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Topic : Top Self-Employemnt Ideas
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By : Darshana Sawant, HR Manager, Leading IT services company
Functional Area : Unemployment
Activity:  33 comments  13572 views  last activity : 08 12 2012 09:03:38 +0000
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There are more than 6 crore well educated youth in India who are unemployed. There has been a drastic increase in the literacy rate in India over the past few decades, unfortunately leading to a massive increase in the unemployment rate. Employment growth in the Organized sector, both public and private combined, registered a decline by -0.32 percent between 1994-2005. With the present situation of economic recession, the number of unemployees is increasing exponentially.

The share of agriculture in the total employment has come down from 61.67% in 1993-94 to 52% in 2004-05. It is a threatening decrease considering the fact that Agricultural income is a major share of Indian Economy. Trade, hotel, restaurant, transport and communications sector showed a growth in the employment rate. But, as I have said earlier the jobs in these sectors are highly vulnerable and they tend to impart a sense of insecurity feeling among the employees. Most of the youth are left to pursue a self employment or small scale business career. But, they too had a severe blow with the raising number of multinational companies, supermarkets and wholesale shopping malls. In India, it seems that there is a huge money flow but this flow bypasses the poor.

Various types of Unemployment seen in India

1. Structural Unemployment: When demand for work falls short of the supply of labour force, this type of unemployment arises. Unemployment in India is basically of this category. Huge population is a main factor for this.

High population --> More Job Seekers ---> STRUCTURAL <--- Less jobs

2. Under-employment: Some people are employed, but their efficiency and capability are not utilized to the optimum level. This kind of employment is increasing due to cut throat competitions and people who are more qualified than necessary also are willing to do a lesser job to get a job srcurity. This is usually seen in the Public sector. This is uniquely dangerous in itself because an under-employed person may either develop disinterest in his work or may opt to corruption to earn more money which he thinks he ought to get for his over-qualification.

High Competition --> UNDER-EMPLOYMENT --> Corruption --> Black Money -- ----> Fall in the Economy

3. Seasonal Unemployment: This occurs due to change in the demand with change in the seasons. Agriculture and agriculture related sectors experience this kind of unemployment. Indian Agriculture ensures employment for only 7-8 moths and the agricultural labours remain unemployed for the rest of the year.

Dry Season --> No crops --> SEASONAL UNEMPLOYMENT -----

-------> Urban Migration

4. Open Unemployment: When people who are willing to work and are capable to work cannot find any work, they come under this category. Educated unemployment and unskilled labour unemployment are of this kind. The increasing migration from rural to urban areas is the main cause for this.

Urban Migration --> OPEN UNEMPLOYMENT --> Slum Dwelling ----

                                                                                Communicable Diseases

                                                                        ----> Prostitution

                                                                                 Antisocial Behaviour

Since my childhood I have come across many people who always criticize the State (or) the Government for all the miseries in that particular country. They tend to compare their motherland with some other better developed nation and justify their criticisms. No country is short of miseries. Every country has it’s own problems.

I have written this only to let the people know the real reasons for unemployment in India.

 Top Comment : Renne Sharma   | 06 03 2010 06:40:08 +0000
Ya Darshana, U r absolutely right. The reasons what you have mentioned truly go with the situations existing in our country. We all need to work towards it & the govt. should play a leading role in this act.
 
32 comments on "Unemployment in India "
  Commented by  Sanjay Nambiar, COO/VP - Business Development, Richfeel Health & Beauty Pvt.Ltd    | 08 12 2012 09:03:39 +0000
Yea, Darshana…you ought to have added the malaise of the educated unemployed as a rising area of concern. What this means is the relevance of the education process to employment opportunities being generated. This is often a hit & miss affair
  Commented by  S. Muralidharan, Head, Project Planning/Strategy, Knowledge Foundation    | 03 23 2011 08:29:05 +0000
I believe BPOs, KPOs have reduced the gap!  If the call centres, BPOs and KPOs lose their charm in India, then this gap will be even more larger.  Another great thing in our country happening is repatriation of NRI funds invested in major infrastructure projects and a number of young entrepreneurs looking for opportunities abound in this country are great signs for our country!
  Commented by  SHRIKANT MANOHAR DANKE, Consultant, Project Management Consultancy Firm    | 03 23 2011 07:02:06 +0000
The reasons stated by you are very correct, but want to request you to suggest the precise solution for it so that this unemployed youth will become a part of success story of India.
  Commented by  Rathin Deb, Advisor/Outside Consultant, Freelance Retail Consultant    | 03 21 2011 03:58:33 +0000
Darshana it is correct and the rot cause of problem is over population. If we are in a position to contain our population the unemployment will go down drastically and in case the agri products grower gets their due including sustainable income the problem of unemployment will be a matter of past.
  Commented by  Nitin Mehra, Software Developer, ROBOMAN MICROSYSTEMS    | 03 20 2011 07:51:32 +0000
Rating : +1 
Once a Time a person go to a DM house to meet him. The clerk there was trying to show that man that he is very busy. He said to clerk i want to meet the DM. clerk said he is not here. person said its ok if he is not here i am his relative. At the same time the wife of the officer came outside. he saw the person and recognize him as her relative. The clerk is now apologizing from the relative and said that Sir in inside. many people disturbed him so he is helping the officer. 
This is going out everywhere in govt. and public sector besides the money you need contact to get the position. who has only talent rarely recognized and the people who are doing this are responsible. 
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 03 19 2011 18:46:50 +0000
The unemployment problem of a country occurs due to lack of planning and forecasting of the economy. An economy should have a clear idea how many are graduating each year and how much investments an economy need each year to accomodate these new graduates. Some random growth numbers like 9% or 10% won't do. A country in economic sense need to have a clear forcast of how many are getting added to the 'civilian labor force' a criteria or a variable well taken care of by every fair and equitable economy in the world. This is the number of citizen above 19 health and actively seeking job. So if people reamin unemployed we have to assign the responsibility to whoever is supposed to be controling the politics of the nation. Those who have the power in their hand to make decisions on the economy, how the citizen need be endowed, how much of incremental growth is required to accomodate, what all economic variables need be taken care of to achieve the required numbers like investments, inflation, employment, exports, imports etc;.
  Commented by  NATTERAJA R. ARIKRISHNAN, AREA SALES MANGER, UNIFLEX CABLES LTD    | 03 19 2011 18:22:48 +0000
The unemployment problem is a matter of concern for all of us. What is required is the political will to resolve the issues. At the same time the educated mass should think to start their own business jointly or individually and thus create employment opportunities for others also. Thanks for the referral Mr.Manish Kumar.
 
  Commented by  Dragan Radulovic, Founder & CEO    | 03 19 2011 18:03:11 +0000
Unemployment is a serious problem everywhere. I can only imagine the scale of it in India (I'm from Serbia.Yet the situation is pretty much the same. Keep in mind Serbia's population equals the population of one of your mid-sized cities.). Something must be done with the over-extended population even counting India's tradition; it must be done, as it must be with many other of our (human) habits. All of them should be subject change. If you exclude the use of pesticides and fertilizers (+ well controlled irrigation practice)you are to come up with the number of individuals this planet had been designed for. It amounts between one and two billions. Therefore, I believe it's almost impossible to answer your question. We can talk only about how to control negative effects of the population pressure.
  Commented by  Smriti Rekha Sonowal, M.A student, Gauhati University    | 03 19 2011 14:59:24 +0000
unemloyment level in India is one of the major problems , but lack of skill in employed also interrelated to it.thanx for sharing very informative topic...
  Commented by  Abhijit Anand Prabhudan, Admin/Facilities Manager, Ca*****    | 03 19 2011 13:14:41 +0000
Not only there are is unemployment problem, there's also problem of lack of skills in those employed. These issues are interconnected, first we have problem with education system which just teaches for taking exams, then there's govt regulations which prevent entrepreneurship from being dominant, then there's culture of society, which promotes sort of job slavery system.

There are many movements going in world which aim to make obsolete employment,top down organizations and the like.

For more see bettermeans, read their manifesto, also search about open educational resources, open courseware and openfarmtech.

They propose radical solutions. 
  Commented by  Jasmin Pawar, job seeker    | 03 19 2011 12:16:20 +0000
Yes this unemployment level in India is huge. Even the people with good skills are looking forward that when will they get jobs? Something needs to be seriously done as people may stop educating there children and rather tell them to directly do business. Even for business these days a proper education is required. Wish certain conditions of our country to help unemployed.
  Commented by  manish kumar, freelancer    | 03 19 2011 11:25:55 +0000
a very heart touching posts.
Unemployment has been a major problem among young Indians. There are thousands of young who do not have a job and lakhs of people are not in the right kind of job , just because there are no openings for jobs in which they specialize. There are lot of talented people who are striving to find the right kind of jobs.
  Commented by  Deeps Hiremath, HR, YUVA IN FOUNDATION    | 03 19 2011 11:07:35 +0000
Its 100% true Dharshana. I suggest our unemployed Youths to Contact an NGO which has been Newly Launched which works for our Unemployed Youths. They provide Loan, if any One interested for any Small scale industries Business or any thing for Higher education ect.. 

This loan is with 0% interest.

For More information Please log on to www.yuvain.com
  Commented by  The Clerical Business Solutions Company, Business Management Specialist, Business Consultant & Strategic Planner    | 10 20 2010 17:03:27 +0000
Rating : +1 
Very informative. Every country has problems & will always have problems. There are things the governments can do to help reduce unemployment, poverty & crime. Different governments in every country in addition to its people should be more proactive to help reduce their various problems. 

~Clerical Business Solutions: The Clerical Business Solutions Company provides business consulting specializing in strategic planning and strategic management. 

  Commented by  mithilesh kumar sharma, HR Executive, DCM Shriram Consolodated Ltd.    | 08 02 2010 15:11:46 +0000
I am 100 % agree with you. It is realy good.
  Commented by  Zaheer Abbas.Md, Assistant Professor, Global College Of Engg    | 07 31 2010 03:34:17 +0000
Thank you Darshana ji, for this article.one thing is clear that.... We need more entrepreneurs to generate employment.lot of money is in blocked stage in banks.....the persons who having money they have to rotate the money ...I mine if they move that money from banks and started small scale industries then at least we can control the unemployment rate.......
                                                once again thank you Darshana ji   
                                                     BYE!!!!!TAKE CARE
                                                        
  Commented by  s.baalu, SALES,MARKETING,FINANCE,ADMINISTRATION CONSULTANT, DASPAN INDUSTRIES LTD    | 06 22 2010 13:27:10 +0000
THANK YOU DARSHANA FOR ALL THE USEFUL INFO.AS LONG AS POPULATION GROWTH IS NOT PROPORTIONATE TO THE GROWTH IN OUR ECONOMY LEADING TO THE MORE JOB OPPORTUNITIES AND OPPORTUNITIES TO START BUSINESS,OR SELF EMPLOYMENT THERE WILL BE THE PROBLEM OF UNEMPLOYMENT.MOST PEOPLE WANT TO HAVE SAFE AND SECURED LIFE OF GETTING GOVT JOBS WHICH TODAY ALSO IN MANY DEPTS GIVES PLENTY OF OPPORTUNITIES TO GET INCOME FROM VARIOUS OTHER SOURCES,IN ADDITION TO SALARY,DA,HRA ETC.THERE SHOULD BE VIGOROUS STEPS TO CONTROL POPULATION EXPLOSION AND ON THE OTHER HAND EFFORTS TO IMPROVE THE ECONOMICAL SITUATION OF OUR COUNTRY. 
  Commented by  Aruna Vishal Shinde, HR Officer, Mahindra Ugine Steel    | 06 11 2010 12:25:33 +0000
Yes I really agree with you darshana unemployment is rapidly increasing.& I also agree with Mr.Jithu that the rate is increased among the educated class not because they cant find a job, but for not finding a job they expected or deserved.

I myself is an example of the same. Although experienced in HR but not finding the suitable job.
  Commented by  Jithu M Kaiyath, Human Resource Officer, HOCHTIEF    | 06 11 2010 07:57:05 +0000
Offcourse, unemployment is a common problem for all the countries in the world. I think rate is increased among the educated class not because they cant find a job, but for not finding a job they expected or deserved. Indeed we collectively have a responsibility to fight against unwanted labour strikes, delay in execution of project...which could bring down the rate of unemployment to an extend
  Commented by  Selvin Jose, Placement Officer, IMS Empresaria Pvt Ltd    | 06 11 2010 04:33:53 +0000
Unemployment is definately gonna remain no matter how hard the government tries to avoid it. In a country like India where Population is considered to be Asset rather than Liablity, this disease will be there.
  Commented by  KR BALA, Head HR,    | 06 06 2010 07:17:25 +0000
Unemployment normally remains an issue for   every country in all the 5 continents.In India if it remains a grave crisis,it only reflects the apathy of our governance.The government need to be tasked to create a time bound program that should see results visible and measurable. This project will not remain viable and achievable as long as it remains infested by vote banking politics,regionalism and babugiri& bureaucracy.Further let us understand education alone does not make the youth employable.It is competency and skill that needs to horned up. The govt should provide free and subsidized technical training institutes across the country.Also should task the big corporate to generate employment as a part of their social responsibility/ Also the government should whole heartedly encourage entrepreneurship,through providing meaning full loan and proper infrastructure facilities.Let us understand that it is for nothing that  India is being seen as "indispensable for global economic growth. Therefore it is evident that  only because of  our vote banking politics as well regionalism ,we as a country neither able generate required thrust for accelerating speed of movement creating meaningful employment as well as well as economically gainful entrepreneurship.We as voters under demorcacy need to ensure not a debate but an action plan that can see India truly emerge as a land of opportunity and gainful employment for those 6 crore well educated youth   
  Commented by  puneet kaushik, Operations Manager, HDFC BANK LTD.    | 06 04 2010 17:01:07 +0000
what to speak about this darshana this is the most dangerous topic actually, nobody is concern about unemployment in actual way, so we should find way to get down this disease,somehow.
  Commented by  Rajoo Bhargava, CEO & Director Global Executive Search practices , HCap Consulting Pvt. Ltd.    | 06 03 2010 21:31:49 +0000
Dear Darshana, I think, being employed or unemployed has more to do with the approach & mindset of an individual. It seems to be more of a hype than the facts, specially with the freshers. After being employable, they tend to become overambitious & keep looking for a job of their 100% choice, focus being monetary. Thus most of them keep rejecting the opportunities coming their way for the sake of 'better' forgetting that it is ultimately the exposure which would get them a 'better' job. Hence these types are so called 'unemployed'.
  Commented by  Tanmay Gaur, Freelance Software Developer    | 06 03 2010 18:58:54 +0000
Thank you Darshana, for this article. I think unemployment has more to do with the approach of our society towards this issue. If we think that not doing something is unemployment, its not so. You article add to the worry of people seeking job. If you think that unemployed people is the cause of high crime rate, I don't believe it. In fact crime is full time employment for criminal. Thus, employment should rather be measured in terms of living life above the line of poverty on to the resources available to people. In short, all people cannot go to industries for work. We really don't need heavy support from Govt. for industries. We rather need to concentrate on work related to human skills. Like in our country, I see teaching is a big earning source while people engaged might be listed as unemployed. Agriculture should thus be encouraged no matter if it leaves people unemployed for some other season. Likewise, people needs to be taught professions like car repair, computer typing, programming, designing, accountancy, touring and travel jobs, sports, music etc. and then encouraged for self employment. You know, get trained, come up with an idea, get loan and get started with your own in your own way. Small cities, big cities, villages, anywhere, with small industries and self employment. We have sectors like property dealing, sports and events management, catering etc. where money flows unaccountable. These sectors needs work license. We only require law enforcement to make our market good for small players to work as well. So that, we won't be able to call anyone unemployed, while all of them take rest for weeks before they start on some innovative product.
  Commented by  Diwakar Tiwari, Sr. Manager, THE Arvind LTD    | 06 03 2010 12:16:02 +0000
Darshana, I agree with your views, As per me moral and value less education system is one factor which majorly contributting and the other major factor is government pOlicy.
  Commented by  Udai Raj Upadhyay, BUSINESS DEVELOPEMENT EXECUTIVE, UG Software Technologies pvt.limited.    | 06 03 2010 09:55:05 +0000
Unemployment is one of most challenging problem we face today.
I totally agree that there is need of totally different kind of education system.But it is an open ended solution pointing to change in one aspect that in education.In fact we need a master plan on national level covering all the aspects education , training, government measures, corporate governance and most important the mind set of people.
Agriculture is one of the variable that need next generation reform for creating more job opportunities and for the betterment of exiting farmers.
I believe that we have the potential to design a strategy and implement the plans and control the variance,Polio eradication plan of the government is one of the example in line.
But we need a very quantified plan covering all aspects and the changes need to be done to have a desired result.
  Commented by  Mohammad Bakhsh, Project Leader/Managing Consultant, Freelancer    | 06 03 2010 09:35:20 +0000
 Darshana,a very heart wrenching assessment.The bane of unemployment could be resolved if GOI pay more attention to Agriculture and Manufacture sector.These are the only two sectors which can absorb the skilled,unskilled and qualified people.The real estate and Infra development have an inbuilt capacity to take care of lion's share of unemployed people. 
  Commented by  Syed Thameem, Telecom Consultant - Senior, Consultant    | 06 03 2010 08:59:51 +0000
Why do we expect the Govt. to support? We need more entreprenurs to generate employment.
Today india mostly producing non-techies graduates. Every one is eyeing for white and blue collar jobs. We need to shift the focus, developing sectore like, non-renewable energy, agriculture,fisheries, we can absorb. We are weak in sports, we can develop lot. Different ideas we needed with strong leadership.
  Commented by  Shyam S, Project Leader/Managing Consultant, A leading EDA firm    | 06 03 2010 08:35:44 +0000
We should ask ourselves, what is the value of that "Education" which leads to unemployment. We are not training the students in a proper way. When the son of a farmer gets a college degree, he immediately wants to sit in an office and work. He is no more willing to cultivate the land or to take care of the dairy.
What is the result ? Unemployment.

The education system in our country is largely to blame for the unemployment of the educated youth.
The standard of vocational training / industrial training is very low.  Besides, the remuneration in fields such as agriculture is not as high as it should be. The result is what we see before our eyes : We have developed an army of clerks who are ready to toil till late hours just at the beck and call of their American masters.

We have destroyed our economy by looking for short term gains.
The long term solution is to introduce vocational education based upon the individual child's proficiency / merits.
We cannot make every student into an engineer or a doctor or a professor. We need farmers, policemen, artisans, businessmen too.
Yet the education system tries to impose the same knowledge on every student with disastrous results as we can all see.
Unfortunately we do not care for the fundamentals and simply ape the western trends. What works successfully in the West may not work here.
  Commented by  PS Dhingra, Vigilance & Transformation Management Consultant, Dhingra Group of Management & Educational Consultants    | 06 03 2010 07:06:59 +0000
Rating : +1 
Dear Darshana,

I fully agree with your views, people tend to compare their motherland with some other better developed nation and justify their criticisms. No country is short of miseries. Every country has it’s own problems.

Naturally, by human instinct, we always try to view others as better of than ourselves, like "Doosray ki thaali mein laddu badha Dikhai deta hai," and crave for more.
  Commented by  Moparthi Sai Ramya Sree, Sotware Developer, Vignan University    | 06 03 2010 06:46:40 +0000
Rating : +1 
i also agree with you darshana nice thinking and good writing government needs to taken care to eradicate the future threats
  Commented by  Renne Sharma, HR Analyst, ABC Consulting    | 06 03 2010 06:40:08 +0000
Rating : +1 
Ya Darshana, U r absolutely right. The reasons what you have mentioned truly go with the situations existing in our country.

We all need to work towards it & the govt. should play a leading role in this act.
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