Employment and Development:
Human Resource Management and Human Resource Development and its indicators in India.
Nature, types and Problems of Unemployment in India.
Employment Schemes and Programmes both of Union Government and Uttarakhand Government.
Rural Development and Community Development Programmes- Role of related Institutions and Organizations including all centrally and State sponsored schemes.
Nature, types and Problems of Unemployment in India
Unemployment may be defined as “a situation in which the person is capable of working both physically and mentally at the existing wage rate, but does not get a job to work”.
India is one of those ill-fated underdeveloped countries which is suffering from a huge unemployment problem. But the unemployment problem in India is not the result of deficiency of effective demand in Keynesian term but a product of shortage of capital equipment’s and other complementary resources accompanied by high rate of growth of population.
Present unemployment problem in India is mostly structural in nature.
Unemployment problem of the country can now be broadly classified into:
(a) Rural unemployment and
(b) Urban unemployment.
(a) Rural Unemployment:
In India the incidence of unemployment is more pronounced in the rural areas.
Rural unemployment is again of two types:
(i) Seasonal unemployment and
(ii) Disguised or perennial unemployment.
(i) Seasonal Unemployment:
Agriculture, though a principal occupation in the rural areas of the country, is seasonal in nature. It cannot provide work to the rural population of the country throughout the year. In the absence of multiple cropping system and subsidiary occupation in the rural areas, a large number of rural population has to sit idle 5 to 7-months in a year.
Seasonal Unemployment is also prevalent in some agro- based industries viz., Tea Industry, Jute Mills, Sugar Mills, Oil Pressing Mills, Paddy Husking Mills etc.
(ii) Disguised or Perennial Unemployment:
Indian agriculture is also suffering from disguised or perennial unemployment due to excessive pressure of population. In disguised unemployment apparently it seems that everyone is employed but in reality sufficient full time work is not available for all.
In India, about 72 per cent of the working population is engaged in agriculture and allied activities. In 1951 more than 100 million persons were engaged in the agricultural and allied activities whereas in 1991 about 160 million persons are found engaged in the same sector resulting in as many as 60 million surplus population who are left with virtually no work in agriculture and allied activities.
(b) Urban Unemployment:
Urban unemployment has two aspects:
(i) Industrial unemployment and
(ii) Educated or middle class unemployment.
(i) Industrial Unemployment:
In the urban areas of the country, industrial unemployment is gradually becoming acute. With the increase in the size of urban population and with the exodus of population in large number from rural to the urban industrial areas to seek employment, industrialization because of slow growth could not provide sufficient employment opportunities to the growing number of urban population.
Thus the rate of growth of employment in the industrial sector could not keep pace with the growth of urban industrial workers leading to a huge industrial unemployment in the country.
(ii) Educated or middle-class Unemployment:
Another distinct type of unemployment which is mostly common in almost all the urban areas of the country is known as educated unemployment. This problem is very much acute among the middle class people. With rapid expansion of general education in the country the number of out-turn of educated people is increasing day by day.
But due to slow growth of technical and vocational educational facilities, a huge number of manpower is unnecessarily diverted towards general education leading to a peculiar educated unemployment problem in the country. The total number of educated unemployment increased from 5.9 lakh in 1962 to 230.50 lakh in 1994.
- Types of Unemployment
The most accepted classification of Unemployment recognizes two broad types: Voluntary and Involuntary Unemployment.
Voluntary unemployment arises when an individual is not under any employment out of his own desire not to work. Could be from their total apprehension towards the concept itself, or it may be that an individual is unable to find work paying his desired wages and he doesn’t want to settle.
Involuntary unemployment encompasses all those factors that prevent a physically fit individual willing to work from getting an appointment. According to John Maynard Keynes, “involuntary unemployment arises due to insufficiency of effective demand which can be solved by stepping up aggregate demand through government intervention”. Involuntary Unemployment is further categorized into subheads;
1. Structural: Such employment stems from any structural change in the economy that leads to decline of specific industries. Long term changes in the market conditions, reorganization of the same, and sudden changes in the technological sector, creates a Skill Gap in the existing workers.
2. Regional: Globalization and relocation of jobs also leads to unemployment as workers are often unable to move to the new location where the employers currently hold positions.
3. Seasonal: In some industries production activities are season best and employment occurs only in peak seasons. Agro-based industries and tourism industries are examples of this form of unemployment.
4. Technological: This type of unemployment is either generated following the introduction of technologically advanced mechanization that renders manual labour redundant, or through inclusion of technology that the current labour force is ill-adapted to.
5. Frictional: This type of unemployment happens when the labour is either transitioning between jobs or is trying to find a job more suited to their skill set. Friction is generally referred to the time, energy and cost that a person invests while searching for a new job.
6. Educated: This form of unemployment happens when people with advanced degrees are unable to procure an engagement that is suited to their level of training.
7. Casual: Some occupations can only offer temporary employment to individuals and their engagements are subject to termination as soon as the demand subsides. Daily labourers who work on a day-to-day basis are example of such types of unemployment.
8. Cyclical: This type of unemployment refers to the periodic cycle of unemployment associated with cyclical trends of growth in business. Unemployment is low when business cycles are at their peak and high when the gross economic output is low. Several external factors like wars, strikes and political disturbances, natural calamities that affect business cycle are also contributors to cyclical unemployment.
9. Disguised: This is a scenario when more people are employed in a job than is actually required for it. This is hallmark of developing economies where availability of labour is abundant. It is primarily a feature of the agricultural and unorganized sectors.
Problems caused due to unemployment
- Unemployment and poverty goes side by side. The problem of unemployment gives rise to the problem of poverty.
- Young people after a long time of unemployment find the wrong way to earn money.
- To get rid from the unemployment stress, they accept alcohol or drugs.
- Unemployed youths accepts suicide as the last option of their life
- Lower economic growth
- Increase rate in Crimes. As the employed youth don’t have anything to do they start doing robbery, murder etc.
- Health issues i.e it affects mentally as well as physically
Employment Schemes and Programmes both of Union Government and Uttarakhand Government.
- Centre Scheme
- Pradhan Mantri MUDRA Yojana (PMMY)
Launched: 8April2015
Main Objective: Financial support for growth of micro enterprises sector.
Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana was launched with the purpose to provide funding to the non-corporate small business sector. Pradhan Mantri Mudra Yojana (PMMY) is open and is available from all Bank branches across the country.
The small businesses/startups or entrepreneurs can avail loans from Rs. 50 thousand to 10 Lakh to start/grow their business under the three, Shishu, Kishore and Tarun categories of the scheme.
- Skill India
Launched: 16July2015
Main Objective: Train over 40 crore people in India in different skills by 2022.
The main goal of Skill India Program is to create opportunities, space and scope for the development of talents of the Indian youth. The scheme also targeted to identify new sectors for skill development and develop more of those sectors which have already been put under skill development for the last so many years.
- Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY)
Launched: 25July2015
Main Objective: To achieve inclusive growth, by developing skills and productive capacity of the rural youth from poor families.
DDU-GKY aims to train rural youth who are poor and provide them with jobs having regular monthly wages. It is one of the cluster initiatives of the Ministry of Rural Development that seeks to promote rural livelihoods. It is a part of the National Rural Livelihood Mission (NRLM) – the Mission for poverty reduction called Aajeevika.
- National Career Service (India)(NCS)
The objective of this project is to help job-seekers land up at the job they deserve.
Under this scheme, an online job-portal named as National Career Service portal has been launched which acts as a common platform for Job-seekers, employers, skill providers, govt. departments, placement organizations and counsellors. The portal possesses mre than 3.11 crore registered job-seekers and more than 9 lakh employers from across the country.
- Swarnajayanti Gram Swarozgar Yojana
Bring the assisted poor families above the poverty line by organising them into Self Help Groups (SHGs) through the process of social mobilisation, their training and capacity building and provision of income generating assets through a mix of bank credit and government subsidy.
- Swarnjayanti Gram Swarojgaar Yojana (SGSY)
Swarnjayanti Gram Swarojgaar Yojana (SGSY) started on 01.04.1999 is a major on going programme for self employment for the rural poor. The programme was developed after reviewing and restructuring the erstwhile Integrated Rural Development Programme (IRDP) and allied programmes namely
- Training Rural Youth for Self Employment (TRYSEM)
- Development of Women and Children in Rural Areas (DWCRA)
- Supply of Toolkits in Rural Areas (SITRA)
- Ganga Kalyan Yojana (GKY)
- Millions Wells Scheme.
- Mahatma Gandhi National Rural Employment Guarantee Act
- The National Rural Employment Guarantee Act, notified in 200 districts in the first phase on Feb 2, 2006 was renamed Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on 02 Oct 2009. 130 districts were notified in 2007 and with the notification of the remaining districts on 01 April 2008, the entire country has been covered. Exception is given to district with a hundred percent urban population. The Act seeks to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year.
State Schemes
Yuva Udyami Swrojgar Yojana:
Youth who have not registered with employment exchanges and now they are willing to venture, they will be provided a loan.
Tharukboksa Avm Janjaati Mahila Uthaan Yojana:
Under this scheme, the woman of the tribe will be provided employment opportunities through handloom. They will be linked to currency and other schemes.
Shilpi Pension Yojana:
The artisans who are receiving the old-age pension, the industrial department will give them additional top-up of Rs.200 per month as an honor.
Katayi Bunayi Bunkar Mahila Yojana:
The women interested in this plan will be provided training related to spinning, weaving as well as a loan for self-employment.
Rural Development and Community Development Programmes- Role of related Institutions and Organizations including all centrally and State sponsored schemes.
Rural Development Institutions
Besides, the administrative set up for planning for Rural Development, there are other Institutions, who plays equal important role in planning, Implementation and Monitoring of rural development programmes.
The important among them are:
(i) The Panchayati Raj System and
(ii) The Financial Institutions.
A. Panchayati Raj Institutions:
The successful implementation of rural development programmes requires not only decentralisation of administrative Machinery and Mechanisms for Co-ordination at the local level but also institutions for participation and involvement of local people. From this point of view; the Panchayati Raj institutions play the catalytic role.
The ‘Panchayat’ or the institution of village councils is as old as India’s history and is a part of her tradition. The ancient Panchayats serving as units of local government, discharged most of the functions that affected the life of the village community. There have been a number of indicative citations describing succinctly the forms, functions, features and forces that constructed the strong structure of Panchayats.
The erstwhile British Government had caused to supersede the Panchayat institutions by diverting their powers and functions concerning administration, execution and justice, and thereby centralised the administrative set-up to serve its colonial interests. Some of the British rulers like Lord Ripon introduce certain reforms in 1982 and advocated for the revival of the village Institutions.
The Royal Commission on Decentralization, of 1909 also favoured the promotion of these institutions, seeking people’s participation. The Montague-Chelmsford Reforms of 1919 had given same impetus for reviving the Panchayat bodies. But all these efforts were half-hearted and haphazard making no virtual impact.
B. Financial Institution:
In the rural areas, there is at present a wider spectrum of financial agencies directly or indirectly involved in Rural Development. These agencies mainly comprise of Co-operative banks, Commercial banks and Regional Rural Banks.
All these institutions are again linked with apex institution like National Bank for Agriculture and Rural Development (NABARD) for refinancing and borrowing purposes. There is thus a multi- agency approach to rural financing engaged in rural development activities.
Cooperatives:
The cooperative banking system was introduced in India in the year 1904 as a Credit movement to assist the farmers for higher agricultural production. In course of time, the Cooperative Credit institutions became inevitable and important institution for Rural Development.
The cooperative credit structure is broadly classified into two types. They are short-term and long-term credit cooperatives. The short-term cooperative credit structure is of three-tier system. This system is federal in nature and pyramidical in type. At the apex of the pyramid, there is the State Co-operative bank. There are Central Co-operative banks (CCBs) at the district or intermediate level.
At the bottom, there is the Primary Agricultural Co-operative Credit Societies (PACs). They operate mostly at the village level. In recent years the Farmers Service Societies (FSS) and Large-sized Agricultural Multipurpose Co-operative Societies (LAMPS) have been added to the existing base level institutions.
However, in the entire Co-operative Credit Structure, the Primary Cooperative Credit Societies occupy a strategic position on account of their direct links with the farmers and weaker section people at the grass root level. The long-term Credit Co-operative Structure is of two-tier system. There is Central Land Development Bank (CLDB) at the top and Primary Land Development Banks (PLDBs) at the base level.
The State Co-operative Bank is the apex bank in the short- term Co-operative Credit Structure. The area of operation of the bank is extended to the entire State. The management of the bank is vested in the board of Directors.
The last tier of the Co-operative banking structure is Primary Agricultural Co-operative Societies (PACs). These societies have direct linkage with the farmers and they are purely operating in the rural areas. The village credit society is the best agency to inculcate the habit of thrift, self-help and mutual help among its members. It is engaged in securing for its members services of various kinds.
Rural Development Schemes
Pradhan Mantri Gramin Awaas Yojana:
Pradhan Mantri Gramin Awaas Yojana (PMGAY), previously Indira Awaas Yojana (IAY), is a social welfare flagship programme, created by the Indian Government, to provide housing for the rural poor in India. A similar scheme for urban poor was launched in 2015 as Housing for All by 2022. Indira Awaas Yojana was launched by Rajiv Gandhi, the then Prime Minister of India, as one of the major flagship programs of the Ministry of Rural Development to construct houses for BPL population in the villages. Under the scheme, financial assistance worth ₹70,000 (US$1,100) in plain areas and ₹75,000 (US$1,200) in difficult areas (high land area) is provided for construction of houses.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana:
Deen Dayal Upadhyaya Grameen Kaushalya Yojana or DDU-GKY is a Government of India youth employment scheme.
It was launched by on 25 September 2014 by Union Ministers Nitin Gadkari and Venkaiah Naidu on the occasion of 98th birth anniversary of Pandit Deendayal Upadhyaya. The Vision of DDU-GKY is to “Transform rural poor youth into an economically independent and globally relevant workforce”. It aims to target youth, under the age group of 15–35 years. DDU-GKY is a part of the National Rural Livelihood Mission (NRLM), tasked with the dual objectives of adding diversity to the incomes of rural poor families and cater to the career aspirations of rural youth. A corpus of Rs 1,500 crore and is aimed at enhancing the employability of rural youth.
Swarnajayanti Gram Swarojgar Yojana:
Swarnajayanti Gram Swarojgar Yojana (SGSY) is an initiative launched by the Government of India to provide sustainable income to poorest of the poor people living in rural & urban areas of the country. The scheme was launched on April 1, 1999.
The SGSY(Swarnajayanti Gram Swarojgar Yojana) aims at providing self-employment to villagers through the establishment of self-help groups. Activity clusters are established based on the aptitude and skill of the people which are nurtured to their maximum potential. Funds are provided by NGOs, banks and financial institutions.
Pradhan Mantri Gram Sadak Yojana (PMGSY):
The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a nationwide plan in India to provide good all-weather road connectivity to unconnected villages.
This Centrally Sponsored Scheme was introduced in 2000 by the then-prime minister of India Atal Bihari Vajpayee. The Assam Tribune has reported that the scheme has started to change the lifestyle of many villagers as it has resulted in new roads and upgrade of certain inter-village routes in Manipur.
During November 2015, following the recommendations of the 14th Finance Commission, the Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored Schemes, it was announced that the project will be funded by both the central government (60%) and states (40%).
From 2004 to 2014, the average speed of road construction under the PMGSY was 98.5 kilometres per day.
National Rurban Mission (NRuM):
The objective of the National Rurban Mission (NRuM) is to stimulate local economic development, enhance basic services, and create well planned Rurban clusters.
A ‘Rurban cluster’, would be a cluster of geographically contiguous villages with a population of about 25000 to 50000 in plain and coastal areas and with a population of 5000 to 15000 in desert, hilly or tribal areas. As far as practicable, clusters of villages would follow administrative convergence units of Gram Panchayats and shall be within a single block/tehsil for administrative convenience.
Deen Dayal Antyodaya Yojana:
Deen Dayal Antyodaya Yojana – National Livelihoods Mission (NRLM) was launched by the Ministry of Rural Development (MoRD), Government of India in June 2011. The Mission aims at creating efficient and effective institutional platforms of the rural poor enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services.
NRLM has set out with an agenda to cover 7 Crore rural poor households, across 600 districts, 6000 blocks, 2.5 lakh Gram Panchayats and 6 lakh villages in the country through self-managed Self Help Groups (SHGs) and federated institutions and support them for livelihoods collectives in a period of 8-10 years.
DAY (NRLM Mission)
“To reduce poverty by enabling the poor households to access gainful self-employment and skilled wage employment opportunities, resulting in appreciable improvement in their livelihoods on a sustainable basis, through building strong grassroots institutions of the poor.
Sansad Adarsh Gram Yojana (SAGY):
Sansad Adarsh Gram Yojana (SAGY) is a village development project launched by Government of India in October 2014, under which each Member of Parliament will take the responsibility of developing physical and institutional infrastructure in three villages by 2019. The Saansad Adarsh Gram Yojana (SAANJHI) was launched on on 11th October, 2014.
The goal is to develop three Adarsh Grams by March 2019, of which one would be achieved by 2016. Thereafter, five such Adarsh Grams (one per year) will be selected and developed by 2024.
National Rural Health Mission (NRHM):
The National Rural Health Mission (NRHM), now under National Health Mission[1] is an initiative undertaken by the government of India to address the health needs of under-served rural areas. Launched on 12th April 2005 by Indian Prime Minister Manmohan Singh, the NRHM was initially tasked with addressing the health needs of 18 states that had been identified as having weak public health indicators. The Union Cabinet headed by Dr.Manmohan Singh vide its decision dated 1 May 2013, has approved the launch of National Urban Health Mission (NUHM) as a Sub-mission of an overarching National Health Mission (NHM), with National Rural Health Mission (NRHM) being the other Sub-mission of National Health Mission.