Like our Facebook Page

Early Times Newspaper Jammu, Leading Newspaper Jammu
Breaking News :   Explore possibility of restoring 4G internet service in certain areas: SC to J-K | Section 144 imposed, drones banned ahead of UP CM Yogi Adityanath's visit to Noida | Pakistan violates ceasefire in North Kashmir’s Kupwara, Baramulla; Army gives befitting reply | Manoj Sinha takes oath as New Lieutenant Guv J&K | Delhi liquor shops to remain open for one more hour | India records highest single-day spike of 62538 COVID-19 cases; tally crosses 20 lakh mark | Vande Mataram, Bharat Mata Ki Jai reverberates in Kashmir | Appointment of new LG: Not even a single J&K BJP leader was taken on board by Centre | JK’s LG designate Manoj Sinha reaches Srinagar, expected to be administered oath today | Six years later, Govt wakes up to flood management programme | Revenue Deptt Kathua defies HC order of attesting land mutation | SWM projects for Rajouri, Udhampur face obstacles due to absence of land | Tehsildar office RS Pura looks like an abandoned house | With 15708 recoveries 67 percent Corona Virus patients recover in JK | Jawan found shot dead under mysterious circumstances in Reasi | Rajni Bala starts development work at Arjan Nagar | Restoring special status will be political hara-kiri for UT: BJP leader | JKTF constitutes Zonal Body for Bani | GCPF holds meeting, discusses people’s problems | Govt evacuates 2,88,699 stranded JK residents; 2,00,129 via Lakhanpur, 88,570 through special trains | MPWs demand removal of pay anomalies, redressal of other issues | Bangotra Sabha skips its annual congregation | Stop killings of public representatives, take strict actions against over ground workers of terrorists : NAUP | Parmaarth: Service Before Self donated Refrigerator to Jagriti Orphanage | Mayor JMC kick starts various development activities | ECPFWA demands OROP for Paramilitary forces | NYK Jammu organises plantation drive | Shivling, Lord Ganesh’s idols installed at Ardheshwari Temple | Power Changes Priorities | Self-Help Groups (SHGs) for Women Empowerment | Ram Mandir signifies Glory, Sacrifice and Victory | Has the country forgotten Lokmanya Tilak? | AGRICULTURE: THE UNFORTUNATE TRUTH | Munish Gupta asks government to solve problems of people of Nikki Tawi Barjlaban Raipur Satwari | DDC Samba gives away Scooties to specially-abled persons | I&C Deptt’s Divisional-Penal clears Subsidy cases of Kathua district | DDC Ramban reviews I-Day arrangements | E-Lok Adalat in Reasi on August 22 | Provide timber sale depot in Basantgarh: Harsh | Roof-top Rally organized to celebrate Ekatmta Diwas | Treat PRCs as domicile certificates: Cong | Councilor Ritu Choudhary distributes rice among beneficiaries | Jammu, Srinagar Airports receive 22 domestic flights with 3,134 passengers | SC community feeling insecure in Ramnagar: SC Chairmen | DDC Udhampur inspects progress on Devika Project | Kavinder Gupta Launches Plantation drive in Trikuta Nagar | Biggest EMUNJS 2020 in J&K from Aug 8 | Sanjeev Vaid appointed Chairman of J&K Zone of Rotary International | IIMC begins admission process for Journalism and other allied courses | PCB Chairman lectures IFS Probationers on Environment Governance– Issues & Challenges in India | Bharat Scout and Guide Udhampur conducts plantation drive | Pushp Vatika conducts “Making of Flowers” activity | Corporator inaugurates Open-Air Gym at Channi Himmat | VC SKUAST-J reviews achievements of SAMETI | CS reviews progress under Atmanirbar Bharat Abhiyan | PWD in action: XEn attached, AE suspended | Unexpected removal of last Governor, Ist LG strange coincidence : Omar | Bank fraud case: Enforcement Directorate raids former minister son Hilal Rather | Digitization of Land Records to begin in J&K soon | In fortified Qazigund, Militants shot dead BJP Sarpanch | Brick Supply Scam: ACB files chargesheet against former PDP MLA, JKPCC officials | Restrictions eased, business other activities remain crippled in Kashmir | Rain still eludes Kashmir, fresh weather warning issued by Met | CB Jammu books fraudsters for duping unemployed youth | Declare Pakistan a terrorist state: AJKPC | HC issues notice to Home Secy, DM Samba others in PSA detention case | HC sets aside bail granted by Trial Court in POSCO | MC Baramulla among 3 persons booked for alleged assault on women councilors | J&K witnessed notable achievements under Murmu, believe officials | Back Issues  
news details
Pandemic and urban unemployment in India and beyond
7/15/2020 12:13:15 AM

Dr. Rajkumar Singh

In general, unemployment in a situation when anyone wants to do a job but fails to find a work. It is an indication of country’s economic health and it’s rate or number by which many other things are also measured. A large number of unemployment in any country means that a vast group of people are ready to contribute to the productive outcome of the economy. In case the economy is unable to give employment to its citizens, a dynamic and sound economy must arrange for subsistence allowance during the period of unemployment. Not providing employment or need of basic consumption signals a red alert for the economy and the nation as well which can easily invite social tension and political upheaval on regular basis. In the context there are two broad categories of unemployment- voluntary and involuntary. Voluntary unemployment means that a person has left the job in search of better job or employment, while involuntary unemployment meant that the person is willing to take job but due to reasons more than one he is unable to get it. The word unemployment has various kinds such as, frictional, cyclical, structural and institutional and while measuring the number of unemployed is counted,mass of the labour class, who are not searching for a job, are not considered. Although it’s a global phenomenon, the developing and under developed countries are the worst sufferers.
Status at global level
In the 1930s, at the height of the Great Depression, US President Franklin D. Roosevelt’s Public Works Administration (PWA) paid private construction firms $7 billion to build airports, dams, bridges, roads, schools, zoos, tennis courts, theaters, dormitories, and hospitals. It was a desperate act of rebellion against the faltering economic engine. The hope was that this spending would rejuvenate demand — more jobs, more spending, more economic activity and a virtuous cycle of growth. But there was another angle here. Roosevelt wanted the PWA to provide local jobs directly to the unemployed. And although new jobs couldn’t outpace unemployment levels in the country, it put 8.5 million Americans to work, who went on to erect 600,000 miles of new roads, build 100,000 bridges and construct 35,000 buildings. It was proof of concept for a radical idea proposed by one of the greatest economists of the 20th Century — John Maynard Keynes. And these ideas are gaining ground once again. When COVID sneaked its way into cities like Mumbai and Delhi, we hit the speed breaker. Urban unemployment rates tripled and the informal sector was on its deathbed.
Background of urban unemployment
Urbanisation in India began with the Independence of the country and it adopted mixed economy as its basic policy for future India.
The new policy gave rise to public and private enterprises side by side and viewing the gap between rural and urban life the movement of rural people towards the cities commenced on a vast scale. According to the Census of the country in the year 1901 the total number of Urban people was only 11.4%. It raised to 28.53% in 2001 followed by the 34% in the year 2017. As per an estimate of the UN State of the World Population report 40.76% of the total population of the country will reside in urban areas. Although the region South Asia is a predominantly rural accounted for 69.9 of the rural population as of 2010, the country, India registered an unprecedented growth of urban population in the region. Rapid growth of urbanisation and industrial base made second to agricultural sector in Gross Domestic Product (GDP).
The nation’ s economy witnessed a significant growth due to industrial revolution and coming of new technologies that ultimately raised the standard of the urban people who came in cities in search of their livelihood. The rising tide of unemployment in urban areas has increased disparity among city dwellers. The wide gap of income and expenditure and primary civil facilities have created two worlds in the same city. On the other hand, the rural economy, including agriculture and small scale industries are on decline. If the widening gap between the rural and urban life remains like today, it would prove a self- suiciding for the Indian economic as a whole.
Pandemic and urban unemployment
The vast majority of people working in urban areas are employed informally. They have no written job contracts, no regular salaried work, and are often employed casually through job contractors, subcontractors and temp agencies. Several attempts to formalise informal work have been made and are underway. But the reality on the ground is that the majority of urban workers — 62–85% of them — have no access to benefits, which make up the flagship schemes for COVID-19 relief to workers in urban areas. Meaning we have a large portion of the urban population that has no work, no benefits, and little social protection. So there’s been growing consensus that the government could potentially stave off an unemployment crisis in the urban areas by taking a leaf out of Keynes’ playbook. After all, we have already implemented MGNREGA — a guaranteed-employment program where any rural adult is offered 100 days of unskilled manual work so long as he/she demands it. And it’s turning out to be a lifesaver. Migrant workers who made the treacherous journey back home have been lapping up MGNREGA like never before. The demand for the scheme has skyrocketed. However, despite the increase in demand, the gap between “those who wanted work and those who got it” is at an all time high. On average, the gap between the demand and supply of jobs in the month of May (over the past 5 years) has roughly tallied to about 16–18%. This year however, it’s at 29% —  that means only two out of three workers who applied to this scheme were entitled to any benefits under MGNREGA.
And if this exodus continues there will be a rural crisis unfolding soon enough. So some people have contested that there is an urgent need to stem the flow. Stop the migration and incentivize these people to stay back. Maybe we could replicate MGNREGA in urban centres — Offer the urban poor a chance to make a living and pay them a decent wage. It could have far reaching impact and it may help us kick-start economic growth as well. In fact, some states are already experimenting with this model in a limited capacity. In April, Odisha announced a Rs 100 crore scheme which would help the city’s urban poor earn an immediate wage by working on labour-intensive projects sponsored by the government. In May, Himachal Pradesh launched the Mukhya Mantri Shahri Ajeevika Guarantee Yojna to provide 120 days of assured unskilled employment to adult members of households in urban local bodies. The government is planning on spending around Rs 25 crores on the project. And other state governments will probably join in too. However, if this program gets a slight boost from the central government maybe we could have something really solid on our hands. It all depends on whether the government has the will and the financial muscle to pull this off.
  Share This News with Your Friends on Social Network  
  Comment on this Story  
top stories of the day
Dr Farooq Abdullah forced to ‘self-quarantine’
Kissan Melas draw first blood, Agri officer dies due to COVID-19; 3 others test positive
Leaking supply line exposes negligence of PHE Deptt
Threat of terrorists: J&K BJP leadership failed as two Valley based leaders quit party
HC summons J-K Home Secretary over poor internet speed
Over aged officer re-appointed as Chairperson Board of School Education for two years
COVID-19: As learning goes digital, Govt schools forget their students
BJP’s JK Prez among 346 fresh cases of COVID-19, eight more persons die due to virus
Gole Panjpeer, Camp Talab Tillo, Ward No. 32 declared containment/red zones; Lockdown imposed
Declare Hindi as J&K’s official language, PIL filed in High Court
People violate Covid-19 protocols outside DC office, admin in deep slumber
Jitendra Singh, Ram Madhav in self-quarantine after BJP's J&K Chief Tests Positive for Covid-19
Munish Gupta asks government to step in & solve problems of residents
30 fresh positive 1118 active positive cases, 66 recovered and 52 deaths till date in north Kashmir
Woman tests Covid positive posthumously in Anantnag, family contests claim
People violating Covid safety guidelines in valley,Enforcement of restrictions in containment zones necessary, say officials
District Officer forces subordinates to carry out unlawful works
Complete collapse of drainage system in Mendhar, authorities unmoved
All those party workers who came in contact with JK BJP president would undergo COVID19 tests
Early Times Android App
BSE Sensex
NSE Nifty
Home About Us Top Stories Local News National News Sports News Opinion Editorial ET Cetra Advertise with Us ET E-paper
J&K Govt. Official website
Jammu Kashmir Tourism
Mata Vaishnodevi Shrine Board
Shri Amarnath Ji Shrine Board
Shri Shiv Khori Shrine Board
Train Enquiry
Jammu Kashmir Bank
State Bank of India
Passport Department
Income Tax Department
IT Education
Web Site Design Services
Jammu University
Jammu University Results
Kashmir University
IGNOU Jammu Center