
- A minimum of 25% of the total allocation to be utilized on projects/schemes for water conservation/harvesting/recharge/source development in respect of areas under Desert Development Programme/Drought Prone Areas Programme.
- Rural drinking water schemes are being done under the Rajiv Gandhi Drinking Water Mission.
SJSRY (Swarna Jayanti Shahri Rozgar Yojana)
- Launched in December 1997
- Cost sharing basis- 75:25
- Two special schemes run - The Urban Self Employment Programme; Urban Wage Employment Programme
- SJSRY (Swarna Jayanti Shahari Rojgar Yojana) is a rationalised (merged) version of the erstwhile schemes of Urban Basic Services, NRY (Rozgar) and PM’s Integrated Urban Poverty Eradication Programmes.
- Gainful employment to the urban unemployed poor through encouraging the setting up of self-employment ventures or provision of wage employment.
- 30% women, 3% disabled; SC/STs on the strength of local population
IAY (Indira Awaas Yojana)
- The Indira Awaas Yojana (IAY) launched in 1996
- Cost sharing basis- 75:25,
- Construction of houses and money to be given to poor. Criteria of allocation of funds to states /UTs has changed from poverty ratio to equally reflect the poverty ratio and housing shortage in the states. Similarly, criteria for allocating funds to districts changed from poverty ratio to equally reflect SC/ST population and housing shortage. (minimum 60% to SCs/STs)
- Rs 20,000 for normal areas; Rs 22,000 for hills/difficult areas
Samagra Awaas Yojana 1999-2000
- On pilot project basis in one developmental block each in 25 districts of 24 states. Integrated provision of shelter, sanitation and drinking water with special emphasis on technology transfer, human resource development and habitat improvement with people’s participation. Food for Work Programme
- Launched in February 2001
- Augmenting food security through wage employment in drought affected rural areas in 8 states: Gujarat, Chhattisgarh, Himachal Pradesh, MP, Maharashtra, Orissa, Rajasthan and Uttaranch Programme further extended till March 31, 2002in respect of notified “Natural Calamity Affected Districts.”
Antyodaya Anna Yojana
- Launched in the year 2000
- 2 crore poorest families out of BPL families under TPDS (targeted) are identified.
- 35 kg of foodgrains are to be made available to each eligible family at highly subsidised rates.
- Wheat to be supplied @ Rs. 2 per kg
- Rice to be supplied @ Rs. 3 per kg
- Rs 3500 crore subsidy on this scheme
Annapurna
- Launched in 1999-2000
- 100% Centrally sponsored
- To meet requirement of the senior citizens.
- 10 kgs. Of foodgrain per person per month supplied free of cost.
Jai Prakash Rojgar Guarantee Yojana (2002)
- The scheme seeks to provide guaranteed employment to unemployed in the most distressed districts of the country. (Operational modalities are being worked out.)
- Employment on demand within 15 days, and a minimum guarantee of 100 days employment.
Valmiki Ambedkar Awaas Yojana (VAMBY)
- Launched in year 2001
- The scheme seeks to ameliorate the conditions of urban slum dwellers living below the poverty line that do not possess adequate shelter. Nirmal Bharat Abhiyan is a component of the scheme to provide a healthy and enabling urban environment through community toilets.
Integrated Child Development Scheme (ICDS)
The ICDS scheme is the world’s largest publicly funded programme for early childhood. Since its inception in 1975, the scheme continues to be the flagship scheme towards promoting the over all development of the young children (0-6 years) - especially the girl child, and expectant and nursing mothers all over the country through its holistic package of six basic services - health check up, immunization, referral services, supplementary nutrition, pre-school education and health and nutritional education through a single window delivery.
Kishori Shakti Yojana (KSY)
As a part of ICDS programme, KSY was launched in 2000-01 for adolescent girls in the age group of 11-18 years. The scheme aims at breaking the inter-generational life cycle of nutritional and gender disadvantages and providing a supportive environment for self development by promoting awareness on health, hygiene, nutrition, home management, child care, and training to improve/ upgrade vocational skills.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
JNNURM, which is for a seven year period from 2005-06, has two main components - Basic Services to the Urban Poor (BSUP) Programme and Integrated Housing and Slum Development Programme (IHSDP). BSUP was launched to assist cities and towns in taking up housing and infrastructural facilities for the urban poor in 63 selected cities in the country. IHSDP for taking up housing and slum up gradation programmes in non-BSUP cities was launched along with BSUP in December 2005.
National Rural Employment Guarantee Scheme (NREGS)
With the NREG Act being passed in September, 2005, the NREGS was implemented from February 2, 2006 in 200 identified districts of the country with the objective of providing 100 days of guaranteed unskilled wage employment to each rural household opting for it. The ongoing programmes of SGRY and National Food for Work Programme (NFFWP) have been subsumed under NREGS in these districts. NREGS will cover all districts of the country within five years. The NREGS, a demand-driven scheme, has its focus on works relating to water conservation, drought proofing (including afforestation/tree plantation), land development, flood control/protection (including drainage in waterlogged areas) and rural connectivity in terms of all-weather roads.
National Rural Health Mission (NRHM)
NRHM’is the main vehicle for giving effect to the mandate of the NCMP. Operationalized throughout the country, its special focus is on 18 States with weaker health infrastructure and health status indicators. Provision of accessible, affordable, accountable, effective and reliable primary health care facilities especially to the poor and vulnerable sections of the population, bridging the gap in rural health care services through creation of a cadre of Accredited Social Health Activists (ASHA), improved hospital care, decentralized planning, ensuring population stabilization, intersectora convergence and maintaining gender balance constitute the basic features of the NRHM.
The Mission envisaged selection of a trained female community health worker called ASHA in each village in the ratio of one per 1000 population in all 18 high-focus States and in tribal and under-served areas of other States. ASHA would reinforce community action for universal immunization, safe delivery, and newborn care, prevention of waterborne and other communicable diseases, nutrition and sanitation. ASHAs would work in close coordination with the Anganwadi Workers (AWW). ASHAs would also provide immediate and easy access for the rural population to essential health supplies like Oral Rehydration Solution (ORS), contraceptives, set often basic drugs, and a health communication kit developed for villages.
