Population Poverty Unemployment


• Population  refers  to  Total  number  of  People residing in a Place.

• Growth   in   Population   is   considered   to   be favourable in certain Countries like Australia because:

– It provides Work Force to Produce.

– It provides Markets for the Products Produced.

– It may Promote Innovative Ideas.

– It may Promote Division of Labour & Specialization.

• Growth   in   Population   is   not   desirable   for Countries like India because:

– There  may  not  be  adequate  Jobs  to  absorb  all additional People.
– They put pressure on Means of Subsistence.

– They put pressure on Social Overheads (hospitals, roads, schools, etc.)

– They   may   result   in   Increased   Consumption   & reduced Savings & hence slow down Capital Formation.
– They may increase dependency

Causes of Rapid Growth of Population


Population generally Increases because of:

1. High Birth Rate.

2. Relatively Lower Death Rate.

3. Immigration is more than Emigration.

Causes of High Birth Rate

• Pre-dominance of Agrarian Economy.

• Slow Process of Urbanization.

• High Incidence of Poverty.

• Early Marriage of Women.

• Universal Marriage of Women.

• Role of Religion

• Joint Family System

• Illiteracy, Ignorance & Belief in Fate.

• Limited Spread of Family Planning

Causes of Decline in Death Rate

• Control  of  Epidemics  like  Plague,  Small  Pox, Malaria, etc.

• Control of Famines.

• Improved Medical Facilities.

• Spread of Maternity Homes.

• Impact of Social Reforms.

• Impact  of  Economic  Development  (Improved Standard   of   Living,   Improved   Hygiene   & Sanitation, etc.)




Measures to Solve Population Problem

• Spread of Education
• Increase in Female Wage Employment
• Provision of Old Age Pension & Social Security
• Reduction in Infant Mortality
• Raising the Marriage Age
• Family Planning
• Urbanization
• Removing  Economic  Reasons  for  Preferring  Large Families
• Introducing   Incentives   for   People   with   Small Families


  1. Relative Poverty
  2. Absolute Poverty

Relative Poverty

• Relative Poverty refers to the Income or Asset Position  of  one  Class  or  Group  of  People  in comparison with the other Classes or Groups, or of one Individual vis-a-vis the Others.

• The essential point here is that Poverty of One is Relative to the Richness of the other.

• For Example, an Average Middle Class Person is Poor  when  compared  to  the  Upper  Middle Class Person, who in turn, may be poorer than the Richer Person so on

Absolute Poverty

• It  is  associated  with  a  Minimum  Level  of Living        or        Minimum        Consumption Requirements  of  Food,  Clothing,  Housing, Health, etc.

• All those People who fail to Secure Income or Assets to have access to even these Minimum Consumption Requirements are classified as ‘Poor’.

• Is relevant for the Less-Developed Countries.

Poverty Line

• Poverty  Line  is  drawn  on  the  basis  of Expenditure  that  is  necessary  to  Secure the Minimum Acceptable Living Standard for Work & Efficiency.

• Since, Food is the most Basic Requirement, thus, Poverty Line is drawn on the basis of a  Minimum  Necessary  Nutritional Standard  expressed  in  terms  of  Calories Per Day.


• In India, the Minimum Calories intake of a Person has been put at 2,400 in Rural Area & 2,100 in Urban Areas.

• To  convert  this  Calorie  intake  based  Poverty  Line into  a  Monetary  Measure  of  Poverty, the Cost  of Minimum Consumption Requirements of Food providing the minimum calories is calculated at prevailing Price.

• Thus, Government defined a Person with an Income of Less than Rs.368 (Rural) & Rs.559 (Urban) per month as living below Poverty Line. 



Causes of Poverty

• Under   developed   Nature   of   the   Indian Economy.

• Inequalities in Income & Assets Distribution cause Additional Income from Development to be cornered by a few Rich People.

• Rapidly growing Population is a major cause of Low Per Capita Income & Poverty in India.

• Large  Scale  Unemployment  causes  lowering of the Levels of Living of People

• Inflation has reduced Purchasing Power of Money.  This  has  reduced  Real  Income  & thus people can buy less and consume less with giving Income.   This has added to Poverty.

• Rural Character of India’s Economy has also its bearing on Rural Poverty.

• Sociological reasons  too  have contributed

Measures to Reduce Poverty

• Agriculture & other Rural Vocations should be   rapidly developed so as to Eradicate Rural Poverty.

• Village  and  Small  Industries  should  be developed to create greater Employment both in Rural & Urban Areas.

• Programmes should be implemented that directly target the Poor & help them increase their Income & Consumption.

• Income Inequalities should be reduced:

– Labour Legislation should ensure better Wages.

– Goods consumed by the Poor should not be Taxed.

– Goods required by the Poor must be Subsidised.

– Free Health Care & Education should be provided to the Poor.

– Persons belonging to Poor Families must be provided Employment.

• Rapid Growth of Population must be controlled & Population Growth Rate brought down through Family Planning, EGednerual Eccoanotmicos:Ponpu,latIion,Pcovertyn& tives, etc.




• Unemployment  refers  to  the  situation where the Persons who are able to Work & Willing to  Work, Fail to Secure Work or Activity which gives them Income or Means of Livelihood.

• Those  who  are  fit  to  Work  but  do  not want to Work & hence do not actively seek Work are not included among the unemployed persons

Types of Unemployment

• Voluntary Unemployment.
• Frictional Unemployment.
• Casual Unemployment.
• Seasonal Unemployment.
• Structural Unemployment.
• Technological Unemployment.
• Cyclical Unemployment.
• Chronic Unemployment.
• Disguised Unemployment.

• Voluntary Unemployment.

– People who are   unwilling to Work   at the Prevailing Wage Rate & People who get a continuous flow of Income from their Property or other Sources & need not to Work, such people are Voluntarily Unemployed.

– Voluntarily   Unemployment   is   a   National Waste  of  Human  Energy,  but  it  is  not  a Serious Economic Problem

• Frictional Unemployment.

– A  temporary  phenomenon  which  results  from Workers  which  are  temporarily  out  of  Work while changing Jobs or are suspended due to Strikes or Lockouts.

– Frictional Unemployment is due to difficulties in getting Workers & Vacancies together.

– For  example,  Big  Industries  Units  &  Polluting Industries have been moved out of the large towns and cities like Delhi.

• Casual Unemployment.

– In   Industries,   such   as   Construction, Catering or Agriculture, where Workers are Employed on a day to day basis, there are chances of Casual Unemployment  occurring  due  to Short-term Contracts, which are terminable any time.


• Seasonal Unemployment.

– Industries     &     Occupations     such     as Agriculture,  the catering  trade in Holiday Resorts, where Production Activities are seasonal in nature offer Employment only for a certain Period of Time in a Year. People engaged in such type of Work or Activities  may  remain  Unemployed during the Off-Season which is termed as Seasonal Unemployment.

• Structural Unemployment.

– Unemployment  which  arises  due  to  change  in  the Pattern of Demand leading to Changes in the Structure of Production in the Economy is termed as Structural Unemployment.

– Example use of Synthetic Rubber is  bound to reduce Demand for Natural Rubber & lead to Unemployment in Rubber Plantation.

– The  only  way  to  remove  such  Unemployment  is  to retrain the Unemployed in new Vocations so that  they learn new Technologies & are thus   absorbed in the

• Technological Unemployment.

– Due to Introduction of New Machinery, improvement  in  methods  of Production,  Labour-Saving  devices, etc..,  some  Workers  tend  to  be replaced by Machines. Their unemployment is termed as Technological Unemployment.


• Cyclical Unemployment.

– Associated   with   the   Cyclical   Fluctuations   in Economic Activity, especially  in the Recessionary Depressionary Phases of Trade Cycle.

– Mostly found in Capitalist Countries like the USA and Western European Nations, etc.

– The Solution for Cyclical Unemployment lies in measures for   increasing Total Expenditure in Economy,  thereby   pushing   up   the   level   of Effective demand.

• Chronic Unemployment.

– When Employment tends to be a Long-term feature of a Country, it is called Chronic Unemployment.

– Underdeveloped   Countries       suffer   from Chronic Unemployment on account of the Vicious Circle of Poverty, Lack of Developed Resources & their under utilization,   High Population Growth, Low Capital Formation,

• Disguised Unemployment.

– Refers to a position where People may be Working & apparently Employed, yet their Contribution to Output  may  be  Zero.  Hence,  they  seem  to  be employed,  but  technically  they  are  Unemployed because their Marginal Productivity is Zero.

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