Question

Give reasons

1. Rural unemployment is more severe than urban unemployment.

2. Economic development can reduce unemployment.

3. Under employment is found in both rural and urban areas.

4. Cyclical unemployment is created in the phase of depression.

Answer 1

1. Unemployment in rural areas is much more severe and intense than that in urban areas. This is because in rural areas unemployment is chronic in nature. In other words, due to high dependence on monsoon, joint family systems and the basic problems of underdevelopment, rural areas encounter a more serious and an extreme unemployment as compared to urban areas, where the main reasons for unemployment are changing technology, education system and such more. Thus, not blessed with even the basic needs and development, rural areas witness a more severe unemployment than urban areas.

2. Economic development refers to the overall development and growth of a country and its people. With economic development, the overall production capacity and efficiency in the economy increases. Along with this, the share of secondary and tertiary sector also rises as the economy grows. The increased production and operations demands an increase in the number of worker inputs, thereby increasing the employment opportunities. Thus, we can say that the economic development of a country can reduce the problem of unemployment.

3. Underemployment refers to the situation wherein individuals are less than fully employed. In other words, an underemployed person works for a lesser duration of time than what he actually can. This type of unemployment is found in both rural as well as urban areas. For instance, in urban areas, a person holding a post graduate degree working at a position which only requires school education will be regarded as underemployed. Similarly, in rural areas, if a farmer, who has the energy to work for 9 hours, is working on a farm for only 5 hours, then he will be considered as underemployed. Thus, we can say that underemployment persists both in rural and urban areas.

4. Cyclical unemployment primarily occurs due to the cyclical fluctuations such as recession and depression in an economy. During the periods of recession or depression, there is a fall in the economic activity of a country. As a result, there is a cut in the production process. Consequently, the level of employment falls and a number of workers are rendered unemployed.