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THE PROBLEM

Unemployment and under employment is a chronic Indian

problem. It is as acute as it is widespread. It has become

a pressing and a perennial problem of Indian economy,: Planners,

policy makers, administrators, economists and legislator's

have

•found the problems of unemployment and under-employment in India

quite intractable and insurmountable over' the years,, And, while

we continue to wallow in our analysis and anxiety„ the problems;

relating to, and arising from, unemployment and under.employment

have assumed increasingly intimidating proportions. These

problems pose a challenge to our' nation, and it behaves social

scientists and policy-makers to probe them in depth1.

The problem of unemp 1 oyment impinges; cm every aspect of our

national life. It is not merely an economic and technocratic

problem but a problem! which calls; for the pooling of all our
intellectual and physical resources and the marshalling of our

national will and determination» The survival and the prosperity

of our nation and the performance capabilities of our political

and legal system depend in a large measure on our ability to

reduce unemployment and under-employment, to maximize our

productivity and to optimise the tempo of rural development and

industrialization. It appears that, we are fighting a difficult

battle in a complex world, and it is no longer possible for us

to take a complacent view of things*.

Unemployment has its roots much deeper in the economic

system than is commonly supposed. There is no problem so

■fundamental to economic development as the problem of

employment. Suggested remedies for the evil are numerous,

but the more one investigates the causes of unemployment the

more one doubts the chances of success of any single panacea

working alone. The study of the problem of unemployment is very

complex for it involves enquiry into the working of the whole

economic: system3,

An individual can contribute towards national dividend,

only when he is employed. The problem of employment assumes great,

importance due to the fact that, every year with the growth in

population, a certain percentage is added to the labour' force

who have to be provided with jobs and employment opportunities.

The modern economic system fails to provide employment

continuously tor all who desire to work,- This ma k e t he p ro b 1
em

of unemployment the most pressing problem in all the countries,

and, therefore, the economic thinkers all over the world are

devoting their serious attention for a solution« Under

free enterprise, with the trade cycles of the present century the

attention of the economists in all countries was diverted to a

planned and controlled economy. Even in the U.S.A, in 1930's

President Roosevelt's programme of New Deal'4 dealt with the

problem of providing jobs to the people. In socialist countries

like the U. S«S. R., the whole planning was diverted towards

the development of resources in a manner that involved not cm 1y

full employment but also a shortage of man-power resources.

This shows that unemployment has always been a challenging

and frustrating problem to the economists and administrators

both in controlled as well as uncont.ro 1 led economies» As

pointed out by Mrs. Joan Robinson®, in an uncontrolled or private

enterprise economy it often happens that productive resources

are unemployed men out of work, machines idle, 1 and falling

out of cultivation -• while at the same time there is bitter need

for the goods which they are able to produce» Output falls below

its possible maximum, not when needs are satiated, but when

demand is deficient.
 The Internationa 1 dimensions of the problem invited the

attention of Economists« piann&rs and admina.strators the

world over,,- as well as, international organisations to express

concern at the; disc one e rn i n g trend of growing unemp 1 oymen t

in large parts of the world and its grinding effect on the levels of

living of vulnerable sections of the population *

Nations have survived floods, famines, wars, pestilence but

it would not be an exaggeration to say that no nation on earth

can ever survive prolonged unemployment. For nearly four decades

now, unemployment has been increasing steadily in India and

nothing effective has been done about it, even though al 1

citizens of India have the right to adequate work according to

the Directive Principles of State Policy adopted in our

constitutions. Article 39 ensuress "that the citizens, men and

women equally, have the right to an adequate means of livelihood,

and that the ownership and control of the material resources of

community are so distributed as best to subserve the common

good,” Thus, full employment is now universally accepted as one

of the most important objectives of our national economic policy.

The Universal Declaration of Human Rights and the International

Labour Organisation's Convention on Economic, Cultural and

Social Rights dec 1 are that every individual has the right

to
work,, and this car'; only be guaranteed in conditions of full

envp 1 oymen t , the importance of which is acknowledged by the

Declaration of Phi 1 ade 1 phi at and the U«N« Charter16*.

The problems o-f unemployment and under employment have been

with us in India for a very long tniifi g though it. was at. the

time of framing the Second Five Year Plan7 that it assumed

primary importance and caused concern to the Indian planners.

In the recent years, the problem has assumed disturbing

proportions. Today, we find the existence of all kinds of

unemployment exercising its several and cumulative pressures on

the economic: and social fabric of the country. This unemployment

results f constant frustration leading to destructive and

pessimistic- out look endangering industrial peace and production.

In ultimate analysis, the economic, moral arid social effects of

unempioyment. are very serious and, therefore, it demands our

immediate attention®,

1 here are many inroads

4. whic ih t h i s p r o 1 o;nged
unemployment
makes upon the lives of the wor k e r s a n d t. he ir families. When

unempi oyoven t strikes a family/ for any period. an impairmen t

in the family's living standards is inevitable. The families

have to economise on clothing and fuel, Housing accomodation is also

curtailed The impairment of the food, clothing and the

housing standards of the -families leads in turn to increased

illness. In addition to all these, the lack of physical

necessities casting
a shadow or« the future« frequent 1 y leads to a severe? s:-train

upon the fami 1 v relations arid in many cases, to pronounced mental

disorders. The economic pressure to which men and their families

are subjected necessarily causes an appreciable increase in the

volume of crimes against property**. The consequences of

unemployment on the community may be thus summed ups

First, it puts a brake on the attainment of economic and

social objectives. Measures to increase productivity,

for instance, are of little significance when large number of

workers are unemployed and, therefore,, produce nothing.

Similarly, efforts to ensure adequate wages and to protect the

rights of organised workers are less likely to succeed in

periods when, as a result of large poo1s of unemployed workers,

there is intensive competition in the-? employment, market« » ,

Unemployment thus represents a senseless waste of productive

power10.

Second, the evil of unemployment extends far beyond

any loss of material wealth. "A long spell of unemployment ruins a

man's dignity and self-respect; it creates a sense of frustration

and, eventually, of uselessness; it saps his power of

concentration and his capacity for normal enjoyment; it makes

■for tension within the family and within the community; and it

leaves men apathetic: to ordinary social activities and duties,

or ready to lend a willi.no ear to violent expedients for

“it
rT“>ciaininn st*.cstus c*nd <?> of pu f posti •
 Third, the worker's attitude to his job is also perverted.

He goes it"! fear' ot losing it and yet in tear' of excel 1 mg in it,

he cannot afford to be either conspici uv ■; :•' y .inefficient or

conspicuous 1 y efficient. "So long as there is a resamble for'

jobs, it is idle? to deplore the inevitable growth! of jealous

restrictions, of demarcations, of organised or' voluntary

1imitations of output, of resistance to technical advance."12

Fi n a 1 ly, the '/.{ a r.} & & n B F F: are undoi. .hr eel 1 y the? c

hief S Li f f erer s in peri od s o f e■mploym en t, The men;jre s v

incIs thi" work e r s a r e able t. O cF C:: c umu 1 X. B irj

?*' O 3 cion e>:fX ci U sted w

fieri the.i r sou r c e o f i .ncome x*~;• cut off Loss <: jf opportuni ty to

earn a living is a cc: on<;;u ined by many spec: i-fie vi lsi:

Depr i ved of t he in come of the■ chie r wage ea rne r, t he f a iTi i.

1 y must have it; inc ome >supp1 omen tec by t ! he ear -n i ngs of

the mot ho1 r and c h i. 1 d r Ff! or by payments ■f rcam boards?"s

and

3. odge rs, whos;n prif?senc■ e m a y be i n imical r .k j mi 3 y 1 i f b,

tc.J.

The ** 1 ;abourer
b) e>fistenc e of a suppl y of casu s

and irr eg ularly e?mp 1. oyed WOlTlfc?n a:n d c \ ii 1 dr'e n enc:

OU TiAQO p Br& s■ it.es whi c h a r■e unable tci F'A.i!'" V i ve un lec> r.:> t. hey

pav- wages be 1 ow ! the stat-id arc! of d scent isubsii:=• tence , !J ft e ii! p 1

oymerit thus const itutes ain ini:en t 1.ve to sweet -shop prisc t

ii.ces.

c ) Boner si de pr'r n of wage 1 £? V B 1 is an :.t v'tevJ: table resu

,11 of Lin em p J, o v m m n t. « V, lor ke rs roleused ■from i?F d L.:istr is?s the'it.

have
shut down because of depression swarm into those industries

that manage to keep operating, with the consequence that

the severity of competition for Jobs is greatly increased

and wage standards are lowered. The maintenance of decent

wage scales is practically impossible under such conditions

o f su r p 1 u s .1 a bou r ,

Intermittent periods of employment results in wasteful

expenditure among wage-earners. Irregularity of income has

a demoralising influence; upon the habits of the workers.

When periods of depression end and prosperity again assures

regular earnings, the workers who have been deprived of

many necessities and all lukries tend to spend their income

recklessly in their eagerness to enjoy the things which

they have been unable to buy.

Unemployment brings in its train loss of economic status

and vast numbers of workers drift into the tide of casual

labourers with income cut off and skill going to waste, the

morale of workers is weakened and the economic degeneration

is the result. Irregularity of habits is the natural by-

product, of irregular employment. Unemployment, creates a

dislike for work arid stimulates the desire to drift,

Finally, moral delinquency is a frequents effect of

unemployment. Discouragement is inevitable when men and

 women are willing to work but cannot, find employment, and

many result in moral delinquency. Criminality tends to

.increase in periods of industrial depression and

unemp1oyment,

Unemployment, moreover, is probably the greatest single

factor in breeding social unrest. It not only tends to dishearten

the workers but also fills them with resentment against the

present industrial order. Discontent and a tendency to

radicalism are the natural consequences of unemployment. Without

reasonable security of employment, the great mass of wage earners

cannot be expected to perform the duties of citizenship. Men are

hungry for safety and security, longing for freedom from anxiety

as a youngster alone in the dark longs for his mother's

protecting presence*4.

Revolutionary philosophy finds fertile soil in the minds

of those who being able and willing to work are forced to accept

idleness with its train of cumulative indebtedness, want and

misery. An industrial system that fails to guarantee regularity

of employment will be indicated by the masses who suffer

degeneration of the standard of life;.

Professor Lescohier has summarised the effects of

unemp1oyment in a very pungent paragraphs "Unsteady employment

attacks the worker's efficiency in so many ways that probably no

one cou.Id enumerate them all. It undermines- his physique, deadens

his- mind, weakens his ambition, destroys his capacity for

continuous, sustained endeavour, induces a linking for idleness

and self-indulgence, saps his self-respected and the sense of

responsibility, impairs technical skill, weakens nerve and will

power, creates a tendency to blame others for his failure, saps

his courage, prevents thrift and hope of family advancement,

destroys a workman's feeling that he is taking good care of his

family, sends him to work worried and underfed, plunges him into

debt1a-

The evil of unemployment extends for beyond any loss of

material wealth- It has been rightly observed that s

"Unemployment is a great evil, it is a poison, it pollutes the

society and wrecks the political fibre of a country- It; creates

devils, it. turns good man into bad, it. changes a honest, worker

into a criminal» It encourages dishonesty, patronises

corruption, glorifies falsehood, points out the dark side of

human character and makes one blind to its good side., It

is difficult t o e >; p e c. t. truth, n o h .1 lity and hones ty fr om

a person who cannot, have two square meal vh- i-A cl £A y -i asio w 1 io

csiiiiot provide a morsel food or a dose of medicine to his sick

wife or ailing

children, A half-clad and half-fed man is a diseased man and a

diseased man infects the nation, the fire of hunger consumes all

the noble vir tues of a father, duties of a son or a husband l<6,»

 It. is for these reasons that the scourage of unemployment

has been the topic; of such burning discussion in all economic:

and social literature. It may be said that, today, the prevention

of unemployment is generally held unreservedly to be the

responsibi i ity of the state., Lord Beveridge? maintains that "full

employment cannot be won aru:.! held without a great extension of

the responsibi1ities and powers of the State exercised through

the organs of the? Central Government1

Also the constitution of the Sovereign Democratic Republic

of India lays down the securing of adequate means- of livelihood

as one of the Directive Principles of State Policy, The problem

of unemployment throw a major challenge to the Government of

India, Although there are signs of acceptance; of this challenge

by the Government, a wel1-rounded programme that may be regarded

as a workable solution of the problems has yet to be formulated,

INDIA'S UNEMPLOYMENT SCENE

The seriousness of the problem of unemployment is shown

through Table 1.1; which depicts a detailed view of unemployment

from the year 1951 to 1994,

It is clear that the above table is a testimony to what we

have explained in preceding pages. The table clearly shows that

the unemployment has beer; steadily increasing in our country.

The total no. of applications on the live register of employment.

exchanges stood at 328,7 thousand during the y ear .1.95.1. which

increased to 38693. ,5 thousand during 1994, registering a total

increase of .110621,6.1. per cent and average increase of 251,4.2

per cent, per year. As against this the progress of employment,

exchanges has been negligible, The no, of employment exchanges

which stood 126 during 1951 increased to only 89.1 during the year

,1994 registering an overall increase of 607.14 per cent and

average increase fo 13,79 per cent per year. The situation of

placements incoaiparison to registrations has also been

vulnerable. In the year' 1953. the) no of registration in all the

employment exchanges stood at 1375,40 whereas the placements

during the same year stood at 416,90, These figures progressed

to 5927',80 and 204,90 respectively during the year 1994, Another

notable feature of placements is that the placements as

percentage of registrations have been steadily decreasing•

During 1951 this percentage was 30,30 whereas during 1994 it was

reduced to a all time low level of 3.50 per cent. It shows that

our- government has been failed in creating any new job

opportunities in the country.

Unemployment is always considered as a colossal waste of a

nation. The unemployment scene of the developing world has been

of great concern as higher magnitude of unemployment has been

creating economic and social ills of far reaching effects on the

overall growth and development of the world economy in general

and developing world in particular.

The Indian unemployment scene looks very depressing due to

high expectation of job seekers following implementation of

reforms measures. In the area of job creation the economy has

• failed, so far, to instill any confidence among the unemployed

despite the promise of planners and politicians that something

of a boom is close by.

Recently, one of India's premier Institute dealing with the

area of Human Resources Development <HRD> known as the Institute

of Applied Manpower Research <IAMR>1® has undertaken a survey to

estimate the volume of unemployment, in India. Hence according

tot he survey, there will be a nearly 9 million educated

unemployed by the end of the year 1997 when the Eighty Five Year

Plan would come to an end. But on the other side, India's Planning

Commission puts a much smaller figure i.e. 2 million educated

unemployed by the end of 1997. Such alarming disparity has

created doubts about the actual figure of educated unemployed in

India by the end of 1997.

When Eighth Five Year Plan had started then there was a

backlog of educated unemployed 7 million as estimated by India's

Planning Commission1'*. This means it may not rise to nearly 9

mi 1 a ion , hut is likely to go down t.o a level of
mi\1ion» What
2

seems to be more realistic: is a figure in the range of 6 million,,

If it is so then 1997 will not record any improvement over 1992.

Now let us examine trends in India's unemployment (State wise)

in 1992, Table 1.2 gives trends in statewide unemployment by the

end of 1992,

Data set out in table 1.2! reveals that largest number of

unemployment on the register of employment exchanges have been

in case of West Bengal and the Lowest number of uneropl r./ed on

the register of employment exchange have been a regard of

Himachal Pradesh. The most surprising fact of the data given in

table 1.2 has been lesser number of persons unemployed on the

register of employment exchanges with regard to !.'<f tar Pradesh

arid Bihar two most beackward states of the country. Another

significant aspect has been comparatively much number of

unemployed in case of Maharashtra which is considered to be

country's most industrialised and developed state. Table 1.2

shows trends in unemployment < regionwi.se > by the end of 1992.

It is very clear from table 1.3 that the largest unemployed

person on the register of employment exchanges have been in case

of Southern .Regions accounted for 32.40 per cent of the total

unemployed in the country by the end of 1992!, Then comes East

and its share in total unemployed persons stood at 27 per cent.

Nearly 19 per cent has been constituted by the Northern region

and the? Western region accounted for 13.5 per cent of the total

unemployed persons in the country during the said period. The

lowest share has been in case of Central region - :,e„ only

bt.l

per cent,, The maximum unemployment in case of Southern region

has been due to higher magnitude of educated unemployed in region

and this has been due to the attainment of higher degree of

literacy in the region. Table 1.4 gives relative share of

different states in country's total unemployment by the end of

• » O
,17 7 jC *

It is seen from table 1.4 that West Bengal and Kerala are

two states of the country wherein the unemployment is in two

digits,, While all other states of the country have been

experiencing one digit unemployment. This all shows that

major' share in total unemployment has::- been contributing by the

highly industrialised states such as West Bengal. Tamil Nadu.

Andhra

Pradesh. Maharashtra and Karnataka. The-, means these states have

• failed in transforming their state's from traditional to modern.

Lack of industrial and investment climate have contributed much

towards these trends and situation.

As- educational avenues multiply and organised sector has-

been witnessing a sharp* down slide, 2 to 9 mil 1 ion educated

people would be looking for employment by the end of the 8th Five

Year' Plan. According to Planning Commission, there was- a backlog

of 7 million educated unemployed in April 1992, 3 million

educated are being added to the labour force every year, which

means about 15 million will enter the labour market in 1992-97

taking net demand to 22 mi1 lion»

The 3th Plan seeking to ensure 3,5 million jobs annually

and past experience has shown that 45 per cent of the jobs

created go to the educated , which means 4 mi11ion jobs for the

educated (out of 8.5 million) will be created every year to

total about

20 million by 1997 as against expected demand of 22 million. It

is not possible to give any particular date for elimination of

unemployment among the educated as the ideal scenario in terms

of 5.6 per cent GDP growth and sectoral growth along the lines

envisaged may not work. Besides, supply of educated unemployed

to the labour force or market may increase substantially from

the current annual figure of three million with the expension of

educational facilities. For instance, in 1991-92, because

of various factors, the GDP grew at 1.2 per cent only end the

total employment grew at a mere 3 million which was the lowest

in past

8 to 10 years.

On the other side, IAMR estimates, on the higher side i.e.

3.72 million people will toe in search of job by the end of 1997.

It, projects a backlog of 6 million educated unemployment in the

country in the country at the beginning of 1992. The addition to

labour force was expected to rise to 22-10 million by 1997 with

the joining of 16.10 million in the next 5 years. According

to
 17

joint chief and four others researchers if IMMR the labour market

might fulfil the requirement of only 13,33 million of these,

leaving 8«72 million groping in the dark.

From the above projections which are varying, it is clear

that problem of unemployment is not easy to understand.

One unmistakable trend is that the growth of employment among the

educated labour force has been faster than the overall employment

growth. Whereas the overa11 unemployment growth has been nearly

2 per cent per annum over the years, employment among the

educated grew at 3.5 per cent to 7 per cent. But the growth is

offset by the fact that the educated labour force grew even

faster - at 8 per cent per annum. This is not surprising as the

I AMR study points out that enrolIment for higher education

increased from 1.7 lakh in 1950-51 to 39.5 lakh in 1988-89,

recording on overall increase of 8.6 per cent annua t growth rate.

And at the secondary stage in the corresponding period,

it increased from 18 lakh, growing at 6.32 per cent per annum. A

steady decline of vocational education has also led to many

educated not getting jobs. The proportion of vocational

education decreased almost by half in 30 years i.e. from 13.78

per cent in 1950.51 to 7.48 per cent in 1988-89. In higher

education, 85 per cent enrolIment in general subjects declined

3i.ist -fractional ly to 81.5 per cent, in 1988-89 and urban bias in

terms of location of colleges was visible as more than 70 per

cent colleges were in urban areas.,

While the educational field has grown by leaps; and bounds;.,

albeit somewhat defectively, decline of the organised sector,

the sec tor that attracts; the educated, is by now a proven fact.

According to a working paper of India's '"Manning Commission on

past trends; in employment and prospects for the 1990s, the

downsli.de in state of employment growth has been sharp,

particularly in the organised sec tor.

UNEMPLOYMENT SCENE OF ABROAD

Indian unemployment situation has quite resemblance with

the with the European economy where unemployment is said to be

surging at a relatively faster rate, According to a survey

published in a newspaper- on unemployment scene of the European

Community (EC), unemployment would rise to numbers unparalleled

in decades and economic output would decline for the first time

in almost 30 years period, According to the said survey nearly

11 per cent of total labour force is out of work as recession

grips many of EC's economies, fable 1.5 gives trends in

unemployment in EC-92 economies in the year 1993 and 1994.

In the year 199

Spain had the largest unemployment and
the figure had been ;
high as nearly 23 per cent. Next comes
Belgium and its share has been nearly .12 per cent followed by

France with rate fo 11.7 per- cent, the UK with rate of 10.3 per

cent, Denmark etc. The lowest rate of unemployment has been in

case of Luxembourg with a rate of 2.1 per cent.

In the year 1994, the rate of unemployment of Spain

has gone up further to nearly 25 per- cent i.e. to an alarming

proportion. The rate of unemployment in case of Belgium has gone

up. Similar trends have been there is case of Germany whose

unemployment rate has also gone up in 1994. The other' countries

whose unemployment rate has also went up are Luxemburg,

Netherlands, Italy and Greece. The countries who have registered

decline in unemployment rate in the year 1994 are UK, Denmark,

Norway, Sweden. This all shows that India's unemployment

scene has not been much worse as compared to EC-92 countries

in the year 1994. Table 1.6 shows prospects to unemployment

rate in EC.92 countries in the year' 1995,

In the year 1995, the unemployment rate would be highest

in case of Spain. Then comes France. Italy holds third biggest

rate of unemployment followed by Greece, Denmar k, Germany. These

countries would have two digit unemployment rate in 1995, The

remaining countries such as Sweden, Norway, the UK, Netherlands,

Luxembourg would witness one digit unemployment rate. The most

significant rate would be of Spain. It has the biggest

unemployment rate with almost a furth of the labour force

unemployed. This is a matter of great concern. Now turn

to examine trends in uriemp 1 oyment rate in other important

nations of the world in 1993 and 1994. Table 6 shows trends in

unemployment rate in selected countries- of the world in 1993 and

1994 „

It. is evident from table 1.7 that the largest unemployment

rate has been in case of Finland as high as 18 per cent in 1993.

Then comes Canada with a two digit unemployment rate of 11.2 per

cent. Then comes Turkey with a rate of nearly 9 per cent

i.e. single digit unemployment rate. The lowest rate has been in

case of Japan i.e. only 2.5 per cent.

In 1994, Fin 1 and maintained the top places so far

as unemployment rate is- concerned. Here? it is pertinent to

point out that Turkey has emerged as the second largest rate of

unemployment and replace Canada from the second spot, fhese three

countries have been witnessing two digit rate of unemp1oyment in

1994. The lowest unemployment rate has been in case of Japan.

But when we compare data of unemp1oyment rate of 1993 and

1994 we find that Japan, Austria, Portugal, Turkey, Finland

arid Iceland have witnessed a rise in the unemp1oyment in 1994 over

1993. But the lowest rise has beers in case of Austria followed

by Japan. While largest rise has been recorded in regard to

Turkey. Table 1.8 gives future trends in unemployment rate

in
case of selected countries in the year .1.995.

It is evident from table 1.8 that in the year .1.995

unemployment scene of selected countries would be better as

compared to the year 1993 to 1994, Except Turkey, Portugal,

Austria and Iceland, the unemployment rate in Canada, the USA,

Japan, Switzerland, Finland would god own in the year 1995.,

Whereas, there has been marginal increase in the rate of

unemployment in case of Austria, Portugal and Iceland. But in

case of Turkey the rise has; beer; of alarming nature.

The European arid other' selected countries comparison is as

notable as its contrast. In Europe and other selected countries,

it is recession and unemployment. While in India, it is reform

and unemployment. In Europe and other selected

nations, production has been on the decline whereas in India,

there has been a sustained increase in the level of output as

estimated by the 8th Five Year P1 an. In the EC there is

hesitation in reducing social benefit programmes, while in India

there is a proposal to cut the subsidies. In EC and other

selected countries of the world, due to an increase in wage cost,

international companies are not coming forward to invest. While

in India, the steps are being taken to freeze wage and DA and

foreign direct investment are entering into India, It is pertinent

to point out here that although the European and other selected

countries and India are

.just opposite, but their effects on the labour market is similar.

It is observed by someone that "if recession is causing a bad

headache in Europe, reform is doing no better in India."

From the foregoing analysis it is very clear that in the

area of job creation the country's economy has failed,, 1 he

Government has also failed in installing any sort of confidence

in the unemployed youths despite the promise of planners and

politicians that something of a boom is close by.

Recently the International Monetary Fund < IMF)520 has

suggested that "positive growth in GDP, credibility in the

international market, sixth in the rank of richest economies and

the achievement in bringing down inflation and wholesale price

index-looks swallow although their significance merits academic

attention." However, to a job seeker having no source of income,

national affluence and market '-friend 1 y data moan nothing more

than the statistics meant for a comparative test.

India's New Economic Policy <NEP> has generated some hope

in hearts of unemployed youths. But it is certainly at trial of

patience for the .job seekers standing in the labour market. On

duly 24, 1991 when India did initiate economic reforms, it was

told to the job seekers that the process of transition from

controlled economy to frlend Iy-market economy would be not

without sweat and tears. Hence job seekers have to wait, of

course with a definite assurance that the reform process will

provide jobs to them and a secure and certain source of income

to them also.

Wow the question comes in mind that "with planned pattern

of investment and production, the employment potential will grow

at a rate of nearly 2.6 per cent, pen-- annum. In absolute terms,,

it implies generation of nearly 8 million ..jobs per annum during

the first, couple of years of the 8th Plan, and about 9 million

per year during the later years of 8th plan and then 10 mi11ion

per annum in the post-eight plan period,

FUTURE PROSPECTS

It is estimated that more than 94 million fob seekers will

seek employment in the country at the end of 2,000, According to

an official source, as against a 2.2 per cent annual growth of

employment between 1971 and 1991, an average employment growth

around 2.6 to 2.8 per cent per annum, which may be 10 years,

would be erring the country's economy to a near full employment

situation by the end of the 20th century.

The labour for ce is estimated to go up by nearly 35 mil lion

between 1992 and 1997 and by another 36 million from 1997 to

2002, Thus total number o >■ people needing employment would be

around 58 million between 1992 and 1997 a little over 94 million

over the 10 years period ending 2002,

 There? were 370 lakh job seekers, all of whom were; not

necessarily unemployed, on the live register of employment

exchanges in different parts of the country at the end of March

1994. Out of this substantial figure nearly 230 lakh were

educated who have-education levels- ranging high school and above

and the rest figure uneducated who have not got high school

certificate and above,

Keeping in mind the level of unemployment in the country,

expansion of employment opportunities is a strategic issue to be

x. ac k 1 ed on war footing and in most effective and ef f it::

i en t manner', Acc ordingiy the very basic: objective of 8th

Five V ear Plan was to expand requi 5’~ e d 1 c;vel of employment.

Hence the Plan strategy did emphasis on the faster growth of

sector, sub.sector and area of country's economy who have

great potential of

generating employment opportunities to a maximum level.

The total employment at advent of 1992-93 stood at 302

million on a "weekly status" basis and the labour force was

projected at 319 million. A relatively high rate of economic

growth and development combined with a pattern of sectoral growth

h i g he r prod uc t i v .11 y w .111 1 e a d t o h i g he r a g g r eg a t e

em p 1 oymen t elasticity would be necessary For attaining the rate

of employment growth envisaged. In order to increase aggregate

employment would mean faster growth of sectors of the country's

economy pari.i,cu 1 ar 1 y industr.1 a 1 and infrastmcture sectors.

 Similarly, a geographical and cropwi.se diversified

agriculture, wasteland development for crop cultivation and

forestry, rural non-farm sector, rura 1 indust.ria 11 zation ,

housing services, small and cottage industries, urban informal

sector have been identified as thrust sector and areas

constituting the very basic: seamen ts of an employment growth

action plan.

According to the annual report of Ministry of

Labour, Government of India21, in addition to the generation

of new stable employment opportunities of the order of 10 million

per year, which will take care of the open unemployment,

upgradation of technologies of self--employment in the traditional

and unorganised sectors and improved access to very vital need i. ,e.

credit and markets will be necessary to ensure that the under-

employed and those employed at a very low level of earnings are

able to increase their' productivity and income level which are

the missing links in Indian economy.

The employment growth in the aggregate will have to be

nearly 4 per cent per annum if the goal of extending employment

to all who are eligible to work and want to contribute in the

process of building the country's economy as a strong economy to

sustain the population or? the one hand and on the other hand to

deliver the needed goods to the nation. This rate must continue

till the end of 8th plan and about 3 per cent thereafter till
the end of the 20th century. It seems to be a distant dream for

people of the country as country's infrastructure is inadequate

to attain 4 per cent and 3 per cent rate of employment

respectively in years to come. Now let us see how far it

could become a reality.

UNEMPLOYMENT ALLEVIATION IN INDIA

To provide gainful employment to every able-bodied person

ought to be one of the primary objectives of the management, of

affairs of any nation. It has been rightly demanded that "right

to work" ought to be enshrined as a fundamental right in our'

Constitution. To have work is a basic necessity, an

imperative condition of human beings.. The economic planning and

policy in India, with their triune objective of growth,

stability, avid

justice have not recognized this as a matter of direct and

explicit importance and attention. The philosophy of development

in India has remained one of increasing employment indirectly

through the maximisation of growth, arid of not allowing the

maximization of growth to be adversely affected by targeting

maximization of employment creation22,

The consequent choice of development strategy, structure

of growth (of c•utput) , and technology reset 1 ted in at col O'ssa 1 and

a 1 arming bac k 1 og of unemployment by the end of 1960s i tse 1 f

Incidenta lly, ■a considerable part of employment which •las been

created in government and other services, public sector, army,

police, numerous para-mi 1 itary arid security forces, etc- itself-

can be regarded as disguised unemployment from the viewpoint of

materiality of production. In other words, the development

process has partly resulted only in shifting the disguised

unemployment from the rural /unorganized sector tcs the

urban/organized sector -

Alarmed by the growing backlog o f unemployment, the

(io v e r n men t o f I n d i at a p p o .1 n t. e d B h a g a wa t i ommi i 1.1. ee

wh x c h submitted its Report23 in 1973 in which it recommended,

inter alia, undertaking specific schemes to alleviate unemployment

problem in the country- Thus the UAPs can be said to have

originated with the submission of Bhagawati Committee

Report. They have been subsequently conceived , -i -?*••• 1 gned,

introduced, and implemented as a direct means of employment

generation to supplement the overall indirect employment creation

policy under the planned development. They reflect the admission

that the eradication of poverty and unemployment through percolation

or trickle down effect is not possible within the desirable time

frame, -and, therefore, a direct attack on these problems is

essential.

Thus, finding that Five-Year Plans, which had not directly

focused on the employment ang 1 e, had not been able to make

an appreciable impact on employment creation, particularly in

backward areas and groups,, special prog r ammes / sc heroes were

devised from the Fourth Five-Year Plan onwards to poverty levels.,

Many of these schemes are anti-poverty progr ammes but they are

also aimed at ensuring increases- in employment opportunities24.

Over the years, the number of these programmes has grown

to be bewildering large. After looking at their sheer number,

one would be afraid to say that the employment objective has not

received enough attention from the policy makers in India, Fable

gives a near-complete list of UAPs with their important specific

obj ectives„

TABLE ! VARIOUS UNEMPLOYMENT ALLEVIATION

PROGRAMMES AND THEIR OBJECTIVES
Programme name and the
Spec .1 f .1 c obj ec t 3 ves and. . rema>• k s
t ime o f 1 auric hing

Ru r a 1 Wo r k s P r o
An employment oriented programme to
g r a mme (RWP <1970-71)
construct permanent civil works
such as soil conservation, roads
construction, afforestation * to
mitigate scarcity conditions arid to
promote integrated development in
drought affected areas.

Crash Scheme for Rural To take up projects of durable

Employment < C-SRE) <1971) nature like minor irrigation, sox
.1
conservation, afforestation, land
r ec 1 ama t i on , an t i wa ter --1 og g i
n g wi t h a view to alleviate
unemployment and under employment in
rural areas.

Small Farmers Development

To make credit available to farmers
Agency (SPDA) , < 19/1 ) s
of various sizes and agricultural
and Marginal Farmers and
labourers to enable them to use the
A gric u11ura1 La bou latest technology, practice
rers
Scheme (MFAL i n t en a. i ve a g r i c:
u 11 u r e , m u 11 i p 1 e cropping,
and to take up subsidiary a c t i v i
t i es I i k e d i a ry .1 n g , pou 11 r y ,
• fishing , horticu I ture, MFAL.
emphasised employment generation
and improvement of earning capacity
of landless agriculCura! labourers.
They were merged into expanded SFDA
i n 1974, wh .1. c h, i n t u r n , wa s
me r g ed with IRDP in 1980.

M a h a r a s h t r a E m p 1 To provide gainful,, productive,

oy m en t Guarantee Scheme-? unskilled, manual, adult
(MEGS),,
employment at a minimum living wage
in rural areas, through labour-
intensive and d u r a b 1 e a sse t s
p r od u c i n g a c t i v i t i es. A
u nigue s t ate -- 3. ev e 1 scheme
which tried to offer work to everyone
and give practical expression to
the "right to work".
Agro-Berv 1 ce C-en tres To provide assistance for self-
<ASC) (early 1970s) employment to the unemployed
graduates an diploma holders by
enabling them to set up workshops,
repairing and hiring faculties.
Drought. Prone Area All these are Area Development
Programme (DPAP), <1973) Programmes < ADPs) DPAP was
(. o m it i a n ci A r e a I) ev©.!. a redesigned RWP.
o pmen t. F' rog r amme ( (heir aims; to develop adequate
CADF') , in frastructuns to bring about
( 1974-75,, intograted area development,
Hill Areas Development to increase
Programme (HADF) , ( 19/4) productivity arid emp1oyment
Desert Development o p po r t u n i t i e s , to control
F'rogramme ( DDF') , the process of do s
(1977-78). ertification, f. o mitigate
effect-£ Of drought, to r e
sto r e ec o 1 og i c: a 1 balance, to
raise productivi ty of land, watery
1.1 v ?■? s t. o c k „ a Pi d human!
resources in respective types of
areas, to
 AO

diversify agriculture, to promote

a f forestation and pasture
development

Food for Work Proqranwie

To generate additional gainful
{FFWP) <1977) emp1ayment in rural areas, to create
durable community assets,, to
strengthen social and rural
infrestructure, and to raise living
standards. The wages were paid in
the form of fooclgrains, and
Government surplus stocks were used
for the purpose,,
Training for Rural Youth
<o provide to clinical ski .1. 1. s and to
.1 n So .1 f -Emp 1 oymen t upgrade traditional skills of rural
(TRYSEM) {1979) youth 18 to 35 years old and from
families living below the poverty
line, and to enable them to take up
561 f -emp 3. oy.men t. i n ag r i c u
1 tu re, industry, and services in
rural areas themselves.
NationaI Rura1 This is a restructured -and renamed
Emp1oyment Programme FWP. To provide gainful wage
(NREF,<1980) employment during periods of
seasons 1 and sporadic unempl oy
merit, to assist liberated bonded
labour, to secure minimum
wages to
agricu11u r a1 wor k ers, to
p1 ay supportive role in I RDF* and
ADPs, to create community
assets, to
Integrated Rural strengthen rural infrastructure.
Deve 1 opment First introduced in 1976-77 in some
Proqraiiinie ( I RDF-) , blocks and extended to other' areas
U 976-80) subsequently,, In 1980, it covered
all blocks in the whole country. The
promote solf-employment and to
raise the level of 1 iving of the
poorest families in rural areas
above the poverty line on a lasting
basis by giving the income
 generation assets and access to
credit as well as other inputs.
Towards this, it aimed at achieving
integration of sectoral programmes,
spatial dimensions, social and
economic process arid policies.

Development i«f Women and A supportive programme for I RDF’.

Children in Rural Areas To increase the income of rural
< DWCRA) , ( 19S.2.S3) women and to provide child care -
facilities and other support services
and financial assistance to them to
take up sel f- employment in viable
economic activities,; individually
or in homogeneously organized
groups.
Rural Laridless Employment A programme to supplement NREP,
Su a rant f? e !■’ r og r a mme it aimed at guaranteeing employment
(RL.EGF') ( 1993 > to at least one member of 1 arid less
household upto 100 days in a year,
with a focus of women, SC/ST, Wage
employment programme in which a part
of wages were paid int he form of
subsidized foodgrains.

Sel f-Employment Scheme To provide self-employment to the

I- o r E a u c a t e d Un educated unemployed youth in the age
emp l a y e d group of 19-35 years with a minimum
Youth < SEE1JV .» , < 1983.B4) qualification upto matriculation,
HI, etc, in industry, services arid
business,,

Sel f-fImp1oyment P rog ramme "i n £ :tj c: ou rag e fami1J. B living

be low Tor !.J; ban Poor (SEf<JP) t. he pove ‘ rty' 1 i n e i .n i
notropolit an ft
<1936 - ~ oO ~y J u r b;;Wi * f?mi-u r ba H (~'t ,;•) to
unde?r tak sei f ?mp 1 oyment by
pros.'idin g ssubsidy and credit,
The soar ' fy O'f r;-s < . /ST bene -fie iaries
was to be 30 pr■?r crent in ter ms
of number
and ariioi! n t«
J a wa h a r Ro z A programme launched by merging NREP
g a r Toy J and RLEGP and has very similar
... .. / 'Ti—iW \ / ^ -'
f O Jri c.( V) 5~S F
objective. It aimed at covering all
vi 11 ages, panebayats, and to create
nearly 1000 million man days of
employment per year1, 30 per- cent of
which is reserved for women,,

Nehru Rozgar Yoj ana

While JRY is for rural areas, WRY is
<MRY), <1989) with three
for urban areas, SUME provides
components;, viz, The
subsidies arid loans to urban
Scheme for Urban Micro
underemployed and unemployed youth
Enterprises (SLIME). The
order to train and upgrade technical
S c h e me o f U r b a n W a
and commercial skills, and/or to
g e
provide infrastructural support,
Employment (SUWE); and
tor promoting self—employment among
The Scheme for Housing
the youth ’with a focus
and Shelter Upgradatiers
or' reservation for women and SC/ST
(SHASU)
youth. SUWE aims at providing wage
employment to the urban poor through
the creation of productive assets in
the low-income neighbourhoods in
town with a population below one
lakh, at minimum wages for unskilled
workers and at market wages for1 the
skilled workers, SHASU aims at
skills upgradation of masons,
ca r pen ter s, plumbe r s,
sanitary
workers, etc. and providing
at faci1ities
common infra st ru
and
ctura1 to bene ficiaries
rn a c: h ine r y / eq u i p m e i > t to trai n
ing institutions, in towns with
population of 1 to .,/() 1 akhs.

Scheme for' Educated To provide self-employment

Unemployed for Emplayment opportunities in towns with a
Generation in Urban population above one lakh by-
! oca 1 ities ( SEEGUL..) ( providing training and enhancing
1 o be 1auncheo} technical skills of unemployed
 fflatriCLiIstes;, .ITT diploma holders,
and those? who have completed at.
least si>;.months' technical course.
Prims; Minister Rozgar To provide self-employment to the
Yojna <PMRY) (19?3> educated unemployed youth in the age
group fo 18-35 years with a minimum
qualification upto ma.tr.ic passed or
tailed. Or I,T.I. passed or
having u n d e rgon e Sovern
ment sponsored technical
course for' a minimum
duration of o months etc. in
industry services and business.

EMPLOYMENT PROSPECTS IN EIGHTH PLAN

the Eighth Plan5*®* (1992-97) has accorded a high

priority to the objectives of employment generation. The

backlog of unemployment, has beer; estimated at 23 million persons

at the beginning of the plan. This backlog has been estimated in

terms of open unemp1oyment« Under the measure of current weekly

status (CWS) the severely underemployed can be counted as fully

unemployed and they are likely to be locking for alternative new

full-time employment opportunities. Under the usual status

measurement, the estimate of unemployed can be taken. According

to it, the unemployed were clearly without work for the entire

period under reference (i.e. did not work even for one hour

during the week?. These persons will have work for half or less

than half the time during the reference week. To this backlog of

unemployed may bo added the nev? entrance to the labour market

 34

seeking employment,, Given an estimated backlog of 23 million

unemployed in the beginning of the 8th PI art and additions to the

labour force of 35 million and 37 million during 1992-93 and 1997-

2002 respectively. The total number of persons requiring employment,

would be 95 million over the period of 10 years- s,;i 1992 to

2002. It considers a feasible growth rate of employment at

about. 3 per cent <2.6 to 2.8 per cent) and to achieve this goal

of employment generation, it has laid down am employment strategy in

specific terms,,

AGRICULTURE AND LAND-BASED ACTIVITIES

In agriculture, much of the employment potential lies in

the regions/states which! have lagged behind in agricul tura 1

development. These are;,* Andhra Pradesh Bihar, Madhya Pradesh,

Maharashtra, Orissa, Tamilnadu, Uttar' Pradesh and West Bengal.

These states account, for SO per cent of the people below the

poverty line and 70 per cent of the unemployed. As far as the

Green Revolution states are concerned,, the sources of growth are

now turning to be labour substitution. The employment elasticity

of output has been very low in Punjab. Haryana and Western Uttar

Pradesh at 0.00, 0.7 and 0.19 respectively. Other' land-

based activities with high employment potential are?; animal

husbandry, fishery, horticulture and acquaculture.

NON-FARM RURAL ACTIVITIES

The Eighth Plan gives prominence to the non-agricultural

sector for purposes of providing large employment at higher-

levels of income. The important industries with high employment,

potential are the non-traditional industries with forward and

backward linkages with agriculture as well as those with little

relation to agriculture. These include te>; ti 1 e-based and

agro.based industries and those producing construction materials

like bricks, tiles, pipes, cement, etc,

INDUSTRIAL AND OTHER SECTORS

Industries in the small arid big sectors are also those in

the unorganised sector such as cottage and household industry-

have given a high berth in the employment scenario of this plan,

Among the other sectors of the economic activity (construction

has been identified with high employment content- This includes

largely road construction and housing services sector is also a

significant potential for employment generation both in urban

and rural areas. Tourism, rural transport and repair services

are sub--sec tors which are having high growth as well as

employment potential.
SPECIAL EMPLOYMENT PROGRAMMES

To achieve the goal of full employment by the Eighth Plan

has set the goal of full employment for 2002 A.D. The Government

has, as an interim measure, provided for the continuation and

extension of these programmes, which are already in

existence,, These programmes cover both the rural and urban

people,, One of these programmes, is "Jawahar Rozgar Yojana"

which caters- to the rural unemployed. Another is "Nehru Rozgar

Yojana" which is meant for the urban unemployed. The various

schemes of employment covered by them are highly labour

intensive, quick measuring and provide direct employment to the

needy..

IMPROVING LABOUR SITUATION

The English Plain has also provided for education and skill

formation of labour as also for changes in the; labour policy

bearing on regulation of conditions of employment and wages. As

the unemployment problem emanates from the mismatch between the

skill requirements of employment opportunities and the skill

base of the job-seekers, the plan has made two sorts of

provisions. One involves orientation of educational and training

system to upgrade its capability to supply the requisite skills,

and to impact greater flexibility so that it can quickly respond

to labour market changes associated with economic; development,.

The other concerns the training of the large mass of workers

engaged as- self—employed and wage-earners in the unorganised

sectors, so that their skills are upgraded to enable them to

raise their productivity and income levels,,

The plan has made some important changes An the labour

policy. One is- to rationalise the regulatory framework so as to

reduce the protection to the labour in respect of the conditions

of their employment in a few highly protected industries.

Secondly., the policy is also to provide for an improvement in

the quality of employment in the unorganised sector through an

improvement in terms of earnings., conditions of work and social

security. Thus the Eighth Plan gives- an employment-orientation

to development of the country.

CONCEPTUAL FRAMEWORK

Generally, the term 'unemployment' denotes a conditions of

joblessness* but this term has such a very wide meaning, it may

lead to vagueness * and thus* it is necessary to spec i f ■/ various

meaning which are added to the concept of 'unemployment'.

Unemployment is the state of being out of work; applies to

persons who normally are members of the labour force* are able

and willing to work ful1 or part-time, and are actively seeking

work. A certain amount of unemployment is generally viewed

as inevitable in a free economy3**6’. ,

WHAT IS UNEMPLOYMENT ?

Unemployment does not mean 'no employment',, It means lark

of employment2^. In common paralance anybody who is not gainfully

employed in any productive activity is cal led unemployed2®.

However, for any scientific treatment we shall have to

distinguish between voluntarily unemployed and involuntarily

unemployed persons. Further, the concept of unemployment is to

be restricted only to the working population of the country. Only

the adults, more specifically the people in the age group of

15-60 years, comprise the working population of a country.

Children, old persons, and otherwise disabled people are not to

be included in the category of working population. Obviously in

a class society a section of the working population will not be

interested in any gainful employment. Some others may be

interested in jobs at wage rates higher' than those prevailing in

the labour market. According to Keynes, persons falling in both

these categories are voluntarily unemployed. Involuntary

unemployment, in his opinion, is characterized by a situation in

which though people are prepared to accept work at prevailing

wage rates, yet they fail to get it. Such a situation normally

exists in mixed capitalist economies, These economies have full

employment on! / when they manage to eliminate involuntary

unemployment. In all modern treatment, the term 'unemployment'

refers to involuntary unempl oyfnent529. Unemployment may be

defined as 'state of affair's in a country when there are large

number of able-bodied persons of working age who are will.trig to

work but cannot find work at the current wage-levels."30

The word ‘unemployment' is one of those few words- in

economic terminology which could better be understood than

defined. In its etymological sense, unemployment connotes- the

idea of involuntary idleness. It may be defined as the negative

aspect of economic process, for an unemployed person is one who,

despite his willingness and capacity to work, is unable to do so

for reasons inherent in the organisation of commodity

production. Unemployment is a condition of labour market in which

the supply of labour power is greater than the number of

available openings34 . The Encyclopaedia Britannica, trying to be

precise, explained it as "the difference.' between full employment

and actual employment.,,:sa If this definition could be taken as

correct, it obviously suggests that the meaning and the volume

of unemployment is dependent upon the notion of full employment«

Unemployment is a situation in which man, though willing

to be employed at a certain minimum subsistence real wage rate,

are unemployed, ft1 tern alive1y, it is a situation in which

aggregate employment is inelastic in response to an increase in

the effective demand for its output $ even when there? are men who
are willing to get employment at a certain minimum real wage rate*

We shall call this unemployment as 'structural ' involuntary

unemp1oyment.

Hen* who are thus unemployed, tall back on the farm land

owned by their relatives and thus increase the phenomenon of

under-employment or disguised unemp1oyment in agriculture, which

is a state of affairs in which the marginal product of labour- is

much lower than its real subsistence wage-rate33.

Unemployment is admittedly the most significant. and

perplexing of all labour- problems. This concept has been defined

in different fashions by economists and others from time to time.

According to one, "any person who fails to work can be thought

of as being unoccupied and, therefore, in a sense, unemployed

•for the duration of his occupancy. This is not a comprehensive

definition and the seriousness of the unemployment problem

resulting therefrom will depend upon the duration of the period

of illness. "The individual may be wholly he may be the victim

of temporary business fluctuations where a reasonable

expectation of reemployment at any time exists; or he may suffer

from seasonal unemp1oyment in the pursuit of certain trades r as

a c a su a 1 la bou r e r » " 30

In the pre-Keynesian literature, this problem of

unemployment has received lot of attention from economists and

 41

since 1936 when Lord Keynes published his "General Theory",

unemployment is thought of as the outcome of depression. Apart

from fractional and seasonal types, it was broadly conceived to

be associated with the business cycle. Keynes, however,

distinguished a new category what he called ginvoluntary

unemployment" whies"! might arid as a rule, did exist even under

born conditions, ".Insufficiency of demand," was, according to

Keynes, the root cause of unemployment3*.

According to Piqou, unemployment is "unemployment among the

wage earning classB-"'57 If a wage earner happens to possess an

allotment on which he can work when discharged from his ordinary

trade, or if he is able, on these occasions, to turn his hand to

(wood carving, or some other domestic industry, we shall not for

that reason, decline to class him among the unemployment,

. Unemployment clearly does not include all the idleness of wage-

earners, but only that part of it which is, from their point of

view and in their existing condition at the time, .involuntary,

There is, therefore, excluded the idleness of those who are

definitely incapacitated from wage-earning work by extreme old

age, infirmity or’ temporary sickness. There is also excluded the

idleness of those who are idle, not from necess■ ity but 1

rom choice. Yet. again there is excluded the idleness of the g rea

t mass of the vagrant class, whose ambition is, in large part,

just to avoid work, Arid, finally, there is excluded the

"playing" of
 42

those work-people, at first sight, the line of idleness which

are not involuntary, and which do not, therefore, fall under the

name, seems fairly clear, reflection soon reveals a serious

defect in the rough presentation of it that has just been

attempted. For, whether a man wishes to work or to be idle, and

if he wishes to work, whether he wishes to work much or little,

are not questions to which absolute answers must depend on the

rate of wage that is to be obtained as a reward of working3**.

Moreover, some technical definitions were supplied by

various Governments in reply to an International Labour Office

questionnaire issued as a preliminary to the International

Labour Conference in June 1934;:ss,„ The following are some of the

definitions given by several countries:

In a country like Belgium-*0, unemployment is a lack of work

which affects a person who is normally engaged as a wage-earner

or salaried employee and which is due to some cause independent

of his own will other than physical incapacity.

1. "Total unemp1oyment" is unemployment affecting a worker

whose contract of service has been terminated by the

employer and who has given evidence of his intention to

■find other employment.

2. " Intermi ttent unemployment" .is unemployment affecting a

worker whose contract of service has not been terminated

 43

but in whose case the normal quantity of service rendered,

and consequently the earnings, have been reduced owing to

lack of work,,

In Great Britain** the following concepts applicable both

to total unemployment, and to periods of suspension due to short

time is suggested,

1„ A person is unemployed on any day -

a) On which he does no work under a contract of services

b) in respect of which ho is not entitled to wages under a

c on t r o 1 o f s e rv i c e s

c) on which he is not following any occupation from which

he derives remuneration or profit j arid

cl) which is not a day of holiday at the establishment where

he works,

2. He may also be? deemed to be unemployed on any day on which

he follows a subsidiary employment or their occupation

which could ordinarily have been fol lowed by him in

addition to his usual employment and outside the ordinary-

working hours of that employment provided that the

remuneration or- profit derived from his subsidiary-

employment or occupation doe:;- not exceed limits to be

d e t e r m ined by n a t .1 on a 1 1 eg i s 1 a t i or»
 44

3„ He may be deemed to be not. unemployeds notwithstanding that,

his employment has- terminated, or any day .in respect

of

which he continues to receive wages- or receives

compensation for the loss of and substantially equivalent,

to the wages which he would have received if the employment

had no t term!nated.

In Italy4* total unemployment, is the state of inactivity

suffered by a worker in spite of his intention to find work and

inspite of his physical fitness to carry on his trade or- calling.

Partial unemployment is the state in which worker finds himself

when, owing to causes indepen dent of his own will and his

physical fitness, he gjLves his services for I ess than ha 1 f t he

time which is recognise d in the labour' mar ket as the nc:<rma 1 ■f

o r t h e p a r t i c u 1 a r k i n d o f ernp.!. oyme rn t.

In Switzerland1*3 the concept of unemployment is viewed as

persons who habitually exercise a regular' occupation for

remuneration, who are willing to work, who are suitable

for employment, and who, for the time being, are unable to earn

their usua1 remuneration for no fault of their own, shall be

deemed to be uneiiip 1 oyed „

Likewise in Yugoslavia** unemp1oymen t means a total or

partial lack of work suffered by a worker either involuntary or

voluntary but for good reason.

 Total unemployment means a lack of work resulting in the

complete loss of the only economic resources available to

provide the minimum means of 1ive1ihood.

Partial unemp 1 oyment. means a lack of work resu 1 ting in a

partial loss of the only economic: resources available to

provide the minimum means of livelihood,"

From these "ad hoc" definitions of unemployment some

general notion of what constitutes unemployment, may be drawn, A

unemployed person may be defined "as a man or woman or juvenile

of working age, between the school leaving age and the

pensionable age, who is technical ly and physically fit for a job,

willing to work, but unable to find work,"4S The same idea has

been re-echoed by A.E, Waugh when he says, "An unemployed person

is one who is able and willing to work, but who is not working

and not able to find work for which he is guali fied under-

conditions that are reasonable as judged by local standards.

"bus, unemployment is not an equally clear-cut conception

It is meant simply the number of man hours that exist over a

period during which people are not employed, it would be so. But

no body seriously proposes to define unemployment in such a way

and to make a men unemployed during the whole of the time <e.g.

while he is asleep at night) that he is not employed. A mains

only unemployed when he is both not employed and also desires to

be employed. Moreover, the notion of desiring to be employed must

be interpreted in relation to established Facts as to (1) hours

of work per day, <2) rates of wages, and <3> the state of a man's

heal th'*r. To give a comprehensive definition, the

term "unemployment" refers to all forms of occupational idleness,

whether within or beyond the control of the unemployed workers4®.

Thus interprets*?.! r. "unemployment is the failure to make a labour

contract or to continue such contract when it has been

negotiated; it involves the stoppage of work coupled with the?

difficulty of finding employment elsewhere. The failure, to make

a labour contract may result from unwi11ingness to work on the

part of those who are able? physical or mental disability of

those persons who would otherwise be willing to labour? and the

impossibility of finding employment even when individuals are

willing to work'4'"1’.

On the basis of recommendations of International Labour

Organization < IL.0> the Central Statistical Organization®0 in

India evolved standardized concepts of employment and

unemployment which have been used by employment and unemployment

surveys conducted by the National Sample Surveys (N.S.S.) in the

country subsequently. The I.L.O., in its Resolution*51 concerning

statistics of labour force, employment and unemployment adopted

by the Eighth International Conference of Labour' Statisticians

<Geneva), 1954, unemployment is defined as;

 47

Persons in unemp 1 oymen t consist of all persons also vs a

specified age, who on the specified day or for a specified

week, were in the following categories*

la) Workers available for employment whose contract of

employment had been terminated or temporarily

suspended and who were without a job and seeking word;

for pay or for ptrofit.

(b) Persons who were available for work (except, for minor

illness) during the specified period and were seeking

work for pay or' profit, who were never' previously

employed or whose most recent status was other than

that a f employee < i »e. former employers, etc.)., or'

who had been retirement *

(c) Persons without a job and currently available for' work

who had made arrangements to start a new job at a date

subsequent to the specified period, and

<d) Persons on temporary or indefinite lay-off without

pay.

The following categories of persons are not considered to

be unemp1oyod;
 A i;\

(a) Persons intending to establish their own business or

farm but who had not yet arranged to do so, who wore

not seeking work for pay or profit,

(b) Former' unpaid family workers not at work arid to

seeking work for pay or profit.

According to R.C.Saxena unemployment can be defined as a

"state of affairs when in a country there are a large number of

able bodied persons of working age who are willing to work but.

cannot find work at the current wage levels,

MEASUREMENT OF UNEMPLOYMENT »

Unemployment in India, as we have noted above, is of

several types*33 < like disguised/invisible, seasonal, open

etc. ) . It, therefore, needs to be estimated as such, The

conventional concept, used most commonly, measures only open

unemploymet or involuntary idleness in terms of the time for

which individuals are available for and willing to, but are not

able to find work. This measure alone is not suitable for India,

It, for example, does not include disguised/invisible

unemployment which accounts for a major part of the work-scenario

of the country,, It is, therefore, necessary that we have a look

at the way unemployment is estimated in India. In the light

ofthis, we can thentake up the magnitude of unemp 1 oymertt and the

trend in it. Recognising the inadequacy of the conventional

measure which covers only open

 49

unempl oymert t, NBSO (the National Sample Survey

(3rciarf.isat.ion) uses three concepts84 to estimate1 the rates of

unemployment in the country. One is the measurement of unemployment

on the Usual Status (US) basis. In terms of this concept, a person

is considered unemployed, if he/she was not working but was

either- seeking or was available for work for a relatively longer

time/or throughout the reference years. The estimates are given

interms of numbers or persons. Seconds is unemployement on Current

Weekly Status (C.W.S> basis. The reference period is a week.

A person is considered unemployed if he/she has not worked

evenfor one hour during the week, but was seeking or

available for work, Theestimates are made in terms of the average

number of persons unemployed per week. Third;, is unemployment on

current Daily- Status (CDS) basis. It records the activity status

of a person fro each day of the seven days preceding the

survey. A person who worked for one hou or more during a day, the

person was considered having worked for half a day. If worked for

four hours or more during a day, the person was considered as

employed for the whole day. The estimates are given in terms of

the total person days of unemplyment, that is the aggregate

of all the unemplyment days of all persons in the labour

force.

The US unemp 1 oyment may be regarded as a measure of chronic

or long-term unemp1oymen t during the re feence year. The CWS

unemployment also measures chronic - unemployment but with the

reduced reference period of a week* Its estimates also indicate

seasonal and part-time unemployment or underemployment, fhe CDS

is comprehensive measure of unemployhment- It. measures both

chronic unemployment as well as underemployment on weekly basis.

TYPES OF UNEMPLOYMENT s

Any classification of the kinds of unemployment is almost

crtain to be in some degree unsatisfactory? the conditions in

whichpeopie seek jobs and cannot get them do not follow a fixed

pattern, and overlappings of categories are inevitable.

Generally speaking, the term "unemployment" denotes a condition

of joblessness, but as this term has such a very wide meaning,

it may lead to vagueness:;-, and it is necessary to specify various

f orms of unemp1oyment** »

According to a report submitted by a group of experts

appointed by the U.N. Secretary General, UnempIoymont is of three

main kinds'3*’. The first is due to the lack of capital equipment,

or other complementary resources necessary to keep wage-earners

at work. This is regarded as the 'characteristic: phenomenon of

underdeveloped countries'. The second kind of unemployment rises

■ from certain structural factors in the economy such as

seasonal fluctuations in activity, decline in particular

industries and irregu1arities in certain types of occupations.

This type of unemploymen may be regarded as occurring both in

the developed
as well as underdevel ped countries. The third type or

unemployment is 'engendred by the insufficiency end instability

of effective demand,' This is regarded as characteristic feature

of the developed countries.

Another classiticiiticn87 is given by another group of

li„N, experts, who observe,, "unemployment in the underdeveloped

countries falls into four categories, vie, cyclical, seasonal,

technological and disguised,"

Unemployment may be either voluntary or involutary8*®, The

voluntary unemployment exists when people do not have any desire

for work or they are incapable to work. It. edxits, for instance,

among rich who have no need to work, among social parasites like

thieves and cheats who are reluatant to accept honest work, and

among those who are incapable or any work due to some disease,

old age and other such seasons. In other work, 'idle rich' and

'lazy poor' come under' the category of voluntary unemployment.

Involuntary unemployment refers to a situation where

workers ae ready to work at the current wage-rates but are not

in a position to find work. I his type of unemployment, may take

various forms such as seasonal, frictional, structural , cyclical

1. SEASONAL UNEMPLOYMENT

When unemployment is caused by the time pattern in

particular occupation, we cal it as seasonal unemployment,

People remain employed during a particular part of the year and

for other days they remain unemployed. Such unemployment is the

result of fluctuations in demand. For example, agriculture. In

agriculture, people remain employed for about four months and

for the remaining period in a year they are unemployed. This is

known as seasonal unemployment. Similarly, ice-cream industry,

sugar industry, building industry <construction) etc. are the

examples of seasonal unemployment.

2. STRUCTURAL UNEMPLOYMENT :

Structural unemployment results from a variety of causes.

It may be due to lack of the co-operant factors of

production, or changes in the economic structure of the society. The

word 'structural ' implies that "the economic changes are massive,

extensive, deepseated , amounting to t.ransformation of an

economic structure, i .e« the production functions or labour-

supply distribution. More specifically it refers to

changes which are large in the particular area,

industry or occupation. ,'m'9 The invention of a new machine or

the discovery of a new process of production may cause

unemployment.
Unemployment may also be caused by the decay of old industries

and the migration of industries, from one region to another. Such

unemploymenis also included under structural unemployment.

3. CYCLICAL UNEMPLOYMENT :

Cyclical uneroployment .'irises due to cyclical -fluctuations

in the economy. They may also be generated by international

forces. A business cycle consists of alternating periods of booms

and depressions. It is during the downswing of the business cycle

that income and output fall leading to widespread unemployment.

Unemployment caused by the Great Depression of 1?30s in the world

is the example of cyclical unemployment.

4. FRICTIONAL UNEMPLOYMENT :

Whenever unemployment is caused on account of frictions or

disturbances or imperfections in the labour market, it is known

as the frictional unemployment. Such employment may be due

to storage of raw-materials, immobility of labour, breakdown of

machinery, ignorance of job opportunities, industrial

reorganisation and the conclusion of one job and discovery of a

news ob by the labourers,

5. DISGUISED UNEMPLOYMENT !

Disguised unemployment is a situation wherein a large

number of workers are dependent on the same job when a few

 54

labourers are dependent on the same job when a -few labourers can

complete that work. It is a case of disguised unemployment,

Indian agrieul ture is the best, example of disguised unemployment

Br.V.K.R.V. Rao has said that the disguised unemployment occurs

when there are "workers who are constantly employed in the sense

that their time is occupied but whose contribution to output is

nil in the sense that their ceasing to work will leave the total

o u t. p u t: u n c h a n g ed . 1' *• °

SOME OTHER TYPES OF UNEMPLOYMENT i

TECHNOLOGICAL UNEMPLOYMENT :

This category of unemployment has important bearing in a

developing economy. Technological unemployment*'1 results

From the failure of labour force to adjust to the technical

changes which occurs very frequently in such countries. Modern

production process is essential 1ly dynamic where innovations

lead to the adoption of new machineries and inventions thereby

displacing existing workers leaving behind a trial of

unemployment, When there is automation or displacement of old

technology by a new one requiring less workers than before, there

is technological unemployment»
ABNORMAL UNEMPLOYMENT

This type of unemployment is a rare phenomenon in the

economic history of the world. It. occurs due to disorganisation

of labour after was or a sudden shrinkness in international trade

or due to immobility of labour"*52,.

SHADOW UNEMPLOYMENT :

The present unemployment data do not take account of those

who leave the labour force for lack of economic

opportunity» Existing data show that there is a segment of the

labour force participation rate that fluctuates with the business

cycle. Old people and married women may no longer actually hook

for work when job opportunities arc? few and may re-enter the

labour force in response to an upsurge in demand. We might call

this "shadow unemployment" and no light is available to throw on

its quantitative aspects"5*'’5.

AGRICULTURAL UNEMPLOYMENT s

As far as unemployment in agricu1tura1 sector is concerned

the problem is mainly that of underemployment which is mostly

due to seasonal nature of agriculture and many other factors.

That is a problem of unemployment in rural areas64.

INDUSTRIAL UNEMPLOYMENT

There is industrial unemployment** as a result of slow

development of industries. The location of industries is also

defective leading to overcrowding in certain centres with the

result that the capacity to absorb workers become less.

Rationalisation schemes in some industries have also thrown

workers out of employment. Some industries. like sugar

manufacturing are seasonal in nature and do not provide full time

employment,

EDUCATED UNEMPLOYMENT :

The problem of educated unemployed in the country can be

explained by the following adage4'**

Tbora padha hal Se gave.

Zyada padha ghar Se gaya.

(If one received a little? education one abandon the plough; but

.if one receives higher education one desert the home).

Therefore, if we do not make education itself a method of

lessening the unemployment situation, the growth of education is

bound to result in the growth of educated unemployment in the

country. Although there is a great deal of talk about science

and technology and many of our industrialists are prepare to have

the latest method of automatic machines for their factories, yet

we are still very antiquated whether in administration or in

Journalism? we are not prepared to accept new ideas. Our

educational system still remains the same as was proposed in 1833

with the result that there is a lack of correlation in factory,,

whether a foreman, a fitter or a welder is full of better

opportunities to carry on with the job and continue his education

•for higher degrees in engineering 1 ? he wants to. But. in India,

if he wants to be an engineer one cannot be any other worker. He

must first go to a college and have full education as an engineer,

and ors 1 y then one can do the job of the enginet r . But if there

a r e not. enough job , he must i-■eraai n unemp 1 oyed . On the

contrary i n V ugos■ 1 a v i a, if one wants !to be an engineer.

one- need not go to college immediately. One can take up a job

as a worker in a

factory which provides all the facilities to take up the higher-

education the emoluments go up at once and job opportunities

increase. Hence, there is great need to re-orient the educational

system in the country so as to help solve unemployment problem.

The problem of educated unemployed constitutes a very

serious and menacing problem. The educated unemployed is a

dangerous person. He is vocal, he has influence, he nurses

a sense of personal injury and if the grievance is long continued

and the numbers involved are large, as in India, the situation

is decidedly explosive, and will be a constant threat to the

securing and stability of the state. The unemployed person

belonging to this category are not "dumb, driven cattle', but

intelligent people,, and will not accept an uneviable position

1 y i n g d own * »

The problem is serious in another way. If educated people

have to remain idle, then the scheme of things responsible for

such a state of affairs deserves strong condemnation. It involves

the waste of the best of our- human resources. It means a great

national loss that such a valuable human capital -should stand

idle.

The most important aspect of this problem is the increasing

unemployment amongst the educated classes. But, the problem is

not new in India, even in the twenties and thirties, there was

growing concern about this. Unfortunately, in spite of the best

efforts of the various committees to examine the matter, the

problem has persisted and grown in intensity***.

Unemployment particularly among the educated youth is also

one of the baffling problems of the State under reference

(Haryana), Over the years, it has assumed alarming proportions

posing a serious threat to the social, economic and political

fabric of the society. Ever since- the inception of Haryana in

November, 1966 the State Government through its developmental

programmes and employment generation sc hemes have been creating

job opportunities. Hut the increase .in the? number of jobs has
been more than off---set by the rapid growth of population»

Consequently, there has been gradual increase in the number of

job seekers registered with the Employment Exchange in the State,,

The number of salaried and wage paid jobs are limited, thus the

only alternative rather a better one to wage employment lies in

motivating the unemployed youth to undertake self.employment

ventures in industry,, service, business sectors etc.

The statistics maintained by the employment exchanges also

point to study rise in the number of the educated unemployed in

India as well in Haryana. The number of educated applicants

(Matriculates and above) on the Live Register (L.R) of employment

exchanges continued to show a rising trend in India as well as

in Haryana, In India as a whole the number of educated j oh seekers

on Live Register' stood at 9,17,487 in the year 1966 which rose

to 2,30,06,300$ registering an increase of 2407,5 percent in a

period of 17 years. The average increase per year comes out to

be 141,6 percent. In Haryana the similar figures were, for

the year 1966, 12240 and for the year 1992, 421659, This

showed an overall increase of 3345 per cent during 17 years

period and average increase of 196,7 per cent:. The comparison of

educated unemployment in Haryana and India shows that the rate

of growth of educated job seekers has been much higher in

Haryana as
compare to the rate of growth of the same category of job seekers

for the country as a whole. However, both figures i.e. of Haryana

and India show the same increasing trend over ail the years.

There are many causes o f educated unemployment. The

defective education system, with its theoretical bias, lack of

aptitude and technical qualifications for various types of -work

among job-seekers and maladjustments between demand and supply

of educated workers are some well-known causes of educated

unemployment. But the major cause of unemployment in this sector

is the same which explains the overall unemployment in the

country. Over the years, economic growth in India has been very

slow. It has inadequate in the past to absorb al1 the

educated persons including the engineering diploma and degree

holders. Blaug, Layard and Woodha11 asserts, "Supply has

consistently moved ahead of demand so that educated unemployme! J "t.

c*. Ci fraction of the stock of educated manpower has remained

relatively constant. "*** This has happened largely because of the

wide gap between the private cost of education and the expected

return from it. In India, private cost of higher education is much

less than the expected gains from it. Thus an unnecessarily large

number of people pursue higher education. They have one

dimensional approach, that is, they simply wish to improve their

employment prospectus, but in doing so they create conditions

which render lessor educated persons as unemployment According

to Blaug, Layard and Woodhal1, the educated unemployment.,

in itself, is;- no proof of over investment in education'70,,

The educated unemployed constitute a significant

proportion of the total unemployed people in the urban area of

both India and Haryana which is open and visible. The problem

had assumed serious dimensions even about 45 years back, during

the depression period. There are several factors which have

tended to accentuate the problem of the educated unemployed

persons in India in general and Haryana in particular.

1. SPURT IN EDUCATIONAL FACILITIES'7* 5

Education expansion is deemed to be one of the important

causes of educated unemployment. Before 1966, the literacy rate

was 19.93% among men and 9,21% among women of Haryana. But

realising the backwardness of the State in the field of

education, Haryana Govt, adopted a policy of rapid expansion of

educational facilities at the primary, secondary and university

levels. As against .19.93% of literate to total population in year

1961, the population of literates increased to 26»89% in the year-

1971 and 34.12% in 1981 and 45,25% in 1991’’’3, and this rate has

been much higher in the urban areas of the State. Moreover,

on the part of the general public there has been an evergrowing rush

for- higher- education, in the hope of raising the social status

and economic position of the family by the education of their

children. The number of matriculates, (graduates and

postgraduates has been continuously increasing from the year

.1966 to the present day (Chapter IV) and a. larger number of them

to wait for long periods before they are able to get themselves

fixed up in life.

2. IMBALANCE IN SUPPLY AND DEMAND'73 s

One principal reason for unemployment among educated is

lack of balance between the demand for 9. supply of various

categories of educated personnel including the technical ones.

In the field of general! education, the unrestricted admission to

the institutions of higher education and the general preference

of the employers for graduates in making appointments even t

posts where the minimum qualification is matriculation, have

contributed to the rapid growth of the number of students taking

up degree course. There has not been proper manpower planning in

the state, with the result that the shortage & surpluses are

co-existing side by side for example, whereas there are shortages

of doctors, nurses and other medic a;l staff, civil engineers,

accountants etc., there are surpluses} of graduates with general

education,
trained g r ■aduates, d i fa 1 oma ho 1 and a 1 so
ders

enginesrin with specialisation in e lectrical &

graduates
g
branches»
mechanical
3 EDUCATION AND TRAINING SYSTEMS7'* s

Apart -from the basic imbalances in the supply of arid demand

■for labour, the existence of a large number of unemployed is due

to the defective educational and training systems. The

educational and training systems have not as yet been -fully

geared to the needs of the economy» At the root of the

problem is a lack of correspondence between the content of

education and training imparted to the youth and the actual

requirements of a developing economy. It is said that the

instruction imparted even in the technical schools in Asian

countries:, "is far too often over theoretical and does not cater

for the real needs of an expanding economy.," Moreover,

unemployment among the technically trained personnel has been

growing due to the rapid e>{pension of technical education on the

one hand, and failure on the part of the industries to adjust

themselves to the modern technology and introduction of quality

improvement programme on the other, which would necessitate the

employment of qualified technical personnel, In certain cases

employers find it unprofitable to employ inexperienced

technical graduates with a1most no practical training on high

salaries in view of the inadequate return from their employment

 64

4 SOCIAL AND PSYCHOLOGICAL FACTORS i

Social and psychological factors'5'® prevailing in

our country prevent educated people to participate fully with the

economic of the country. After acquiring some education < however

nominal it may he) they look forward for white collar jobs, and

preferably in the Govt, sector. According t the survey undertakers

in the Thanesar town,, by the author, as many as 52.7% were looking

for clerical or teaching jobs arid 57.1% of unemployed persons

were in terested i n q e 11 i n g j o bs i. n the Governfiner it.

sector. The educated peop1e whether belonging tc) urban areas iD f"

rural areas

are not ready to x’. c.is k v.tf c<i n y risk and do not have a ver y e

nterprising s p i r i t an d t hu s do not 'venture into se1f

erap1oymen t , According to Arthur Lewis.'5r* that a university

graduate mf j’l o i n a r i c h

country commences at a salary almost equal to that of a miner's

wage, receives four times miner's wage in a poor country. The

result is that educated people concentrate in search of jobs,,

Thus, as mentioned by Artber Lewis, it is the wrong policy

followed by the Governments of the underdeveloped countries that

accentuates the problem of urban unemployment.

From the for going dieBcussion, it appears that there

h a s been expansion at all leve*ls of education without

taking :into consideration t h e ci e m a n d po s .11 i on „ ‘!" hi s i

expansion is the educational facilities, at all levels, may be

attributed not so much to the absence of manpower planning, as

to social,
 cjS

political, economic: and cultural forces which were already

operating in the State of Punjab, before the area of Haryana was

bifurcated from it, The public: hunger for education has

increased good.' The expansion of elementary education created

pressures

•from below while gradually mounted upto the secondary and

university sector also. The old 'job' values which went with

elementary education practically disappeared, and hence, the

job -seekers came to .look upon secondary as the ' minimum'

arid University as the 'optimum' education they need have. This-

created further pressures in secondary and higher education. The

growing unempl oyment among secondary.sc hoof 1 savers .induced

parents to send their' boys to colleges just to keep them 'busy'

and the rising age of marriage brought many girls to secondary

schools and colleges in an attempt to utilise pleasantly the

period of waiting to be married. Consequently,, expansion without

thinking of employment aspect at the secondary and University

stages has been even greater than at the elementary stage and

has now gathered momentum which would be extremely difficult to

control in future. Moreover, since the country aims at achieving

socialistic: pattern of society, the educational facilities at

any level cannot be denied to anybody!. The aggregate resu 11 cars

be described as an educational explosion causing a widespread

unemployment among all levels of educated persons. The main

output of educated persons namely, matriculates, undergraduates,

graduates, post-graduates and teacher trainees in this;;. State did

not result from planned targets involving supply projections

based on estimated demand projections. It resulted in part from

the growth of educational system due to general increased

interest and partly as a result of increased stress on the

education of girls,. All this means, that no attempt was made to

link the bulk of educational output to employment opportunities.

The fact of unemplcymerit among educated people (all levels) does

not mean that school enrollment should be reduced, but on the

other hand it stresses the need for a Faster pace of economic:

growth and a more employment oriented education system. The

problem of unemployment among matriculates and undergraduates is

further aggravated by job-dilution'7'7 on the part of

graduates and postgraduates who take on jobs which could well he

undertaken by persons with inferior academic: qualifications. So

the remedy

•for improving the employment situation lies not .in reducing the

tempo of educational expansion, but in altering the content of

education and methods of teaching so as to increase the

employabi1ity of the educated persons.

EDUCATED UNEMPLOYED FOR THE PRESENT STUDY »

For the purpose of present stud y the meaning of Educated

Unemployed is taken in the same sense* as defined in the

scheme of seif-■■employment to educated unempl.oyed youth

(SEEDY). Under
the scheme on educated unemployed is one who has eithen passed

or failed in Matric (or Class X) or ICICI,, jpassed youth or' having

undergone Government spoi'• aored course for a mini muff*

technical duration of 6 months, between the 13-35 years„ Thus
age of the present, study the scope of for unemployed has been
educated restricted only to the above

categories.

EMPLOYMENT *

Employment moans providing j oh to the .job seekers at the

prevailing wage rate. It can be defined as a situation in which

remuneration in 'rash or kind is received in exchange for active,

direct, personal participation in the production process'7-*9. The

volume of employment in any occupation over any assigned period

can be defined as the number of man-hours of work performed

during that period. The volume of employment over any specified

period will depend on a number of economic variables, i.e.,

the demand for any supply of labour, the degree of

industrialization, the pattern of economy, availability of technical

knowledge, the productivity of labour' and the total population of

the country and its effective demand.

Employment is the utilisation of an individual's services

in an occupation trade, skill, or profession in return for lawful

financial gain-747.
TYPES OF EMPLOYMENT *

Employment can/iauild toe classified under two categories®0

{1 > Employment by other agencies? and <2) Se 1 f -employment

EMPLOYMENT BY OTHER AGENCIES *

The public and private sector .industries and enterprises

employ people* by paying then) monthly or- weekly salaries or

wages. Placement in a job is based on the ability of the employee

to satisfy the job requirements. Service conditions and salaries

are usually commensurate w,i th job requirements and job

satisfaction.

SELF-EMPLOYMENT I

Self-employment refers to utilisation of an individual

services is an occupation, trade, skill, or profession of his

own i .e. under his own ownership by investing his own capital

for lawfu1 financia 1 gain.

The major problem in relation to the educated unemp1oyment

be fore the country is that all educated people (matriculates,

graduates and above) are asking for white collar job in different

employment oriented organisations. They are hesitating in

establishing their own business as they are less experienced.

1 a eking confidence in them and because of shortage of economi

resources available with them* There are several advantages o

the individual undertaking sel f "-employment s

i) The self-erop1oyed person is independent. He is not

subordinate to an outside authority and is his own master

He can make the bet use of his creative talents, and i

motivated to succeed in the venture he undertakes,

ii) Whatever profits he gets, depending on the input he ha

made into his sel f -employment scheme, will be to hi

advantage *

iii) As and when required he can give employment to others.

iv) He could contribute to the national wealth, productivet

and prosperity in his own style*

v) He enjoys the sense of the satisfaction, the feeling o

achievement, success arid recognition.

vi) By working hard, he could save for the future of his

famil and for himself*

THE QUALITIES WHICH THE SELF-EMPLOYED SHOULD HAVE i

i„ He must have independent thinking and the capacity to mak

proper decisions.
 When he takes up a venture, the risk .involved in the

same should be clear to him,, He must have a strong mind to

be able to bear loss or gain, and should never lose hope of

success or give room to frustration.

3. He must be an adopt in leadership and human relationship

and have a clear understanding of management techniques.

4. He should have sufficient specialisation in the area of

employment in which he chosen to work.

5. He should be a democrat in his approach. Hard work,

truthfulness, sincerity;, sincerity and honesty should mark

his dealings-

In order to encourage educated unemploye y u>v..\ l.

their own industrial unit or own business or to engage themselves

in service, the Scheme for providing Se 1 f-£mp 1 oyment. to

Educated Youth was announced by the late Prime Minister Mrs.

Indira Gandhi on 15th August, 1983 in her Independence Day

address.

In the light of the objective o f the scheme the term 'Self-

employment' refers to encourage educated unemployed youth to

set-up their own industrial units or own business or- to engage

themselves in service through provision of a package assistance

(financial and technical) from the state Government, Commercial

Banks and other technical institutes.

SCHEME FOR PROVIDING SELF-EMPLOYMENT TO EDUCATED
UNEMPLOYED YOUTH <SEEUY)s

Growth of population and ex pension of educational system

are adding millions of job seekers every year to the stream of

unemployed cadres of both educated and rural landless,, Our

economic growth has not been able to create adequate job

opportunities to absorb the growing unemployed. Various

employment oriented programmes were implemented in the past and

some of them are still continuing in modified forms. Though those

programmes have relieved the pressure of unemployment to a

certain extent the impact has been negligible when compared to

the magnitude of the situation.

The scheme for providing self-employment to educated

unemployed youth was started in 1983-84 with the announcement of

our late Prime Minister Mrs* Indira G a vs d h i ,, I n 0 c tobe r 19 9

another scheme known as PMRY w<as introduced on the same lines

for Urban areas,, In April, 1994 •the SEEUY scheme was fully merged

into the scheme of Prime Mi.ni.st er Roj g a r Y ojan a <PMRY)*

Based on above, the Reserve Bank of India has laid down

guidelines for the implamentation of the scheme by all scheduled

c ommer cia1 ba n k s»
SCHEME i

The? scheme -for providing se 1 f -emp 1 oymes 1 1 to

Educated Unemployed Youth was;, announced by Government of India

on 15th

August, 1933., It was implemented by the District Industries?

Centres throughout the country expecting towns having a

population of 10 lakh and above. It was received with great

enthusiasm and has been extended during 1986-87 and for the

remaining 7th plan period and continued till March 1994.

The salient features of the Scheme alongwith modifications

made therein are given as under;

OBJECTIVES s

The objective of the sc heme is to ensure educated

unemployed youth to undertake self-employment ventures in

industry, service and business through provision of a package

assistance,

TARGET GROUP, COVERAGE AND ELIGIBILITY 3

The scheme covers all educat

•d unemploy■ed yDi.it! i who are
matriculates (Class Xth pass) and
ire within the age group of
18-35 years. Women and technically
trained pe rsonneI are to
given due consideration /weiqhtaqe
•i nn /
be With effect ?rom1 TOO O /
*
rh*~/

IT1, passed youth would also be covered under the scheme for

setting up industry and service ventures. A minimum of 30% or

the total sanctions has been reserved for scheduled

castes/schdule tribes. The scheme is meant for providing seif—

employment to educated unemployed youth who are not able to muster

their own capital, and is not open to persons belonging to

affluent sections of the society. With effect from 1936-87 a ceiling

of income of Rs. 10,000/- p.a. per family has been fixed as a

criteria for eligibility under the scheme supported toy an affidavit

to be given by the beneficiary.

NODAL AGENCY *

District Industries Centres in consultation with lead banks

of the respective areas would function as nodal agencies. They

would implement the Scheme, provide guidance and assistance to

the beneficiaries and formulate specific plans of action based

on realistic demand assessment and potentials of the area and

also prepare projects suitable for sel f--employment ventures.

IMPLEMENTATION »

The overall supervision is provided by Development

Commissioner Small Scale Industries (DCSSI) with the assistance

of Banking Division of Department of Economic Affairs, Reserve

Bank of India and Industries Department of States/UTs. At the

District level, a Task Force has been constituted by the State

Govt. consisting of General Manager of DICs as Chairman, Credit

 74

Manager of DIC, three bankers and a representative each -from

concerned Small Industries Service Institute (SISI) and District

Employment Office/Exchange«

The Task Force is responsible for motivating and selecting

the beneficiaries,, identifying and determining the

avocation/activity for each of the entrepreneurs and for

recommending their cases to the bank after scrutinizing their

projects„

With effect, from 1934—85 a minimum of 50% of total

industrial ventures was introduced and a maximum of 30% was

prescribed for business ventures in 1984-85. However, in Jammu

& Kashmir, Himachal Pradesh and Northern Eastern States, the

minimum of industrial ventures was reduced to 30% and maxirouiri

limit on business ventures was waived in view of inadequate

i n f r a s t r u c: t u r e.

COMPOSITE LOAN t

After identification of the beneficiaries and

recommendation for feasible/viable projects by DIC Task Force,

the banks would provide to each entrepreneur a composite loan

not exceeding Rs.25,000/- 'without any col lateral guarantee or

owner's contribution. With effect from 1986-87 the loan limit

for industrial ventures has been raised- from Rs. 25000/- to

Rs.35000/-.
 In case of service ventures, it will remain at Rs.25000/-

and in case of business ventures it has been reduced to

Rs.15000/-. The rate of interest on the loan would be charged at

10% p.a. in backward areas and 127. p.a :i.n non-backward areas.

The repayment will start after the initial moratorium

ranging from 6 months to IS months and the instalments would

range over a period 3.7 years,. She recovery and disbursal of the

loan is the responsibility of the banks concerned. The bank

managers have been all owed sufficient flexibility in

dealing

with the cases of default.

CAPITAL SUBSIDY s

Government would provide an outright capital subsidy to the

extent of 257, of the loan contracted by entrepreneurs with the

banks. The subsidy would be released only after disbursement of

the loan arid will be kept as fixed deposit under the name of the

borrower and would earn interest rate applicable to the relevant

term of maturity,. The total financial requirements of the project

{term loan plus working capital) would be given by the banks as

loan. After 3/4th of the loan amount is recovered the balance

will be adjusted by the banks towards full repayment of the

loan.

The subsidy would be administered through Reserve Bank of

India which is authorised from time to time to meet the subsidy

claims presented to it by the lending banks.

TRAINING *

State Governments- and SIS's would coordinate training

courses- and utilise services Ills, polytechnics and banks etc. ,

specially -for the beneficiaries of the scheme,

OTHER INPUTS *

Assistance would be provided by State/U.T. Govts, on

preferential basis to the beneficiaries in getting inputs like

sites, power, machinery and equipments etc,

MONITORING s

The DICs would monitor implemen tat..i on of the scheme at

district level. They would submit monthly progress report

to DCSSI and State Directorate of Industries, giving information

abut the number of cases sanctioned» The District

Advisory Committee on DICs would review and oversee the

working of Sel f“Employment Scheme, With ef fect from 1986-87,

MPs/ML.As have also been associated with these committees**1.

THE REVISED VERSION OF THE SCHEME

To improve employment opportunities, and the quality of

life of the people, the Government announced the Prime Minister's

Rozgar Yojana (PHRY) on August 15, 1993 for providing

self.employment to the educated unemployed youth

 The objective of the scheme is to provide i'ii e a n i n g t u 1

employmerit to 10 lakh persons by setting up of 7 lakh micro

enterprises in various- industrial,, business and service

activities. Though the programme intended to cover the urban

areas only in 1993.94, it will cover rural areas also in 1994-95.

The Self Employment Scheme for Educated Unemployed Youth iSEEUY)

has also been subsumed in PMRY from 1994-95. Thus the PMKY may

be referred to as the revised version of the SEFUY Scheme.

TARGET GROUP

Under the scheme any unemployed educated person between the

age of 1S-35 years with an annual income of less than Rs, 24,000

per annum is eligible for assistance. Besides metric passed or

failed students, and III passed youth, all those who have

undergone government sponsored technical courses for a minimum

duration of h months are eligible,,

Under the scheme it is proposed to provide loans of Rs. one

lakh in individual cases, and in cases of joint partnership

projects with higher cost can also be covered provided the share

of each person in the project is Rs. one lakh of less.

The government of India

would provide subsidy at the rate
of 15 per cent of the project
cost subject to a ceiling of Rs.

pf.v: tr >*f t.. 1**"£*? \.j)r £•?/ '{ £’? U. T u A Pf V * more than one entrepreneur joint

together and set up a project under partnership, subsidy would

be calculated for each partner at the rate of IS per cent of his

share in the project cost, limited to Rs. 7500 per

partner, Repayment Schedule would range from 3 to 7 years after an

initial moratorium of 6 to 18 months as decided by the bank.

IMPLEMENTING AGENCIES

In order to have an effective reach, the scheme is being

implemented through State Governments and District Industries

Centres (DICs). Reputed n on -gov»? rn men t a 1 organisations

will be associated in the implementation of the scheme

especially in the selection of training of entrepreneurs and

preparation of the project,

In order to simplify the application and processing

procedures District Industries Centres in the States and Small

Industries Service Institutes in the metropolitan cities are to

serve as nodal agencies,

SPECIAL FOCUS ON THE UNDER PRIVILEGED SECTIONS

The scheme incorporates a 22.5 per cent reservation for the

scheduled castes and scheduled tribes, and a 27.5 per cent

reservation for the other backward classes,, Keeping the special

focus on women and an integrated input in it's policy planning,

the scheme also seeks to protect the other weaker sections of

 The prospective entrepreneur- -- haves been advised to contact

District Industries Centre of State/Union Territories,

Directorate of Industries for further details®31.

It is clear, thus, that the PMRY is a revised and improved

form of SEEUY Sc heme. The main difference is between the

two scheme ares In the Target Group only matriculates were

eligible to avail of the benefits of the scheme under the SEEUY

whereas under PMRY, the matric failed students are a 1

elidible for the same benefits. The restriction of annual family

income which was Rs, 10,000/-- under SEEUY Scheme has also been

raised to Rs. 24000/- under PMRY. The quantum of loan has been

raised to Rs, 100,000/-- in individual cases and Rs. 100,000/--

per head in case of joint partnership projects under the revised

scheme. This limit was restricted to Rs. 35000/-- under the* SEEUY

Sc heme. Under the original SEEUY Scheme the Government of

India was provdinq a subsidy <§ 25 per cent without any upper limit.

This has been reduced to 15 per cent of the project cost subject

to a ceiling of Rs. 7500/- per entrepreneur.

The SEEUY Scheme provided for the special treatment to the

Schedule Castes and Schedule Tribes by reserving 30 per cent of

the total sanctions for them. The PMRY Scheme has added one more

category to these reservations. 'f he scheme provides for 22.5

per
 so

cent reservations for Schedule Castes and Schedule Tribes, and

27,5 per cent reservations for cither Backward Classes, thus

raising the total reservations up to 50 per cent of the

sanctions,

PROGRESS OF THE SCHEME :

The progress of the Scheme has been highli ghted in T ab le

No. 1.9. The table gives clata about the t argot and the

achievements in the number o f b en e f i c i a r i e s, and

the? 1 can sanctioned from the year 1983 -84 to 1994-95. It<e

progress has been discussed at length in Chapter I'll.

REVIEW OF LITERATURE

Not very many studies have come to be completed directly

on the subject of self employment to the educated unemployed

youth. On other related aspect like unemployment or on the

schemes to eradicate the problem of unemployment etc,, there is

a large number of research studies available,, We are presenting

here under the review of those studies which are directly or

indirectly have bearing on our study. Many studies which have

been completed under the titles Employment;, Unemployment,

Employment, and Economic Development, Employment and Standard of

Living, Urban Employment, Rural Employment, Agricu1tura1

Employment, Industrial Employment etc, although have been

studied by the researcher yet their' review lias purposely not been

given hers for the simple reason that they were not remotely
 81

concern to our work.

In a sample survey conducted by the IJ.P. State Planning

Institute®® concluded that the Uttar Pradesh Government in

violating its own orders in the selection of beneficiaries under

the ambitious sel f■-•employment scheme for the educated

unemployed,, The government by its specific orders had decided to

give priority to the educated unemployed youth with technical

education in the selection of beneficiaries, the sample survey

has revealed that only 13,82 per cent of the beneficari.es

actually had technical education.

The survey further revealed that irregularities, partial

attitude and oppressive methods adopted in the selection of

beneficiaries has resulted in the failures of scheme to a large

extent which was implemented way back in 1983, Goods have

further' not filtered down due to misutilisation of funds by the

beneficiaries themselves. The survey has pointed out that at

least 27 per cent of the beneficiaries has grossly misused the

funds provided to them under the scheme,

The other lacuna pointed out in the survey report is the

delay in the disbursement of loan. In many cases even after

sanction of the loan,, more than a year was wasted in actually

disbursing the amount to the beneficiaries, with the result the

establishment costs of industrial units have increased.

 Few suggestions have also- .been mentioned in the survey

report to correct the lacunas, as a suggestion has been made to

take test of technical skill of the beneficiary before he/she is

actually givers loan. The second suggestion is related to the

disbursement of the loan, i »e. , the loan should be disbursed

within IS days of approval of the project.

The article written by Mahender Desor®*' published in the

Tribune, June 19, 1987 pointed out certain deficiencies in the

implementation of the self-employment scheme. He pointed out

that different Nationalised Banks were assigned targets to

ensure that the scheme was implemented. Most banks, by and large,

achieved these targets, but in overall spirit with which the

scheme was launched, arid the spirit with which the loans are now

being disbursed betrays a degree of contradiction in approach.

He further pointed out that it would appear that for the banks

the purpose of the loans, is not to provide self.employment

opporturiiti.es to the educated unemployed but merely to achieve

their targets, And in most cases where such loans have been

sanctioned and disbursed, efforts have been made by the banks to

effect recovery thermo f in the minimum possible time, even if

the recovery is at the cost of the project that was started by

1.1! e .1 o a n ee s
 Another survey was conducted by Evaluation Committee of

DIC, Sonepat®” of 65 units regarding their utilisation of loan

amount, which were financed under the scheme in the year 1986-87.

The total units financed during the year were 391. The survey

exposes that out of 65 units selected for the purpose only 74

per cent units were actually benefitted by the scheme and in the
4

remaining 26 per cent cases either the ventures were not started

(17 per cent) or if started, they failed (6 per cent) and in some

loanees made fraud which are non-traceable <3 per' cent) .

To know the impact of self-employment scheme on employment

and income generation and also to study the problems related tot

he sc heme, a survey was conducted by S. Ramdas*®* in 1986-87

in Madurai City. Secondly, only matriculates and technical

educated persons were found interested in availing this loans.

Graduates and post-graduates are not keen because they prefer

to wait for a govt. job. Thirdly, a very positive aspect of the

sc heme is that it generated further employment and income of the

beneficiaries. In relation to problems faced by the loanees, the

study pointed out that the main problems were the delay in

sanctioning loans, insufficient loan amount and difficult to

repay the loan because of heavy competition, increasing cost of

production, power shortage, etc., resulting into generation of

low income. The suggestive part of the study exposed that the

loan amount should be able to cover both the working and fixed
capital., the loan amount should vary according to the nature of

the unit, in order to gene-rate more employment it is better to

give preference to production units and not ser vice units, the

govt, and banks should wash iKt W ci y trj n y kind of corruption and

midd1emen, t he govt, could riclp the s:oA f -empl eyed youths

in marketing their products and by providing them raw material o f

better quality and at subsidised rates,

In his research dissertation submitted to Maharshi Dayanand

University Rohtak tor the degree of Master of Philosophy Mr.

Kuldeep Singh®'7' conducted a survey of the Scheme

of Self-Employment in Districts Sonepat and Rohtak, He has made an

attempt to critically evaluate the 3el f "-Employment Scheme and

also assessed the impact of the Scheme on the levels of

employment, production and income. He has concluded that despite

many deficiencies and hurdles in the way of smooth implementation

of the Scheme, it has been successful in exerting favourable

impact on the generation of employment and increasing the levels

of production and income.

In his research monograph entitled ’Impact of Priority

Sector Advances on the Generation of Employment, Production and

Income', funded by Maharshi Dayanand University, Rohtak Dr,

Om Parkas Goya l®*9 has made a comprehensive analysis of various

schemes ment for priori.ty sectors. He has conducted his survey

in Rohtak District by choosing 100 respondents. This study is

based on primary informations collected through six structured

schedule--. He has tried to measure the impact of priority sector

advances on the generation of Employment, Production and Income.

In his study he found that priority sector advances have highly

positive impact on the generate on of employment* production and

income.

The National Productivity Counsi1 <NPC), on the instance

of I he Directorate of Industries, Government of Haryana, earned

out a survey to assess the impact of the Scheme lor Providing Self-

Employment to Educated unemployed Youth in District Jind in the

State of Haryana» The main objectives of this survey were to

assess the impact of financial assistance provided under this

scheme in terms of Employment generation, Additional Income

Derived by Beneficiaries through Investment Financed under the

Scheme, Nature and Pattern of Sel f••■•Employment Ventures with

Investment Type and Value of Production and Sales, Changes in

Level of Income and Employment of Beneficiaries, Impact of the

Programme in the Area -from the View Point of Employment and

Income Generation amongst Groups other therm Beneficiaries

through linkage of Inputs-Outputs, Income and employment, to

study the Recovery Performance of Loan, to Examine the Problems

faced by the Beneficiaries in getting Loan, acquiring Technical

Guidance, Procurement of the Scheme, to Suggest Improvoments in

the Implementation of the Scheme. The study was confined to the

 OQOL

bene flciarles for the years 1985-—86 and 1986.837. The study

has concluded that the Scheme has proved successful in District

Jincl in the years 1985.86 and 1986-87 as it has provided adequate

employment opportunities to unemployed youth, increased their'

levels of income, boosted investment in industrial ventures arid

improved the quality of life of Schedule Casts/Schedule Tribes

and minority community. The NPC has also made valuable

suggestions for the improvement in the implementation of the

Scheme,

A study on the SEEUY Scheme**0 was conducted by Dr, P„

Mohan Reddy, L. Gopala Krisbanaiah and Dr. C. Sivarami Reddy in

Chittor Distrct of Andhra Pradesh to evaluate the implementation

part of scheme. Their study has pointed out in following main

findings regarding the Schemes

A sizable number of beneficiaries have reported increase

in their' income due to the Scheme <56.7 percent appro*. ) .

The Scheme has not only succeeded in providing

employment opportunities to the beneficiaries but also to other

persons who are not selected directly to the Scheme.

It was found that the beneficiary in many cases selected

the unit without properly evaluating the 'feasibility and

profitability of the unit which he would like to establish!.

 87'

Most of the beneficiaries were selected on political

consideration and not on merit.

The beneficiaries have to submit a number of certificates

in getting his loan sanctioned under the Scheme, hence it is a

time consuming process.

Too much emphasis is put on theoretical training rather

than imparting technical training to the beneficiaries,,

The DIC and the bankers are the implementing agencies. But

the team is not well-knit and there s not enough coordination.

On the basis of the review of the existing literature, we

can safely say that no systematic research sutdy has been

conducted to measure the impact of the scheme of 'SeIf-

employment' on employment, income and production

generation.

FOCUS OF THE PRESENT STUDY *

With the above theoretical and conceptual background of the

scheme of self-*emp 1 oyment, the present study intends to

focus its attention on tracing out. the prevalent, practices of the

implement, at Iran of the sc heme and its comes pon ding impact on the

generation of employ men t. opportuni ties, income and produc tion

in the selected districts of the State of Haryana. As pointed

out in the preceding paragraphs, the research studies so far

conducted in this field have been restrictive in their

coverage as these studies are related only to the

implementation aspects of the scheme,, As a matter of fact, no

attempt has- ever been made to study the impact of the

recently announced scheme of Self-employment on the

generation of employmentincome and production * However,, this

is not to deny the importance of earlier studies. They did

help us in providing the necessary conceptual and structural

design for the proposed study apart from assisting us in

determining the appropriate objectives and hypothesis of the

study. But in the light of the significance of the problem of

unemploymen t and the importance of the scheme of sel f--

employment,, it becomes necessary to pursue this type of

research to evaluate in overall impact of the scheme in

solving the most dangerous problem which our country is

facing,,

OBJECTIVES OF THE STUDY s

The present study has been aimed to attain fo11owing

obj ectivess
To study the nature and characteristics of the self

employment scheme.

To evaluate the procedure followed by the DIC and the

commercial banks for providing financial assistance under

the Scheme?
 89

3, To assess the impact of the Scheme on the generation of

employment, income and production,

4, To findout various hurdles in the smooth implementation of

the Scheme,

5, To suggest appropriate measures for making the Scheme more

effective and successful.

LIMITATIONS OF THE STUDY *

The present research study has been conducted under the

following main 1imitationss

First, on account of the non.availability of time, money

and organisational resources, we have been compel led to restrict

our study to four districts; on 1 y consequently, it may not be

proper to generalize the findings of this study for all the

districts; in Haryana in which the branches of BICs are located.

Secondly, since the objective of the study is to examine

the impact of the sel f --employment scheme on the generation of

employment, income and production in general and therefore

certain other aspects like effect of age, educational bacground

cast, sex etc, on the generation of employment, production

and income could not been included in this study.

 Thirdly, we have no doubt, been successful in soliciting

the maximum cooperation from personnel of DIC and Employment

Exchange still we could not gather some of the useful information

from the DIC/E-tanks on account of their personal limitations*

Fourthly, while interviewing the beneficiaries, certain

respondents were unmi1ling to part with the information for the

fear of the researcher being a government employee or

representative of government *

Fifthly at places, the respondents < beneficiaries) & Banks

id not furnish the correct information, arid they tries to conceal

some of the facts.

Inspite of these limitations, the researcher

has made a
diligent endeavour to draw facts about the
effeetive

implernentation and the impact of the scheme of self ~employment

on the generation of employment, production and income.

ORGANISATION OF THE STUDY s

The present •study has be■en devided into six chapters.

rst chapter is an introdu stive one which establishes

oh i. em under c on s i d e r ation, provide ccjnceptual

base, del

important terms and explain them as they are ment for the present

study, gives an overview of different schemas of employment which

have been started by the Government from time to time, provides

 ri •>

details of the terms and conditions of the Self-Employment Scheme

for Educated Unemployed Youth <SEEUY) . This chapiter

further scans the existing literature arid the research work

conducted on various related aspects of the study in order to

provide us knowledge about what should he focused upon in the

present study, determines the objectives of the study and

narrates the limitations of the study, also the organisation of

the study. In Chapter-11 ;i a brief background of the State-) of

Haryana is given. This chapiter also discusses the selection of

sample, methods of data collection and methodology of analysis.

In Chapter-1II, a critical evaluation of the Scheme has been

made. This chapter has further been devided into two parts,

While part-I discusses the vital trends of the Scheme, Part.II

deals with the impact of financial assistance provided under the

Scheme on the generation of Employment, Production and Income.

Chapter-IV discusses major deficiencies noticed in the trends,

and felt by the respondent benefit-iari,e5 and the ,U 1C si n d

Ban k

important ssuggestions for the i

mpr suggest. a revised

scheme ■for provides

a summary of major f i n d i *
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Na11ona 1
Publishing House, p, V ,,

I bid.

Kunduj, Usha < 1984) . Urban Unemployment. Kurukshetra t

Vishal Publications,, University Campus, p„ix»

4.
Ibid., p.1.

Robinson, Joan <1970). Introduction to the Theory of

Employment. Londons Macmillan and Co., p,2„

Kundu, Usha; Op.Cit., pp.2~3.

•••/

Ibid., p»3.

Ibid.

"r «
Puttaswamaiah, K. <1977}. Unemployment in India s Policy

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Alec, Cairn Cross (1951). Introduction to Economics.

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Ibid,, p.4.

Beveridge, W.H. <1953). Full Employment in a Free

Society. London s Longmans, Sreene, p.243.

Puttaswamaiah, K. (1977). Op.Cit., p.4.

Ibid., p.S.

Lescohier, .Don D. < 1919) . The Labour Market. New York,,

p. .1.07.

Quoted by Mamoria, C„B. <1954)« Unemployment in India.

Beveridge, W.H. <1953). Op.Cit., p.36,

The Quarterly Economic Report, 0ct.-Dec., 1994, Vo 1.

XXXVII No.4, 148. The Publication
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3 e ev a n T a r a B u i 1 d i n
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Sansad Mary5 Mew

Delhi. Ibid.

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Quarter1 y Economic Re port, Op.Cit., p.44.

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Governnient o f India (1973). New Delhi 3 Report of the

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Publishing House, p,&93.

 94

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->•
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<1985) . Indian Economy. New Delhi s R. Cliar>d & Co,, p,368.

• nn Hiera, S»K, <1983), Indian Economy, Bombay t

Himalaya PubIis hints House, p»196»

r\
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30 B h a g o1iwa1, T.N. of Labour and Social Welfare,

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s Hegde, D. A. <£dt.> (1985),
p.471 <eh.30>. Quoted in

Op.Lit« , p, oo ■

31 Encyclopaedia of Social Sciences. Vol. XV, New York

s Macfiii 11 an Company, p „ 147,

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Bhatt, V.V. (I960), Employment and Capital Formation in

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Puttaswamaiah, K., Op.Cit., p.9.

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Puttaswamaiah, K. (1977)a Op.Cit.,

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65. Ibid.

66. Singhvi, L.M. <eds>. Op.Cit,, p.138.

67. Puttaswamaiah, K. Op.Cit., p.79.

68. Ibid.

Blaug, H. $ Layard, P.R.G. and Wood ha It, M. <1969>»

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70. Ibid., pp. 234-35.

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Govt, of Haryana <1991) . Cstilus of Haryb.yi& .

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