Drastic Unemployment

India's is suffering from the world's largest unemployment rate where people feel difficulty in meeting their basic standard of living . The rate of unemployment in India is around 5.4% whcich is great and is a serious matter of concern.

The main causes of unemployment in the country are as follows-

• Lack of stock of physical capital-  There is less stock of capital in comparison to the needs of labour force which are growing day by day. The entire labour force cannot be properly absorbed in the available stock of capital as there are not enough instruments of production available to them.

• Use of Capital Intensive Techniques- With the growing industralisation and more use of machine based technologies, the demand for labour is decreasing and thereby affecting the overall value of human reource. With this the people are not getting jobs even if its is unskilled and this has incresed the rate of terrorism and lootery in the country.

• Neglecting Role of Agricultural Employement- With the increasing modernisation in the agricultural  sector such as the generation of HYV seeds along with the time the requirement of labour in the fields per acre have reduced therby making it difficult for the labours to work as this was the most employment generation sector of the country satisfying the hunger of crores of people.

• Lack of Infrastructure- Plant, Equipment, Telecommunications, Buildings, Irrigation facilities, power, Highways unavailabilty become a major factor in deterioting the the rate of employment in the country.

• Rigid Protective Labour Legislation- The existence of unduely rigid protective labour legislation  making it really difficult to retrech a worker who has been emplyed for 240 days and it even difficult to close down the unit and quit the industry. It makes the enterpreneur to make more use of capital in place of labour force.
  
  
  
  Despite the major effects such as lootery, terrorism, hunger, poverty, migration there are some ways to reduce the drastic rate of unemployment in the country by way of-

•  Education, Health and Employment Generation:  The expansion of education and health care not only promotes valuing human capital and also contributes to growth of output, More schools, hospitals, health care clinics in the rural and urban areas will create employment during their construction and help educated and unskilled persons.

• Labour-Intensive Industrial Growth: Encourage the use of relatively more labour intensive technologies by way of  fiscal and monetary policies on the use of capital should be encouraged..  Unemployment problem is very serious and greatly hurts people’s welfare and the growth of output is somewhat worth more sacrificing for employment opportunities.

• Agriculture Diversification: There is an urgent need for a shift from growing of crops to horticulture, vegetable production, floriculture, animal husbandry and fisheries. which are more labour absorbing and higher income-yielding. Along with this there is a need for promotion of agro-processing industries on export level containing large employment potential.

• Services and Employment Growth:  In 1993-94 to 1999-2000, next to the construction sector the employment elasticity of output growth in services was higher and was estimated at about 0.50. Software services and BPO (Business Processing Outsourcing) which have a lot of employment potential in our country. The other services including  finance, insurance, trade, hotels, and restaurants can generate a lot of employment potential if properly utilized. They are dependent on industrial and agricultural growth in the economy.