The presented views are personal. All the data is taken from external sources.

1. INEQUITY AND UNEMPLOYMENT
Akshat Goel
2008ME10483

2. UNEMPLOYMENT

3. What is unemployment ?
Unemployment refers to a situation where the
persons able to work & willing to work, fail to
secure work or activity which gives them income
or means of livelihood

4. Types of Unemployment
Voluntary Frictional Chronic Cyclical
Casual Unemployment Disguised
Sesonal Technological Structural

5. Current Situation in India and
Worldwide
According to Labour Bureau's Employment and
Uemployment Survey (2009-10), the estimated
uemployment rate – in the region of 9.4 percent
It is evident from the survey that the situation has
not changed in the two decades of reforms

6. Current Situation in India and
Worldwide
●10.1% of rural labor force is unemployed, and
7.3% in urban areas
● The global unemployment rate is around 6%
continuously from 2009 to 2011
● In absolute figures the number the number of under
25 out of work worldwide is estimated to be around 81
million
●The developing world is home to nearly 90% (as of
2010) of the economically active youths, with Asia
alone accounting for some 60%

7. Current Situation in India and
Worldwide
“The combined sales of world's top 200MNCs is now greater than that
of the combined GDP of all but world's nine largest national
economies. Yet total direct employment generated by these
multinationals is a mere 18.8 million -one-hundredth of one percent of
the global workforce” --- Institute for Policy Studies
“Right now, the problem of unemployment has not fully appeared, but
it's a bomb in a dormant state" --- J. Manohar Rao
“The former British premier Gordon Brown will call on world leaders to
address this issue, warning of
a 'time bomb' that could damage both the developed world and
emerging economies”

8. De-linking Economic Growth and
Unemployment - Global
Year World GDP Growth Unemployment
2007 5.3 5.6
2008 2.8 5.7
2009 -0.6 6.3
2010 5 6.2
2011 4.5 6.1
GDP & Unemployment Comparision
7
6
5
4
World GDP
3 Growth
%
Unemployment
2
1
0
2007 2008 2009 2010 2011
-1
Year

9. De-linking Economic Growth and
Unemployment - India
Industry Employed Workers (million) Annual Growth Rate (%)
1983 1993-94 1999-00 1983-94 1994-00
Primary 208.99 245.16 239.83 1.6 -0.34
Secondary 41.66 55.53 66.91 2.9 3.14
Tertiary 52.11 73.76 90.26 3.53 2.42
Total 302.76 374.45 397 2.04 0.98
➔The post liberalisation period thus appears to be one, which neglected
agriculture
➔ Growth of employment during 1994-2000 has substantially gone down

10. De-linking Economic Growth and
Unemployment - India
Growth Rate 1983 - 94 1994 - 00
(%)
1 Population 2.12 1.93
2 Labour Race 2.05 1.03
3 Employment 2.04 0.98
4 Organised 1.2 0.53
Sector
Employment
Public 1.52 -0.03
Private 0.45 1.87
➢Little growth in the organised sector employment has been because of the
private sector as public sector has shown negative growth
➢Also because the share of public sector in the overall organised sector
employment is around 75% therefore increase in private sector employment
cannot change the overall organised sector scenario

11. De-linking Economic Growth and
Unemployment - India
But I think that, the positive points of the GDP growth should not be neglected
Growth of Average Daily Wage Earnings
Rural Males Rural Females
1987-88 to 1993-94 to 1987-88 to 1993-94 to
1993-94 1999-00 1993-94 1999-00
Public Works 1.55 3.83 1.9 5.04
Casual Labour 1.36 2.8 2.34 2.94
in Agriculture
Casual Labour 1.33 3.7 1.32 5.07
in non-
agriculture
Casual Labour 0.77 3.59 1.95 3.19
in all Activities
Caution : Just by looking at the increase in per day earning of employees it would be
wrong to assess that total earnings have increased, as we have not taken into the account
the total number of days for which the workers were employed.

12. De-linking Economic Growth and
Unemployment - India
Because there is a decent increase in the productivity of workers it
is a better use of the human potential.
Growth rate of productivity per worker
1983-84 to 1993-94 1993-94 to 1999-00
Primary 1.44 3.59
Secondary 2.97 4.08
Tertiary 3.12 5.13
Total 2.97 5.64

13. Looking Ahead and Conclusions
“Organised sector cannot provide 10 million
jobs per year” -- Indian Economy book by
Ruddar Dutt and K.P.M Sundharam
The country has, therefore to stimulate the
growth of agriculture, small-scale industries,
informal sector units so as to achieve the goal of
100 million additional jobs in the next 10 years.

14. Looking Ahead and Conclusions
I feel that small business opportunities (indirectly in the form of
unorganised sectors) created by the big companies cannot be
neglected, and these companies generate huge revenue as
well. It is evident from the following excerpts.

15. Looking Ahead and Conclusions
Sunil Mittial, Founder, Bharti
“Bharti Airtel employs around 50,000 people today, but we provide
indirect employment to around 1.5 million.”

16. Looking Ahead and Conclusions
Other examples are
●Tally (accounting software)
You must have seen small tally coaching institutes that have
come up in all the areas of India, though Tally is made by a Multi
national corporation.
●Computer-Mobile Repair shops
There are many small computer repair shops both in rural and urban
areas which employs many people though they are not directly
employed by the huge MNCs which are making computers and
mobiles.
● Motorcycle-Car repair shops
Automobile repair shops are a very common site in all the parts of
India. The kind of employment generated by these units cannot be
neglected.
Caution: (no supporting data)

17. INEQUITY

18. Assumption
I am discussing the inequity in terms of Economics.
Because I think economic inequity leads to many problems in the
society. For eg. Crime etc.
People don't have money that is why they are not able to purchase
good education, good health, good home, healthy food, better
cleanliness etc, and that is why they are poor.
By having more money people can at least satisfy their basic
minimum material needs.

19. The Poor
Don’t ask me what poverty is because you have met it outside
my house. Look at the house and count the number of holes.
Look at my utensils and the clothes that I am wearing. Look at
everything and write what you see. What you see is poverty.
―A poor man, Kenya 1997
When food becomes scarce, we only eat once a day to allow our
children and husbands to eat three times a day –– Philippines
1999
In India, although illiteracy is not reported as the number one
reason for poverty, poor people recognize that literacy would help
them to manage their lives better. “They understand that illiteracy
has made them more dependent, less enterprising and more
vulnerable to the machinations of the educated” –– India, 1997

20. The Poor
When food becomes scarce, we only eat once a day to allow our
children and husbands to eat three times a day –– Philippines
1999
In some areas of India, women within the household are expected
to eat only after everyone else has finished eating, and during
times of shortage women may be left with virtually nothing to eat
at all –– India 1998
Women also frequently complain of sexual harassment from
coworkers and managers – India, 1998

21. The Poor
The Story of Murari - India, 1997
Murari is a 30-year-old man who is presently living in the village of Kedarkui with his
family. He began his period of contractual labor in agriculture five years ago for a
dominant Thakur caste farmer. The Thakur also acts as a moneylender in many of the
surrounding villages.
Five years ago, Murari took out a loan of approximately Rs. 1000 that he needed for an
unexpected emergency. As a term of the loan, Murari was compelled to work for the
Thakur farmer as an agricultural laborer on the moneylender’s land for a wage of only
Rs. 5000 a year.
This Thakur farmer/money lender provided Murari and his family with
accommodations, food, and some money for miscellaneous expenses, while keeping
account of everything that was provided.
At the end of the first two years, Murari owed Rs. 2,500 to the Thakur.
After two years of labor he owed 250 percent more to the Thakur than he had initially
borrowed due to the interest incurred on the loan, charges for food and accommodation,
small loans provided on an on-going basis and so on. .
However, despite this dismal situation Murari was not able to leave the Thakur’s farm in
search of more profitable work. If he attempted to leave, or flee, it is reported that the
moneylender would track him down and the consequences would undoubtedly be
serious. After five years of work as an agricultural laborer and house servant for the
Thakur, Murari now owes over 8000 Rs

22. The Rich
The 15,000-square-foot 'bungalow' features a swimming pool, jacuzzi, karaoke
studio, and gym, as well as party rooms and terraces where Jhunjhunwala
entertains family, friends, and business associates.
47-year-old founder of investment house Rare Enterprises has just bought a
$5.4 million, six-bedroom duplex apartment in the tony Malabar Hill
neighborhood.
"I have far more wealth than I need," says Jhunjhunwala, whose estimated net
worth is just shy of $1 billion. "But it gives me the freedom to do what I enjoy and
enjoy what I do."

23. The Rich
Rising dramatically, 300 metres above sea level, and built at a staggering cost of
over a billion dollars, Antilia (the name is likely to be changed to `Anandam') can
be described as the Taj Mahal of the 21st century.
But how many mortals live in a 27-storey abode called `Antilia' (the world's
priciest abode)? The answer is - just five!” – Antilia, Ambani's new house
It took seven years to build the 40,000-square-foot Bill Gates mansion on a
wooded five-acre compound in the moneyed Seattle suburb of Medina. Inside
Bill Gates' Garage, you'll find a 1999 Porsche 911 Convertible and 1988
Porsche 959 Coupe. ” – Home, Bill Gates (now a philanthropist)

24. References
Unemployment
●http://bit.ly/epIPid (Hindy Article)
●http://bit.ly/eepaw1 (Hindu Article)
●http://bit.ly/gvQFyv (Hindu Article)
●http://bit.ly/e4raNS (Hindu Article)
●http://bit.ly/epCjAW (Hindu Article)
●http://bit.ly/fDYVNf (Hindu Article)
●http://bit.ly/hqrFWb (Economic Times Article)
●http://bit.ly/fwBFPt (The India Site Article)
●http://bit.ly/g2b1fc (The Institute of Chartered Accounts of India)
●http://bit.ly/emmUfG (Ministry of Statistics and Programme Implementation)
●Book : Indian Economy, by Ruddar Datt and K.P.M Sundharam
Inequity
● http://bit.ly/f1A3Z2 (World Bank's Reports Link)
● http://bit.ly/e6wA6y (Times of India Article)
● http://bit.ly/fX5QRV (Bill Gate's Home by labnol.org)

25. Thank You
Doubts ??
Disagreements ??