Answer of the day-Unemployment and Underemployment

Q-NITI Ayog said that India's major problem is not unemployment but underemployment. What is the difference between two? What is the reason for underemployment? How can we improve the situation?(12.5 marks)

Unemployment is the lack of availability of jobs when person is seeking for the same as per her qualification. Whereas underemployment is the case when person is employed but not getting adequate salary or she is employed only for few days in a months where actual requirement of job is for longer period.

Also underemployment include when people are getting jobs lower then their qualification

Recently Niti Ayog siad that major problem for india os underemployment not employment citing NSSO employment data. Following are the reasons for underemployment in the country

1.Disquised employment in agriculture-this is a phenomenon where more people are employed in agriculture then required. This results in less wages to farmers then if efficient utilisation of manpower were there.

2.informalisation of jobs--as nearabout 90% of jobs in India are in informal sector where people are paid less, no social security and other benefits. Thus this results in underemployment

3.Mismatch between the demand of jobs and supply of jobs--thus people are ready to work for less wages, and thus underemployment results

4.seasonal nature of work especially in agriculture and construction sector thus people work only for few months in the years which leads to underemployment

5.Indian Education system--where we follows traditional approach and limiting our aspiration and thus reults in underemployment

ways to improve underemployment situation

1.improving general employment conditions in the country, which will provide bargaining power to workers and thus they can demand full employment opportunity

2.reforming agriculture sector, so that it can become more productive. Also improving employment in manufacturing sector so that people from agriculture sector can move to manufacturing and disquised unemployment can be improved

3.Encuraging formal employment by reforming labour laws, providing benefit to firm who provides formal employment etc

4.Improving education system so that more emphasis on creativity be there and people can reach their potential

India with a demographic dividend of 65% below 30 age required employment opportunity of full scale to catch on demographic dividend and thus need to improve underemployment scenario.