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Correct option is (A) February, 2006

When a person earns only that much money which cannot alleviate his poverty then, from income point of view he is poor. This type of poverty is seen widely in rural India. For example, a person needs to earn Rs. 30,000/- per month to cover his month expenses but earns only Rs. 15,000/.

Population control means taking effective steps to reduce the population of the nation which will in turn reduce labour supply. This reduction in labour supply for long term will help to reduce unemployment.

Population control:

• The high population growth rate of India has increased the problem of unemployment and made it more serious.
• The fast growing population keeps on supplying labour in the market. These labourers then demand work from the economy.
• On the other hand due to slow economic growth, enough opportunities cannot be raised for the large pool of labourers. This results in rise in unemployment.

Solution:

• Effective steps should be taken to control population growth.
• This will reduce the supply of labour on a long term and hence solve the problem of unemployment.
• Moreover, when population will be less country’s resources will become surplus. This will then lead to increase in capital investment which in turn will increase employment opportunities.
• If population control is done effectively then in long term the productive age- group i.e. people belonging to the age group of 15 to 64 years can be better placed to work.

If a person has willingness and capacity to work but does not get work of more than 28 hours a week, he is considered to be ‘intensively unemployed’. A person who is employed for more than 28 hours but less than 48 hours a week then he is considered ‘less intensively unemployed’.

Correct option is (D) Digital India

53 lakh people were unemployed at the end of first five year plan, 304 lakhs at the end of fifth five year plan and 348.5 lakh at the end of ninth five year plan.

Negligence towards agriculture sector:

• India is an agricultural country and most of its population resides in villages. Naturally, this population is dependent on agriculture for employment. So, agriculture planning should be such which can generate employment first for the rural youths.
• During the planning period, India neglected agriculture and focused more on other sectors. Agriculture remained underdeveloped and gave rise to large scale unemployment.
• Although India achieved Green Revolution in agriculture but its benefit could be enjoyed by only a handful of states like Punjab and Haryana.
• On the top of this, burden of population, lack of irrigation facilities, lack of agricultural finance, uncertainty of monsoon and few other uncertainties that led to poor development of agriculture.
• The non-agricultural sectors are also not developed in rural areas. Hence, rural youths having no option to earn had to migrate to cities in search of employment. Also, they face high rate of seasonal and disguised unemployment.

Negligence towards agriculture sector:

• India is an agricultural country and most of its population resides in villages. Naturally this population is dependent on agriculture for employment.
• During the planning period, India neglected agriculture and focused more on other sectors. Agriculture remained underdeveloped and gave rise to large scale unemployment.
• Although India achieved Green Revolution in agriculture but its benefit could be enjoyed by only a handful of states like Punjab and Haryana.
• On the top of this, burden of population, lack of irrigation facilities, lack Of agricultural finance, uncertainty of monsoon and few other uncertainties that led to poor development of agriculture.

Correct option is (B) Fifth

Correct option is (D) Both (A) and (B)

Correct option is (B) Disguised unemployment

Correct option is (A) Labour intensive production technique

Correct option is (A) Bhagwati committee

Causes of Unemployment: India faces extensive unemployment due to following causes:

1. High rate of population growth: Because of high growth rate of population labour supply increases rapidly but there is a slow rise in employment opportunity which increases the problem of unemployment and underemployment.

2. Slow rise in employment opportunities: During planning period there was continuous increase in economic growth but failed in creating employment opportunities which increased unemployment.

3. Low rate of savings and investments: During planning period national income has increased but due to high population growth per capita income increased at a lower rate that could not satisfy the basic needs of population. As a result savings and investments remain low. Because of low rate; investment in agriculture, industries, etc. much employments cannot be created and the problem of unemployment has been increased.

4. Capital intensive production technique: In planning schemes India has adopted intensive technique and labour intensive technique was given less importance. In agriculture and industries mechanisation was adopted which increased employment at slow rate. As a result unemployment problem has become acute.

5. Lack of vocational education: Present education system is lacking vocational education. Hence skilled labourers are few. Hence more unemployment is seen,

6. Lack of manpower planning: In India during planning period education has been made a widespread activity without estimation of kind and number of labour requirement. As a result educated youth remains unemployed.

7. Inefficiency of public sector: The quantity of employment generation estimated from public sector was not able to generate more employment because of its low productivity.

8. Negligence towards agriculture sector: In India’s economic development policy, more emphasis is given to other sectors than agriculture. So agriculture sector failed to generate more employment and unemployment increased.

9. Low mobility of workers: In India, due to social reasons, family relations, language, religion, casteism, culture and structural reasons mobilisation of workers is restrained. Also due to attraction towards urban life and urban facilities workers do not prefer to live in villages for employment. This causes increase in unemployment.

10. Lack of infrastructural facilities: In rural areas because of lack of infrastructural facilities, new industries are not established, as a result new employment cannot arise and unemployment exist.

11. Other causes: In India lack of national employment policy, lack of conducive environment for development of industries and trade, under-utilization of natural resources are also responsible causes for increase in unemployment.

Cyclical unemployment

• Unemployment which is related to the cyclical trends in the industry or the business cycle is called the cyclical unemployment.
• In a capitalist economy people who invest and those who save are two different individuals. This creates disequilibrium between investor and saver.
• Due to this difference sometime the economy faces prosperity and at times depression.
• During prosperity there is more investment, production, income and employment in economy. On the other hand when economy faces depression then there is reduction in the demand of goods and services.
• Due to reduction in effective demand industries have to reduce production or shut down the production and many labourers are removed from work. Here depression is the reason for unemployment.
• Owing to such cyclic nature this unemployment is called cyclical or depressive unemployment or trade cycle unemployment.
• America experienced severe depression during 1929-30 and its effect was faced by many countries of the world. For this reason this depression was known as The Great Depression.
• Even today, sometimes developed countries like America and England face this type of unemployment.
• Cyclical unemployment is quite frequent in India due to India’s capitalist market mechanism. Indian diamond industry is one such example.

Solution:

• In order to solve the problem of cyclical unemployment, the state should invest in productive and developmental activities and provide employment to maximum people.
• Government should try to increase income level of people. With increase in income, effective demand will increase which in turn will increase production. When production will increase it will increase employment. This will then solve the problem of cyclical unemployment.

• In 1951, government introduced the problem of economic development and unemployment in its first five year plan, but problem of unemployment became more severe.
• The level of unemployment at the end of the first five year and later plan can be understood from following information:
• At the end of first five year plan, 53 lakh people were unemployed. This increased to 304 lakh at the end of fifth five year plan and 348.5 lakh at the end of ninth five year plan.

Frictional unemployment:

• The unemployment that results from time spent between jobs when a worker is searching for a job or transitioning from one job to another is called frictional unemployment.
• The term ‘frictional’ is used to describe the fact that labour markets do not immediately match up the job demand with job supply and hence a friction is created between the two.
• Frictional unemployment is of short term in nature.
• When in production process, because of change in demand or production or due to change in taste and preference or arrival of new technology, new goods enter in the market and unemployment arises, then this unemployment is called frictional unemployment.
• In developed countries when old production system is replaced by new . production system then the units with old production system face economic loss and shut down. As a result the labourers working in those units remain unemployed till they do not learn the work according to the new technology.
• For example, when smart phone replaced old mobiles phones, then the laboures engaged in production, sales and service of mobile phones became unemployed temporarily.

The term ‘friction’ is used to describe the fact that labour markets do not immediately match up the job demand with job supply and hence a friction is created between the two.

When smartphone replaced old mobiles phones, the laboures engaged in production and service of mobile phones became unemployed temporarily. This is an example of frictional unemployment.

Slow rise in employment opportunities:

• Increase in employment and economic growth are strongly related.
• During planning periods, economic growth increased continuously but we failed in creating equal number of employment opportunities. As a result, economic growth remained jobless growth.
• In first decade of planning India attained 3.5 percent of economic growth. This growth rate increased to 7.6% in 10th fjVe year plan and 7.8% in 11*h five year plan. We could not increase employment to meet this growth.
• Moreover, green revolution in agriculture sector remained limited to certain areas. The sectors other than agriculture observed slow growth. So unemployment increased in other sectors.

Prosperity is that stage of trade cycle in which business is at higher position and because of high demand, economy is profit oriented. There also exist high rate of capital investment and employment in the country.

Age group of 15 to 25 years. mostly faces open full unemployment.

When more than necessary people are employed in a work and if even by removing few of them from work the total production does not change then there exists disguised unemployment in that area. Such people are said to be under disguised unemployment.

Unemployment is a situation where in a person is ready and capable of working at current wage rate but does not get work.

Cyclical and frictional unemployment

Developed nations: Nations which are economically developed like America and Britain are called developed nations. Developing nations: Nations, where the process of development is going on, are called developing nations. For example, India.

Correct option is (B) Cyclical unemployment

Lack of effective demand creates surplus of supply. This reduces the market price. This leads to low capital investment and unemployment. Such a situation is called depression in economy.

Seasonal unemployment occurs when people are unemployed at certain time of the year, because they work in sectors/ industries where they are not needed all year round. For example, the agricultural labourers get work only during sowing and harvesting season and so they remain unemployed rest of the time.

People who migrate from villages to cities in search of job, people who are less educated and skilled and people who spend money and consume goods in spite of not having job in hand face full/open unemployment.

Answer is: (c) 3

People who are ready to work at current wage rate and also possess necessary qualification but do not get any job are said to be ‘fully unemployed or openly unemployed’.

The unemployment that results from time spent between jobs when a worker is searching for, or transitioning from one job to another is called frictional unemployment.

Depression in the economy leads to reduction in the demand of goods and services. Due to reduction in effective demand industries have to reduce production or shut down the production and many labourers are removed from work. 

61% contribution of tertiary sector in GDP.

The objective of Deendayal Upadhyay Gramjyoti Yojna (DUGJY) is providing constant 24 × 7 electricity service in rural area

The main objective of this programme which was to provide employment to youth between age group of 18 to 35.

India is a developing country. On one hand, India faces high population growth rate and on the other hand, it faces insufficient economic development. Thus, our economy is not able to acquaint skilled people for work which causes unemployment in India.

Correct option is (B) Open unemployed

Due to the seasonal nature of agricultural activities and dependence upon monsoon, work is not available throughout the year or work is available for some months in a year and unemployment exists in the remaining period. This unemployment is also seen among workers working in seasonal and festive season related industries. This kind of unemployment can be eliminated by the development and expansion of non agricultural activities in rural areas.

(c) Daily status unemployment

Unemployment is that situation in which a person capable and desirous of doing work does not get employment. It i$ the situation of actively looking for employment but not being currently employed. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force.

Correct option is (A) Underemployment

1. Disguised unemployment 

2. Seasonal unemployment.

Correct option is (B) Unemployment

Correct option is (C) 1929

The depression experienced by America during 1929-30 is called world’s great depression. It is known as The Great Depression because its effect was faced by many countries of the world.

Cottage and small scale industries.

In India, one can obtain information regarding unemployment from the following sources:

1. Planning Commission
2. Central Statistical Organization
3. National Sample Survey
4. Journal published by employment exchange reports.
5. Bhagwati Committee Report