Unemployment of India compared with the USA Unemployment

A very important issue that plays a crucial role in development of the economies of India is the underutilization of its human capital or in other words unemployment. It is described as the number of people actively looking for job by the labor force (Includes only those people who are willing to work, and are either employed or looking for jobs).Major problem of our country is unemployment. Many graduates, doctors, engineers, scientist are unemployed.
Due to unemployment we are wasting our country’s human resource. The unemployed rate in between age group 15- 29 has been increased since 2009-2010. According to the Global Employment Trends 2014 the unemployment rate has raised to 3.8%, last year it was 3.7%. The International Labour Organisation (ILO) has said in the recent report that India has shown rise in the unemployment in the last two years. If the problem of unemployment is solved it will help in development of the country. With Population of 1.20 billion in our country the unemployment rate is increasing very rapidly . The problem of unemployment is rising but still many industries are facing the problem of skilled candidate for their company. Currently , its  boom for software companies, Outsourcing companies in India, but still facing the problem of unemployment.

The unemployment rate in the United States was 5.3% or 8.3 million people,[while the government's broader U-6 unemployment rate, which includes the part-time underemployed was 10.5% or 16.5 million people.

The factor effecting the unemployment in India

1. Rising opportunities of employment with rise of population is causing unemployment. If the population grows in the same rate the next generation will face more problems of unemployment. If there is vacancy for 1 position 100 or 1000 apply for the position and only one gets the job and others remain unemployed.
2. Inflation is biggest cause.
3. Indians don’t take jobs which are below their grades. Many find it difficult to work at the below qualification level job.
4. Low wages
5. Many big industries look for the skilled candidate for the specific designation.
6. Recession
7. Many Employers give preference to the experienced candidates only and not the fresher.
8. Not enough or new jobs. Government is not able to create enough jobs keeping in mind the Indian population.
9. Slow business expansion
10. Growth in technology is decreasing the need the of human resource for the job.
11. Corruption increasing very fast.

The factor effecting the unemployment in USA

1)      The decline of the construction and real estate industry which supported a large services  structure (commonly known as FIRE: finance, insurance, and real estate).

2)      Demographics related to retiring baby boomers will force them to continue to work to prepare for retirement which makes them compete for lower paying jobs.

3)      A more competitive world that is able to compete with American expertise as their economies improve and provide more jobs for highly skilled services which may reduce the pool for available technical skills.

4)      A dumbing down of our educational system that turns out more communications majors than software engineers.

5)      Inevitable higher taxation in the US that will drain more capital from the economy.

6)      Government spending takes a larger and larger share of GDP.

7)       A monetary system that continues to debase the dollar and wipe out real savings needed for expansion.

Problem caused by the unemployment in India

• Unemployment and poverty goes side by side. The problem of unemployment gives rise to the problem of poverty.
• Young people after a long time of unemployment find the wrong way to earn money.
• To get rid from the unemployment stress, they accept alcohol or drugs.
• Unemployed youths accepts suicide as the last option of their life
• Lower economic growth
• Increase rate in Crimes. As the employed youth don’t have anything to do they start doing robbery, murder etc.
• Health issue affects mentally as well as physically.

Solutions to the unemployment in India

1.      The very first solution for the unemployment is to control the rising population of our country. There should be the implementation of certain government schemes for family planning.

2.       The quality of Indian education should be improved. The current education system is not upto the level.

3.      Implementation vocational training workshops for providing an opportunity of people to learn new skills.

4.      Government should encourage and develop the agriculture based industries in rural areas so that the rural candidates don’t migrate to the urban areas.

5.      Rapid Industrialization should be created.

6.      Development of the rural areas will stop the migration of the rural people to the urban cities and this will not put more pressure on the urban city jobs.

7.      Government should allow more foreign companies to open their unit in India, so that more employment opportunities will be available.

Solutions to the unemployment in USA

1)      Innovation

Further, the salaries attributed to this product were overwhelmingly distributed to highly skilled U.S. professionals, as opposed to lower skilled U.S. retail employees or overseas manufacturing labor. Increasingly, globalization is shifting incomes to those with the highest educational backgrounds and professional skills.

2)      Industry- specific factors

There is more focus on construction and manufacturing industries for creating more jobs.

3)      Policies

More focus upon Fiscal Policy , Monetory and Tax policy .

4)      Lower healthcare cost

 Businesses are faced with paying the healthcare costs of their employees.

In September 2015, the unemployment reached a mark that 23 lakh people applied for 368 posts of peon in the state secretariat in Uttar Pradesh. Among the applicants, 255 candidates with a PhD degree and more than two lakh hold BTech, BSc, Mcom and MSc degrees.

Unemployment rate from 2010 to 2020 in USA

This statistic shows the unemployment rate in the United States from 2010 to 2014, with projections up until 2020. In 2014, the unemployment rate among the United States population  ranged at approximately six percent.

Unemployment rate from 2010 to 2014 in India

 

India is fast developing country and is unemployment rate is decreasing rapidly as government is taking many new initiatives like Make in India and digital India which will give boom to manufacturing and technology and will definitely improve the employment in future.