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INDIAN AND ODISHA ECONOMY

TOPIC 1 - UNEMPLOYMENT AND MIGRATION OF LABOUR

A. ABBREVIATIONS WITH DESCRIPTION:

1. NSSO - National Sample Survey Office (conducts surveys on employment and

unemployment in India)

2. MGNREGA - Mahatma Gandhi National Rural Employment Guarantee Act (a

government scheme for rural employment)

3. NCS - National Career Service (a government portal for job seekers and employers)

4. PMKY - Pradhan Mantri Kaushal Vikas Yojana (a government scheme for skill development)

5. LFPR – Labour Force Participation Rate (It is an estimate of the number of people
actively engaged in the workforce)

B. ONE LINER QUESTIONS:

a. Which country has the largest number of international migrant workers, with over 17 million
workers abroad?
Ans- India
b. Which country has the highest number of migrant workers as a percentage of its population, with
over 30% of its population comprising migrant workers?
Ans- Qatar
c. Which type of unemployment is caused by a mismatch between the skills of workers and the
requirements of available jobs?
Ans- Structural unemployment
d. Which organization is responsible for collecting and publishing unemployment data in India?
Ans- National Statistical Office (NSO)
e. What is the name of the program launched by the Indian government in 2005 to provide guaranteed
employment to rural households?
Ans- MGNREGA
f. Which type of unemployment occurs when workers are temporarily without jobs due to changes in
the economy or industry?
Ans- Cyclical unemployment
g. What is the term for the movement of skilled workers from developing countries to developed
countries?
Ans- Brain drain

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h. What type of migration occurs within the boundaries of a country?

Ans- Internal migration
What is the term for unemployment that occurs when workers are transitioning between jobs?
Ans- Frictional unemployment

C.1- 3 MARKS BASED QUESTIONS:

a. Mention 2 points about e-Shram Portal
• The Indian government has launched the e-Shram portal to register unorganized workers, including
migrant workers, to provide them with social security benefits.
• The government has also announced plans to establish a national migrant worker database to track and
support migrant workers.
b. What’s the current unemployment rate in rural and urban areas? (Mention them in facts)
• India's unemployment rate decreased to 3.2% in 2022-23 from 6% in 2017-18.
• The unemployment rate in rural areas declined to 2.4% in 2022- 23 from 5.3% in 2017-18.
• The youth unemployment rate declined to 10% in 2022-23 from 17.8% in 2017-18.
c. Answer in one word each:
a) What is the main reason for labour migration in India?
Ans- Poverty
b) Which state in India is known for the highest number of labour migrants?
Ans-Odisha
c) What percentage of Odisha's population is migrant labourers?
Ans-20-25%
d. Define pull factor, push factor , brain drain with respect to labour migration ( 1*3 = 3 marks )
Pull factors – They attract migrants to a new location include higher wages, better working conditions, and
improved living standards.
Push factors – They drive migrants away from their original location include poverty, political instability,
and limited job opportunities.
The brain drain - This phenomenon occurs when highly skilled workers emigrate from their home country
to another country, leading to a loss of talent and expertise in their home country.
e. What are the consequences of labour migration on the Indian economy and society? (2marks)
Labour migration has both positive and negative consequences on the Indian economy and society.
• Positive impacts include increased remittances, improved standards of living, and reduced poverty.
• Negative impacts include brain drain, strain on urban infrastructure, and social and cultural
disintegration of families.
Moreover, migrant workers often face exploitation and poor working conditions, highlighting the need for
effective policies to protect their rights.
f. What are the objectives of MGNREGA act 2005? (3marks)
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has the following objectives:
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1. Provide 100 days of guaranteed wage employment to rural unskilled labour.

2. Increase economic security.
3. Decrease migration of labour from rural to urban areas.

D.LONG DESCRIPTIVE TYPE QUESTIONS : (4marks )

1. Explain the different types of unemployment and their causes. Also, discuss the consequences of
unemployment on the economy and individuals. (150-200 words)
Unemployment refers to the situation where people are able and willing to work, but are unable to find
employment.
There are three main types of unemployment:

1. Frictional

2. Structural

3. Cyclical

Frictional unemployment occurs due to the time it takes for workers to find new jobs or for employers to
find suitable candidates.

Structural unemployment arises due to a mismatch between the skills of workers and the requirements of
jobs.

Cyclical unemployment is caused by changes in the business cycle, such as a recession.

Causes of unemployment:
They are Changes in technology, globalization, and economic downturns.
Consequences on the economy
These include reduced productivity, increased poverty and inequality, and decreased economic growth.
Individuals suffer from reduced income, decreased self-esteem, and poor mental and physical health.
Government can address unemployment through
1. Fiscal policies, such as increasing government spending and reducing taxes.
2. Monetary policies, such as lowering interest rates.
3. Training and education programs can also help workers acquire new skills and adapt to changing job
markets.4
4. Additionally, social safety nets, such as unemployment benefits, can provide support to those who are
unemployed.
2.Explain the current scenario of migration of labour in Odisha.
• In recent years, Odisha has seen a significant rise in migration, from 1.1 million in 2001 to 1.54 million
in 2011.Migration is predominantly male-driven and serves as a crucial livelihood strategy for rural
households. Almost every district in Odisha is grappling with both opportunistic and distress-driven

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labor migration. Ganjam and Balangir districts are among the largest sources of labor migration in
India. Migrant workers from Odisha are recognized for their skills in various sectors, including
plumbing, textiles, domestic help, construction, and brick making.
• Urban growth resulting from migration poses challenges such as unemployment and social integration
of migrants into their new urban surroundings. Labor migration raises concerns about the potential
exploitation and vulnerability of migrant workers, particularly in sectors like construction and brick
making.
• Female migrant workers face multifaceted exploitation, including inadequate wages, extended
working hours, hazardous working conditions, and sexual exploitation.
• Initiatives like the State Action Plan aim to address vulnerabilities, but more comprehensive actions
are needed to safeguard the rights and well-being of migrants.

3. Define Unemployment. Mention all forms of unemployment that prevail in India.

Unemployment refers to the state of being without a job or occupation, despite being actively seeking
employment. In India, various forms of unemployment exist, including:
Open Unemployment: Visible unemployment where people are actively seeking jobs but cannot find one.
Disguised Unemployment: Hidden unemployment where people appear to be employed but are not fully
utilized, often in agriculture or family businesses.
Seasonal Unemployment: Unemployment during specific periods, like off-seasons in agriculture or tourism.
Structural Unemployment: Long-term unemployment due to a mismatch between job seekers' skills and
industry demands.
Frictional Unemployment: Temporary unemployment during job transitions or searches.
Cyclical Unemployment: Unemployment caused by economic downturns or recessions.
Underemployment: Working fewer hours or in a lower- paying job than desired.
Long-term Unemployment: Prolonged unemployment, often leading to skill erosion and reduced
employability.

4. Mention the challenges of unemployment in India. Give a few brief points on how to tackle them. (130
words)
Challenges of unemployment in India:
• Large population and limited job opportunities
• Lack of skills and education Inefficient labor market
• Regional disparities
• Limited job creation in formal sector

Solutions:
• Skill development and vocational training

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• Encouraging entrepreneurship and startups

• Investing in infrastructure development
• Promoting labor-intensive industries
• Implementing policies like MGNREGA and PMKVY
• Fostering innovation and R&D
• Enhancing education and employability
These solutions can help address the challenges of unemployment in India, promoting economic growth and
social stability. Effective implementation and monitoring are crucial for success.

5. Give a list of examples of Government initiatives and schemes for progression towards
unemployment in India .
Here are some examples of states in India with various schemes to tackle unemployment:
1. Kerala: Kerala Self-Employment Scheme (financial assistance for entrepreneurs), Employment
Guarantee Scheme (rural employment guarantee)
2. Rajasthan: Rajasthan Rural Employment Guarantee Scheme (rural employment guarantee), Bhamashah
Rojgar Srijan Yojana (employment generation through skill development)
3. Odisha: Odisha Rural Employment Guarantee Scheme (rural employment guarantee), Amar Kaushal
Vikash Yojana (skill development and placement assistance)
4. Gujarat: Gujarat Rural Employment Guarantee Scheme (rural employment guarantee), Kaushalya
Vardhan Yojana (skill development and placement assistance)

SELF PRACTICE:
Q1. Why should we be worried about underemployment?
Q2. Why do you think MGNREGA 2005 is referred to as ‘Right to work’?
Q3. In what ways can employment be increased in urban areas?
Q4. What do you understand by disguised unemployment? Explain with an example each from the urban and
rural areas.
Q5. Explain the objective of implementing the MGNREGA 2005.

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