Unemployment Increases Poverty in Rural and Urban Areas - Critical Analysis
Define unemployment. Unemployment Increases Poverty in Rural and Urban Areas - Critical Analysis
Relation between unemployment and poverty.
How unemployment causes poverty?
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Concept and Definition of Unemployment :-
In general, unemployed refers to a person who, despite having the ability and desire to earn, is deprived of gainful employment.
From a sociological point of view, persons who are employable, have the ability to get employed , have the desire to get employed , have been trying to get employed ; but involuntarily separated from gainful employment is said to be unemployed.
According to D. Mali, unemployment refers to a situation where a person is deprived of employment for wages despite his willingness and ability to work.
From the above definition and discussion, several elements or conditions of unemployment are observed -
A person can be said to be unemployed when -
1. The person should be active to get a job.
2. The person will have a desire to get a job.
3. The individual will tend to find work through his diligence.
Relationship of unemployment with increase in poverty in rural and urban India:-
4.4% of people in rural India and 5.7% in urban areas are victims of unemployment. There are characteristic differences between rural and urban areas with unemployment.
But correlation exists between population, poverty, illiteracy and unemployment. The relationship is shown in a diagram.
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Correlation of unemployment with poverty in rural areas:-
1. Farming in India is constantly decreasing. As a result, people's income from agriculture is decreasing. This problem is becoming more complex with the subsequent growth of population. Even today about 65% of people in India are directly or indirectly dependent on agriculture. As a result, unemployment in the agricultural sector is increasing along with the amount of poverty in rural areas.
2. At present most of the agricultural lands in India are being cultivated with modern machinery. As a result, the employment opportunities for landless farmers have narrowed. At present the per capita agricultural holdings are less than three acres.
3. Nowadays, agricultural products have become an unprofitable business. Every year many farmers commit suicide for not getting the price of their crops. This unemployment in the agricultural sector is pushing up India's overall poverty curve.
4. Due to lack of proper implementation of various government schemes in rural areas, the unemployment rate is increasing. Although there is a 100-day work guarantee policy, there are many problems in implementing it. As a result, unemployment and poverty are increasing simultaneously.
5. India has a high rate of illiteracy in rural areas. So due to illiteracy , a certain number of people are suffering unemployment which is directly increasing poverty.
Correlation of Poverty with Unemployment in Urban Areas :-
1. Although urban areas have higher literacy rates, a certain segment of the population fails to engage in productivity due to lack of effective vocational training. As a result, the number of educated unemployed in urban areas is increasing significantly.
2. One-sidedness of qualification in urban areas is increasing the problem of unemployment which is one of the reasons for increasing poverty in urban areas. Due to the presence of more number of doctors and engineers than required, it is also causing unemployment problem.
3. Educated people in urban areas tend to be more engaged in manual work. People in urban areas are more motivated to take up jobs or similar activities. As a result, there is a problem in finding employment, which is one of the reasons for the increase in urban poverty.
4. Industrial and market fluctuations in urban areas, labor unrest, strikes, lock-outs, political apathy etc. act as obstacles to employment in urban areas. This results in unemployment in urban areas which has a profound impact on urban poverty.
5. Factors such as financial recession, inflation, layoffs, etc. directly affect the unemployment rate in urban areas. As a result, poverty increases exponentially. Also, government policies, globalization, economic liberalization - etc. also increase unemployment and poverty in urban areas.
Finally, even though there is a characteristic difference between unemployment and poverty in rural and urban India, as a direct result, the rate of unemployment increases in both. The subsequent increase in unemployment rate is encouraging the growth of poverty. There is an inextricable relationship between unemployment and poverty in both rural and urban India.
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