S13c15 chapter 15-facts and figures on unemployment. Unemployment problem will arise when a skilled person does not get his basic needs for his profession (for example irrigation for the farmer), or a skilled person does not able to adjust for the new job which is not related to his university degree (for example the university degree holding son of the farmer will be wasting decades in his life looking for the job in a government office instead of involving in the farm work with his father, and he will be telling to his friends that 'farming is not a good job and we will go for loss because there are no rains for many years' and it may be the truth also). 'Every second of every person is important and that needs to be utilized in a constructive ways through the programs and policies'. If the leaders thinks that ‘only their time is precious - others are not so important’, and if they fail to make the policies in such a way that, even the child which is going to be born after ten years will also get some job in suitable way soon after his education, then that nation is not going to develop with the phase other nation and the people of that nation is going to suffer a lot in various ways. A university which generates the degree holder needs to understand the need of that degree in the society before it generating that degree holder to eradicate the graduate unemployment problem. More unemployment will lead more burden on the environment, it is because an unemployed person in the period of unemployment in his life will be leading unproductive life during his unemployment period, but he will be utilizing all the products of environment through his food, cloth, shelter and so on, thus there is a negative balance in the life and in the environment. I think the leaders of this world will understand the interrelationship between the unemployment and the sustainability of the environment and will create this world in such a way that all the people of the world will be involved in one or the other Eco friendly productive activity and thus leads a happy and prosperous life. In this chapter I have mentioned about some of the facts like rate of unemployment, labor laws, labor force, marketable skills, professional skills, adult unemployment, graduate unemployment, and so on.

1. 1115
Contentsof section13: Model village andModel nation.
Chapter15-Facts and figuresonUnemployment.
15.1-F&F - Rate of unemployment.
15.2-F&F - Indianlabourlaws.
15.3-F&F - Economicreformsmay have givenaboostto industrial productivity.
15.4-F&F - In the rural areas,agricultural workersformthe bulkof the unorganisedsector.
15.5-F&F - There appearsto be some confusionaboutthe figure of openunemployment.
15.6-F&F - The Stateswhichface the prospectof increasedunemployment.
15.7-F&F - India’sunemploymentprospective.
15.8-F&F - Labour Force ParticipationRates.
15.9-F&F - PopulationandLabourForce.
15.10-F&F - Projectionsof Workopportunities.
15.11-F&F - Population,LabourForce andEmployment.
15.12-F&F - Indiaisfacingan unemploymentproblembythe youths.
15.13-F&F - Majorityof the Indianworkforce doesnotpossessmarketableskills.
15.14-F&F - About80% of job-seekersinemploymentexchangeare withoutany professionalskill.
15.15-F&F - Private playersmerelycontributesto2.5% of India’semployment.
15.16-F&F - Adultunemploymentandurbanizationalsocauseschildlabour.
Views to make this ‘World’ developed and this ‘Earth’ as
the lovely place for every ‘Human’.
SECTION 13
MODEL VILLAGE AND
MODEL NATION
Shelter in a better way, for everyone;
Pollution free atmosphere and greenery everywhere;
Life full of joy, prosperity and peace;
Chapter 15: Facts and figures on
Unemployment.
15.1. F&F - Rate of unemployment.
[Rate of unemployment;

2. 1116
Source [188]
]
By thiswe can see about5 to 15 % of the populationof India are unemployed. When it is compared to the
landarea and the populationitisa huge numberforcountrieslike India.Apartfromthis,it isalsonecessary
to lookinto the matter that,whetherthe employed people are getting the adequate income or not. With
the establishment of VPA – MV – MN, it is possible to make all the people to earn better income and no
one will be left without employment in the village.
15.2. F&F - Indian labour laws.
[Employment; Indian labour laws;
Agricultural and allied sectors accounted for about 57% of the total workforce in 1999–2000, down from
60% in1993–94. While agriculture hasfaced stagnation in growth, services have seen a steady growth. Of
the total workforce, 8% is in the organised sector, two-thirds of which are in the public sector. The NSSO
survey estimated that in 1999–2000, 106 million, nearly 10% of the population were unemployed and the
overall unemployment rate was 7.32%, with rural areas doing marginally better (7.21%) than urban areas
(7.65%).India'slabourforce is growingby2.5% everyyear,butemploymentis growing only at 2.3% a year.
Almost 30% of workers are casual workers who work only when they are able to get jobs and remain
unpaid for the rest of the time. Only 10% of the workforce is in regular employment. India's labor
regulationsare heavyevenbydevelopingcountrystandardsandeconomistshave urgedthe governmentto
abolish them.
India's labor force is growing by 2.5% every year, but employment is growing only at 2.3% a year. Official
unemployment exceeds 9%. Regulation and other obstacles have discouraged the emergence of formal
businesses and jobs. Almost 30% of workers are casual workers who work only when they are able to get
jobs and remain unpaid for the rest of the time. Only 10% of the workforce is in regular employment.
India's labor regulations are heavy even by developing country standards and analysts have urged the
government to abolish them.
Unemployment in India is characterized by chronic underemployment or disguised unemployment.
Governmentschemesthattargeteradicationof bothpovertyandunemployment(whichinrecentdecades
has sentmillionsof poorandunskilled people into urban areas in search of livelihoods) attempt to solve
the problem, by providing financial assistance for setting up businesses, skill honing, setting up public
sector enterprises, reservations in governments, etc. The decreased role of the public sector after
liberalizationhas further underlined the need for focusing on better education and has also put political
pressure on further reforms. Source [189]
]

3. 1117
The entire populationwill getthe employmentinthe VPA inone orthe otherway,the unemployedpeople
inthe urbanarea may move into the rural areato work inthe VPA.Withthe establishmentof VPA,we can
see the spike in growth, which is going to sustain. Employment potential will exceed the growing work
force.All the workersbecomesthe regularworkersof the VPA, and will be working in all the days, leaves
can be formulated as per the need, as it is present in the present government sector. Chronic
underemployment ordisguisedunemployment canbe eradicatedcompletely. Noreservationpolicyshould
be followedwhenwe are people of the village becomingthe working members in the VPA, all the people
with the mind to work with the VPA, will become the working members of the VPA.
15.3. F&F - Economic reforms may have given a boost to industrial
productivity.
[India’s unemployment prospective.
Overview;
Economicreformsmayhave givena boostto industrial productivityandbroughtin foreign investment in
capital intensive areas. But the boom has not created jobs. This was not unexpected. According to a
report by the Washington-based Institute of Policy Studies (IPS), the combined sales of the world's top
200 MNCs isnowgreaterthan the combined GDP of all but the world's nine largest national economies.
Yet, the total direct employment generated by these multinationals is a mere 18.8 millions -one-
hundredth of one per cent of the global workforce.
India's Ninth Five-Year Plan projects generation of 54 million new jobs during the Plan period (1997-
2002). But performance hasalwaysfallenshortof targetinthe past,and few believe thatthe currentPlan
will be able to meet its target.
India's labour force is growing at a rate of 2.5 per cent annually, but employment is growing at only 2.3
per cent. Thus, the country is faced with the challenge of not only absorbing new entrants to the job
market (estimated at seven million people every year), but also clearing the backlog.
Sixtypercentof India'sworkforce isself-employed, many of whom remain very poor. Nearly 30 per cent
are casual workers (i.e. they work only when they are able to get jobs and remain unpaid for the rest of
the days).Onlyabout10 per centare regularemployees,of whichtwo-fifths are employed by the public
sector.
More than 90 per cent of the labour force is employed in the "unorganised sector", i.e. sectors which
don't provide withthe social securityandotherbenefitsof employmentinthe "organisedsector." Source
[190]
]
Even for creating the VPA – MV – MN, we can make economic reforms and thus attract the foreign
investmenttill everythinggetsstabilised.VPA will create jobsforall,evenforroutine workers and for the
semiskilledandskilledworkers.Nowilltellthathe is employed because he will fit in to the job at one or
the otherplace according to hisknowledge and skill. All the work force can be effectively utilised in the
establishmentof VPA.Itisnotnecessarytolimit our generation of new jobs with VPA, because VPA will
be able accommodate all the work force present in the nation and it can also accommodate the growing
labour force of the nation, and one sitting we can clear all the backlog jobs through VPA.
Self employment will decrease with VPA, as most of the profession working in the MV will come under
the VPA and all of themwill getgoodincome and no one will remain poor. All the people can be trained

4. 1118
make themsemiskilled,thusthe efficiency in work with increased productivity can be expected. All the
memberswhoworkwiththe VPA will become the regular members, and VPA becomes the nation level
organisation. With VPA 100% labour force will become organised sector of employs, as most of the
employs will either join the VPA as the working member or will be interested to work with some
organisedsectorororganisation.Noemployswill remaininunorganisedsectortowork. VPA or the other
organisedsectorwill be providingthe social securityandotherbenefitsforthe employs,asitexists,inthe
present government setup.
15.4. F&F - In the rural areas, agricultural workers form the bulk of the
unorganised sector.
[India’s unemployment prospective.
In the rural areas, agricultural workers form the bulk of the unorganised sector. In urban India, contract
and sub-contract as well as migratory agricultural labourers make up most of the unorganised labour
force.
Unorganisedsectorismade up of jobs in which the Minimum Wage Act is either not, or only marginally,
implemented. The absence of unions in the unorganised sector does not provide any opportunity for
collective bargaining.
Over70 per centof the labourforce inall sectorcombined(organisedandunorganised) iseitherilliterate
or educated below the primary level.
The NinthPlanprojectsa decline inthe population growth rate to 1.59 per cent per annum by the end of
the NinthPlan,fromover2 percent inthe last three decades.However,itexpects the growth rate of the
labour force to reach a peak level of 2.54 per cent per annum over this period; the highest it has ever
beenand is ever likely to attain. This is because of the change in age structure, with the highest growth
occurring in the 15-19 years age group in the Ninth Plan period.
The additiontothe labourforce duringthe Planperiodisestimatedtobe 53 millionsonthe "usual status"
concept.The acceleration in the economy's growth rate to 7 per cent per annum, with special emphasis
on the agriculture sector, is expected to help in creating 54 million work opportunities over the period.
This would lead to a reduction in the open unemployment rate from 1.9 per cent in 1996-97 to 1.47 per
cent in the Plan's terminal year, that is, by about a million persons - from 7.5 million to 6.63 million.
In other words, if the economy maintains an annual growth of 7 per cent, it would be just sufficient to
absorbthe newadditionstothe labour force. If the economy could grow at around 8 per cent per annum
during the Plan period, the incidence of open unemployment could be brought down by two million
persons,thusattainingnearfull employmentbythe end of the Plan period, according to the Plan. Source
[190]
]
Agriculture workers in the rural areas, becomes the members of the VPA and VPA becomes the major
organised working sector; Migratory agriculture labours will decrease to zero. Even in urban areas the
contractors whoare able to organise the sector and who are able to provide the job continuously will be
able to survive,andin this case the owner will be dealing for the work contract and the entire group will
be workingas the teamand will share the income.Withthisnounorganised labour force is going to exist.
In VPA,minimumwage isnotgoingtobe practised,insteadthe share of income is going to be distributed
accordingthe income generatedfromthe VPA, as per the protocols, thus there is no chance of going loss

5. 1119
or bargaining to compensate the loss will arise. VPA can make all his members literate to some extent
throughVPSfor the presentgenerationswiththe programmeslike eveningclass, and the next generation
(present children) will be trained well with NES – VPS – MV, thus the entire labour force can be made
literate tocertainextentwiththe presentdefinitionof literate forthe presentgeneration.VPA willbe able
to accommodate the growinglabourforce and‘n’ numberof workopportunitiescanbe created with VPA,
thus the open unemployment rate can be brought down to zero.
15.5. F&F - There appears to be some confusion about the figure of open
unemployment.
[India’s unemployment prospective.
However, there appears to be some confusion about the figure of open unemployment. The
unemployment figure given in the executive summary of the Ninth Plan, gives the figure of open
unemploymentat7.5 millionwhile the annual report of the Labour Ministry, for 1995-96, puts the figure
for 1995 at 18.7 million.Aninternalgovernmentpaperpreparedin1997 putthe unemployment figure at
the beginning of the Eighth Plan at 17 millions and at 18.7 million at the end of 1994-95. Perhaps the
Planning Commission referred to the current figure while the Labour Ministry figure referred to the
accumulated unemployment backlog.
Underemployment;
Openunemploymentisnota true indicator of the gravity of the unemployment problem in an economy
such as India,characterisedasitisby large-scale underemployment and poor employment quality in the
unorganised sector, which accounts for over 90 per cent of the total employment. The organised sector
contributes only about 9 per cent to the total employment.
Underemployment in various segments of the labour force is quite high.
For instance, though open unemployment was only 2 per cent in 1993-94, the incidence of under-
employmentandunemploymenttakentogetherwasasmuch as 10 percent that year.This, in spite of the
fact that the incidence of underemployment was reduced substantially in the decade ending 1993-94.
Source [190]
]
VPA will be able tosolve the problemslike unemploymentandthe underemployment,bymakingitsentire
workforce organised and make them to work scientifically with cooperation and coordination, thus
bringinghighproductivity,whichisthe presentneedof the nation to pay back the loans, and to eradicate
the ‘poverty and hunger’ from the nation.
15.6. F&F - The States which face the prospect of increased
unemployment.
[India’s unemployment prospective.
Accordingto the PlanningCommission,the Stateswhichface the prospectof increasedunemployment in
the post-Ninth Plan period (2002- 2007) are Bihar, Rajasthan, Uttar Pradesh, Kerala and Punjab.
Sector-wise absorption of labour
Agriculture 62 per cent

6. 1120
Manufacturing & construction 16 per cent
Services 10 per cent
Sundry / miscellaneous jobs 12 per cent
Source [190]
]
With VPA, the people working in agriculture segment as such may decrease with the usage of more
numberof instrumentsinagriculture.The otherpeople inthe villagewillbe workingindifferentsegments
like agriculture related industries, in manufacturing and so on. And those who involve in the work of
agriculture,intheirnonagriculture time will be involvedinothersegmentworksandthusall the members
are made to work every day for the specified period.
15.7. F&F - India’s unemployment prospective.
[India’s unemployment prospective.
Age structure of population: 1997-2002
Age-group 1997 2002
0 - 14 37.23% 33.59%
15 - 59 56.07% 59.41%
60+ 6.70% 7.00%
Source [190]
]
All the people between the ages of 18 to 60 will be made to work with the VPA, as per their skill and
qualification. All the children will be free to go to school and no child labour will be accepted with VPA.
More than 60 years can also work with the VPA, if they are physically and mentally healthy.
15.8. F&F - Labour Force Participation Rates.
[India’s unemployment prospective;
Trends in Labour Force Participation Rates; (Per Thousand of Population);
Male Female
[Age] [Period] [Rural]
[Urban]
[Rural]
[Urban]
[15-
29]
[1977-78] [879][746] [515][257]
[1987-88] [824][710] [478][211]
[1993-94] [804][684] [455][204]
[30-
44]
[1977-78] [990][990] [619][324]
[1987-88] [988][987] [603][301]
[1993-94] [990][986] [600][300]
[45-
59]
[1977-78] [963][940] [538][291]
[1987-88] [964][933] [538][275]
[1993-94] [968][937] [543][283]
[60+] [1977-78] [667][517] [221][130]

7. 1121
[1987-88] [670][482] [220][123]
[1993-94] [699][443] [241][114]
[All
15+)]
[1977-78] [904][831] [517][269]
[1987-88] [879][810] [496][239]
[1993-94] [877][811] [491][238]
Note: Constituent shares in labour force in 1993-94 are Rural Male 0.499, Rural Female 0.270,
Urban Male 0.182 and Urban Female 0.049. Source [190]
]
With this table it is obvious that rural population are more employed than urban population, female are
lessemployedthanmales,urbanfemalesare lessemployed than rural females. VPA will attract the urban
unemployed people, and also it will give equal opportunity for the work as its members.
15.9. F&F - Population and Labour Force.
[India’s unemployment prospective.
Population and Labour Force: 1997 – 2012. (Million - 1st April).
[1997][2002]
[2007][2012]
Population
[951.18][1028.93]
[1112.86][1196.41]
Labour Force
[397.22][449.62]
[507.94][562.91]
Source [190]
]
The labourforce isincreasingdaybyday, soit is also necessary to increase the productive job, where the
employ and the nation gets the benefit, which is possible with VPA.
15.10. F&F - Projections of Work opportunities.
[India’s unemployment prospective.
Projections of Work opportunities 1997-2002.
[GDP Growth (% p.a.) [Work
Opportunities
(Million)]
[Sector.] [1997-2002] [1997] [2002]
[Agriculture] [3.9] [238.32] [262.48]
[Mining&Quarrying] [7.2] [2.87] [3.54]
[Manufacturing] [8.2] [43.56] [48.22]
[Electricity] [9.3] [1.54] [1.93]

8. 1122
[Construction] [4.9] [14.74] [17.03]
[Wholesale & Retail
Trade] [6.7]
[34.78] [41.67]
[Transport, Storage &
Communication] [7.3]
[11.96] [14.57]
[Financing, Real Estate,
Insurance and Business
Services] [8.5]
[4.55] [5.68]
[Community, Social and
Personal Service] [7.1]
[38.98] [46.41]
[All Sectors] [6.5] [391.30] [441.52]
Source [190]
]
The opportunitiesforthe workis increasing with the years, but still it is not giving solution for the entire
work force, this deficiency will be filled by the VPA.
15.11. F&F - Population, Labour Force and Employment.
[India’s unemployment prospective.
Table 7: Population, Labour Force and Employment (Million);
[1978 (a)]
[1983 (b)]
[1994 (a)]
[8th Plan]
[9th Plan]
[10th Plan]
Population (c) [637.6]
[718.2
(2.19)]
[895.0
(2.12)]
[951.2 (1.89)]
[1028.9
(1.58)]
[1112.9
(1.58)]
Labour Force [255.8]
[286.6
(2.09)]
[368.5
(2.42)]
[374.2]
[423.4]
[478.8]
Employment [249.1]
[281.2
(2.23)]
[361.5
(2.42)]
[367.2]
[416.4]
[474.7 (d)]
Unemployment [6.7]
[5.4]
[7.0]
[7.0]
[7.0]
[4.1 (e)]

9. 1123
Rate (%) [2.63]
[1.89]
[1.89]
[1.87]
[1.66]
[0.86 (e)]
Estimatesof labourforce and employmentare on usual status concept and pertain to 15 years And above.
Figures in brackets are compound growth rates in the preceding period.
(a) As on 1st January.
(b) As on 1st July.
(c) Population at the terminal year of the plan.
(d) Required to attain near full employment.
(e) Unemployment reduces to negligible level by the year 2007.
(f)Labour force, employment and unemployment are stated as annual averages during the Plan period.
Source [190]
]
It is possible to eradicate the problem of unemployment, possible to make the people with partial
employment to attain near full employment with VPA.
15.12. F&F - India is facing an unemployment problem by the youths.
[Unemployment in India.
India is facing an unemployment problem by the youths due to the recent rise in the population and
inefficientlabourmarkets.Labourlawsmaynotbe affectingoverall growthbut are influencing where jobs
are created and amplifying the substitution of labour with capital.
But Indianworkforce andthe interventions are required to be made gainfully productive. During last few
years, deregulation and technology have brought many new and fast-growing industries into Indian
business scene.
The growth of, and investments in, sectors such as ITES-BPO, telecom, and, more recently, retail have
radicallyalteredthe Indianbusinesslandscape,andhave createdhuge opportunitiesaswell aschallenges.
The boom inthe telecomsectorresultedindirectemployment of almost 430,000 people. In addition, the
spill over effect in terms of PCOs and cyber-kiosks, have created more than 600,000 jobs. Source [191]
]
Populationswill be well controlledwithVPA,butthe VPA will be able to accommodate more labour force
even with rise in population, efficiently.
15.13. F&F - Majority of the Indian workforce does not possess
marketable skills.
[Unemployment in India.

10. 1124
The optimismandbuoyancy,however,fadesif one looksatthese opportunities, not merely in the context
of the corporate business, but within the perspective of overall economy and state of the work-force. In
contrast to these opportunities, the profile and trends of Indian work-force shows a widening gap in the
availability of requisite skills to leverage on the opportunities available in the service sector.
A majorityof the Indianworkforce doesnotpossessmarketable skills.According to a report by Ministry of
Labour and Employment, in the urban area, only about 19.6% of male and 11.2% of female workers
possessmarketable skills.Inthe rural areas,the percentage of workforce with marketable skills was even
lower: about 10% for male and 6.3% for female. Source [191]
]
If we create the VPA for this generation, then the next generation will possess marketable skills to the
extent of 100%, both male and female.
15.14. F&F - About 80% of job-seekers in employment exchange are
without any professional skill.
[Unemployment in India.
About80% of job-seekersinemploymentexchange are withoutany professional skill. While India boasts
of a large young population, only 5% of the Indian labour force in the age category 20-24 have any
vocational skillsobtainedthroughformal training(ascomparedtothe industrialized countries, where the
figure varies between 60% and 80% - in case of Korea, it is 94%). Source [191]
]
With VPA, it is possible to give the professional skill to all the people who work with the VPA, thus it is
possible to bring more productivity.
15.15. F&F - Private players merely contributes to 2.5% of India’s
employment.
[Unemployment in India.
Much of our policy, interventions and thrust is focused on the assumption that the "employment/job-
creation" solution lies in "big business" without underestimating the contribution of the "big" private
corporate in the organized sector to growth of economy/GDP, etc., the fact still remains that the big,
private players merely contributes to 2.5% of India’s employment.
Even if this sector grows by 30%/annum over the next 5 years, it will actually contribute to less than 1%
growthto the employment!!The factalsoremainsthatthisis the trendworld-over:the unorganizedsector
contributes to the huge chunk of employment generation. Therefore, the unorganized sector, including
small and medium enterprises, must play a central role in the country’s employment strategy.
Thiswill require modificationof policiesandprogrammestolevel the playingfield, improve availability of
credit, increase productivity, raise quality consciousness and competitiveness, and enhance job quality,
which will be more resistant to the stresses and more responsive to the demands of the fast changing
technologies. Source [191]
]
VPA will be able to contribute nearly 60 to 80% of the employment of India. VPA will be able to induce
productivity, consciousness, competitiveness, quality in job, to his members.

11. 1125
15.16. F&F - Adult unemployment and urbanization also causes
child labour.
[Adultunemploymentandurbanizationalsocauseschildlabour.Adultsoftenfindit difficult to find
jobs because factory owners find it more beneficial to employ children at cheap rates. This
exploitationisparticularlyvisible ingarmentfactoriesof urbanareas.Adultexploitation of children
is also seen in many places. Elders relax at home and live on the labour of poor helpless children.
Source [130]
]
VPA will not allow any children to work. Adult unemployment can be eradicated with VPA. Urban
poor will move to the MV. No one will be able to exploit any children with VPA.
Sources:
[188] Internet. World map depicting the Rate of unemployment.
[189] Economyof India.From Wikipedia, the free encyclopedia. This page was last modified on 22
February 2009, at 23:16.
[190] employment perspective. Unemployment in India.mht.
[191]Unemployment in India1.mht.
[130] Internet: www.childlabor.in.