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PDF Editor FAQ

What causes unemployment?

There are two categories of causes: (1) supply-side structures in the economy which establish the NAIRU, and (2) demand-side recessions which temporarily elevate the unemployment rate.Factors which influence an economy’s NAIRU include the natural churn in a capitalist economy, unemployment benefits, business regulations, occupational licensing, tax rates, labor protections, mandated employment benefits, etc. A given economy’s NAIRU may be as low as 2–3% in a country like Japan, to as high as 10–15% in countries like Spain or Greece.Separately, a sudden rise in the value of money (the medium of account function of Money), generally due to poor monetary policy on the part of the central bank, can cause sudden elevated unemployment due to sticky wages (and, to a lesser extent, sticky debt). (See: Nominal rigidity.) This was generally the cause of high unemployment during the 1930’s Great Depression, and also the 2008 Great Recession.

In Canada, is immigration policy too liberal?

It is a myth that Canada has a very liberal immigration policy.I grew up in Canada. I went to high school in Canada. I got a four-year degree in Canada. I’m a highly skilled employee. I looked at the Canadian immigration points system and concluded that if I were in the same position, except that I wasn’t a Canadian citizen, then I wouldn’t be able to qualify to immigrate to Canada. I wouldn’t have enough points!A “liberal” immigration policy would be one that says anyone can come as long as they will follow all the laws, will have a job instead of being a burden on society, and will fill out all the required paperwork. EU countries have a “liberal” immigration policy with respect to other EU countries. Canada’s immigration policy is nothing close to that.Canada’s immigration policy is very technocratic. The government constantly adjusts the criteria and weights based on data in order to try to identify the prospective immigrants that will have the highest chance of being successful in Canada. It monitors the impact of immigration on the Canadian economy and adjusts policy to make sure the economy continues to grow as much as possible without increasing unemployment for Canadians.Canada’s family-based immigration policies are decidedly less liberal than those of the US.In the US, there is no quota on how many parents of US citizens can immigrate. In Canada, there is a quota so the waiting time can be multiple years, and some parents will be denied immigration because the government thinks they’ll use too much health care.In the US, there is approximately a 6 year waiting time for citizens to sponsor their unmarried children over 21 for immigration, and a 11 year waiting time for citizens to sponsor their married children over 21 for immigration. In Canada, it’s not possible to do so.In the US, there is approximately a 13 year waiting time for citizens to sponsor their siblings for immigration. In Canada, it’s not possible to do so.Australia, which has a similar immigration rate to Canada and a similar philosophy toward immigration, is even more technocratic. The Australian government maintains a list of skilled occupations for which there is demand for qualified workers in Australia and gives priority to people with at least one of those skills. If demand for a certain skilled occupation goes down, the government may remove that occupation from the list.

What's the reason for the rising unemployment in India?

As I understand, in the question, you are simply asking the main reasons for rising unemployment in India. I have read some good answer to your question here and, at some point, I do agree with them but in my opinion, the main reason for rising unemployment in our country is different. The whole nation is facing unemployment problem, it is not just engineering or medical students who are facing the problem. As of 2018, according to Centre for Monitoring Indian Economy (CMIE), unemployment in India had risen to 31 million individuals looking for jobs. Previously, the lowest unemployment rate in India was 3.4% in July 2017 but now it has risen to 7.1%. The situation demands us to be very serious about it and help the government to overcome this problem. Unemployment in India has become a complex problem with numerous overlapping and intertwined causes, however, it is not that difficult to find out the main reason behind it.In some way, It’s obvious that our education system is responsible for the rising unemployment but we should not deny the fact that unemployment rate is being increased day by day because of many other problems such as the structure of society, governance, economy system, and many more. Well, I am going to describe and outline the main causes of increasing unemployment in India below:Increasing population: This is a very serious and biggest problem in our country. Currently, we are the 2nd largest population in the world and by 2024, we are going to top the list. So we can use our common sense and say this is creating huge employment in the country. Country’s economic growth cannot keep up with population growth and this leads to a larger share of the society being unemployed. As we can see our population is growing rapidly, we cannot always blame the government for unemployment but we must demand some good initiatives to control the population growth. It is also the responsibility of every educated citizen of the country to control the population growth and we all know how to do it.The caste system: In India, the caste system is playing a vital role in increasing unemployment. Here in our country, the work is prohibited for specific castes in some areas. In many cases, the work is given to the less deserving candidates just because they belong to a particular community despite that many deserving candidates are waiting in the line. So this gives rise to unemployment. I am not saying reservation policy is completely bad, all I am trying to say is that the government of India should make sure that the job should be given only to deserving candidates.Slow economic & Industrial growth: As per the data released by the government of India, economic growth is considered slower than before. Similarly, the rate of our industrial growth is nevertheless fairly slow. If the economy and industrial growth rate are slow then automatically it will result unemployment in the country. However, we should not be very sad because our Industries are still offering jobs.Seasonality of agricultural occupations: For several months out of the year, agriculture offers unemployment for a large segment of the population. More stable sources of income are essential to permit fulfillment of the basic needs of Indian farmers.Loss of small Business: Since the independence of the country, the small business industry has been creating employment. But, the small business industry in the country is witnessing a huge crisis over the past few years which is resulting unemployment in our society. The demand for cheap, mass-produced goods outweighs the desire for goods that are handcrafted by those with very specific skill and expertise. The result is that the cottage and small-scale industry have significantly declined which is creating a crisis in employment. We are also facing a shortage of means of production. Shortages of raw materials, facilities, fuel, and electricity means decreased production of goods, which logically results in decreased availability of jobs.Ineffective economic planning: The government of India has been making many plans to overcome the problem of unemployment but the plans fail due to lack of will power and the process of applying them. This is a major source of unemployment in India. Problematically, there were no nationwide plans to account for the significant gap between labor supply and labor demand.Labor immobility: Culturally, attachment and maintenance of proximity to family is a major priority for many Indian citizens. The result is that people avoid traveling long distances from their families in pursuit of employment. Additionally, language, religion, and climate can also contribute to the low mobility of labor. As one might expect, when many of those who might otherwise be suited to jobs are unable to travel to reach them, unemployment is magnified.Inappropriate Education System: Many would not agree with me on this but in my opinion, our education system is inappropriate. The government is failing in expansion of universities that is why every year thousands of private institutions being open and the private engineering or medical institutes (not all) only focus on earning money rather than providing the good education to the students.However, many surveys say, currently, unemployability is a bigger problem than unemployment.I have explained the main reasons for the increasing unemployment in the country. However, we should also not deny the fact that if we study in a particular way and pass out with good marks then we can find ourselves jobs. While pursuing Engineering or Medical or any program, we should focus on learning rather than just thinking of how to get a job. The institutes are failing to establish coordination with the industry which is also a major reason for unemployment of B.Tech or similar students.I hope my answer will help you understand the reasons behind rising unemployment in India. However, if you meant to know the reason of increasing unemployment in B.Tech students then you can go through the given by other Quora users here.

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