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Is it desirable for the government to lower unemployment?

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Is it desirable for the government to lower unemployment?

Low unemployment reduces the strain on the government, and taxpayers, to support a large population of people out of work. With more people working, the government has less burden to put money into welfare assistance programs. Also, more people working allows the government to bring in more tax revenue.

What steps have been taken by the Indian government to reduce unemployment?

Steps taken by the govt to reduce unemployment are :

  • MGNREGA scheme.
  • Giving more tax benefits to small and medium scale industries.
  • Encouraging more for starts ups.
  • Conducting vocational training programme.
  • establishing more industries where there is a existence of huge unemployment rate.

How does the government affect unemployment?

Taxation. Taxation is one of the primary fiscal policy tools the government has at its disposal to reduce unemployment. High taxes mean consumers have less disposable income, which results in less consumption. Cutting taxes is a common method the government uses to spark economic growth and reduce unemployment.

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Why does the government want low unemployment?

Lower unemployment will reduce government borrowing and help economic growth. If the unemployed gain work, they will increase spending, and this will cause a positive multiplier effect which helps to increase economic growth.

What are the major problems caused by unemployment in the society and the nation?

Unemployment and depression/mental health

  • Stress and health problems of being unemployed.
  • Another study found that common outcomes of unemployment include depression, substance abuse, admissions to psychiatric hospitals, death by suicide, and violence. (

Why did Modi get rid of the employment–unemployment survey?

As part of a larger mistrust of existing unemployment statistics, a task force instituted at Modi’s behest in 2017 scrapped the Employment–Unemployment Survey—carried out by the National Sample Survey Office every five years since Independence—and replaced it with a completely new data-gathering methodology.

What has the Modi government done to the Indian labour market?

The Modi government has discontinued the Labour Bureau’s quarterly enterprises surveys, with the last report being released in March 2018. Moreover, the annual Employment-Unemployment Survey was also scrapped in 2017. The government now relies only on provident fund data to calculate employment – a method widely criticised as being faulty.

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Is the NSSO hiding the unemployment rate?

On Thursday, the Business Standard reported that the suppressed NSSO report showed that the unemployment rate in 2017-’18 stood at a four-decade high of 6.1\%. This is not the first time the Modi government has been accused of hiding official statistics.

Should India’s official data on the state of the country be suppressed?

Before the 2019 Lok Sabha elections, Indians have a right to know how their elected Union government has performed over the past five years in order to evaluate it at the hustings. Suppressing official data on the state of the country has the potential to seriously damage India’s democratic set up.