I For the last two years, the world has been confined to homes. Daily activities that couldn’t be managed without getting out came indoors all at once – from the office to grocery shopping and schools. As the world embraces the new normal, News18 introduces weekly classes for school children, explaining key chapters with examples from events around the world. While we try to make your topics simple, tweeting a topic breaking request can be @news18dotcom,
In this week’s class with News18, we will understand the employment system in a country. Why do governments keep track of employment or unemployment ratios, how are they calculated and how do they affect the country as a whole? First things first, why do people work? Is it just for the money? Or just for creative gratification? The answer is huge.
Why do people work?
Work plays an important role in the lives of individuals and as members of society. While people work to earn a living, it cannot satisfy everyone completely. Being employed gives people a sense of self-worth and meaning in life. As mentioned in Class 11 NCERT Economics Textbook, every working person is actively contributing to the national income and hence, developing the country by engaging in various economic activities.
Hence, it means that anyone who is contributing to the economy, be it doctors, farmers, shopkeepers, housekeepers or technicians, everyone falls under the category of employed workforce.
More men are found working in India than women. Only 15 out of every 100 women in urban areas are engaged in some form of employment or economic activity. Whereas in rural areas about 25 per 100 women participate in the job market. Most women work in households which is an integral part of leading a stable life, however, since it has no economic aspect, they are not considered employed. So you will be working but not considered employed.
What is unemployment?
There are three sources where data on unemployment can be obtained. These include reports of the Census of India, the National Sample Survey Organization (NSSO), and unemployment status, and the Directorate General of Employment (DGE).
According to economists, the unemployed is the one who does not get employment even for an hour in half a day. According to NSSO, unemployment is a situation in which all those who do not have work and are eligible for it, or are not working, but either look for work through employment offices, middlemen, friends or relatives or apply to potential employers, they are considered. Unemployed. There are many ways in which an unemployed person can be identified.
Now, who is eligible for employment? To be considered unemployed, a person must be of reasonable age, available to work full time, and yet have not found a job in four weeks. The person must be actively looking for a job and if he still does not get any job within a month, he will be considered unemployed.
In cases such as temporary layoffs for personal reasons or joining back after some time, they are not considered unemployment. To calculate the unemployment rate formula, it can be determined in the following formulas:
Unemployment rate = unemployed persons / number of employed and unemployed persons
Employment and the economy?
The labor-population ratio is defined as that which renders an active service in the production of goods and services for the economic development of the country. To calculate worker population ratio, we need to know total workforce and total population. It can be determined in the formulas as follows:
Working Population Ratio = Total Workforce / Total Population * 100
The unemployment rate directly depends on the prevailing economic conditions. It falls or rises as the economic conditions of the country. If the economy is down, it means that jobs are scarce or not available, and if the economy is good and employment is very high then the employment rate goes up.
What is disguised unemployment?
Economists say that the unemployment prevailing in Indian farms is disguised unemployment. what does this mean? As explained with an example in NCERT book, a farmer has four acres of land and he actually needs only two workers and himself to perform various works on his farm in a year, but if he Employs five workers and their family members such as his wife and children, a situation known as disguised unemployment. According to a study conducted in the late 1950s, almost a third of agricultural workers in India India Disguised as unemployed, the textbook states.
Simply put, it means that any person who employs more than what is required but pays the same to all the employees, it is known as disguised unemployment. It does not affect economic output and gives the impression of employment. Also known as hidden employment, these are workers who are employed but are actually hidden or do not count as workers!
Take the quiz to find out how much you understand:
“Studying about the working people gives us information about the quality and nature of employment in our country and helps us to understand and plan our human resources. It helps us to do business by different industries and sectors for national income. It helps us to analyze the contribution made. It also helps us to address many social issues such as exploitation of marginalized sections of the society, child labor etc,” adds the NCERT Economics book.
To learn about other subjects taught in the school as explained by News18, here is a list of other classes with News18: Questions Related to Civics Chapter’Election, sex vs sex , natural calamity , wonderland of letters , civil war , cryptocurrency , economy and banks , the Silk Road
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