УДК 331.56:331.55(540)
Mistry Jay Vasantbhai, student of the International Medical Institute, Kursk State Medical University, Kursk, Russia
Email: mistryjay503@gmail.com
UNEMPLOYMENT AND REGIONAL MOBILITY OF LABOR IN INDIA
Abstract: unemployment is a significant economic and social challenge that affects individuals, communities, and nations worldwide. It is a complex issue with far-reaching consequences, impacting not only the unemployed but also the broader economy. This article explores the various aspects of unemployment, including its causes, effects, and potential solutions. It focuses on the relationship between unemployment rates and the movement of workers across different regions within India. This research explores how labour mobility affects job opportunities and economic growth in different parts of the country.
Key words:_unemployment, mobility of labour
Мистри Джей Васантбхай, студентка международного медицинского института Курского государственного медицинского университета, Курск, Россия
Email: mistryj ay503@gmail. com
БЕЗРАБОТИЦА И РЕГИОНАЛЬНАЯ МОБИЛЬНОСТЬ РАБОЧЕЙ СИЛЫ В
ИНДИИ
Аннотация: безработица является серьезной экономической и социальной проблемой, которая затрагивает отдельных людей, сообщества и нации во всем мире. Это сложная проблема с далеко идущими последствиями не только для
безработных, но и для экономики в целом. В этой статье рассматриваются различные аспекты безработицы, включая ее причины, последствия и потенциальные решения. Основное внимание уделяется взаимосвязи между уровнем безработицы и перемещением работников по различным регионам Индии. В этом исследовании анализируется, как мобильность рабочей силы влияет на возможности трудоустройства и экономический рост в разных частях страны.
Ключевые слова: безработица, мобильность рабочей силы
To comprehend the impact of regional labor mobility on unemployment, it's essential to first examine the prevailing unemployment scenario in India. Factors such as population growth, educational disparities, and technological advancements contribute to the unemployment challenges faced by the country [1].
1) Population growth: India's large population contributes to high competition for jobs, making unemployment a persistent challenge.
2) Educational disparities: Disparities in education and skills across regions impact employability. Urban areas often offer more diverse job opportunities [2].
3)Technological Advancements. As technology evolves and automation becomes more prevalent, certain jobs that were once done by humans are now being replaced by machines and software. This can lead to a decrease in the demand for certain types of jobs and result in unemployment for those who were previously employed in those roles.
4) Government Initiatives: Government programs aim to address unemployment through skill development initiatives, job creation schemes, and entrepreneurship support [1,3].
One of the biggest challenges a country faces due to unemployment is the potential for economic and social instability. High unemployment rates can strain the economy as a whole, leading to decreased consumer spending, lower tax revenues, and increased government spending on unemployment benefits. High unemployment rates
can strain the economy as a whole, leading to decreased consumer spending, lower tax revenues, and increased government spending on unemployment benefits [4].
Persistent unemployment contributes to poverty and income inequality, creating a divide between those with stable employment and those struggling to find work. Unemployment Rate in India decreased to 7.10 percent in September from 8.10 percent in August of 2023 (table) [3,4].
Table - Unemployment rate of India in 2022-2023
Month Unemployment rate(%)
India urban rural
mar 2023 7.80 8.51 7.47
feb 2023 7.45 7.93 7.23
jan 2023 7.44 8.55 6.48
dec 2022 8.30 10.09 7.44
nov 2022 8.03 8.92 7.61
oct 2022 7.92 7.34 8.19
sep 2022 6.43 7.71 5.83
aug 2022 8.28 9.57 7.68
jul 2022 6.83 8.22 6.17
jun 2022 7.83 7.32 8.07
may 2022 7.44 8.24 6.63
april 2022 7.83 9.22 7.18
Unemployment rate in India averaged 8.15 percent from 2018 until 2023, reaching an all time high of 23.50 percent in April of 2020 and a record low of 6.43 percent in September of 2022.
Effects of unemployment.
1. Financial Strain: Unemployment often leads to financial instability for individuals and families, causing stress and hardship.
2. Social Impacts: Beyond the economic consequences, unemployment can lead to social issues such as increased crime rates, mental health challenges, and strained relationships [1,2].
3. Reduced Consumer Spending: Unemployed individuals tend to cut back on spending, impacting businesses and potentially creating a ripple effect throughout the economy.
4. Government Burden: Governments may face increased social welfare costs and a reduction in tax revenues due to a smaller workforce.
India is a diverse nation with significant regional variations in terms of economic development, infrastructure, and job opportunities. These disparities often result in unequal distribution of labor and contribute to the mobility of workers across regions, the movement of labor from one region to another in search of employment opportunities is a crucial aspect to consider. Factors such as wage differentials, skill requirements, and industry concentration influence the decision of workers to migrate.
When there are high unemployment rates in a particular region it often leads to an increase in the mobility of labor as individuals search for job opportunities in other regions. This movement of workers can help alleviate unemployment in the region they move to, while also creating labor shortage in the region they leave. It's a complex interplay between job availability, skills, and the willingness of individuals to relocate.
Let's say there is a city where the unemployment rate is quite high due to a decline in a major industry. Many people in that city may find it difficult to secure employment opportunities. As a result, some individuals may decide to move to other regions or cities where there are more job prospects available. By doing so, they increase their chances of finding employment and reducing their unemployment status [4]. On the other hand, the region they leave behind may experience a decrease in the number of available workers. This can result in labor shortages and potentially impact the local economy. However, in the region where these individuals relocate, there may be a positive effect on the job market as they contribute to the workforce and fill vacant positions.
So, the co-relationship between unemployment and regional mobility shows how individuals' movement in search of employment can impact both the region they leave and the region they move to.
Based on the topic of unemployment and regional mobility of labour in India, it can be concluded that the issue of unemployment is a complex one that is influenced by various factors, including regional disparities and the ability of labour to move across different regions. In India, there are significant regional variations in employment opportunities, with certain regions experiencing higher unemployment rates compared to others. Limited regional mobility of labour can further exacerbate the problem, as individuals may face challenges in accessing employment opportunities in regions with better job prospects. To address this issue, it is crucial to focus on creating more job opportunities across different regions and improving the infrastructure and support systems that facilitate labour mobility. Additionally, policies that promote skill development and entrepreneurship can also play a vital role in reducing unemployment and enhancing regional labour mobility in India.
References
1. Gera. Is unemployment in India rising or falling?, 2023 -https://economictimes.indiatimes.com/news/economy/indicators/et-explains-is-unemployment-in-india-rising-or-falling/articleshow/106121701.cms,
2. Walia. State of Working India report,2023 -
https://indianexpress.com/article/business/42-3-of-graduates-under-25-
unemployed-finds-latest-state-of-working-india-report-8949124/
3. Fonseca, On the Interaction between Unemployment and Inter-regional Mobility , 2003 - https://www.csef.it/WP/wp105
4. Munshi & Rosenzweig, Microeconomic Insights, 2016 -https://microeconomicinsights.org/why-is-labor-mobility-in-india-so-low/