Unemployment: global economic malady (Editorial)
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19/03/2008
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Assam Tribune
Unemployment is a common global economic malady, the level of which distinctly varies between developed and underdeveloped nations with Keynesian involuntary and frictional type in respect of developed nation and structural type in regard to an under developed country like India which attributes to maximum growth of population and insignificant economic growth. Under employment or disguised employment intensified its dimension mainly in the rural sector where despite having capacity and willingness, persons fail to avail any gainful activities for which total job seekers outnumber job availability creating a major wastage of manpower. Unemployment in our country is partly due to overwhelming growth of population occurring due to immigration from Bangladesh and partially for non-availability of land, less productivity, lack of industrial infrastructure, haphazard growth of educational institutions and expansion of education which is responsible for influx of new entrants into the labour market which is already overcrowded. Agriculture being a seasonal activity fails to provide employment to the rural masses throughout the year while perennial activity is not available in reality owing to excessive pressure of population. Exodus from rural areas coupled with slow pace of industrialisation are constrains in providing employment opportunity to a growing urban population. Rapid expansion of general education mingled with slow growth of technical and vocational facilities have intensified the educated unemployment problem. Accurate estimation of unemployment has become a hard task in view of ever-increasing unemployment and under employment and failure in maintaining record by employment exchanges due to its limitation and non-registering of unemployed youth. While unemployment in this State as a percentage of labour force has become double as compared to the country within 1985-2000 as per the NSSO report, it is estimated to be 10.9 percent of the total labour force with a total of 13 lakhs (71 percent) registered educated job seekers. HSLC passed outnumber (51 per cent) to HSSLC passed (30 percent) and Graduate (16 per cent) while technical and post-graduate job seekers constitute a very minimal (3 per cent). Placement of job seekers increased to 16 percent in between 2004 and 2005, constituting a minimal (0.5 per cent) increase in public sector and 9.3 percent increase in the private sector with nearly 31 percent women employment in the organised sector. Rural and women unemployment has quadrupled. Most of the self employed or partially employed youth bother a little to inform the employment exchange about their absorption which is also responsible for inability to project in the accurate employment situation. According to the NSSO report, the number of unemployed in this State is 18 and 24 per thousand respectively in rural and urban areas as against only 9 and 19 respectively at the national level indicating a greater dimension of the problem in this State. According to the task force, the rate of unemployment in this State increased from 7.96 in 1993-94 to 8 percent in 1999-2000, which is quite high compared to the all-India figures, (nearly 7 percent), 2.93 percent of Himachal Pradesh and 3.06 percent of Rajasthan. Youths in this State are mostly interested in securing Government jobs in lieu of self-employment or employment in private venture, which has enhanced the demand for jobs leading to major corruption in the recruitment policy. Ban on creation of posts and restriction on filling up vacancies have created mounting unemployment problem resulting in a grave political, economic and social disorder. Despite shooting up of the GDP, employment growth in the State declined significantly from 1.8 percent to 0.07 percent within 15 years on agriculture. So, the call of the hour is to generate job opportunities through filling up vacancies considering intellectual achievement. It is necessary to locate certain sectors where unemployed youths can be accommodated suitably. According to a study, the employment elasticity of various sectors varies significantly. Poor quality low paid job with unsafe, insecure and unhealthy working condition combined with low productivity resulted in a major shift in the employment trend. Micro and macro level analysis shows that population of working age group (15-59 years) has been depicting a steady increase from 382 million to 402 million with annual growth rate of 0.9 percent within 1994 and 2000. In India, major additional employment (90 percent) is generated from the unoganised sector. Provision of poor wage rate, and relative insecurity have hindered employment under the organised sector. Agriculture alone cannot hold the key unless organised industry comes forward to combat the problem and a major thrust is given on development of the rural sector. Sampoorna Gramin Rojgar Yojana, Mahila Samriddhi Yojana, Employment Assurance Scheme, Rural Landless Employment Guarantee Programme and Prime Minister's Rojgar Yojana may pave the way to partially solve the unemployment problem through creation of additional employment opportunities. The Chief Minister's Swa-Niyojan Yojana implemented by the State Government is expected to improve the situation through job-oriented training to educated unemployed youth. It is also advisable to utilise the service of disciplined and sincere retired personnel on a voluntary basis in different avenues. Hundred Days Job Guarantee Programme initiated in 2006 marked a significant milestone in providing jobs to the rural poor. An underdeveloped State like Assam cannot be equated with that of developed states in this context as it is in the cradle when the rest of the country reached the zenith of industrial and economic development. Assam has started its industrialisation only with limited industries like petroleum, coal and tea under foreign domination, which absorbed some English-knowing local youth in clerical cadres, while the rest is predominantly dependent on agriculture and household industries. Lack of full-time job opportunity with ever-increasing growth of landless marginal farmers, semi -skilled artisans etc created a severe jolt in the rural economy. Bringing about qualitative improvement in the special programmes involving better targeting, judicious selection of assets, cost-effectiveness, infrastructure support and integration with sectoral and area development plans will acquire added significance in the present-day context. The ongoing economic reforms with emphasis on private participation in the growth process and expansion of investment and production will give a fillip to the growth of employment. The National Commission advocates a multi-pronged strategy emphasising on rural non-farm employment so as to restrict massive outflow of rural labour force to urban areas in search of decent work. (The writer was former Director, Dept of Economics and Statistics, Assam).