Unemployment and types:

Unemployment is a term referring to individuals who are employable and actively seeking a job but are unable to find a job. Included in this group are those people in the workforce who are working but do not have an appropriate job. Usually measured by the unemployment rate, which is dividing the number of unemployed people by the total number of people in the workforce, unemployment serves as one of the indicators of a country’s economic status.

Types of Unemployment:

There are basically four types of unemployment:

• Demand deficient unemployment
• Frictional unemployment
• Structural unemployment
• Voluntary unemployment.

Demand deficient unemployment: Demand deficit unemployment is the biggest cause of unemployment that typically happens during a recession. When companies experience a reduction in the demand for their products or services, they respond by cutting back on their production, making it necessary to reduce their workforce within the organization. In effect, workers are laid off.

Frictional unemployment: Frictional unemployment refers to those workers who are in between jobs. An example is a worker who recently quit or was fired and is looking for a job in an economy that is not experiencing a recession. It is not an unhealthy thing because it is usually caused by workers trying to find a job that is most suitable to their skills.

Structural unemployment: Structural unemployment happens when the skills set of a worker does not match the skills demanded by the jobs available, or alternatively when workers are available but are unable to reach the geographical location of the jobs.

An example is a teaching job that requires relocation to China, but the worker cannot secure a work visa due to certain visa restrictions. It can also happen when there is a technological change in the organization, such as workflow automation that displaces the need for human labor.

Voluntary unemployment: Voluntary unemployment happens when a worker decides to leave a job because it is no longer financially compelling. An example is a worker whose take-home pay is less than his or her cost of living.

Reasons for unemployment:

The Caste System:

• The caste system, a structure of social stratification that can potentially pervade virtually every aspect of life in India is a major factor in generating unemployment
• In some locations, certain kinds of work are prohibited for members of particular castes. This also leads to the result that work is often given to members of a certain community, rather than to those who truly deserve the job those who have the right skills
• The result is higher levels of unemployment

Inadequate Economic Growth:

• Indian economy is underdeveloped and role of economic growth is inadequate
• This slow growth fails to provide enough unemployment opportunities to the increasing population
• This means that as the population increases, the economy cannot keep up with demands for employment and an increasing share of people are unable to find work. The result is insufficient levels of employment nationwide.

Increase in Population:

• India’s population is predicted to exceed China’s by the year 2024; it will, furthermore, probably be the most populous country for the entirety of the 21st century.
• As the country’s economic growth cannot keep up with population growth, this leads to a larger share of the society being unemployed

Agriculture is a Seasonal Occupation:

• Agriculture offers unemployment for a large segment of the population, but only for several months out of the year.
• The result is that for a considerable portion of the year, many agricultural workers lack needed employment and income

Loss of Small-Scale/Cottage Industries:

• Industrial development has made cottage and small-scale industries considerably less economically attractive, as they do not offer the economies of scale generated by large-scale mass production of goods.
• Oftentimes the demand for cheap, mass-produced goods outweighs the desire for goods that are handcrafted by those with very specific skill and expertise.
• The result is that the cottage and small-scale industry have significantly declined, and artisans have become unemployed as a result.

Low Rates of Saving and Investment:

• India lacks sufficient capital across the board. Likewise, savings are low and the result is that investment – which depends on savings, is also low.
• Were there higher rates of investment, new jobs would be created and the economy would have kickstarted
• Also, there is lack of investment in rural areas and tier 2 and tier 3 cities as well, as a result of which there is exists large untapped employment potential

Ineffective (or absent) Economic Planning:

• Problematically, there have been no nationwide plans to account for the significant gap between labor supply (which is abundant) and labor demand (which is notably lower)
• It is crucial that the supply and demand of labor are in balance, to ensure that those who need jobs are able to get them; otherwise, many individuals will compete for one job.

Labor Immobility:

• Culturally, attachment and maintenance of proximity to family is a major priority for many Indian citizens. The result is that people avoid traveling long distances from their families in pursuit of employment.
• Additionally, language, religion, and climate can also contribute to low mobility of labor
• As one might expect, when many of those who might otherwise be suited to jobs are unable to travel to reach them, unemployment is magnified

Job Specialization:

Jobs in the capitalist world have become highly specialised, but India’s education system does not provide the right training and specialisation needed for these jobs. Thus many people who are willing to work become unemployable due to lack of skills.

Lack of essential skilling:

• A study reveals that 33% of educated youth in India are unemployed due to a lack of future skills
• Millions of students in our country even after finishing schooling, remain devoid of hands-on learning and robust practical knowledge.

Unemployment in India:

• India’s unemployment rate reached a high of 7.9% in four months according to the Centre for Monitoring Indian Economy (CMIE). A decreasing trend started emerging even before the economic activity was impacted by the new Covid 19 restrictions.
• The unemployment rate has risen to 7.9% as compared to 7% last year, whereas the rate in urban areas rose from 8.2% to 9.3%. Rural unemployment increased from 6.4% to 7.3%.
• India’s Labor Participation Rate (LPR) decreased from more than 46% in 2016 to just over 40% in 2021.
• Therefore, 60% of the working population was either inactive or not looking for a job and hence dropping out of the labour market.

Types of Unemployment:

Unemployment can be grouped into various types based on the nature of work, the structure of the economy, the nature of the seasons, technological advancements in an economy, etc. Various types of unemployment are discussed below.

Frictional Unemployment:

• It is when there is the least amount of unemployment prevailing in an economy due to workers quitting their previous jobs and searching for new jobs.
• One of the major causes of occurrence of frictional unemployment is lack of information about the availability of jobs and non-willingness of mobility on the part of workers (it means workers are not willing to travel to a distant place or a new state for employment).
• A frictionally unemployed person remains unemployed for a very brief period of time.

Cyclical Unemployment:

• It occurs during the cyclical trends of booms and recessions of a business cycle.
• This type of unemployment occurs mainly due to either deficiency or fall in effective demand from consumers which in turn leads to a fall in production and low demand for labour.
• This type of unemployment occurs for a long period of time and workers remain unemployed during the entire phase of slowdown.
• The unemployment crisis due to the 2008 financial crisis is an example of Cyclical unemployment.

Voluntary unemployment:

• It is when workers are either not seeking work or are in transition from one job to another.
• Voluntary unemployment is present all the time in an economy.
• As there will always be some workers, who quit their previous jobs in search of new ones

Involuntary unemployment:

• It is when workers are actively seeking employment and are willing to work but are unable to get work.
• Involuntary unemployment happens in an economy during the time of depression and decreases in aggregate demand for goods and services.

Structural unemployment

• It refers to a situation that arises as a result of a change in the structure of the economy.
• For instance, when an economy transforms itself from a labour-intensive to a capital intensive economy, structural unemployment happens due to the mismatch of skills.
• As a result, workers who do not know how to operate the new and advanced technologies will be removed.
• This type of unemployment happens as the current workers do not have the skills required by their employers.

Seasonal unemployment:

• This happens during specific seasons of the year. It is more prevalent in sectors and occupations such as agriculture, holiday resorts etc., where production activities take place only in some seasons.
• Therefore, they offer employment for only a certain period of time in a year.
• People engaged in seasonal activities may remain unemployed during the off-season

Open unemployment:

• It is a condition where people have no work to do. It is also known as naked unemployment.
• Here individuals are able to work and are also willing to work but there is no work for them.
• It is frequently found in larger cities and is less frequent in villages. Most of such individuals come from villages in search of jobs or might originate in cities themselves.
• Such employment can be seen and counted in terms of the number of such persons. Hence it is called open unemployment..

Under-employment:

• It is a scenario where employed people are contributing to production less than they are capable of.
• It can be estimated in terms of time, which is visible under-employment or type of work, which is invisible under-employment. Part-time workers come under this category.

Disguised Unemployment:

• It occurs when a person is the one who seems to be employed but actually he is not. His/Her contribution to the total output is either zero or negligible.
• When more individuals are engaged in a job than the number actually required it leads to a state of disguised unemployment.
• It is mostly seen in rural areas such as in agricultural activities.

Vulnerable Employment:

• This means, people, working informally, without proper job contracts and thus get deprived of any legal protection. These persons are regarded as unemployed since records of their work are never maintained. It is one of the main types of unemployment in India.

Technological Unemployment:

• It is unemployment that occurs as a result of the loss of jobs due to changes in technological developments.
• According to World Bank data, the proportion of jobs threatened by automation in India is 69% on a year-on-year basis.

Unemployment in Tamil Nadu:

• Agriculture provides employment to many people in Tamil Nadu.
• Non-agricultural sectors do not generate enough employment for labor groups to change occupations.
• Most of Tamil Nadu’s employment growth is contributed by the unorganized and unorganized informal sectors that provide low incomes.
• Employment Policy in Five Year Plans

7th Five Year Plan 1985 – 1990:

• On a general level basis, increasing the rate of employment growth

8th Five Year Plan: 1992 ― 1997:

• To generate 2% employment per annum by the year 2000
• Various employment schemes were developed for this purpose.

9th Five Year Plan: 1997 2002;

• Attract public investment in agriculture
• Thereby creating excess employment

10th Five Year Plan: 2002 – 2007:

• Creation of 10 million jobs per year
• Achieving 8% GDP growth
• Indirect generation through employment schemes

11th Five Year Plan: 2007 – 2012

• Generation of urban (rural) employment
• Increasing employment in underdeveloped areas and sectors
• Extend employment insurance to the urban poor

12th Five Year Plan; 2012 – 2017

• Increasing employment in the manufacturing sector
• Providing employment to 10 million more people

Effects of unemployment:

• The problem of unemployment gives rise to the problem of poverty.
• Young people, after a long time period of unemployment indulge in illegal and wrong activities for earning money. This also leads to increase in crime in the country.
• Unemployed persons can easily be enticed by antisocial elements. This makes them lose faith in the democratic values of the country.
• It is often seen that unemployed people end up getting addicted to drugs and alcohol or attempts suicide, leading losses to the human resources of the country.
• It also affects the economy of the country as the workforce that could have been gainfully employed to generate resources gets dependent on the remaining working population, thus escalating socioeconomic costs for the State. For instance, 1% increase in unemployment reduces the GDP by 2%.

Bhagwati Group 1970:

Purpose:

The Government of India formed the Bhagwati Committee to assess the level of unemployment and devise measures to address it.

Recommendations:

• To create a National Committee for Employment and Human Resource Planning.
• Allocate a portion of the country’s development resources and implement employment generation programs through additional taxation.
• To undertake rural development projects on a large scale.
• Priority should be given to labor intensive industries.
• Working beyond specified hours should be prohibited.
• Work week should be reduced from 48 hours to 41 hours.
• To create an employment education node
• Employment Insurance Scheme should be introduced.
• A proper plan is essential to control population.
• Priority should be given to backward communities.

SB Gupta Group – 2001:

Set to explore ways to create 10 million jobs.

Rural Unemployment:

Unemployment is a situation in which a person is actively searching for employment but unable to find work at the prevailing wage rate. It is a tragic waste of manpower and under utilisation of human resources. As long as there is unemployment, social problems cannot be stopped; and, economy cannot achieve development.

Causes for Rural Unemployment:

• Absence of skill development and employment generation: Lack of Governmentinitiatives to give required training and then to generate employment opportunities.
• Seasonal Nature of Agriculture: Agricultural operations are seasonal in nature anddepend much on nature and rainfall. Therefore, the demand for labour becomes negligible during off-season. So, non-farm employment opportunities must be created.
• Lack of Subsidiary Occupation: Rural people are not able to start subsidiaryoccupations such as poultry, rope making, piggery etc. due to shortages of funds for investment and lack of proper marketing arrangements. This restricts the employment opportunity and rural family incomes. Government must arrange funds for these people. However, as now they pay huge interest to the local money lenders, for they are unable to get loans from formal sources.
• Mechanization of Agriculture: The landlords are the principal source of employmentto the farm labour. Mechanization of agricultural operations like ploughing, irrigation, harvesting, threshing etc. reduces employment opportunities for the farm labour.
• Capital-Intensive Technology: The expanding private industrial sector is largelyfound in urban areas and not creating additional employment opportunities due to the application of capital intensive technologies. Government must establish firms to absorb surplus labour power.
• Defective System of Education: The present system of education has also aggravatedthe rural unemployment problem.Large number of degree-producing institutions has come in the recent years. Students also want to get degrees only, not any skill. Degrees should be awarded only on the basis of skills acquired. The unemployed youth should get sufficient facilities to update their skills.

Remedies for Rural Unemployment:

• Subsidiary Occupation: To reduce the seasonal unemployment rural people shouldbe encouraged to adopt subsidiary occupations. Loans should be granted and proper arrangements should be made for marketing their products.
• Rural Works Programme: Rural Works Programme such as (MGNREGA) construction andmaintenance of roads, digging of drains, canals, etc should be planned during off-season to provide gainful employment to the unemployed. 
• Irrigation Facilities: Since rainfall is uncertain irrigation facilities should beexpanded to enable the farmers to adopt multiple cropping. The increased cropping intensity creates additional demand for labour.
• Rural Industrialization: To provide employment new industries should be set up inrural areas. This will open new fields of employment and also change the attitude of rural people towards work. For this, government has to do something. Private sector would not take up this responsibility.
• Technical Education: Employment oriented courses should be introduced in schoolsand colleges to enable the litrate youth to start their own units.

Unemployment among educated people:

Educated Unemployment in the Indian economy is such a type of unemployment where the educated people search for jobs according to their efficiency. However, in educated unemployment, the educated irrespective of their searches are unable to find desirable jobs. Structural unemployment can be referred to as educated unemployment in the Indian economy.

Reasons behind Educated Unemployment:

The most concerning reason for unemployment or educated unemployment is the population growth in the Indian economy. The country also lacks investment in certain sectors, which lessens the job opportunities for educated job-seeking individuals. The Indian economy deals with educated job seekers who sometimes lack certain skills, which are required for a particular job. In most cases job seekers do not agree to join a job which has less value or salary. Another important cause for unemployment is the caste system, which acts as a barrier for the educated youth. In the Indian economy, rural talented individuals remain backwards due to a lack of proper training institutes in the rural areas. 

Unemployment and its impact:

Unemployment has a grave impact on the Indian economy according to the reports of the Centre for Monitoring the Indian Economy. The educated unemployment in the country has taken a paradigm shift, especially during the pandemic. Crime rate in the country has increased and the unemployed educated youth are more focused on addicts such as drugs or alcohol. In addition to that, the growing concern of poverty has led to a decrease in production rates in the Indian economy. 

Initiatives of government to control unemployment in India:

Government to tackle educational unemployment has launched initiatives and schemes. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was launched in 2015 to provide training and develop skills for better living. Start-up India Scheme of 2016 allows educated individuals to promote themselves as entrepreneurs. The National Skill Development Mission was launched in November 2014 to develop existing skills.

Employment Program – Evaluation and Shortcomings Causes of Program Failure:

• The project is not adequately funded.
• A significant amount of the total funds were diverted to other projects.
• Used to buy goods like cars, refrigerators, video cameras, term deposits (m) to invest in National Savings Schemes.
• Foodgrains to be distributed under the RLEGP scheme have gone to the Public Distribution Corporation, other organizations.
• The CAG report stated that wrong method was followed in calculating working days.
• Many states calculate the wage expenditure by dividing it by the specified minimum wage rate. Working days have been calculated on a hypothetical basis.
• Poverty in India is 21.9%.
• Importance is given to food grain production. This has resulted in a decline in the amount of cultivated land.
• Indirect selling of food grains (c) Smuggling
• Not creating alternative sources of employment for rural people.
• Not creating industrial structures in rural areas.
• High student unemployment
• Loans to the unemployed by banks have failed to create more employment.
• The amount of subsidy given by the central government is decreasing.
• Not properly supervising and administering the scheme

Ways to Eliminate Unemployment:

Instructions:

• Employment Schemes of Central and State Governments
• Overseas employment agencies
• Role of NGO
• Promotion of self-employment
• Regulation of vocational training programmes
• Formulation of syllabus in modern manner
• Bringing Small Enterprises in Villages 8. Regulation in Higher Education
• Allocate more funds to the employment program
• Amendment of Labor Laws
• Formulation of stringent laws
• Policy of Free Trade
• India’s utilization of its own resource.
• Lending at low rate of interest for development projects
• Overinvestment
• Creation of long-lasting assets
• Initiation of some joint ventures in selected sectors
• Building Entrepreneurship

Overseas Employment Agency:

• Appearance – 1978
• The organization was established to help job seekers abroad (h) prevent them from being cheated by fake agents.
• Encourages Indian workers to find employment abroad.

Objectives:

• Acting as a recruitment agency for selecting Indian workers for overseas employment.
• Carrying out joint industrial ventures abroad by itself or (a) on behalf of the Government.
• Mobilization of necessary funds from overseas Indians for projects in India.
• Heritage Taking necessary measures to intensify export of non-traditional goods.
• Air travel Issuance of tickets on behalf of all foreign companies providing services such as transportation.
• Provision of accident health insurance to overseas Tamils.
• Issuance of foreign currencies to selected persons for foreign employment.
• Finding qualified, experienced and committed manpower.
• Provision of human resources required by domestic employers.
• One-stop integration of foreign workers.
• Certifications obtaining certifications from the most relevant authority bodies.
• Provision of training facilities.
• Provision of ticketing facilities.

Atma Nirbhar Bharat:

• The Prime Minister in his address to nation on 12.05.2020 announced an economic stimulus package for Rs 20-lakh-crore (estimated at 10% of the GDP), towards building an Atma Nirbhar Bharat, or a self-reliant, resilient India.
• The Package is to cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

Five pillars of Atma Nirbhar Bharat:

• Economy – an economy that brings Quantum Jump rather than Incremental change.
• Infrastructure – an infrastructure that became the identity of modern India.
• System – A system that is driven by technology which can fulfill the dreams of the 21st century; a system not based on the policy of the past century.
• Demography – Our Vibrant Demography is our strength in the world’s largest democracy, our source of energy for self-reliant India.
• Demand – The cycle of demand and supply chain in our economy, is the strength that needs to be harnessed to its full potential.

Benefits:

• Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit.
• Rs 20,000 crores Subordinate Debt for Stressed MSMEs.
• Revision of MSME definition.
• Government procurement.
• EPF support to businesses.
• EPF contribution reduced for Business & Workers for 3 months.
• Free food grains supply to migrants for 2 months.
• Technology system to be used enabling Migrants to access PDS (Ration) from any Fair Price Shops in India by March, 2021-One Nation One Ration Card Scheme.
• Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched.
• 2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1,500 crores.
• Rs 5,000 crore Credit facility for Street Vendors.
• Rs 70,000 crore boost to housing sector and middle-income group through extension of Credit Linked Subsidy Scheme for MIG under PMAY (Urban).
• Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD.
• Rs 2 lakh crore credit boost to 2.5 crore farmers under Kisan Credit Card Scheme.
• Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers.
• Rs 10,000 crore scheme for Formalisation of Micro Food Enterprises (MFE).
• Rs 20,000 crore for fisherman through Pradhan Mantri Matsya Sampada Yojana (PMMSY).
• National Animal Disease Control Programme.
• Animal Husbandry Infrastructure Development Fund – Rs. 15,000 crore.
• Promotion of Herbal Cultivation: Outlay of Rs. 4,000 crore.
• Beekeeping initiatives – Rs 500 crore.
• From ‘TOP’ to TOTAL – Rs 500 crore.
• Rs 40,000 crore increase in allocation for MGNREGS to provide employment boost.

Benefits of NREGA:

• Biggest benefits during covid lock down – Increased allocation of 40,000 crores.
• Off seasonal Income.
• Benefits to migration labour.
• Benefits to unskilled and Informal sector labour.
• Rural Employment.
• Supplement to Agricultural activities.
• Improving rural infrastructure.
• Women empowerment.
• Good solution during economic slowdown.
• Repairing and management of physical infrastructure.
• Rural Peacefulness and law & Order situation.

Migrant labours:

• A “migrant worker” is defined in the International Labour Organization (ILO) instruments as a person who migrates from one country to another (or who has migrated from one country to another) with a view to being employed.
• The incident of spraying of disinfectant on migrant workers in UP and other places.
• No proper data base.
• No communication cell.
• No coordination organization.
• No uniform pay structures and poor wages.
• No proper policy for migrant regulations.
• No proper implementation of Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.
• No proper coordination between centre and states.
• Opposition from Migration state.
• Mostly all are unskilled labour.
• Exploitation by employers.
• Poor wages and no proper habitation.
• Poor living conditions.
• Inaccessibility to state given services due to lack of identity proof and other documents.
• Absence of government intervention.
• No permanent employment.
• Feminisation of poverty.
• No skill updates and upgradation.
• Economic insecurity faced by the migrant workers as well as its impact on their family members in their States.
• Perspective of charity approach.

The causes of unemployment in India:

• Population Explosion:

The most fundamental cause of large scale unemployment in India is the high rate of population growth since the early 1950s and the consequent increase in its labour force. It was estimated that with the 2.5 per cent annual rate of population growth, nearly 4 million persons are added to the labour force every year. To provide gainful employment to such a big number is really a difficult task.

·        Underdevelopment:

• Indian economy continues to be underdeveloped even as a vast quantity of unutilized and under utilised natural resources are prevailing in the country. The scale and volume of economic activities are still small. The non-agricultural sector especially modern industrial sector which could generate huge number of employment, is growing very slowly.
• During the pre-independence period also, Indian economy experienced a slow growth. British destroyed the indigenous small scale and cottage industries instead of expanding and modernising them. During the post- independence period also, the performance of the industrial sector has also been found far below the plan targets and needs.
• Moreover, the slow rate of capital formation is also responsible for the hindrances in the path of realisation of growth potential in agriculture, industry and infrastructure sector. Thus this underdevelopment is largely responsible for slow expansion of employment opportunities.

·        Inadequate Employment Planning:

• In the first phase economic planning in India, employment opportunities could not be increased adequately and little has been done to utilise the Nurksian variety of labour surplus existing in the rural areas. Moreover, weak manpower planning is also another serious gap in Indian planning.
• Less effort has been made for balancing the manpower needs and supplies in various production sectors, indifferent regions of the country and also indifferent skills.
• This has resulted to large imbalances in the sphere of educated and trained personnel like engineers, technicians, cost accountants, plain graduates and port graduates, administrators etc. Thus huge amount of resources used for developing manpower could not come into much help due to faulty manpower planning.

·        Slow Rate of Growth:

In India the rate of growth of the economy is very poor and even the actual growth rate lies far below the targeted rate. Thus the increased employment opportunities created under the successive plans could not keep pace with the additions to the labour force taking place in the country every year leading to a huge and larger backlog of unemployment at the end of each plan.

·        Backwardness of the Agriculture:

Heavy pressure of population on land and the primitive methods of agricultural operations are responsible for colossal rural unemployment and underemployment in the country.

·        Insufficient Industrial Development:

Industrial development in the country is not at all sufficient. Rather the prospects of industrial development has never been completely realised. Due to dearth of capital, lack of proper technology, scarcity of industrial raw materials, shortage of electricity and lack of labour intensive investment industrial sector could not gain its momentum and also could not generate sufficient employment opportunities in the country.

·        Prevailing Education System:

• The prevailing education system in India is full of defects as it fails to make any provision for imparting technical and vocational education. Huge number of matriculates, undergraduates and graduates are coming out every year leading to an increasing gap between job opportunities and job seekers among the educated middle class.
• In the absence of vocational education and professional guidance, these huge number of educated youths cannot avail the scope of self-employment leading to growing frustration and discontent among the educated youths.

·        Slow Growth of Employment during Economic Reforms:

• Finally, the current phase of economic reforms introduced in India has resulted jobless growth to some extent. Economic Reforms has resulted large scale retrenchment of surplus workers in different industries and administrative departments due to down-sizing of workers.
• The annual growth rate of employment which was 2.40 per cent during the period 1983- 94, but the same rate declined to a mere 0.98 per cent during the period 1994-2000. As a result, the unemployment growth rates increased from 5.99 per cent in 1993-94 to 7.32 per cent in 1999-2000. The covid pandemic raised the unemployment rate upto 8.2 percent in August 2020 in India.

Measures taken by Govt. to increase employment in India:

• Integrated Rural Development Programme (IRDP): In 1978-79, government of India introduced IRDP to create full employment opportunities in rural areas. Under this programme agriculture, animal husbandry, forests, fisheries, small and cottage industries, construction of roads and canals etc. are to be developed in all the 5111 development blocks.
• Drought Prone Area Programme (DPAP): This programme was launched in 70 such districts of 13 states as were prone to drought. The programme has proved fruitful particularly in removing seasonal unemployment. In Sixth Plan, the programme provided 17 crore and 70 lakh man-days of employment.
• Training for Self-Employment: This programme was launched on 15th August, 1979 by the Government of India. It is called National Scheme of Training of Rural Youth for Self Employment (TRYSEM). The main objective of this programme is to reduce unemployment among the youth. During Seventh Plan about 11.6 lakh youth were imparted training under the programme.
• Jawahar Rozgar Yojana: The Jawahar Rozgar Yojana was started on 28th April 1989. The objective of this Yojana is to provide employment to at least one member of each poor rural family for fifty to a hundred days a year at a work place near his residence. A special feature of the scheme is that 30% of the employment generated will be reserved for women.

The Central government will finance 80% of the programme and the state government will have to bear only 20% of the expenditure of this scheme. In 1989, National Rural Employment Programme and Rural Landless Employment Guarantee Programmes were merged in the yojana.

• Self-employment to Educated Unemployed Youth: In 1983, a scheme namely self-employment of educated unemployed was initiated. Under this scheme, loans up to Rs. 25,000 are given to those educated unemployed who have no other financial resources.

This scheme is enforced by District Industries Centers. Government will give 25 percent as subsidy of the loans given by the banks under this scheme.

• Nehru Rozgar Yojana (NRY): This Yojana was started in 1989. There are three schemes under it.
  • Under the first scheme, subsidy is given to urban poor to set up micro enterprises. In 1995, under this programme, 1.25 lakh families have been benefited.
  • Under the second scheme arrangements have been made for wage-employment to labourers in cities with less than 10 lakh population by providing Indian Economic Development and Elementary Statistic ‘them basic facilities.
• Small and Cottage Industries: In order to reduce unemployment, government if has made special efforts to develop small and cottage industries. In 1995-96 about 33 lakh persons were employed in these industries.
• Employment Assurance Scheme: The Employment Assurance Scheme (EAS) was launched in 1994 in 1752 backward blocks in the country. The main objective was to provide 100 days of unskilled manual work to the rural poor who are seeking employment.
• Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP): This programme has been implemented in 1995-96. This programme aims at to provide employment to the urban poor. It will cover 50 lakh urban poor living in 345 towns. The central government will incur an expenditure of Rs. 800 crores this programme during a period of Five years.

• The Swaran Jayanti Rozgar Yojana:
• This plan began on December 1, whereas launching of this yojana, previous programmes meant for providing employment to urban unemployed like Nehru Rozgar Yojana and Prime Minister Integrate Urban Poverty Eradication Programme were merged into it.
• It aims at providing self-employment or wage employment to urban unemployed and under- employ persons. It comprises of two plans: (i) Urban Self- Employment Programme-(USE and (ii) Urban Wage Employment Programme-(UWEP). Of the total expenditure on “Yojana, 75 percent will be borne by the centre and 25 percent by the state governments. In the year 1997-98, a sum of Rs. 125 crore was spending on this yojana.
• Jawahar Gram Samridhi Yojana: Jawahar Rozgar Yojana has been restructured as Jawahar Gram Samridhi Yojana with effect from April 1999. This Yojana has been formulated to improve the quality of life of the rural poor by providing the additional gainful employment.
• Other Programmes:

1. Pradhan Mantri Gramodaya Yojana (PMGY)
2. Pradhan Mantri Gramodaya Yojana (Gramin Awas)
3. Pradhan Mantri Gramodaya Yojana-Rural Drinking water project.
4. Pradhan Mantri Gram Sadak Yojana (PMGSY)
5. Autyodya Anna Yojana.
6. Jai Prakash Rozgar Guarantee Yojana (JPRGY).
7. Valmiki Ambedkar Awas Yojana (VAMBAY).

The Measures undertaken by the government to solve unemployment problem during post pandemic period in India:

• Employment generation coupled with improving employability is the priority of the Government. Accordingly, the Government of India has taken various steps for generating employment in the country. The Government of India has announced Aatmanirbhar Bharat package to provide stimulus to business and to mitigate the adverse impact of Covid 19. Under this package, the Government is providing fiscal stimulus of more than Rs. Twenty Seven lakh crore. This package comprises of various long term schemes/ programmes/ policies for making the country self-reliant and to create employment opportunities.
• Aatmanirbhar Bharat RojgarYojana (ABRY) has been launched with effect from 1st October, 2020 as part of Atmanirbhar Bharat package 3.0 to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during Covid-19 pandemic. This scheme being implemented through the Employees’ Provident Fund Organisation (EPFO), seeks to reduce the financial burden of the employers and encourages them to hire more workers. The terminal date for registration of beneficiaries has been extended from 30.06.2021 to 31.03.2022. Benefits have been provided to 51.95 lakh beneficiaries through 1.35 lakh establishments till 12.03.2022.
• Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government for facilitating selfemployment. Under PMMY, collateral free loans upto Rs. 10 lakh, are extended to micro/small business enterprises and to individuals to enable them to setup or expand their business activities. Upto 11.03.2022, 34.08 crore loans were sanctioned under the scheme.
• Government had launched the Garib Kalyan Rojgar Abhiyaan (GKRA) of 125 days on 20th June, 2020 to boost employment and livelihood opportunities for returnee migrant workers and similarly affected persons including youth in rural areas, in 116 selected districts across 6 States of Bihar, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh. The Abhiyaan has achieved an employment generation of 50.78 crore persondays with a total expenditure of Rs. 39,293 crore.
• PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure. This approach is powered by Clean Energy and Sabka Prayas leading to huge job and entrepreneurial opportunities for all. The Government has put emphasis on railways, roads, urban transport, power, telecom, textiles and affordable housing amid continued focus on the National Infrastructure Pipeline. Budget 2021- 22 launched Production Linked Incentive (PLI) schemes, with an outlay of Rs. 1.97 lakh crore, for a period of 5 years starting from 2021-22. All these initiatives are expected to collectively generate employment and boost output in the medium to long term through multiplier-effects.
• The Government of India is encouraging various projects involving substantial investment and public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP) of the Ministry of Micro, Small & Medium Enterprises, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) & Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY) of the Ministry of Rural Development, Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) of the Ministry of Housing & Urban Affairs etc. for employment generation. Besides these initiatives, various flagship programmes of the Government such as Make in India, Start-up India, Digital India, Smart City Mission, and Atal Mission for Rejuvenation and Urban Transformation, Housing for All, Infrastructure Development and Industrial Corridors are also oriented towards generating employment opportunities.