Volatility of unemployment and poverty.
Shivaraj1
1Researcher, Department of Development Studies, Kannada University, Hampi, Karnataka
Email Id: shivarajgangavathi1947@gmail.com
Abstract
All the people in the society need to earn money to live their lives. Lack of money due to unemployment leads to food shortage. Deterioration of individual's mental health due to unemployment affects the family's expenditure on children's education and health. Due to this they suffer from various diseases and debt burdens. Their quality of life continues to decline drastically over time. Unemployed parents are not able to create a proper life for their children and as a result the child is also unable to get a good job after growing up. Thus unemployment creates unemployment. People must have money to buy basic necessities like food, shelter, water, clothes, otherwise they will not be able to fulfill their needs. To earn money people have to do jobs otherwise the number of unemployed will increase without getting jobs which will be fatal for the country, such a country will be in danger. However, when the people erupted against unemployment, their pain and hunger flared up, causing class conflicts and the country was doomed. It is necessary to create solutions to control this. Here unemployment is the root cause of poverty, the Ministry of Rural Development claims that India is on track to end extreme poverty by meeting its Sustainable Development Goals by 2030.
Keywords: Unemployment, poverty, unemployment rate, Alleviation of poverty.
Introduction
According to this, the extreme poverty level in India is 4%. A World Bank study pegged the poverty rate at 10% by 2022. It is estimated that the number of people living in poverty in India has declined by 12.3% since 2011. According to the priority estimates, the poverty rate is 10.2% in 2019, up from 22.5% in 2011. This highlights the gaps in the poverty approach. The reason for the huge variation in poverty estimates is the absence of any official poverty statistics in India since 2011.
India's unemployment rate
India also has 53 million unemployed people, the Center for Monitoring Indian Economy has identified the majority of unemployed women. It mentions that 35 million unemployed are actively looking for work, and the remaining 17 million are willing to work but not actively looking. India has an unemployment rate of 7.9% and it needs to immediately provide employment to 35 million people by 2021. However, providing employment to an additional 17 million workers was equally important. But if a job is available, willing to work and described as not actively looking for work. One has to wonder why a large number of women who are willing to work here are not actively seeking employment. Whether it is lack of availability of jobs or lack of social support for women to get right to employment remains to be debated.
According to World Bank data, the Center for Monitoring Indian Economy 2020 global employment rate was pegged at 55% by the World Bank. India had announced an employment rate of 43%. However, India's employment rate is pegged at 38%, indicating a lag in job creation. India's development measures are not reflected on the basis of party, religion, caste calculations. Instead, it should be able to build on employment, education, health, food, housing, nutrition, equality and employment opportunities for women. India's path to prosperity lies in finding employment for 60% of the population. India needs to hire an additional 187.5 million people to reach the global employment rate benchmarks, showing the country's rate of unemployment. Currently, India needs to provide employment to 406 million employees (CMIE) in its 2021 report.
Employment and Unemployment
The unemployment rate has increased from 7.60% in March 2022 to 7.83% at the end of April 2022. Unemployment is severe due to lack of employment in urban areas. In rural areas, there was a decrease from 7.29% in March to 7.18% in April.
Lack of decent jobs Mismatch of skills in available work and rising population in present urban areas are the reasons for unemployment rate. In India, Haryana has the highest unemployment rate of 26.50 percent, while Chhattisgarh has the lowest unemployment rate of 0.62 percent. Other state-wise unemployment rate is Jammu Kashmir 25.01%, Rajasthan 24.48%, Tripura 14.08%, Jharkhand 14.46%, Bihar 14.45%, Goa 12.74%, Delhi 8.86%, Himachal Pradesh 11.69%, Telangana 6.55%, Puducherry 4.27%, Kerala 4.27%. , Andhra Pradesh 9.16%, Tamil Nadu 4.13%, Karnataka 1.84%, West Bengal 5.57%, Orissa 9.67%, Meghalaya 1.99%, Gujarat 1.80%, Madhya Pradesh 1.59%, Uttar Pradesh 3.51%, Assam 7.69%, Chhattisgarh 0.62%, Sikkim 9.98%. rates (CMIE report to end March 2022).
Alleviation of poverty and unemployment
In 2011, the World Bank reported that India was facing extreme poverty at 22.5%. But in the report of 2019, there is a 10.2% decrease in poverty in the World Bank report. This indicates that one-third of the world's total population is poor in India, while a 2005 World Bank estimate found it to be below Rs 21.6 in urban areas and Rs 14.3 in rural areas. However, India's total employment has declined from 390 million to 330 million in 2022. The Center for Monitoring the Indian Economy identified a loss of 2.5 million salaried jobs in rural India, despite an 8 million job loss. However, AOIE data also noted that the unemployment rate rose to 7.8% in June, from 7.1% in May. And while rural unemployment increased from 1.4% to 8%, the unemployment rate in urban India decreased from 0.9% to 7.3%. This means that this is the lowest unemployment rate in India in 16 months. The unemployment participation rate decreased to 38.8%, compared to 40% in the two months of the previous period, resulting in India's employment rate falling to 35.8% in June 2022, the lowest level in two years. Less than 36% of India's working-age population is employed in 2022, indicating unemployment.
Unemployment Rate and National Statistical Office (NSO) Survey 2022:
The unemployment rate stood at 8.2 percent in January-March 2022, up from 9.3 percent in the year-ago quarter. According to the 14th Periodic Labor Force Survey (PIES), the unemployment rate for persons aged 15 years and above in urban areas is 8.7 per cent in 2021. And the unemployment rate in urban areas decreased by 10.1% in January-March 2022, which was 11.8% a year ago. Among men, the unemployment rate in urban areas fell to 7.7 percent in January-March 2022, compared to 8.6 percent a year ago. It was 8.3 percent in October-December 2021. The labor force participation rate in AWS in urban areas for persons aged 15 years and above in the January-March quarter of 2022 was 47.3 percent. This is down from 47.5 percent in the same period a year ago. The labor force refers to the portion of the population that supplies or provides labor to carry on economic activities for the production of goods and services and includes both the employed and the unemployed. On the basis of PIES, unemployment rate, worker population ratio (WPR), labor force participation rate (LFPR), labor force indicators are released quarterly. Estimates of the unemployed in the AWS in Employment and Work Industry give the average of unemployment over the shortest period of seven days during the survey period. In the AWS method, a person is considered unemployed if he does not work for one hour on any day of the week, but is willing or available to work for at least one hour on any day during this period. According to Labor Force, the average number of people employed or unemployed in the week preceding the survey date is defined as the percentage of the population in the national labor force. WPkha (in percent) in AWS for persons aged 15 years and above in urban areas was 43.4 percent in January-March 2022, compared to 43.1 percent in the same period a year ago. It is 43.2 percent in October-December 2021. And thirteen quarters corresponding to the quarter ending December 2018 to December 2021 have already been released. The current January-March 2022 quarterly series is at 14th position.
Worldwide unemployment and poverty
Every country has its own basic standard of living. In 2015, the World Bank updated the poverty line from 1.25 percent to 1.90 percent per day. This means if a person lives on 1.90% or less per day. It shows that they are living in extreme poverty. And the basic needs of 15 poorest countries in the world are calculated and averaged. According to Ana Revenga, director of the World Bank's Poverty and Equity Global Practice, while a person's need to survive for caloric intake, clothing, shelter and heat is different from the needs of the tropics, moreover, poverty factors such as clean water, health, and the quality of these provisions are difficult to measure to monetize what defines poverty. 1.9% under current exchange rate ie Rs. 144 is. Currently in India the exchange rate for one dollar is Rs. 76, in terms of purchasing power parity, one dollar in India equals Rs. More than 76. Although it can be bought mostly, some things can be said to be cheaper in India. Hence, India's poverty level is defined as 1.9%. This indicates a purchasing power of over Rs 144 in India, noted Ranade Times of India. Similarly, South Africa has the highest unemployment rate among the 19 U20 member countries. South Africa has an unemployment rate of 34.6 percent as of October 2022, followed by Turkey at 10.8 percent, El Salvador at 0.1 percent, and Qatar at 0.1 percent. The global unemployment rate for 2021 is estimated between 6.3% and 6.5%. The unemployment rate is an indicator of the lag in development, i.e. it influences economic conditions as well as reacts to changing economic conditions. When the economy grows at a healthy rate, the job market is prosperous and the unemployment rate falls. When an economy experiences a recession, the job market contracts and the unemployment rate rises in response.
Conclusion
The impact of unemployment refers to mental health, depression, and susceptibility to crime. Overall low economic productivity and consumption, erosion of skills, unusually low unemployment creating economic challenges, hyperinflation (when everyone is employed and has money to spend, demand for products exceeds supply, leading to a rise in prices). This can lead to rising cost of living, which is particularly difficult for citizens of developing countries.
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