NCERT Class 9 Economics Chapter 2: People As Resource Complete Notes Part 5

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People as Resources

Quality of Population – Unemployment

  • Rural – Seasonal (agriculture) & Disguised (for work of 4 people have 6 of them – people with agricultural plots – Productivity unaffected)

  • Urban – Educated (surplus manpower in certain areas while shortage in others)

  • Wastage of manpower

  • Hopelessness & despair

  • Increase economic overload - in health & withdrawal from school

Now if we talk about unemployment under rural and urban areas, I can say under rural areas there are two significant unemployment that are seen, the first is the seasonal unemployment that we already talked about, the other is the disguised unemployment. Seasonal unemployment as I said is in agricultural sector. So you have kind of people who are involved for only for the production schedule or only for the time where there is a sowing or threshing required.

Then you have Disguised unemployment. Let’s say I have a piece of land and there are 10 member of my family, 5 of those if work on the field can generate the same amount however since there are 10 people all the 10 of them are working on the same piece of land but there is no significant rise in the production level. That means a piece of land which can accommodate 5 people is utilizing 10 people with no added benefit or no extra profit that can be provided to the family. So, the five people here are having a kind of disguised unemployment or kind of hidden unemployment where productivity in absolute terms remains unaffected. There is no change in the productivity if 5 people are working or 10 people are working that means 5 people more working on the field are additional and they are kind of unemployed, and that unemployment is a kind of disguised unemployment.

In urban sector the most common unemployment nowadays is the educated unemployment. Where you have a kind of unique behavior where you have suppliers or manpower into certain sector. Let’s say with the coming up of more management courses, engineering courses, you might find surplus manpower in certain fields, however there can be shortage into the basic science and basic humanities and basic social sciences because you have kind educated youth but you do not have good educated or good talented youth for the core branches so that might be a kind of interesting phenomena that occurs under educated unemployment.

However unemployment in general is wastage of manpower. It leaves human being with despair and hopelessness. It increases economic overhead of the nation as a result there would be more withdrawals from the school because more and more people would want their kids specially from the organized sector to get into work, so as to earn the bread and butter for the family. So there would be more withdrawals or dropout from the school, there would be decreasing the health care facilities that would be seen.

  • Agriculture: Labor Absorbing – Mechanization, Disguised

  • Production: Small Scale – Labor absorbing

  • Tertiary: Upcoming - Biotechnology, nanotechnology, IT

Now if we classify if we go on the various sectors of economy that we have talked about agriculture is definitely a labor absorbing sector but with mechanization coming in and a lot of disguised unemployment that is seen, the problem of unemployment is rising in this sector. Production sector with small scale units is definitely a kind of labor absorbing unit, then you have tertiary sector, service sector, you have kind of upcoming fields like Biotechnology, nanotechnology, IT revolution. All these are bringing in more kind of talented labour or they require more kind of well-established human resources that would be useful for the service sector specifically.