Labour Market or Government Failure

New Classical economists would lean towards structural unemployment as an example of government failure. Labour markets do not clear, they claim, because salaries are not acceptable to adjust efficiently, and the price mechanism is one-sided. By eliminating distortions and inadequacies in the labour market workers would move further rapidly from job to job.

Example: By keeping welfare profits to a lowest there is an encouragement to re-educate and look for remunerated work. Welfare benefits can setup individuals into a life of unemployment as the effects of moral threat and the hindrance it creates. This increases labour immobility, and therefore contributes to structural unemployment.

However, labour immobility can also be talked from the viewpoint of labour market failure. Training and re-training are looked upon as merit goods, where individuals perceive the long term advantage to themselves. They also fail to escalate the positive externalities that exercise and re-training make for the wider community. This means that there is an important role for the state in providing free or subsidised training and retraining programmes.

Measures taken by the State

Some of the measures taken by the State have been appended as follows:

1. The State is inspiring labour-intensive industry so that additional individuals could be employed.

2. The importance is being given to agriculture, agro-based industries and cottage industries. The small scale businesses also fall under this group.

3. A number of employment programmes have been introduced IRDP’ JRY’ HRY’ SEPVP are some of the leading programmes by the government.

4. Professional education is being stressed upon to remove the unemployment threat. A young graduate, who has studied Shakespeare, world do no good in an office, which assumes to be familiar with Microsoft Windows 98, word-processing and competent file handling.

That is why, the graduate migrant, can find jobs merely as peons in the metropolises. Vocational education can make them expert at one specific skill so that they could start donating from day one.

5. Many of the unemployed persons are from reluctant classes. State works them through special employment drives/the newspapers and magazines publicize these vacancies frequently. “Employment News” reflects this struggle of the government.

6. State Governments have set up Employment Generation Councils, which aspect after the employment needs of their corresponding districts.

7. The Ninth Five Year Plan lays satisfactory stress on the actions for decreasing the previously high unemployment levels in the country.

The procedures taken up during the Eighth Five Year Plan were thought to result in GDP growth of 5, 6 per cent during the plan period. The total number of employment chances produced was nearly 9 million during the Eighth Five Year Plan.

If the target for Ninth Five Year Plan is executed properly, we could see 9.5 million employment prospects during the next few years. Thus unemployment could decrease to insignificant levels by the year 2002.

It will be important for you to note that private sector jobs must be made open to the individual in need and not-so-deserving applicants on human grounds. Physically and psychologically handicapped persons-already being considered after by the central and state employment agencies must be assumed satisfactory opportunities in the private sector as well.

Another feature of unemployment is the appeal of the good morals of life in the cities. A son of a farmer, who could work hard in his village and could even own a car, goes to adjacent city and finds himself a job of a clerk or a sales executive. This tendency is not healthy, if the whole pop travels to the cities, who would manage our agaric which is the ancient and time-tested profession.

It is essential to know that the State must donate by introducing more organization based schemes and core sector units. The unexploited crop lands should be cultivated and should be delivered only to the landless jobless people. Private sector should promote more process industries, which employ large number of trained and semi- ‘killed people in the rural parts. Going overseas is a lucrative location only for the computer programmers, engineers, nurses, paramedical staff and skilled labourers. Others could find better prospects in India as grass is no longer greener in the West and the Middle East.

The existing state of Indian economy does not offer good prospects on the employment front. On the other hand, it is estimated that the budget offered by the Finance Minister would go a long way in eliminating the unemployment difficulties of the masses.

Our government believes that the economy would revive after a brief period of uncertainties. Joblessness would be removed only if the industry and business, of the nation pick up. During April- December, 2012 Indian economy has shown signs of improvement.

Further, the Government has laid more push on the rural and agricultural sectors in his budget speech. These areas could produce a good number of the self-employment prospects for the rural masses. Hence, relocation to cities could be checked. The unemployed youth would try to continue at their villages or home towns.

Finally, the State must sponsor structures for small scale entrepreneurship for the semi-illiterate and the illiterate people. At present, many systems are in vogue but these requirements are tuned to the needs of the jobless. Red tape and corruption in government departments stop the funds from being approved to the needy entrepreneurs.

The youth should initiate small enterprises or manufacturing divisions of their own with the assistance of reserves from the central and state funding agencies as well as from Rural Regional Banks.

They would also be capable to give employment to a few more people if they turn into entrepreneurs. We must accomplish by stating that at joblessness subject must be attempted with supreme care and significance as it has previously supposed alarming proportion in the social and economic scenarios of our nation.

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