Question

Explain any three ways to solve the problem of underemployment

Answer 1

There are people who are capable of better work and earning more than what they are getting. The reason for this is that better jobs for which they are qualified are not available. Such people are termed as underemployed, e.g., a graduate teacher driving a taxi. Underemployment is most prevalent in the primary or agricultural sector.

 

Three ways to solve the problem of underemployment:

 

Provision of loans may help in creating jobs for disguised unemployed and underemployed workers.

The loan money can be used for the promotion of economic activity of the family adding to the family’s earning or for setting up a cottage industry.

Another way is to promote and locate industries and services in semi-rural areas where a large number of people may be employed.

Example, Setting up a dal mill, opening a cold storage, starting or promoting honey collection.

If local banks give credit to farmers at a reasonable rate of interest, they will be able to buy agricultural inputs and increase productivity.

Centres for vegetables and fruit processing, health centres, educational institutions, tourism and IT centres will certainly help in creating jobs.

There are people who are capable of better work and earning more than what they are getting. The reason for this is that better jobs for which they are qualified are not available. Such people are termed as underemployed, e.g., a graduate teacher driving a taxi. Underemployment is most prevalent in the primary or agricultural sector.