CHAPTER -2 PEOPLE AS A RESOURCE (ECONOMICS CLASS 9)

1. What do you understand by 'people as a resource'?

People as Resource' is a way of referring to a country's working people in terms of their existing productive skills and abilities. Human resource is an asset for the economy rather than a liability.

2. What is human capital? How is human resource different from other physical capital?

The knowledge and skills that people obtain through education and experience are referred to as "human capital" by economists. People invest in human capital for similar reasons that businesses invest in physical capital. The use of leisure time to improve skills and knowledge is widespread and this is also an investment. Such investments in human capital accounts for a considerable rise in income per worker.

3. What is the role of education in human capital formation?

Education helps individual to make better use of the economic opportunities available before him. Education and skill are the major determinants of the earning of any individual in the market. A majority of women have meagre education and low skill formation. Women are paid low compared to men. Most women work where job security is not there. Various activities relating to legal protection is meagre. Employment in this sector is characterised by irregular and low income. In this sector there is an absence of basic facilities like maternity leave, childcare and other social security systems. However, women with high education and skill formation are paid at par with the men. Among the organised sector, teaching and medicine attract them the most. Some women have entered administrative and other services including job, that need high levels of scientific and technological competence. Education enhances national income, cultural richness and increases the efficiency of governance.

4. How will you explain the term unemployment?

The term unemployment is the condition of one who is capable of working, actively seeking work, but unable to find any work. It is important to note that to be considered unemployed a person must be an active member of the labour force and in search of remunerative work. A person having no gainful work even for one hour in a day is described as unemployed for that day.

5. What is the difference between disguised unemployment and seasonal unemployment?

In case of India we have unemployment in rural and urban areas. However, the nature of unemployment differs in rural and urban areas. In case of rural areas, there is seasonal and disguised unemployment. Urban areas have mostly educated unemployment. 

Seasonal unemployment happens when people are not able to find jobs during some months of the year. People dependent upon agriculture usually face such kind of problem. There are certain busy seasons when sowing, harvesting, weeding and threshing is done. Certain months do not provide much work to the people dependant on agriculture. 

In case of disguised unemployment people appear to be employed. They have agricultural plot where they find work. This usually happens among family members engaged in agricultural activity. The work requires the service of five people but engages eight people. Three people are extra. These three people also work in the same plot as the others. The contribution made by the three extra people does not add to the contribution made by the five people. If three people are removed the productivity of the field will not decline. The field requires the service of five people and the three extra people are disguised unemployed.

6. Why is educated unemployed, a peculiar problem of India?

In case of urban areas educated unemployment has become a common phenomenon. Many youth with matriculation, graduation and post-graduation degrees are not able to find job. A study showed that unemployment of graduate and post-graduate has increased faster than among matriculates. A paradoxical manpower situation is witnessed as surplus of manpower in certain categories coexist with shortage of manpower in others. There is unemployment among technically qualified person on one hand, while there is a dearth of technical skills required for economic growth. 

6. Effects of unemployment among educated population.

Unemployment leads to wastage of manpower resource. People who are an asset for the economy turn into a liability. There is a feeling of hopelessness and despair among the youth. People do not have enough money to support their family. Inability of educated people who are willing to work to find gainful employment implies a great social waste. 

Unemployment tends to increase economic overload. The dependence of the unemployed on the working population increases. The quality of life of an individual as well as of society is adversely affected. When a family has to live on a bare subsistence level there is a general decline in its health status and rising withdrawal from the school system. 

Hence, unemployment has detrimental impact on the overall growth of an economy. Increase in unemployment is an indicator of a depressed economy. It also wastes the resource, which could have been gainfully employed. If people cannot be used as a resource they naturally appear as a liability to the economy. 

7. Impact of health in employment:

Health is an indispensable basis for realising one’s well-being. Henceforth, improvement in the health status of the population has been the priority of the country. Our national policy, too, aims at improving the accessibility of healthcare, family welfare and nutritional service with a special focus on the underprivileged segment of the population. The health of a person helps him to realise his potential and the ability to fight illness. Any individual will not be able to give the required output to the overall growth of the organisation if they are not healthy.

In case of India, statistically, the unemployment rate is low. A large number of people represented with low income and productivity are counted as employed. They appear to work throughout the year but in terms of their potential and income, it is not adequate for them.

8. Why are women employed in low paid work?
Women are paid low compared to men. Most women work where job security is not there. This is due to the reason they are less-educated than men and work as unskilled workers. Various activities relating to legal protection is meagre. Employment in this sector is characterised by irregular and low income. In this sector there is an absence of basic facilities like maternity leave, childcare and other social security systems. However, women with high education and skill formation are paid at par with the men.

9. In which field do you think India can build the maximum employment opportunity?
India can build the maximum employment opportunities in the agricultural sector and its based industries. Agriculture is the most labour absorbing sector of the economy. When the efficient and quality packaging happen with agricultural products then it can generate a lot of employment opportunities. Then textiles is another employment generating industry in India.

10. Can you suggest some measures in the education system to mitigate the problem of the educated unemployed?
Measures in the education system to mitigate the problem of the educated unemployed: Make education at the secondary level more career-oriented, which would endow individuals with not only education but also the requisite skills for gaining successful employment.

11.Which capital would you consider the best — land, labour, physical capital and human capital? Why?
Among land, physical capital and human capital, the human capital is the best because human capital can make use of land, labour and physical capital. Land and capital cannot become useful on its own. To make effective use of all the factors of production human capital is very much required.