The Dimensions of the Problems of Unemployment in India

Abstract

Unemployment in western economies is primarily a market-oriented concept. The number of unemployed in such countries is ascertainable from the data available through the Employment Exchanges. The western economies are industrial countries and information on the unemployed is recorded systematically. This is a result of the high extent of urbanisation, the educational levels and the efficiency of the system of information transmission and communication. Even in their agriculture, which provides employment only to a small proportion of the labour force, seasonal unemployment is not an acute problem, nor are available jobs predominantly part-time. Labour is treated as indivisible, at least from the angle of jobs that are sought and offered. What this implies is that the employment offered to a worker is continuous for the duration of the job and the duration is normally long. The income offered will be sufficient to provide for the worker fully for that period, with reasonable intensity of effort. In such countries the available labour is scarce in relation to the potential opportunities of employment. The system is geared to economise in the use of labour. Another characteristic is the low proportion of the total labour force that is engaged in more than one occupation at the same time. Specialisation implies higher earnings.

In the original plan for the conference, Dr Raj Krishna was invited to write the paper on this important theme. The present author filled the gap at short notice when Dr Raj Krishna was prevented by other official duties from writing the paper or attending the conference.