Chapter-2 People as Resource

Explanation:

The term ‘People as a resource’ means the inherent qualities and abilities that people possess that can be harnessed to produce economic and social value. This concept recognizes that people are not merely passive agents in the production process but are active and dynamic contributors who can create, innovate, and bring about change.It means that people are viewed as a valuable asset, similar to other resources such as raw materials, machines, or technology. This perspective acknowledges that a country's most important asset is its human capital, and investment in education, training, and health care is essential to develop and utilize this resource effectively.

Explanation:

Human resources are different from other resources like land and physical capital in many ways. These are as follows:

(a)Creativity and Innovation: Unlike land and physical capital, human resources possess creativity and the ability to innovate. Human beings can come up with new ideas, develop new products, and find new ways to do things. They can improve processes, create new technologies, and drive progress and development.

(b)Adaptability: Human resources are adaptable to changing circumstances. People can learn new skills and knowledge, adjust their behavior and work processes, and respond to changing market demands. Land and physical capital, on the other hand, are less flexible and adaptable.

(c)Variability: Human resources are more variable than other resources like land and physical capital. Individuals have different levels of education, experience, skills, and abilities. This variability can pose challenges for employers, but it also offers opportunities for diversity, innovation, and creativity.

(e)Mobility: Human resources can move from one location to another, unlike land and physical capital, which are tied to a specific location. This mobility allows people to seek better job opportunities, improve their living standards, and contribute to economic development in different regions.

Explanation:

Education plays a crucial role in human capital formation, which refers to the process of developing and enhancing the knowledge, skills, and abilities of individuals. Education is a critical component of human capital formation because of the following ways:

It provides people with the knowledge and skills necessary to participate in the workforce, contribute to economic development, and lead productive and fulfilling lives.

Education also helps individuals develop skills that are necessary for the workforce. These skills can include technical skills, such as computer programming or engineering, as well as soft skills, such as communication, teamwork, and problem-solving. The acquisition of these skills enables individuals to participate in the labor market, contribute to economic growth, and lead productive lives.

Education also plays a critical role in the development of human resources. By providing individuals with the knowledge and skills necessary to succeed in the workforce, education enhances the overall quality and productivity of the labor force.

Education also fosters innovation and creativity. By providing individuals with the knowledge and skills necessary to think critically and solve problems, education encourages individuals to develop new ideas and technologies that can drive economic growth and development.

Explanation:

Health plays a very important role in human capital formation in the many ways which are:

Health is a vital component of human capital because it enables individuals to participate in the workforce, learn effectively, and lead productive lives.

Good health reduces absenteeism and increases productivity. Healthy individuals are less likely to miss work due to illness or injury, which means that they can work more days per year and contribute more to the economy.

Good health is also essential for cognitive function. Studies have shown that good nutrition and physical activity can improve cognitive function, memory, and concentration. This means that healthy individuals are better able to learn, retain information, and apply it to their work.

Good health also reduces healthcare costs which are very expensive these days.

Explanation:

Health is a vital component in a person's working life . This is because of the listed ways:

Physical Demands of the Job: Some jobs require physical labor or manual labor, which can be physically demanding. Good health is necessary to perform such tasks effectively and efficiently. A worker with poor health may not be able to carry out the physical demands of the job, resulting in reduced productivity and increased risk of injury.

Work-Life Balance: Good health is also necessary for maintaining a good work-life balance. Workers who are in good health are more likely to be able to manage the demands of their job and their personal life effectively. This can result in increased job satisfaction and overall well-being.

Occupational Health and Safety: Employers have a duty to provide a safe working environment for their employees. This includes identifying and managing workplace hazards, promoting healthy behaviours, and providing access to healthcare services. Good occupational health and safety practices can help prevent work-related injuries and illnesses, improving the health and well-being of workers.

Explanation:

Primary Sector: The primary sector involves the extraction and harvesting of natural resources. Some examples of activities in the primary sector include:

Agriculture: Growing crops, raising livestock, and producing raw materials such as fruits, vegetables, grains, and meat.

Mining: Extracting minerals, oil, and gas from the earth.

Fishing: Catching fish and other marine life for food and other products.

Forestry: Harvesting wood and other forest products.

Secondary Sector: The secondary sector involves the processing and manufacturing of raw materials into finished goods. Some examples of activities in the secondary sector include:

Manufacturing: Converting raw materials into finished goods using machinery and other tools.

Construction: Building and assembling structures, such as buildings, bridges, and roads.

Energy Production: Generating electricity and other forms of energy using natural resources like coal, oil, and gas.

Tertiary Sector: The tertiary sector involves the provision of services to consumers and other businesses. Some examples of activities in the tertiary sector include:

Retail: Selling goods directly to consumers through physical stores or online platforms.

Hospitality: Providing lodging, food, and other services to travelers and tourists.

Transportation: Moving people and goods from one location to another using various modes of transportation such as cars, trains, planes, and ships.

Financial Services: Providing services such as banking, insurance, and investment management.

Explanation:

Economic activities and non-economic activities differ in their ability to generate income or contribute to economic growth.

Economic activities involve the production, distribution, and consumption of goods and services, which are undertaken to generate income or contribute to economic growth. Economic activities are characterised by the exchange of money, goods, or services in the market. Examples of economic activities include farming, manufacturing, retail trade, transportation, and banking.

Non-economic activities, on the other hand, do not involve the production, distribution, or consumption of goods and services for the purpose of generating income or contributing to economic growth. Non-economic activities are characterised by the absence of exchange in the market, and they may be undertaken for personal, social, or cultural reasons. Examples of non-economic activities include education, healthcare, household chores, volunteer work, and leisure activities.

Explanation:

There are many reasons why women are often employed in low-paid work, including:

1.Gender discrimination: Women often face discrimination in hiring, promotion, and pay in the workplace, which can lead to them being concentrated in low-paying jobs.

2.Gender stereotypes: Traditional gender roles and stereotypes often associate women with caregiving and domestic work, which are typically undervalued and underpaid.

3.Lack of access to education and training: Women may face barriers to education and training, which can limit their career opportunities and lead them to lower-paying jobs.

4.Unequal distribution of care responsibilities: Women often bear a disproportionate burden of caring for children, elderly relatives, and other dependents, which can limit their availability for full-time work and career advancement.

5. Limited access to childcare: Lack of affordable and accessible childcare can make it difficult for women to balance work and caregiving responsibilities, forcing them to choose low-paying jobs that offer more flexible schedules.

Explanation:

Unemployment refers to a situation where individuals who are willing and able to work are unable to find employment opportunities. It is an economic indicator that reflects the number or percentage of people in the workforce who are without jobs but actively seeking employment.

There are different types of unemployment, including:

1. Cyclical unemployment.

2. Frictional unemployment

3. Structural unemployment

4. Seasonal unemployment

   
   

   
   

Explanation:

Disguised unemployment and seasonal unemployment are two different types of unemployment:

Disguised unemployment refers to a situation where more people are employed in a particular job or sector than is necessary for efficient operation. In other words, there are too many workers in a particular job or sector, and some of them could be removed without affecting output or productivity. This type of unemployment is typically found in the agricultural sector, where too many people are engaged in farming or related activities, leading to lower productivity.

Seasonal unemployment, on the other hand, occurs when workers are unemployed during certain seasons or times of the year when there is a decrease in demand for certain types of work. For example, workers in the tourism industry may be unemployed during the off-season when there are fewer visitors.

Explanation:

Educated unemployment is a peculiar problem in India due to a number of reasons:

1.Rapidly increasing population: India has a rapidly growing population, which is resulting in an increase in the number of people seeking employment every year. This puts pressure on the job market, and even with the increasing number of job opportunities, there are not enough jobs to cater to the growing number of educated job seekers.

2.Education system: India's education system has been criticised for not being able to provide job-oriented education, resulting in a mismatch between the skills of graduates and the job market. Many graduates are not able to find employment because they lack the required skills and experience that employers seek.

3.Lack of industry-academia collaboration: There is often a lack of collaboration between industries and academic institutions, resulting in a gap between the skills required by the industry and those taught in schools and colleges.

4.Slow economic growth: The Indian economy has been growing slowly in recent years, resulting in a limited number of job opportunities. The slow growth rate has made it difficult for the government and private sector to create enough jobs to cater to the increasing number of job seekers.

Explanation:

The fields with maximum employment opportunities are:

1.Manufacturing: India has the potential to become a manufacturing hub, especially in areas such as electronics, automobiles, textiles, and pharmaceuticals. The government's Make in India initiative is aimed at promoting manufacturing and has the potential to create millions of jobs in the coming years.

2.Information Technology (IT): The IT sector has been one of the fastest-growing sectors in India, and has the potential to continue to generate high levels of employment. India has a large pool of skilled IT professionals, and the sector has been growing rapidly in recent years.

3.Agriculture and allied industries: India is primarily an agrarian economy, and the agricultural sector has the potential to create a large number of jobs in areas such as farming, dairy, poultry, and fisheries. The allied industries such as food processing and logistics also have the potential to create jobs.

Explanation:

Some measures that could be taken in the education system to mitigate the problem of the educated unemployed:

1.Focus on skill-based education: The education system should be designed to provide students with skills that are in demand in the job market. The curriculum should be regularly updated to reflect changing market demands.

2.Promote vocational education: Vocational education programs should be promoted to provide students with hands-on training in various trades and skills. This would enable them to find employment opportunities in a range of fields.

3.Encourage entrepreneurship: Entrepreneurship should be encouraged by providing students with training and support to start their own businesses. This would not only create jobs but also lead to the creation of new industries and sectors.

4.Increase industry-academia collaboration: There should be greater collaboration between educational institutions and industries to ensure that students are equipped with the skills and knowledge that are relevant to the job market.

5.Expand internship and apprenticeship opportunities: Educational institutions should provide more opportunities for students to gain practical work experience through internships and apprenticeships. This would enable students to gain valuable work experience and make them more employable.

6.Provide career counseling: Students should be provided with career counseling services to help them make informed decisions about their future careers. This would ensure that students are aware of the job opportunities available to them and the skills required to succeed in the job market.

Explanation:

Yes, it is possible to imagine a village that initially had no job opportunities but later came up with many. Here is a hypothetical scenario:

Let's consider a village called "Sundarpur" located in a remote area of a developing country. Initially, Sundarpur was a small village with few job opportunities. Most people were engaged in traditional agriculture, and there were no other significant sources of income.However, in recent years, the government started to invest in infrastructure development in the surrounding areas, including the construction of a new highway that passes near Sundarpur. This led to increased economic activity in the region and opened up new job opportunities for the villagers.A group of young entrepreneurs from Sundarpur saw this as an opportunity and decided to start a small-scale manufacturing unit to produce handicrafts made from locally available materials. They received support from the government's start-up incubation program and access to microfinance loans to set up their business.The handicrafts produced by the unit gained popularity in nearby cities, and the business expanded rapidly. The entrepreneurs started to employ more people from the village, and soon, the handicraft unit became a major employer in the area.With the success of the handicraft unit, other entrepreneurs from the village also started to set up their businesses. A local dairy cooperative was established, and the farmers started to get better prices for their milk. Some villagers also started to offer eco-tourism services, showcasing the natural beauty of the area to tourists.As the number of businesses increased, the villagers gained access to more job opportunities, and the economy of the village started to grow. People who had migrated to cities in search of employment started to return to the village, attracted by the job opportunities and a better quality of life.In this way, Sundarpur transformed from a small village with few job opportunities to a thriving economic center with a range of employment opportunities. This scenario shows how investment in infrastructure and support for entrepreneurship can lead to the creation of new job opportunities in rural areas.

Explanation:

Human capital can be considered to be the best out of the land, labour, physical and human capital. This is because the other resources cannot be used all by themselves, and only humans can use other resources and get productive outcomes from them.