B.Com Ist Year Unemployment Study Notes Question Answer

B.Com Ist Year Unemployment Study Notes Question Answer :- hii friends this post is very useful for all the student B.com, In this post you will find Business Environment Topic Wise chapter wise all the content Question Answer Notes Model Paper Examination Paper Sample Practice Paper PDF Download Hindi & English For Free.

Q.12. Discuss the extent and causes of unemployment

India. What measures would you suggest for rem ing unemployment? (Rohilkhand, 2005


Write an essay on problem and solution of unemple

(Meerut, 2014 ment problem in India.


Write critical essay on the nature of unemploymes

Meerat, 2012) problem in India.


Unemployment refers to a situation where the large number persons of working age do cot get job at the prevailing wage rate, la other words, it might also be said that when someone wants to work and he is also capable of taking up work from physical point of viem but if he doesn’t get the work, by which he could earn his livelihood such problem is known as the problem of Unemployment.

Thus, it becomes clear that children, old persons, saints beggers and lunatic cannot be called unemployed because either they are unable to work orunwilling to work.


Unemployment is a serious economic problem of our country An idea about the trend and structure of unemployment can be made from the following data and unemployment rates:

  • Size of Unemployment: It is clear from the following table:


Year Population Labour force Employed Unemployed Unemployment rate (%)
2001-02 102.90 37.82 34.34 3.48 9.21%
2004-05 109.28 41.97 38.49 3.47 8.28%
2007-08* 113.80 36.90 33.90 3.00 8.10%
2011-12 (Projected) 120.80 48.37 46.03 2.34 4.83%
2016-17 (Projected) 128.32 52.41 51.82 0.59 1.12%

*Labour force, employed and unemployed in 2007-08 is measured in the age group of 15 to 59 years.

Source: NSSO Report, 2010 and Eleventh Five Year Plan Document

The above table indicates that in the year 2007-08 number of unemployed were 3 crore. In December 2009, there were 3.82 crore unemployed registered with 969 employment exchanges of the country. It is projected that by the end of vear 2016-17 unemployment rate will decrease in the economy. At the end of Eleventh Five Year Plan in the year 2011-12, unemployment rate is expected to come down to 4.83%. In 11th Plan 58 million job opportunities will be created. The 64th round of NSSO on employment indicates creation of 4 million job opportunities between 2004-05 and 2007-08.

(2) Rates of Unemployment : For analysing trends of unemployment, different unemployment rates can be compared with each other. Unemployment rate is defined as the ratio of unemployed persons to total labour force. In the year 2008, unemployment rate in rural areas among males was 8.5% and among females it was 8.1%. In urban areas, in the year 2008 unemployment rate in males was 6.9% and in females, it was 9.5%. In 2007-08, unemployment rate in illiterate segment was only 0.2% and among graduates and above, this rate was 9.5%.


Area Male Females Total
Rural Areas 8.5 8.1 8.4
Urban Areas 6.9 9.5 7.4
Total 8.0 8.4 8.1

Source: National Sample Survey Organisation Report 2010 (64th round.

During 1999-2000 to 2007-08, labour force grew at the rate of 2.82% per annum compared to annual employment growth of 2.65%. As a result unemployment problem has not been solved.

(3) Inter-State Variations in Unemployment Rates : There are wide variations in unemployment rates of different states.

In the year 2008, unemployment rate is maximum in the state of Tripura at 19.9%. In Kerala, the most literate state, unemployment rate was 19%. This rate is minimum in the state of Uttar Pradesh at 5.8%. All India average rate of unemployment was 8.1%.

(4) Employment in Unorganised Sector : As per NSSO survey, in the year 2007-08 the total employment in both organised a unorganised sectors in India was 46 crore. Out of this, 43.1 crore workers are employed in unorganised sector.

(5) Employment in Organised Sector: In employment, public sector is playing dominant role.

Employment growth in the organised sector (public and privat combined) declined in the period 1994 to 2008. In this period puh sector employment reduced at the rate of 0.65% per annum and the same period of time, private sector employment increased at this rate of 1.75% per annum.

From the above trends following conclusions can be drawn:

(i) Despite fairly healthy GDP growth, unemployment rate has increased from 7.3% in 1999-2000 to 8.1% in 2007-08 leading to frustration among the educated youth.

(ii) Unemployment among feamles is higher in urban areas than in rural areas.

(iii) Unemployment rates for women are higher than the unemployment rates for men.

(iv) Unemployment rates are higher for educated-segments and less for illiterate segments.

(v) There are wide inter-state fluctuations in the


(vi) More persons are employed in unorganised sector as compared to organised sector.

But the unemployment situation is not reflected fully by all India figures. The level of unemployment and seriousness of problem differs widely from state to state. Unfortuantely very little data is available on these aspects and whatever is available is of doubtful nature and is not reliable.


There are large number of causes for increasing number of unemployed persons which can briefly be summarised as below:

Rapid Rate of Population Growth : The most fundamental cause of widespread unemployment in India is the rapid rate of population growth. The employment opportunities are not increasing at that speed at which the population is rising in the country.

(2) Defective Education System : The Indian educational system, is not being occupation based. As a result, its utility 15 reduced and continuous increase is seen in unemployment.

(3) Decline of Cottage and Rural Industries: The decline of the educated the cottage and rural industries is also one of the main cause of the rural unemployment. Even after independence, not special

attention has been given to the rural industrialisation. The problem rural unemployment is existing due to this factor.

4) Slow Growth of Economy: The vast and varied natural esources of the country still remain underdeveloped and unutilised. The transformation of agriculture has been very slow. The development of the industrial sector has been sluggish. The increase in employment opportunities is related to the growth of the economy

B.Com Ist Year Unemployment Study Notes Question Answer

5) Emphasis on Capital-Intensive Techniques : Establishment of capital-intensive industries, irrigation projects, road-building equipment etc. which fail to absorb enough labour force and that is why position of unemployment is increasing

(6) Slow Speed of Capital Formation : The rate of capital formation is very slow in India, due to which the expansion of industries, businesses and services too has been at a slow rate, while due to the rapid increase in population, so much increase has not been there in the employment opportunities.

(7) Lack of Employment Policy: There has been no serious effort at manpower planning. As a result in the absence of clear cut employment policy unemployment and underemployment have tended to increase with each plan.

(8) Lack of Mobility Among the Labourers: In our country, the rural labourers are mostly uneducated, orthodox and conservative. They want the employment in their village or neighbourhood. They don’t want to go out of their villages for seeking or taking up the work. Instead of going away from home, they prefer remaining unemployed. It is also one of the reasons for unemployment.

(9 Agricultural backwardness : About 62% population of the country gets its livelihood from agriculture and allied activities. But Indian agriculture is too backward. So there is little possibility of generating additional opportunities of employment in this sector. Seasonal and disguised unemployment does exist in agriculture sector.

(10) Low Growth Rate of Industrialisation : Manufacturing sector is the second biggest job provider but in last new years industrial growth rate had been very low and declining

oreover, with the use of capital intensive techniques, the job opportunities have declined way maximum number of labour can be employed.


The following steps could be taken unemployment in India:

1) Check on Population-increase: To solve the problem. unemployment, population control is formost measure. To check th population increase it is necessary to provide free womerr education child health and easy access of family planning measura. particularly in rural areas of the country.

(2) Reforms in Education System : The education system must be made job-oriented. The job oriented courses should be started at senior secondary and college level. There must be the expansion of vocational training. The quality aspect in education should be given top priority.

(3) Rural Industrilisation : Expansion of small and cottage industries must be undertaken in the rural areas. By paying attention toward the rural industrilisation, much of the rural labour-power would get additional employment. e (4) Development of Agriculture and Agro-industries: In the agricultural and rural sector, agriculture-based industries should be developed. The industries like animal husbandry, poultry. horticulture, fishing etc. would be developed to provide employment in rural areas.

(5) Encouragement to Self-employment : If adequate financial facilities are made available, millions of people may engage in their own business for producing goods and services. The government should encourage youths for self employment by providing facilities of training, finance, supply of raw materials etc.

(6) Adoption of Labour Intensive Techniques : For eradicating unemployment in India, it is necessary that preference must be given to labour intensive techniques. In this way maximum number of labour can be employed.

(7) Man Power Planning: To solve the problem of unemployment, the manpower too must be planned, by which they could be educated and trained in accordance with their demand in the country. Training facilities be expanded in those lines in which man power shortage at present exists.

(8) Increase in the Network of Employment Exchange: Network of employment exchange must be established throughout the country to increase the mobility of labour and reducing unemployment due to social time lag.

(9) Rapid Economic Development: Quick and diversified industrialisation, will open new avenues of employment, especially For the education persons and skilled workers. It divert surplus pulation from agriculture to industries.

(10) Expansion of Rural Construction Works : For in -creasing the employment opportunities in rural regions, the homes like road construction, minor irrigation works, and to Juilding the houses in villages, should be introduced. Really, there le the major need of expansion activities in the construction sphere in the village regions.

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