Unemployment Assignment

Q.1) What are the main causes of Unemployment? Do you agree that technological up-
gradation in any industry may cause unemployment in that industry? Provide your
opinion with one example.
Ans- The Main Causes of Unemployment are:

 Overpopulation (village people still want more than 2 kids in a hope to earn more)
 Lack of industrialization of remote villages and places which are away from cities.
 Lack of creativity among youngsters due to excessive addiction to phone games: all
that never encouraged by 90% Indian parents for their 8 year old kids thinking that
creativity will be of no use later.
 Lack of new fields of work in India
 Lack of infrastructure for research and higher studies keeps no scope for Made in
India improvement.
 Corrupt government officials.
 Laws full of loopholes which are unable to catch lawbreakers due to social evils.
 Entrepreneurship is highly loathed by the Indian society just because of its risks of
potential failure.

We cannot say that Technological upgradations in any industry may cause unemployment in
that industry because technological upgradations make our life easier It is inevitable that we
should adapt to change but it is true that Redundancy and Automation is continuously
replacing human labour and also If any business depends heavily on human labour, it tends
to fail as it cannot cope up with the competition from the technologically advanced
competitors like several kinds of jobs are getting replaced by technology like there is a
significant drop in the typists, weavers, construction workers etc.

But also, we can see that Technology is not causing unemployment, It is just shifting human
labour towards different kinds of jobs. Though it is taking away some jobs, it is creating
more jobs day by day. With the advancement in technology, people no longer need to do
repetitive tasks, and hence more creative companies have born, giving employment to
many.

Another example we can say that there was a misconception at the time of industrial
revolution that machines replace human labour and hence creates unemployment. Contrary
to that, machines caused opening of many industries and more employment opportunities.
The technological advancements are not fully tapped yet. Once technology is utilized to the
full extent, more employment opportunities will be created.

Jaspreet Singh Unemployment Assignment 20258

Q.2) Structural unemployment in many countries has touched its highest peak during
corona pandemic, but it seems that most of the industries in KSA are not that affected.
Discuss the role of the Saudi Government in reducing the impact of Corona pandemic
on employment in Saudi Arabia.
Ans- Structural unemployment is long-lasting unemployment that comes about due to
shifts in an economy. This type of unemployment happens because though jobs are
available, there's a mismatch between what companies need and what available workers
offer
Saudi Government announced to pay 60% of the salaries of Saudi employees working in
the Private sector for a period of three months with a ceiling of USD 2.39 billion.
Allowing the employer and employee to agree within six months on either reducing the
employee’s wage to adjust with the actual work hours (up to 40%), or granting the
employee a local leave to be deducted from his/her deserved annual vacation, or
granting him/her an exceptional leave.
Also, Human Resource Development Fund has allocated SAR 5.3bn to support private
sector enterprises to hire and train nationals
As a part of the efforts to mitigate the impact of the COVID -19 pandemic on the
economic activities of the Kingdom, the Government of Saudi Arabia has announced
several measures targeted specifically at taxpayers that are designed to ease filing and
payment requirements for a limited period.

Q.3 What are the types of unemployment in India and how do you correct it?
Ans- Types of Unemployment in India are:

Seasonal Unemployment
It is unemployment that occurs during certain seasons of the year. In some occupations like
agriculture, holiday resorts, ice factories etc., production activities take place only in some
seasons. So, they offer employment for only a certain period of time in a year. People
engaged in such type of activities may remain unemployed during the off-season.
Cyclical Unemployment
It is caused by trade cycles at regular intervals. Generally privatised economies are subject
to trade cycles. The down swing in business activities results in unemployment. Cyclical
unemployment is normally a shot-run.
Structural Unemployment

Jaspreet Singh Unemployment Assignment 20258

This type of unemployment arises due to drastic changes in the economic structure of a
country. These changes may affect either the supply of a factor or demand for a factor of
production. Structural employment is a natural outcome of economic development and
technological advancement and innovation that are taking place rapidly all over.
Underemployment
It is a situation in which people employed contribute less than their capacity to production.
In this type of unemployment people are not gainfully employed. They may be employed
either on part-time basis, or undertake a job for which lesser qualification is required. For
example, a Post Graduate may work as a clerk.

Some suggestions to solve unemployment problem could be :

 Change in industrial technique

 Policy regarding seasonal unemployment
 Change in education system
 Expansion of Employment exchanges
 More assistance to self-employed people
 Full and more productive employment
 Development of the rural areas 
 Public investment in sectors like health, education, police and judiciary can create
many government jobs
 Measures aimed at removing the social barriers for women’s entry
 Government needs to encourage entrepreneurship among the youth

Jaspreet Singh Unemployment Assignment 20258