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Unit 8: Unemployment in India: Concept, Causes and Government Policies

To sum up, Jawahar Rozgar Yojana made some headway in providing employment but the target of Notes
providing 90-100 days of employment for every registered person is a distant goal judged by the
achievement made so far. The total absence of voluntary organisations in its implementation was a
serious weakness of JRY. To improve the quality of construction of houses, more liberal amount per
house should be provided, failing which the poor quality houses would after a few years need heavy
repairs.
Under the programme, all works that can result in the creation of durable assets are taken up. Under
the scheme, during 2000-01, with a Central allocation of ` 1,650 crores, 88.5 million mandays of
employment was generated.
Swaran Jayanti Gram Swarozgar Yojana (SGSY) was introduced in April 1999 as a result of
restructuring and combining the Integrated Rural Development Programme (IRDP) and Million Wells
Scheme (MWS) into a single self-employment programme. It aimed at promoting micro-enterprises
and helping the rural poor into self-help groups. It was implemented as a Centrally Sponsored Scheme
on cost sharing ratio of 75 : 25 between the Centre and the States.
Swaran Jayanti Shahari Rozgar Yojana (SJSRY) : The Urban Self-employment Programme and Urban
Wage-Employment Programmes of the Swaran Jayanti Shahari Yojana, which substituted in December
1997 various programmes operated earlier for poverty alleviation. SJSRY was funded on 75 : 25 basis
between the Centre and the States. During the 3-year period (1997-98 and 1999-2000), a total of ` 353
crores were spent of SJSRY generating 21.8 million mandays of employment.

Jawahar Gram Smridhi Yojana (JGSY) was introduced in April 1999 as a successor to
Jawahar Rozgar Yojana (JRY) is being implemented as acentrally sponsored scheme on a
cost sharing ratio of 75 : 25 between the Centre and the States.

Employment Policy in the Ninth Plan
Labour Force Growth and Employment Requirements

Job opportunities will need to be created for 53 million persons during 1997-2002 as a consequence of
labour force increase, for 58 million during 2002-07 and thereafter for 55 million during 2007-12.

Table 1 : Combined Incidence of Unemployment and Under-employment

Activity Status Proportion of Remarks
labour force

1. Labour force 100.00 Working or seeking work on usual status basis.
2. Employed 89.55 Usual status employed staying in workforce when
classified by their weekly status.
3. Unemployed 2.02 Incidence of open unemployment on usual status
basis.
4. Under-employed 8.43 Usual status employed going out of work when
classified by their weekly status.
5. Unemployed & 10.45 Open unemployment on usual status and the incidence
underemployed of loss of work by the usually employed when
classified by their weekly status.

Source : Compiled from Planning Commission, Ninth Five Year Plan (1997-2002),
Vol. I, February 1999.

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