In this week’s class with News18, we will understand the employment system in a country. Why do governments keep track of employment or unemployment ratios, how are they calculated and how do they impact a country as a whole? First things first, why do people work? Is it just for money? Or just for creative satisfaction? The answer is much bigger.
Why do people work?
Work plays an important role in the lives of individuals and as members of society. While people work to earn a living, this may not completely satisfy everyone. Being employed gives people a sense of self-worth and meaning in life. As mentioned in the Class 11 NCERT Economics textbook, every working person is actively contributing to national income and hence, the development of the country by engaging in various economic activities.
Hence, this means anyone who is contributing to the economy, be it doctors, farmers, shopkeepers, housekeepers, or technicians, everyone falls under the category of the employed workforce.
As compared to females, more males are found to be working in India. For every 100 females in urban areas, only around 15 are engaged in some sort of employment or economic activity. Whereas in rural areas, for every 100 women, about 25 participate in the employment market. Most of the women work in households which too is an integral part of living a stable life, however, since it does not have an economic aspect to it, they are not considered to be employed. So you could be working but not considered employed.
What is unemployment?
There are three sources where one can get data on unemployment. This includes the Reports of the Census of India, National Sample Survey Organisation (NSSO), and Unemployment Situation, and Directorate General of Employment (DGE).
According to economists, an unemployed person is one who is not able to get employment for even one hour in a half a day. As per the NSSO, unemployment is a situation in which all those who do not have work and are eligible for it, or are not working but either seek work through employment exchanges, intermediaries, friends or relatives or make applications to prospective employers are considered as unemployed. There are several ways by which an unemployed person can be identified.
Now, who is eligible for employment? To be considered unemployed, a person must be of proper age, available to work for full time, and yet have not got any job in four weeks. The person must be actively looking for a job and if s/he still does not get any job within a month, s/he will be considered as undeployed.
In cases such as temporarily lay off or joining back after some time due to personal causes, those are not considered unemployment. To calculate the unemployment rate formula, can be determined in the following formulae:
Unemployment Rate = Unemployed persons / Number of employed and unemployed persons
Employment & Economy?
Worker-population ratio is defined as that which provides active service in the production of goods and services for the economic growth of the country. To calculate the worker population ratio, we have to know the total workforce and the total population. It can be determined in formulae as:
Work population ratio = Total workforce/total population*100
The unemployment rate depends directly on the prevailing economic conditions. It falls or rises as the economic conditions of the country. If the economy is down, it means jobs are scarce or not available, and the employment rate increases if the economy is good and jobs are aplenty.
What is disguised Unemployment?
Economists say unemployment prevailing in Indian farms is disguised unemployment. What does this mean? As explained with an example in the NCERT book, a farmer has four acres of land and he actually needs only two workers and himself to carry out various operations on his farm in a year, but if he employs five workers and his family members such as his wife and children, this situation is known as disguised unemployment. As per a study conducted in the late 1950s, about one-third of agriculture workers in India as disguisedly unemployed, states the textbook.
In an easier way, this means anyone who employs more than required but pays all employees the same, it is known as disguised unemployment. It does not affect economic output and lends an appearance of employment. Also known as hidden employment, this is workers who are employed but are actually hidden or not counted as workers!
Take the quiz to know how much you have understood:
“Studying about working people gives us insights into the quality and nature of employment in our country and helps in understanding and planning our human resources. It helps us to analyse the contribution made by different industries and sectors towards national income. It also helps us to address many social issues such as exploitation of marginalized sections of the society, child labour etc," adds the NCERT Economics book.
To learn about other topics taught in school, explained by News18, here is a list of other Classes With News18: Queries Related to Civics Chapter on ‘Elections’ | Sex Versus Gender | Natural Disasters | Wonderland of Letters | Civil Wars | Cryptocurrencies | Economy & Banks | Silk Route
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