Unemployment
Author : Gayatri Dhananjay Kasar
Introduction
Unemployment is considered to be one of the most critical economic and social issues faced by nations across the world. The set of articles reviewed above encompasses various aspects of unemployment, such as youth unemployment, long-term unemployment, and the rising unemployment challenges in India. Certain articles raise questions about the authenticity of unemployment statistics, particularly for the youth, suggesting that the calculation process tends to exaggerate the problem. Other articles are based on Europe and Australia, describing how long-term unemployment causes long-term economic and psychological impacts. Various research papers have been used to describe the unemployment problem in India, analyzing the causes of unemployment due to population growth, slow industrialization, rural problems, and skill gaps. The articles have also analyzed the recent trends that show fluctuations in the unemployment rate in India because of economic development, festive season demands, and global uncertainties. The overriding theme of all the research papers is that unemployment is a major factor that impacts economic growth, income, and social stability. The significance of youth unemployment has been highlighted, as the youth are considered to be the future workforce of the country. Various authors have emphasized that education is not sufficient without proper skill development.
Literature Review :
Unemployment Problem in America (1956)
This is an article (The Unemployment Problem. (1959). TIME Magazine, 73(9), 11) about the unemployment issue in 1959 in America.
During this period, many people wanted to work but did not have any employment. Approximately 47 lakh (4.7 million) people were unemployed. This was a record number of unemployed people after World War II.
The Labor Secretary, James P. Mitchell, described this as a serious issue. He wanted the government to:
Pay unemployment money for a longer period
Make better rules so that unemployed people receive better help
However, the President, Dwight D. Eisenhower, did not agree with this completely.
He thought that the economy was slowly recovering. Therefore, the government should not spend too much money.
During this period, a labor leader named Walter Reuther (union leader of workers) was also very upset. He thought that the government was not doing enough. He even proposed that they should go for a march to show how serious the unemployment issue was. ( The Unemployment Problem. (1959). TIME Magazine, 73(9), 11)
2) Unemployment Problem Europe’s countries (1992)
The article “Europe’s Unemployment Problem” by Jacques Drèze and Charles R. Bean describes the problem of unemployment in Europe. During that period, countries such as France, Germany, Italy, Spain, and the United Kingdom were experiencing a large number of unemployed people. Many people were looking for employment but could not find it. According to the article, the unemployment was caused by low economic growth, high wages, rigid labor policies, and a mismatch between the demand and supply of employment. This resulted in low earnings for the population and a slow rate of economic development. The authors examine the problem of unemployment in Europe and propose a remedy such as better wage policies, enhanced productivity, and effective government policies to generate more employment. (Europe’s unemployment problem. (1992). Journal of Economic Literature, 30(1),259.
3) Problem of Long- term unemployment
This article by Chapman, B. J. (1993) describes the problem of long-term unemployment, particularly in Australia in the 1980s and early 1990s Chapman, B. J. Long-term unemployment refers to people who are unemployed for a very long period of time. The article illustrates that after a recession, the number of long-term unemployed persons rises dramatically and does not decrease for a long time, even when the economy is recovering. When people are unemployed for a very long time, they lose their skills, confidence, and connection with the job market. Employers may believe that they are less productive and therefore do not hire them. This leads to a problem called “hysteresis,” where unemployment remains high for a long period of time because long-term unemployed persons are less connected to the job market. The article also describes that high long-term unemployment leads to difficult economic management and increased government spending. It recommends that a strong labor market and appropriate labor market policies are required to solve the problem of long-term unemployment (Chapman, B. J. 1993)
4) How Emotions and Gender helps students start businesses
This article discusses unemployment in India and states that a good remedy for this problem is to encourage youth to become entrepreneurs (start their own business). The research examines Agarwal, M., & Satsangi, A. K. (2018) the correlation between emotional intelligence and entrepreneurial self-efficacy among management students in the Agra district. Emotional intelligence refers to the capacity to recognize and manage your own emotions and recognize others’ emotions. Entrepreneurial self-efficacy refers to the extent to which an individual is confident about starting and managing a business.
The authors Agarwal, M., & Satsangi, A. K. (2018) conducted their research by gathering data from 50 management students through a questionnaire. They concluded that there is a direct correlation between emotional intelligence and entrepreneurial self-efficacy. This implies that students with higher emotional intelligence also possess higher confidence levels to become entrepreneurs. The authors Agarwal, M., & Satsangi, A. K. (2018) also concluded that gender plays an important part in this study. Gender influences both emotional intelligence and entrepreneurial self-efficacy.
The article ends with the conclusion that if emotional intelligence is improved, students will become more confident entrepreneurs. Therefore, management colleges need to work on developing emotional intelligence among students to overcome unemployment and encourage self-employment in India. ( Agarwal, M., & Satsangi, A. K. (2018)
5) Unemployment in India decreased during Festival Season
According to this author Beniwal, V. (2022) the unemployment rate in India has reached its lowest point in over four years. In September, the unemployment rate declined to 6.43%, compared to 8.3% in August. Approximately 10 million jobs were added during this time. Both rural and urban areas experienced improvements. In rural areas, the unemployment rate declined to 5.8%, and in urban areas, it decreased to 7.7%. The main reason for the improvement is the festival season in India, which typically boosts business and generates more employment opportunities. Good monsoon seasons and a surge in the services sector also contributed to the addition of jobs.
Despite the improvement, there are still risks involved. There is a concern about a global recession, which could lower demand and hinder job growth. The Reserve Bank of India raised interest rates to combat inflation, and the country’s growth forecast was reduced to 7%. Although India is growing rapidly compared to other nations, the rate of job creation is still inadequate for the country’s massive population, particularly the youth. Due to this reason, unemployment is still a significant concern in India. Unemployment has decreased recently, but there are still challenges in the long run. ( Beniwal, V. 2022)
6) Is Unemployment really as serious as reported ?
According to this article Zagorsky, J. L. (1993), the problem of unemployment among the youth in America is not as significant as the figures indicate. The government measures unemployment by conducting a survey known as the Current Population Survey (CPS). In this survey, people are classified into three categories: employed, unemployed, and not in the labor force. If a person is a full-time student but also looking for a job, the government considers that person to be unemployed.
The writer of this Zagorsky, J. L. (1993) article believes that this process overestimates the level of youth unemployment. Students who are primarily engaged in school activities should not be considered as unemployed because their primary work is studying. If these students are transferred from the “unemployed” category to the “not in the labor force” category, the unemployment level becomes much lower.
For instance, between 1980 and 1992, the actual level of youth unemployment was approximately 13.5%, but after adjusting the figures, the level reduced to 10%. The unemployment level among teenagers aged 16 to 19 years also reduced from 20% to 11.7%. The level of unemployment among White, Black, and Hispanic youth also significantly reduced. Even the national unemployment level slightly reduced after this adjustment. ( Zagorsky, J. L. 1993)
7) Causes, Trends and solution of unemployment in India
The article defines Dr. R. Shashi Kumar Kumar, R. S. (2023) unemployment as people who are looking for work but cannot find employment, and it indicates the overall health of the economy. In India, unemployment is a large and serious problem because many people, particularly the young and educated, have difficulty finding employment. The article describes how unemployment rates are calculated through various surveys and indicates that depending on the approach, the findings can differ. It also indicates that India experiences both short-term and long-term unemployment because of sluggish industrial growth, population growth, and a lack of skills in the workforce. The article emphasizes Dr. R. Shashi Kumar Kumar, R. S. (2023) that employment generation is important particularly because India has a large working-age population that, if properly employed, could make a substantial contribution to economic development. To address this problem, the author proposes solutions that include the decentralization of industries, the development of rural areas, the promotion of youth entrepreneurship, the encouragement of women’s participation in the workforce, the development of education and training, and better program implementation. The study concludes that although recent employment growth has indicated some positive developments, a comprehensive policy strategy is necessary to address unemployment and benefit the Indian economy. ( Dr. R. Shashi Kumar Kumar, R. S. 2023)
8) Changes in unemployment rate India
The article examines the trends of unemployment in India and attempts to identify why unemployment varies and what can be done to reduce unemployment.( Devesh Kumar Pandey et al.Pandey, D. K., et al. (2024). It discusses previous studies on unemployment and government statistics to identify trends in unemployment and its causes. According to the Ministry of Statistics and Program Implementation, the unemployment rate in India decreased to 7.2% during October-December, which was lower than 8.1% during July-September, indicating improvement. The article describes the economic effects of unemployment and the need for effective policies to further lower unemployment. In conclusion, the study makes it clear that although the rate of unemployment in India has been declining, there is still a need to promote employment in all sectors. ( Devesh Kumar Pandey et al.Pandey, D. K., et al. 2024)
9) Study of unemployment problem and solutions in India
This article discusses the unemployment issue in India, which means that many people who are looking for employment are not able to get it. The author says Ravinder Kumar, R. (2021) that unemployment has become a huge issue since India has a rapidly growing population, and the economy is not producing enough jobs for all of them. The article Ravinder Kumar, R. (2021) shows how unemployment impacts people’s lives, and it leads to poverty, frustration among the youth, and a slow economy.
The research examines various causes of unemployment in India, such as:
Slow growth of industries – industries are not growing at a fast pace to create more employment opportunities.
Poor agricultural sector – many Indians rely on agriculture, but it is not a major source of employment.
Lack of skills – many unemployed individuals lack the necessary skills to get a job.
Misalignment of education and employment – many students graduate from schools but cannot get a job related to their field of study.( Ravinder Kumar, R. 2021)
10) How economic Growth, Wages and Development affect unemployment in India
This research article examines Jitendra Kumar Sinha, J. K. (2016) why unemployment in India is high and what influences it. The authors examine how various economic and social factors, such as population growth, education levels, labor market conditions, and economic policies, impact the unemployment rate in India. They clarify that while India has been growing economically, it has not been growing in terms of employment, particularly for educated youth. One reason for this is that many sectors fail to provide adequate employment opportunities for all job seekers. Another reason is the problem of skill mismatch, where young people possess skills that do not match the required skills in the job market. The article also emphasizes that unemployment is a problem for some people more than others, such as those in rural areas and those with low or mismatched skills.
The article concludes that education is not a guarantee for a job unless it is combined with skills that are in demand by employers. It recommends that improving vocational training and emphasizing skill development programs can help alleviate the unemployment problem. The authors also propose that the government needs to develop better employment policies, encourage entrepreneurship, and support small and medium-scale businesses to generate more employment opportunities.( Jitendra Kumar Sinha, J. K. 2016)
Conclusion
The ten articles reviewed together emphasize the issue of unemployment as a complex and multi-dimensional economic phenomenon that affects various countries and age groups in different ways. The articles demonstrate that unemployment is not merely a problem of job scarcity but also a problem of how it is measured and interpreted. Some articles suggest that official statistics, particularly in the case of youth unemployment, tend to exaggerate the magnitude of the problem because of the way it is categorized. Some articles deal with the problem of long-term unemployment and how it leads to a loss of skills, confidence, and future employment prospects. Articles dealing with Europe and Australia show that unemployment can persist even when the economy is back on track. Articles dealing with India emphasize the causes of unemployment such as population growth, sluggish growth of industries, rural problems, and lack of skills. The articles also point out that economic development does not necessarily lead to adequate employment opportunities. The articles dealing with India emphasize the importance of youth unemployment, which is a critical issue since the youth of today are the future workforce of the country. Many articles emphasize the importance of skill development, training, and entrepreneurship.
References
Agarwal, M., & Satsangi, A. K. (2018). The role of gender in emotional intelligence and entrepreneurial self-efficacy. IUP Journal of Management Research, 17(4), 15–31.
Beniwal, V. (2022). India jobless rate drops to four-year low before festival season. Bloomberg.
Chapman, B. J. (1993). Long-term unemployment. Australian Economic Review, 26(2), 22–35.
Drèze, J., & Bean, C. R. (1992). Europe’s unemployment problem. Journal of Economic Literature, 30(1), 259–267.
Kumar, R. (2021). An analysis of India’s unemployment problem and solutions. Global International Scientific Research Review Journal.
Kumar, R. S. (2023). Unemployment in India: Causes, trends and remedies. International Journal of Economic Perspectives.
Pandey, D. K., et al. (2024). Variation in unemployment in India. International Journal of Multidisciplinary Research and Growth Evaluation.
Sinha, J. K. (2016). Effects of economic growth, minimum wage and human development index on unemployment in India. International Journal of Applied Business and Economic Research.
The unemployment problem. (1959). TIME Magazine, 73(9), 11.
Zagorsky, J. L. (1993). Is
youth unemployment really a problem? Challenge, 36(5), 16–21.