39 economics the Problem of Unemployment, Poverty and Inequality module 2


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318 Economics Eng Lesson4

Table 4.1: Unemployment Rate (%)
Year
2004-05
2009-10
2010-11
UPSS
2.3
2.0
2.2
CWS
4.4
3.6
3.7
CDS
8.2
6.6
5.6
Source:
NSSO Surveys, till 2014


 43
ECONOMICS
The Problem of Unemployment, Poverty and Inequality
MODULE - 2
Current challenges before
the Indian Economy
Notes
It is clear from the above table that there is decline in the unemployment rate since
2004-05. UPSS has remained more or less same between 2004-05 to 2010-11 at
marginally above 2 per cent. CWS declined from 4.4 per cent in 2004-05 to 3.6 in
2009-10 and almost remained same at 3.7 in 2010-11. CDS decreased continuously
from 8.2 per cent in 2004-05 to 6.6 per cent in 2009-10 and 5.6 per cent in
2010-11
4.3 CAUSES OF UNEMPLOYMENT IN INDIA
4.3.1 Slow Economic Growth
During the planning period the trend rate of growth was considerably lower than
the targeted rate. Therefore, jobs in adequate number were not created. Further,
economic growth by itself does not solve the problem of unemployment. In the
recent past there has been deceleration in the growth of employment in spite of the
accelerated economic growth. This can be explained in terms of steady decline in
the degree of response of employment to change in output in all the major sectors
of economic activity except in construction. According to T.S. Papola, over a
period of time, the output growth in agriculture and manufacturing sector has
become more input and technology-intensive and less labor-intensive. Besides, the
sectoral composition of growth is also an important determinant of unemployment.
Excessive dependence on agriculture and slow growth of non-farm activities limit
employment generation.

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