Question

Explain the problem of under employment in the service sector in urban areas with examples

Answer 1

Unemployed persons, in urban areas, are quite often registered with employment exchanges. It is so the urban employment, unlike disguised unemployment of rural areas, is more like an open unemployment.

The number of registered unemployed, between 1961 and 2008, has soared up more than eight-fold. Unemployment in urban areas can further be separated into two broad categories:

Example :-


Industrials Unemployment

This sort of unemployment envelops the persons, who are willing and able to work in industries, mining, transport, trade and construction activities but do not find the job. The problem of unemployment in industrial sector has increased many fold because of a rapid rise in population. Besides this, the trend of migrating to urban areas, mainly due to the expansion of industries in urban areas, in search of jobs has compounded the problem of unemployment in the industrial sector. So it can be claimed that industrial unemployment happens as aspillover of rural unemployment.

The second major cause for this problem is that industries in India are increasing rapidly and they are emulating the use of labour-saving western technology, thus, in the process, limiting the absorption capacity of the industrial sector.

Answer 2

Underemployment might be characterized as a circumstance in which laborers are utilized underneath their instruction or ability level or their accessibility.

Underemployed laborers can be separated into a few classes. The most well-known sort of underemployed laborers are listed beneath:

Skilled laborers in low-paying employment

Skilled laborers in low-skill employment

Part-time laborers leaning toward full-time hours

Underemployment has been credited to antagonistic financial conditions, for example, a recession, which happens when there is a decrease in monetary movement. Underemployment is additionally caused when the supply of laborers is more prominent than the interest for specialists, there are layoffs, or when there is a mechanical change.

A technological change happens when innovation replaces a vocation that a specialist would have already possessed. For example, sometimes, vending machines have replaced some cafeteria laborers or clerks.