LETTER FROM THE EXECUTIVE BOARD

Greetings Members!

It gives us immense pleasure to welcome you to this simulation of Special

Advisory Committee to the Prime Minister at Columban Model United
Nations 2022. We look forward to an enriching and rewarding experience.

The agenda for the session being ‘Addressing the issue of rising
unemployment in India.’

This study guide is by no means the end of research, we would very much
appreciate if the leaders are able to find new realms in the agenda and bring
it forth in the committee. Such research combined with good argumentation
and a solid representation of facts is what makes much as possible, as
fluency, diction or oratory skills have very little importance as opposed to
the content you deliver. So just research and speak and you are bound to
make a lot of sense. We are certain that we will be learning from you
immensely and we also hope that you all will have an equally enriching
experience. In case of any queries feel free to contact us. We will try our best
to answer the questions to the best of our abilities.

We look forward to an exciting and interesting committee, which should

certainly be helped by the all-pervasive nature of the issue. Hopefully we, as
members of the Executive Board, do also have a chance to gain from being a
part of this committee. Please do not hesitate to contact us regarding any
doubts that you may have.

All the Best!

Executive Board
Valid Sources
1. Government Reports (Each ministry publishes its own reports including
External Affairs Ministry)
2. PTI , PIB
3. Government Websites
4. Government run News channels i.e. RSTV, LSTV, DD News
5. Standing Committee Reports/ Commission Reports
6. RTI Proofs
7. Parliamentary Standing Committee reports
8. Questions and Answers of the parliament
Introduction
India has a population of about 1.3 billion people, accounting for around 18 percent of the
world's total population. So, if unemployment is a severe problem in India, it is also a major
one throughout the rest of the globe. It is critical to research and comprehend unemployment
in India in order to reduce the danger of unemployment.
The two most significant problems that any growing country's economy confronts is
unemployment and economic development. It was faced with the twin problems of
unemployment and poverty when it achieved independence in 1947. Unemployment is India's
most serious problem. It's becoming more serious every day. When a person who is actively
searching for job is unable to find one, they are considered unemployed. Unemployment is
exacerbated by population growth, migration, a lack of practical skills, and the unequal
distribution of industrialization. As a consequence, poverty, stress, crime, and social and
economic inequalities have increased.
Unemployment is defined as the proportion of the workforce that is jobless. The amount of
people who are jobless varies based on economic and other variables. Persons who have been
actively searching for employment for the previous four weeks and have not found work are
considered unemployed. Unemployment is a complex problem that impacts both the
economy and the social structure of a nation. An increase in the proportion of young people
as a consequence of the demographic "dividend" or "youth bulge" seems to be one of the key
drivers of India's future economic growth. Despite the fact that the percentage of young
people in the labour market has decreased as school and college enrolment rates have risen,
their significant representation of the labour population suggests that youth unemployment
and underemployment will remain a key policy problem in India for many years. Young
people are an important human resource, key actors in social change, and a driving force
behind economic development and technological innovation. On the other hand, putting these
resources to good use is a major problem. The youth dilemma is a term used to describe the
most important economic development issue of the twenty-first century.

Issues
 Job Loses:
Nearly 78 million jobs were lost during the quarter of June 2020, which roughly coincides
with the first wave of COVID-19. Similarly, 13 million jobs were lost during the second
wave during the quarter of June 2021. In 2021-22, the unemployed who were actively
seeking work but were unable to find any were estimated at 33 million.
 Participation of women:
Women suffer job losses disproportionately during economic shocks. The phenomenon
repeated itself during the pandemic. Women accounted for less than 11% of all jobs in
2019-20, but they accounted for nearly 52% of the 7 million job losses since then.
The female labour force participation rate among urban women was abysmally low at
9.4% in 2019-20 and fell to 7% in 2021-22.
It has been difficult to raise women’s participation in the labour force and offer appropriate
jobs in adequate numbers to aspiring women.
 Impact of the lockdown:
In April 2020, when India was subjected to the most stringent lockdown, 79 million small
traders and daily wage labourers lost employment. The lockdowns demonstrated both
the vulnerability and the flexibility of this category of workers. Employing women and
providing salaried jobs are the two big challenges that the pandemic has posed that are going
to be difficult to tackle soon.
Impact of the pandemic

The biggest casualty of the pandemic will be joblessness. The country’s unemployment rate
has risen through much of April, having hit 7.4%, and threatens to climb further to around
8% significantly higher than the 6.5% in March, according to CMIE.

Approximately 10 million salaried jobs have been lost, across urban and rural India,
and one is not sure how many people will get back their livelihoods.
Urban females fared worse than urban males. In the 15-29 age group, the
unemployment rate for urban females stood at 31 per cent compared with 24 per cent
for males during April-June 2021. The unemployment rate for urban females and
males stood at 36 per cent and 34.3 per cent, respectively, in April-June 2020.

Types of Unemployment in India:

Disguised Unemployment:
It is a phenomenon wherein more people are employed than actually needed. It is
primarily traced in the agricultural and the unorganised sectors of India.

Seasonal Unemployment:

It is an unemployment that occurs during certain seasons of the year. Agricultural

labourers in India rarely have work throughout the year.

Structural Unemployment:

It is a category of unemployment arising from the mismatch between the jobs

available in the market and the skills of the available workers in the market. Many
people in India do not get job due to lack of requisite skills and due to poor education
level, it becomes difficult to train them.

Cyclical Unemployment:

It is result of the business cycle, where unemployment rises during recessions and
declines with economic growth. Cyclical unemployment figures in India are
negligible. It is a phenomenon that is mostly found in capitalist economies.

Technological Unemployment:

It is loss of jobs due to changes in technology. In 2016, World Bank data predicted that the
proportion of jobs threatened by automation in India is 69% year-on-year.

Frictional Unemployment:

The Frictional Unemployment also called as Search Unemployment, refers to the time
lag between the jobs when an individual is searching for a new job or is switching
between the jobs. In other words, an employee requires time for searching a new job
or shifting from the existing to a new job, this inevitable time delay causes the
frictional unemployment. It is often considered as a voluntary unemployment because
it is not caused due to the shortage of job, but in fact, the workers themselves quit
their jobs in search of better opportunities.

Vulnerable Employment:

This means, people working informally, without proper job contracts and thus sans
any legal protection. These persons are deemed ‘unemployed’ since records of their
work are never maintained. It is one of the main types of unemployment in India.
Causes of Unemployment:

 Large population.
 Low or no educational levels and vocational skills of working population.
 Inadequate state support, legal complexities and low infrastructural, financial
and market linkages to small/ cottage industries or small businesses, making
such enterprises unviable with cost and compliance overruns.
 Huge workforce associated with informal sector due to lack of required
education/ skills, which is not captured in any employment data. For ex:
domestic helpers, construction workers etc.
 The syllabus taught in schools and colleges, being not as per the current
requirements of the industries. This is the main cause of structural
unemployment.
 Inadequate growth of infrastructure and low investments in manufacturing
sector, hence restricting employment potential of secondary sector.
 Low productivity in agriculture sector combined with lack of alternative
opportunities for agricultural worker which makes transition from primary to
secondary and tertiary sectors difficult.
 Regressive social norms that deter women from taking/continuing employment.
Employment Generation Schemes/ Programmes of Government of India

• Atma Nirbhar Bharat Rojgar Yojana (ABRY)

It was launched with effect from 1st October, 2020 as part of Atma Nirbhar Bharat package
3.0 to incentivize employers for creation of new employment along with social security
benefits and restoration of loss of employment during Covid-19 pandemic.

• Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

It was launched with effect from 1.4.2016 to incentivise employers for creation of new
employment. The beneficiaries registered upto 31st March, 2019 will continue to receive the
benefit for 3 years from the date of registration under the scheme i.e. upto 31st March, 2022

• National Career Service (NCS) Project

Project for transformation of the National Employment Service to provide a variety of career
related services like job matching, career counselling, vocational guidance, information on
skill development courses, apprenticeship, internships etc

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial

year to every rural household whose adult members volunteer to do unskilled manual work.

• Garib Kalyan Rojgar Abhiyaan (PMGKRA)

It is a 125-day Abhiyan launched by Hon’ble Prime Minister on 20th June, 2020 with a
mission to address the issues of returnee migrant workers and similarly affected rural
population by Covid-19 pandemic through a multi- pronged strategy of providing immediate
employment & livelihood opportunities to the distressed, to saturate the villages with public
infrastructure and creation of livelihood assets to boost the income generation activities and
enhance long term livelihood opportunities by giving focus on 25 works in 116 selected
districts across 6 States with a resource envelope of Rs 50,000 crore.

• Aajeevika - National Rural Livelihoods Mission (NRLM)

It was launched by the Ministry of Rural Development (MoRD), Government of India in June
2011. Aided in part through investment support by the World Bank, the Mission aims at
creating efficient and effective institutional platforms for the rural poor, enabling them to
increase household income through sustainable livelihood enhancements and improved
access to financial services.

• Pt. DeenDayal Upadhyaya Grameen Kaushlya Yojana (DDU-GKY)

The Ministry of Rural Development (MoRD) announced the Deen Dayal Upadhyaya
Grameen Kaushalya Yojana (DDU-GKY) Antyodaya Diwas, on 25th September 2014.
DDU-GKY is a part of the National Rural Livelihood Mission (NRLM), tasked with the dual
objectives of adding diversity to the incomes of rural poor families and cater to the career
aspirations of rural youth. The website link for the scheme is

• PM- SVANidhi Scheme

Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVAN idhi) Scheme since June 01,
2020 to provide collateral free working capital loan to Street Vendors, vending in urban
areas, to resume their businesses which were adversely affectedduetoCOVID-19inducedlock-
down.

• Pradhan Mantri MUDRA Yojana (PMMY)

It is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans
up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are
classified as MUDRA loans under PMMY. These loans are given by Commercial Banks,
RRBs, Small Finance Banks, MFIs and NBFCs.

• Pradhan Mantri Kaushal VikasYojana (PMKVY)

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of
Skill Development & Entrepreneurship (MSDE) implemented by National Skill Development
Corporation.

• Production-Linked Incentive (PLI) Scheme

Hon'ble Finance Minister, Smt Nirmala Sitharaman has announced an outlay of INR 1.97
Lakh Crores for the Production Linked Incentive (PLI) Schemes across 13 key sectors, to
create national manufacturing champions and generate employment opportunities for the
country’s youth.

The Agnipath Scheme

The government unveiled its new Agnipath scheme for recruiting soldiers across the three
services.

What is the Agnipath scheme?

Under the new scheme, around 45,000 to 50,000 soldiers (will be called ‘Agniveers’) will
be recruited annually (for a short period, and most will leave the service in just four years. Of
the total annual recruits, only 25 per cent will be allowed to continue for another 15 years
under permanent commission.

Format of the scheme:

Eligibility: Aspirants between the ages of 17.5 years and 21 years will be eligible to apply.
The scheme is only applicable to personnel below officer ranks.

Recruitment:

 Twice a year through rallies.

 The recruitment will be done on “all India, all class” recruitment to the
services (from any caste, region, class or religious background). Currently,
recruitment is based on ‘regiment system’ based on region and caste bases.

Training period: 6 months + deployment for three and a half years.

Salary and Benefits:

 Recruits will get starting salary of Rs 30,000, along with additional benefits
which will go up to Rs 40,000 by the end of the four-year service.
 During this period, 30 per cent of their salary will be set aside under a Seva
Nidhi programme, and the government will contribute an equal amount every
month, and it will also accrue interest. At the end of the four-year period, each
soldier will get Rs 11.71 lakh as a lump sum amount, which will be tax-free.
 For 25% of soldiers, who are re-selected, the initial four-year period will not
be considered for retirement benefits.
Benefits

 Make the armed forces much leaner and younger: For India’s over 13-lakh
strong armed forces, the current average age profile is 32 years. It is envisaged
it will come down by about 4-5 years by implementation of this scheme
  Reduce the defence pension bill: The government has either allocated or paid
more than Rs. 3.3 lakh crore in defence pension since 2020.
o As per Army calculations, the savings for the government in this ‘Tour
of Duty model’ of recruitment from just one sepoy would be around
11.5 cr (the army initially proposed a 3-year service model).
 Create “future-ready” soldiers: A youthful armed forces will allow them to
be easily trained for new technologies.
 Increased employment opportunities and higher skilled workforce: Apart
from job opportunities in the army, recruits because of the skills and experience
acquired during the four-year service such soldiers will get employment in
various fields.
o The central government will likely give preference to Agniveers in
regular employment after their four years stint.

Concerns regarding the scheme:

 Present benefits and security of jobs will be lost: Recruits will not get
permanent jobs or promised pension and health benefits even after retirement.
 Doubt about training: 6 months of short training may not be enough to trust
them with the same kind of tasks that current troops can be trusted with.
 Erosion of loyalty: “All India, all class” recruitment to the services may lead
to the erosion of the loyalty that a soldier has for his regiment.

Similar schemes in other countries:

 Voluntary tour of duty: In the USA tours are 6-9 or even 12 months’
deployment depending upon the needs of the military and branch of service.
 Mandatory tour of duty (called conscription): Countries that follow the
practice of conscription include Israel, Norway, North Korea, and Sweden.