UNEMPLOYMENT-AN EVIL

UNEMPLOYMENT- AN EVIL

By Parichita Basak

Unemployment in underdeveloped countries is a long-term problem. This is due to lack of the stock of capital in relation to needs of growing population. Now, with the advancement of technologies and specialization, one needs much more capital in the productive activity. These aids to production belong to communities stock of capital.

The entire addition of labour force cannot be absorbed in productive employment if working force grows faster than stock of capital of a country. There would not be enough instruments of production to employ them. This unemployment evil is long-term.

A nation’s stock of capital can be enlarged by increased investment which, in the absence of any unutilized resources, requires additional savings on part of community. The employment opportunities need to be successfully enlarged to absorb the additions to the working force of a country as result of population growth.

In recent times, the labour force in India has been growing at an annual rate of 2 percent and our rate of investment of our stock of capital has not been growing at a fast enough rate so as to keep balance with population growth. So, there is limited country’s ability to offer productive employment.

To enlarge employment opportunities there is a need of faster rate of capital information. Every possible encouragement should be given for productive utilization in increasing the rate of investment.

If population grows at rapid rate, then to maintain people even at their existing levels, large amounts of capital are needed which could otherwise have been used to raise the amount of capital available per man and hence to raise living standards at a faster rate.

Unemployment affects an individual, family, as well as society, or it may be said that unemployment causes personal disorganization, family disorganization, and social disorganization.