India, a vast country with a large population, is currently grappling with a troubling issue of extensive unemployment. This problem cuts across urban and rural areas, resulting in either involuntary or forced idleness that adversely affects the demand for agricultural and industrial goods. Moreover, it creates openings for anti-social activities. Consequently, this scenario underscores the underutilization of human resources that should be harnessed to maximize productivity, leading to significant implications.
While increasing production measures are being implemented globally, the rights of labor are compromised, endangering productive power. This issue is more hazardous in underdeveloped and developing nations compared to industrialized countries where occasional aggregate demand shortages primarily cause small impacts. For instance, in countries like India, production heavily relies on labor rather than capital leading to insufficient wages and widespread poverty.
India is confronted with a notable degree of underemployment in rural areas and an increasing level of unemployment among the middle class. This presents a significant obstacle for policymakers and administrators, putting both the economy and social structure at risk. It is vital to promptly address this issue. To effectively combat unemployment, it is crucial to have a thorough understanding of its exact nature, which applies to urban as well as rural regions.
For about five to seven months each year, many people in rural villages are unemployed. More than 70% of the country’s total population depends on agriculture or related activities for their main income. However, these individuals are not very productive given the time they spend working. As a result, high rates of unemployment and poverty in rural areas have led to a constant movement of jobless individuals from rural to urban regions.
The rural population has seen a significant increase, but the growth of cultivated land hasn’t kept up. This has led to lower productivity and a decline in traditional crafts in rural villages, causing many people to move from rural areas to cities. In India, agriculture is affected by seasons, resulting in regional and crop-specific fluctuations in unemployment rates. Due to continuous population growth and limited availability of cultivable land, there is an ongoing surplus of agricultural labor that goes largely unnoticed as hidden underemployment.
Out of the current population of 600 million, around 500 million individuals rely on agriculture. Approximately 20% of these individuals are actual farmers, while the rest work as farm laborers. Disguised unemployment is prevalent among workers in small and cottage industries, which have decreased due to competition with larger factory products produced domestically or imported. The unemployed in urban areas constitute the industrial labor force and educated young individuals.
As the general population has rapidly increased and labor has shifted from rural to urban areas, there has been a consistent rise in urban population. However, industries and factories have failed to generate sufficient employment opportunities for these newcomers. Instead of creating new jobs, these industries prioritize maximizing their current capacities.
Unemployment in the industrial sector has increased due to various factors. Despite a significant rise in job opportunities for educated young individuals from the middle-class, it hasn’t kept up with their increasing population and expanding education system. Schools and universities have produced a larger number of graduates without adequately equipping them for the workforce.
The migration of people from rural to urban areas has been on the rise due to economic constraints in the village economy. The unemployed population in urban areas has been adversely affected by increasing prices. Workers who depend on small industries encounter difficulties such as limited raw materials and high production costs. Furthermore, the rapid population growth between 1961 and 1971, which witnessed a 24.8% increase, is another contributing factor to unemployment.
The current population is estimated to be around 60 crores, compared to approximately 55 crores in 1971. Roughly 47 percent of the population comprises individuals aged 15-49, representing the nation’s able-bodied population. The competition between economic growth and employment generation has resulted in annual economic growth ranging from one percent to three percent, which does not fulfill our requirements. Accurately depicting the country’s overall unemployment situation is a challenging task.
The number of individuals on the live registers of employment exchanges in the country offers a limited view and represents the trend. These exchanges mainly serve urban areas. Because registration with the exchanges is optional, not all unemployed individuals opt to register. By May 1976, around 9.5 million people had registered, showing an increase of approximately 4.6 million since the end of May 1970.
The number of educated individuals without a job was approximately 48 lakhs, which is an increase of about 25 lakhs since the end of 1970. However, these statistics do not accurately represent the level of unemployment as the actual number of unemployed individuals is likely to be much higher.
According to data from the 1971 census, there were around 47’48 million agricultural laborers and 15’6 million share-croppers, making a total of 63’08 million (which has probably increased since then). Typically, these individuals would find employment for around 100 to 150 days per year.
In 1970, the Bhagwati Committee estimated that there were 18.7 million unemployed individuals in India, with 16.1 million in rural areas and 2.6 million in urban areas.
According to the National Sample Survey conducted in 1975, around one-fifth of Indians live in extreme poverty and one-third are considered impoverished. Furthermore, nearly half of the population lives below the poverty line.
Currently, it is estimated that there are around 23 to 24 million unemployed individuals in India. Additionally, approximately 40% of the population is living below the poverty line.
‘Yojna’ reported in its May 19,77 issue that the current unemployment level in the country is approximately 29 million. To tackle under-employment in rural areas, it is essential to offer productive employment opportunities to the agricultural population when they face seasonal idleness. One effective approach for addressing seasonal unemployment involves implementing public works projects. The government can initiate irrigation and drainage schemes that utilize local labor and materials, thereby providing advantageous employment to individuals who experience joblessness during specific seasons.
Moreover, the construction of village roads, dispensaries, and school buildings not only adds to the national wealth but also provides employment opportunities. Additionally, addressing the persistent issue of unemployment requires increasing cultivated land and implementing a proactive approach towards rapid industrialization. To tackle urban unemployment, it is suggested that by expanding agricultural land, the migration from rural to urban areas can be curtailed.
Furthermore, the development of village and cottage industries can aid in stopping the imbalance of idle labor. Specific plans are required to address the growing urban employment issue. Some individuals could be motivated to establish their own businesses. Assistance in the form of machinery and loans at discounted rates can be provided to them. Another opportunity for generating additional employment for urban youth is in the field of transportation. This sector would not only provide jobs for some of the unemployed individuals but also enhance public transportation facilities.
A strong effort to eliminate illiteracy can create jobs for many educated individuals who are currently unemployed. Likewise, a comprehensive public health program could offer employment opportunities to numerous individuals. Initiatives aimed at getting rid of slums and constructing housing for the underprivileged could also generate job prospects. However, these proposed measures to combat unemployment, both in rural and urban areas, are only temporary solutions. To permanently address the issue, a creative and ambitious plan must be implemented, with particular consideration given to the national policy regarding education and industry.
The issue of unemployment is closely linked to poverty and has been causing significant hardship to millions of individuals in our nation. It is not solely an economic problem but also holds profound social implications. Unemployment first emerged after the conclusion of World War II, when the gradual demobilization, service cutbacks, and sudden decrease in demand for industrial goods led to a massive reduction in job opportunities. Since then, this problem has only worsened without being effectively addressed.
Despite recognizing the problem in our Five-Year Plans, little was done to effectively address it, resulting in a worsening situation due to rapid population growth. Attempts were made to confront and prevent further deterioration, but they proved ineffective. In December 1970, the government established a Committee on Employment with the aim of studying and offering recommendations for resolving the challenge of rising unemployment.
The Committee released its interim report in February 1972, allocating Rs. 250 crores to enhance employment opportunities in the last two years of the Fourth Plan. The report emphasized the importance of rural and economic regeneration, proposing an extensive scheme encompassing minor irrigation, soil conservation, rural roads, primary education expansion, enhancement of rural public health services, rural housing, inland water transportation improvement, flood control measures, expansion of multiple cropping areas, and development of agro-based cottage and small-scale industries.
The Committee’s suggestions for the proposed programs aimed to generate around 4 million job opportunities. However, despite presenting their final report in 1973, these recommendations were unfortunately not implemented. Even in the Fifth Plan, these suggestions were excluded. Although there was initial hope for the Rural Employment Crash Programme that started in 1971, it ultimately proved ineffective and resulted in a wastage of Rs. 150 crores between 1971-72, 1972-73, and 1973-74.
Despite the implementation of the Emergency Agriculture Production Programme, unemployment has continued to worsen in both urban and rural areas. The new government, which took office in March 1977, is committed to eradicating poverty within a decade. Unemployment should not be influenced by politics and is a critical national issue. The success of our efforts to bring prosperity depends on finding a satisfactory solution to this problem. Positive outcomes can only be achieved with strong political determination and an effectively executed practical program. It is crucial to develop imaginative programs that consider the specific circumstances in the country at present instead of relying on pre-existing or borrowed solutions. Therefore, any initiatives designed to create job opportunities must directly address the underlying causes that have led the country to this predicament.
It is imperative that the program addresses all aspects of unemployment and acknowledges the involuntary nature of idleness. Evaluating proposed measures is crucial in effectively combatting this issue. The recent declaration by Prime Minister Mr. Desai regarding the eradication of unemployment seems to be a positive step forward. As per the announcement, “The government is committed to eliminating poverty within a decade.”
To accomplish their goal, the government will execute a strategy that prioritizes employment and revolves around the advancement of agriculture, agro-industries, small and cottage industries in rural areas. The plan also highlights the importance of meeting the minimum needs of rural areas and ensuring integrated rural development. Given that approximately 80% of our population is affected by it, focusing on rural development becomes essential for any unemployment reduction plan or strategy.
Successfully resolving the problem of poverty and unemployment in rural areas would be a major milestone. There are many villages where we can promptly launch extensive employment programs to offer job opportunities to the unemployed, with no delays. These initiatives can be carried out without demanding significant investments. Nevertheless, any monetary expenditure made to enhance the lives of our fellow citizens, especially those living below the poverty threshold, would be a valuable investment.
