Since Bangladesh followed a socialist economic system by nationalising all industries after its independency, a slow growing of experient enterprisers, directors, decision makers, applied scientists, or technicians underwent. There were critical deficits of indispensable nutrient grains and other basics because of wartime breaks. Foreign exchange resources were minuscular, and the banking and pecuniary system was undependable. Although Bangladesh had a big work force, the huge militias of less trained workers were mostly illiterate, unskilled, and underemployed commercially exploitable industrial resources, except for natural gas, were missing.

Bangladeshi leaders easy began to turn their attending to developing new industrial capacity. The steady economic theoretical account adopted by these early leaders, however-including the nationalisation of much of the industrial sector-resulted in inefficiency and economic stagnancy. Get downing in late 1975, the authorities bit by bit gave greater chance to private sector engagement in the economic system. Many state-owned endeavors have been privatized, with banking, telecommunication, air power, media, jute including a scope of other critical sectors have been privatized.

From 1991 to 1993, the authorities successfully followed an enhanced structural accommodation installation ( ESAF ) with the International Monetary Fund ( IMF ) but failed to follow through on reforms in big portion because of preoccupation with the authorities ‘s domestic political problems.

Bangladesh historically has run a big trade shortage, financed mostly through assistance grosss and remittals from workers overseas. Foreign militias dropped markedly in 2001 but stabilized in the USD3 to USD4 billion scopes. In January 2007, militias stood at $ 3.74 billion and they increased to $ 5.8 billion by January 2008, in Nov 2009 it surpassed $ 10.0 billion harmonizing to the Bangladesh Bank.

Attempts to accomplish Bangladesh ‘s macroeconomic ends have been debatable largely due to corruptness within the authorities. The denationalization of public sector industries has proceeded at a slow pace-due in portion to worker agitation in affected industries-although on June 30, 2002, the authorities took a bold measure as it closed down the Adamjee Jute Mill, the state ‘s largest and most dearly-won state-owned endeavor. The authorities besides has proven unable to defy demands for pay hikings in government-owned industries. Access to capital is impeded. State-owned Bankss, which control about three-quarterss of sedimentations and loans, carry classified loan loads of approximately 50 % .

The IMF and World Bank predict GDP growing over the following 5 old ages will be approximately 6.5 % , good abruptly of the 9-10 % needed to raise Bangladesh to Mid Income Nations. The initial impact of the terminal of quotas under the Multi-Fiber Arrangement has been positive for Bangladesh, with continuing investing in the ready-made garment sector, which has experienced one-year export growing in surplus of around 20 % . Foreign investors in a wide scope of sectors are progressively frustrated with the political relations of confrontation, the degree of corruptness, the slow gait of reform and denationalization of the populace sector and the deficiency of basic substructure. While investors view favourably recent stairss by the interim authorities to turn to corruptness, administration, and substructure issues, most believes it is excessively early to measure the long-run impact of these developments.


Monetary value:

Market value that will buy a definite measure, weight, or other step of a good or service ( Business Dictionary ) . It may be fixed by a contract ( such as sale of goods contract ) , left to be determined by an agreed upon expression at a hereafter day of the month, or discovered or negotiated during the class of traffics between the parties involved. In commercialism, it boils down to what — –

( 1 ) A purchaser is willing to pay,

( 2 ) A marketer is willing to accept and

( 3 ) The competition is leting to be charged.

With merchandise, publicity, and topographic point of marketing mix, it is one of the concern variables over which a house can exert some grade of control. It is a condemnable discourtesy to pull strings monetary values ( see monetary value repairing ) in collusion with other providers, and to give a deceptive indicant of monetary value such as bear downing for points that are moderately expected to be included in the advertised, list, or quoted monetary value besides called sale monetary value and merchandising monetary value.

in other word, the amount or sum of money at which a thing is valued, or the value which a marketer sets on his goods in market ; that for which something is bought or sold, or offered for sale ; tantamount in money or other agencies of exchange ; current value or rate paid or demanded in market or in swap is defined as monetary value.


The portion of the one-year merchandise or national dividend which goes as a wages to labour, as distinguishable from the wage received by capital in its assorted signifiers. This economic or proficient sense of the word wages is broader than the current sense, and includes non merely amounts really paid to labourers, but besides the wage obtained by those who sell the merchandises of their ain work.

The definition of rewards harmonizing to the Wages Act 1986 is any amounts collectible to the employee by an employer in connexion with that employment.

Wagess hence include fees, fillips, committees, holiday wage or other emolument relevant to the employment whether specified in the contract of employment or non. Wagess besides include SSP, SMP or company ill wage and any other statutory payments e.g. payment for clip off for trade brotherhood responsibilities, jury service etc. Wagess do non include the refund of disbursals, any compensation or rupture wage or redundancy wage. Payments in sort are usually excluded from the definition except points such as tiffin verifiers that are movable into a fixed pecuniary value. Payment in stead of notice is efficaciously amendss for breach of contract, and as such is non considered to be rewards under the Wages Act 1986. It is hence by and large made free of revenue enhancement and NI. However, if the footings and conditions specifically province this as a contractual right, it will go nonexempt. Pay statement/wage faux pas every employee has the right to be given by their employer, at or before the clip of salary/wage payment, a written itemized wage statement – as per the Employment Rights Act 1996. This statement must incorporate: Gross net incomes Sums of any variable and fixed tax write-offs and the intents for which they are made Net net incomes Where different parts of net sum are paid by different methods, the sum and method of each portion payment must be shown.

Gratuities customarily received by an person in the class of his employment from individuals other than his employer and reported by the person to his employer shall be treated as rewards paid by his employer. The sensible hard currency value of wage paid in any medium other than hard currency shall be estimated and determined in conformity with regulations prescribed by the board. The value of room and board, if set by understanding between the employer and employee, must be reported as rewards. Where there is no understanding, the section uses the minimal values assigned to room and board as established under the pay and hr plan.


Types of Payments are non Considered Wagess


By legislative act, the term “ rewards ” shall non include:


A ) A A A A The sum of any payment ( including any sum paid by an employer for insurance or rentes, or into a fund, to supply for any such payment ) made to, or on behalf of, an employee or any of his dependants under a program or system established by an employer which makes proviso for his employees by and large ( or for his employees by and large and their dependants ) or for a category or categories of his employees ( or for a category or categories of his employees and their dependants ) , on history of:


I ) A A Sickness or accident disablement ( but, in the instance of payments made straight to an employee or any of his or her dependants, this subparagraph shall except from the term “ rewards ” merely payments which are received under a workers ‘ compensation jurisprudence ) ; or


two ) A Medical or hospitalization disbursals in connexion with illness or accident disablement ; or


three ) A Death ;


B ) A A A A Any payment on history of illness or accident disablement, or medical or hospitalization disbursals in connexion with illness or accident disablement, made by an employer to, or on behalf of, an employee after the termination of six calendar months following the last calendar month in which the employee worked for such employer ;


C ) A A A A Any payment made to, or on behalf of, an employee or his beneficiary ( one ) from or to a trust described in subdivision 401 ( a ) of the United States Internal Revenue Code which is exempt from revenue enhancement under subdivision 501 ( a ) of the United States Internal Revenue Code at the clip of such payment unless such payment is made to an employee of the trust as wage for services rendered as such employee and non as a donee of the trust, or ( two ) under or to an rente program which, at the clip of such payment, is a program described in subdivision 403 ( a ) of the United States Internal Revenue Code ;


D ) A A A A The payment by an employer ( without tax write-off from the wage of the employee ) of the revenue enhancement imposed upon an employee under subdivision 3101 of the United States Internal Revenue Code ;


Tocopherol ) A A A A Any sums received from the federal authorities by members of the National Guard and organized modesty, as drill wage, including length of service wage and allowances.


Unemployment means the province of being without any work both for educated and uneducated individual. Unemployment is defined as a state of affairs where person of working age is non able to acquire a occupation but would wish to be in full clip employment. It is the province of an single looking for a paying occupation but non holding one. Unemployment does non include full-time pupils, the retired, kids, or those non actively looking for a paying occupation. It is dearly-won non merely for single and households but besides for whole economic system and society. It wastes natural resources, play function Lessing income and economic end product. Long term unemployment decreases the proficient and societal accomplishments of unemployed individual. It besides reduces employability and do less attractive to be a possible worker or employer. It related to the financial costs to the authorities.

Bangladesh is one of the poorest states in the universe. With buying power para, its GDP in 2000 was $ 203 billion and its rate of growing was 5.3 % . Although this growing rate inspires optimism, analysts determined that it will non be plenty to better conditions in Bangladesh. A double-digit unemployment rate is one ground for this tax write-off. Many factors impede development in Bangladesh ‘s economic system. Economists ground, for illustration, that Bangladesh is slow to use energy resources such as natural gas, which prevents rapid economic enlargement. Furthermore, one-year inundations harm belongings and cut down green goods crops, increasing the demand for authorities plans. Most significantly, corruptness removes )

outgo from GDP to an belowground economic system. ( CIA )

Types of Unemployment:

Demand Deficient Unemployment – Lack of AD in economic system.

Structural Unemployment – workers lack necessary accomplishments or geographical stationariness.

Real Wage Unemployment – rewards above equilibrium.

Frictional unemployment – workers in between occupations.

Voluntary Unemployment – workers prefer non to work.

**Demand Deficient Unemployment:

Demand lacking unemployment occurs in a recession or period of really low growing. If there is deficient aggregative Demand, houses will cut back on end product. If they cut back on end product so they will use fewer workers. Firms will either cut back on enlisting or put off workers. The deeper the recession, the more demand lacking unemployment there will be. This is frequently the biggest cause of unemployment, particularly in a downswing. This is besides known as cyclical unemployment – mentioning to how unemployment increases during an economic downswing.

Diagram demoing autumn in AD and lower Output – which leads to higher unemployment

**Structural Unemployment:

This is unemployment due to inefficiencies in the labour market. It may happen due to a mismatch of accomplishments or geographical location. For illustration structural unemployment could be due to:

Occupational stationariness. There may be skilled occupations available, but many workers may non hold the relevant accomplishments. Sometimes houses can fight to enroll during periods of high unemployment. This is due to the occupational stationariness.

Geographic stationariness. Jobs may be available in London, but, unemployed workers may non be able to travel at that place due to troubles in acquiring lodging etc.

Technological alteration. If an economic system goes through technological alteration some industries will worsen. This is likely to take to structural unemployment. For illustration, new engineering ( atomic power ) could do coal mines near down go forthing many coal mineworkers unemployed.

**Real Wage Unemployment / Classical Unemployment:

This occurs when rewards are unnaturally kept above the equilibrium. For illustration, powerful trades brotherhoods or minimal rewards could take to rewards above the equilibrium taking to extra supply of labour ( this assumes labour markets are competitory ) Keynesian analysis suggests a autumn in AD can take to existent pay unemployment as rewards are gluey downwards and a autumn in AD does n’t take to rewards uncluttering.

**Frictional unemployment:

This occurs when workers are in between occupations e.g. school departers take clip to happen work. There is ever likely to be some frictional unemployment in an economic system as people take clip to happen a occupation suited to their accomplishments.

**Voluntary Unemployment:

This occurs when workers choose non to take a occupation at the traveling pay rate. For illustration, if benefits offer a similar return place page to pay – revenue enhancement, the unemployed may experience there is no inducement to take a occupation.

Relation between unemployment and monetary value rising prices:

Unemployment and rising prices are reciprocally related in the long tally and short tally. In the long run the rate of unemployment depends on assorted characteristics of the labour market such as minimal pay jurisprudence, the market power of brotherhoods, the function of efficiency rewards and the effectivity of occupation hunt. By contrast, the rising prices rate depends chiefly on growing in the money supply. Therefore in the short tally merely opposite is true. If we aggregate demand expand and travel the economic system up along the short tally aggregate supply curve, it can spread out end product and lower unemployment for a piece, but merely at the cost of a more quickly lifting in monetary value Laval. If we contract aggregative demand and travel the economic system down the short tally aggregate supply curve, they can take down rising prices, but merely at the cost of temporarily lower end product and higher unemployment.

B A 10 Degree centigrade


0 3 6

Suppose the expected rising prices rate and unemployment rate are 10 % and 6 % at point A in the graph. A short tally Phillips curve ( SRPC ) passes through this point A. When rising prices rate rises above its expected rate, unemployment rate falls under its natural rate. This motion shows at point A to B that brings an addition in the rising prices rate and a lessening in the unemployment rate. Similarly it will be reversed if rising prices rate falls below its expected rate. In this instance it will be moved point B to C. It brings a lessening in the rising prices and a addition rate in the unemployment rate.

Relation between rewards and unemployment:

Minimal rewards cased unemployment. If the pay is kept above the equilibrium degree for any ground, the consequence is unemployment. Although minimal rewards are non the prevailing ground for unemployment in our economic system, they have an of import consequence of certain groups with peculiarly high unemployment rates. More-over the analysis of minimal rewards is a natural topographic point to get down because, as we will see, it can be used to understand some of the other ground for structural unemployment.

Minimum-wages Torahs matter most for the least skilled and least experient members of the labour force, such as adolescents. Their equilibrium rewards tend to be low and hence, are more likely to fall below the legal lower limit. It is merely among these workers that minimum-wages Torahs explain the being of unemployment.

When a lower limit pay jurisprudence forces the pay, to stay above the degree that balances supply and demand, it raises the measure of labour supplied and reduces the measure of labour demanded compared to the equilibrium degree. There is a excess of labour. Because there are more workers willing to work than there are occupations, some workers are unemployed.


Excess of labour = Labor

Unemployment. Supply






0 L1 L2 L3 Quantity of labour

Unemployment from a pay above the equilibrium degree in this labour market, the pay at which supply and demand balance is W1. At this equilibrium pay, the measure of labour supplied and the measure of labour demanded both equal L2. By contrast, if the pay is force to stay above the equilibrium degree, possibly because of a minimal pay jurisprudence, the measure of labour supplied rises to L3 and the measure of labour demanded falls to L1. The ensuing excess of labour, L3- L1 rhenium nowadayss unemployment.

Wage construction and unemployment:

The labour market and its reform are an of import subject how to recognize high employment and unemployment rates. Reforms of labour market in order to do them more flexible are one of the cardinal recommendations to better employment and growing. Flexibility of rewards is one of the stipulations for a working market economic system. Labor market flexibleness is concerned with different pay constructions. But we assume that the nominal pay degree does non alter. Under this status different ways to alter the pay construction including the consequence of lower limit rewards are discussed:

The flexible pay construction:

a ) Between different industries:

The economic effects of rewards construction become more differentiated if one industry – say the soapsuds industry – and another industry – say the steel industry – is discussed.

B ) Lapp industry in different companies:

Although two companies produce the same goods but they pay different rewards.

degree Celsius ) Between different businesss within same industry:

The rewards of a computing machine operator and a supervisor is different although they work in the same industry.


Real rewards:

Real rewards is the best manner to judge a labours benefit than nominal pay. Nominal rewards is the amount of existent rewards and rising prices. So existent rewards = nominal rewards – rising prices. Adam Smith says, “ The labour is rich or hapless, good or ill rewarded non in proportion to the nominal rewards but in proportion to the existent rewards. ” Now we will concentrate on the existent rewards about different sectors and countries. The aim of the authorship is to concentrate on the existent rewards of the last 10 old ages. Real rewards may be different in rural, urban, sector, and gender related favoritism.

Real rewards different in assorted sector:

Now we are traveling to analyse the existent rewards tendency in different sector. An analysis of elaborate sect unwritten difference of existent rewards is of import. There are many developed theories about existent pay among different sectors. But theories are non ever true. The existent pay series of SYB shows the expected form, the index of existent pay in fabrication is higher than that of agribusiness or building or trade. Wages is higher in building in trade compared to both agribusiness and fabricating the ratio stands 1.48 during 2006 ( LFS ) .

Harmonizing to the statistical twelvemonth book of Bangladesh ( SYB ) , the following table represents existent rewards series for fabrication, agribusiness, building and general:

Wage Rate Indexs by Sector ( Base: 1969-70=100 ) : Bangladesh 1991-2006


Nominal Indexs

Real Wage Indices*


Manufacturing industry




Manufacturing industry



















































































































































Beginning: Economic Survey 2007, Statistical Yearbook of Bangladesh Various Issues, last column: writers calculation

In agribusiness it is looked from the index that the existent rewards growing is positive. Index of existent pay increased 19 % during 2000-2006. In the appraisal of existent pay a controversial inquiry is deflator that should be used for transition of nominal rewards into existent rewards. In order to change over rewards rates of urban sectors CPI for urban industrial sectors holding produced by BBS. In the absences of CPI for rural pay earners, it may be used either CPI for all rural population or that for the industrial workers to compare the existent pay in agribusiness with that of other sectors, a deflator may normally be used.

As shown by the one-year studies ( above tabular array ) existent rewards growing in fabrication is dramatic, particularly 2000-2006 increased 46 % . If considered the period of 2000-2006, the existent rewards index rises in agribusiness and in building were 19 % and 7 % severally. In contrast, the rise of existent pay was in fabricating 46 % . This tendency is particularly true for building sector which is chiefly concentrated in urban countries. Harmonizing to the HIES and LFS informations studies there are significant differences in the gait of growing of existent pay. Because the first months of 2005 experient break of economic activities as an wake of the serious inundation of 2004 which affected half of our state. In the fabrication sector, RMG, ( a fabrication bomber sector ) contributes 60 % of all fabricating employment. Wage in RMG is much lower than other fabricating bomber sector ( Salman 2001 Rahman et. al.2007 ) .

The lower rewards of fabricating comparative to building and trade give the thought of lower productiveness of fabrication because of inter sect unwritten transportation of resources. Manufacturing sectors appoint educated employees so other sectors. So there rewards should be higher. The lower pay of fabricating workers is likely to be routed in assorted types of cleavage of the labour market it provides twelvemonth unit of ammunition occupation and in many sub sectors the undertakings are physically less demanding comparative to building. The other of import factor behind the difference existent rewards is gender spread. Female ‘s pay is much lower than male.

Ratio of Male and Female Wage in Bangladesh: 1996 to 2006


Sexual activity































Urban and Rural













Beginning: LFS Various Years.

The pay spread between males and females is high. The mean day-to-day pay for males was 60 ( tk. ) , whereas it was merely 36 taka for females in 1996. The pay spread is more terrible in rural countries than it was in urban countries. In 2006 the pay relatively became high but pay spread was continued throughout the state.

The big pay spread contributes to the high underemployment rate for females. Comparing different labour force studies from 1989 through 2000 we find that the figure of economically active population increased in entire, in rural and in urban countries. From 1995-96 to 1999-2000, figure of population in all classs such as, employed population, unemployed population, and underemployment rate in both rural and urban country has increased. Underemployment rate is higher for female than male at both urban and rural degree. The same is true for the drawn-out definition except in the instance of the underemployment rate, which fell from 1995-96 to 1999-2000 at all three degrees. Although the demographic dependence ratio is the same in both the usual and the drawn-out definitions, the economic dependence ratio is significantly higher by the usual definition.

Regional Difference in Wage:

Reliable pay informations can be used as an index of alteration of existent rewards. It can besides supply an thought about transverse sectional difference of assorted dimensions of regional inequality about rewards. An effort has been made here to take a closer expression at the extent of alteration of pay in each Division on the footing of HIES informations.


Rice pay



Percentage alteration
























Rice pay ( kg/day ) in urban countries

























Beginning: HIES unit record information for nominal pay, MSB for rice monetary value

Above tabular arraies show for the state as whole and urban countries severally the alterations of rice tantamount pay in the Divisions. For the state as a whole expected way of alteration for Chittagong a big addition in pay and for Barisal a little rise of pay. Rajshahi experienced that pay has fallen. Dhaka experienced a big per centum of diminutions of existent pay. Khulna experienced a 2nd highest rise of pay.

Wagess from abroad:

There are many labour force are employed in different parts of the universe. Most of them are in Middle East. In 1976 to June 2009 about 65.7lach Bangladeshi workers went overseas. Our state has achieved success by exporting manpower financial twelvemonth 2007-2008. 6.50 deficiencies went foreign for employment FY 2008-2009, which as 33.74 % lower than old.

When employment sliced increased so workers remittance growing in recent old ages. In 2007-2008 our worker stood at us $ 7914.78 million that 32.39 % rise. In 2008-2009 remittal was $ 7914. 16million that increases 22.42 % than old twelvemonth. Remittance of GDP and export earning has increased. Remittance as per centum of GDP and export is 5.9 % and 46.7 % severally. In 2008-2009 GDP and remittal as per centum was 62.25 % and 10.96 % severally.

Remittances as per centum of GDP and export:

Fiscal twelvemonth

As per centum of GDP

As per centum of export






















Beginning: BBS, BPE, BB

Bangladesh Labor Force study, 2005-2006 a labour is above 15 old ages of 4.74crore ( work forces 3.61crore and adult females 1.13crore ) is involved in a scope of profession. The highest is in agribusiness 48.10 % . In Bangladesh Labor Force study, 2002-2003, the entire labour of over 15 old ages of age was 4.43core. Here it is besides highest in agribusiness sector. The two study period agribusiness workers decreased by 3.59 % . Harmonizing to study of Bangladesh Labor Force 2005-2006, it is observant that highest 41.9 % of labour force is involved in self employment. it was 44.7 % in 2002-2003. It is certain that during two inspect clip, self-employment labour force decreased by 2.72 % . In 2005-2006, 18.14 % of labour force was involved as day-to-day labourer and 13.92 % as full clip workers. The latest input besides noted that 21.73 % of the labour was involved an unpaid family labourer an addition by 3.45 % .

Statisticss of unemployment:

Unemployment affects 1000000s of people around the universe. In 2009, the entire figure is estimated to hold been 211.5 million. Although the current fiscal and economic crisis led to a peculiarly pronounced addition in unemployment, the planetary figure of unemployed was tremendous even before the start of this crisis. For illustration, between 1991 and 2007 it averaged 170.2 million. Actually, there was a tendency addition throughout the last two decennaries. Thus unemployment has been a terrible and turning job for many old ages.

By contrast, most Asiatic states have been rather successful in maintaining unemployment depression. Countries in East Asia have been the most successful. On norm over 1991 to 2009, their regional unemployment rate was a mere 4.3 % . Most states in South Asia and in South-East Asia and the Pacific have been basking relatively low unemployment every bit good. On norm over 1991 to 2009, the unemployment rate stood at 4.6 % in the former part and at 5.0 % in the latter. Unusually, it barely rose in these parts during the current fiscal and economic crisis.

In 2008 the unemployment rate of Bangladesh fell from 18 % in January to 15.5 % in November. The mean rate for 2008 was 16.7 % . But at present Bangladesh has an unemployment rate of merely 2.5 % . Despite this blue overall image, there were encouraging developments in youth unemployment before the start of the current fiscal and economic crisis. Specifically, in Central and South-Eastern Europe ( non-EU ) and the Commonwealth of Independent States, the youth unemployment rate fell by more than a one-fourth from 1998 to 2008. In North Africa, it decreased by more than a fifth from 2000 to 2008. It fell by about a fifth in Latin America and the Caribbean from 2003 to 2007 every bit good as in South-East Asia and the Pacific from 2005 to 2008. Unfortunately, immature people were difficult hit by the current crisis. Their unemployment rate rose peculiarly strongly in developed economic systems and the EU every bit good as in Central and South-Eastern Europe ( non-EU ) and the Commonwealth of independent provinces.


Consequence of unemployment:

Unemployment has a negative impact on wellness of the affected persons. Using informations on American work forces, Linn et Al. ( 1985 ) study that, after losing their occupation, symptoms of depression and anxiousness were significantly greater in the unemployed than in the employed.

Bing unemployed even appear to cut down workers ‘ life anticipation. Surveying the relevant literature from assorted industrial states, Brenner and Mooney ( 1983 ) point out that unemployment is straight related to higher mortality rates, peculiarly due to cardiovascular disease, liver cirrhosis, and self-destruction.

For immature people as for grownups, unemployment non merely causes current adversity but may besides impede future economic success. Using informations on immature American work forces, Ellwood ( 1982 ) studies that, although early unemployment does non put off a barbarous rhythm of perennial unemployment, lost work experience leads to well and persistently lower rewards.

Finally, there is grounds that unemployment additions offense: utilizing US informations, both Raphael and Winter-

Ember ( 2001 ) and Lin ( 2008 ) find strong effects of unemployment on property-crime rates. Harmonizing to Lin ( 2008 ) , a one-percentage-point rise in unemployment additions belongings offense by 4 % to 6 % .

A decrease of inequality in the human capital gift may assist cut down gender related derived function of pay. In Bangladesh, school registration of misss has increased during the last decennary. This is likely to hold contributed to decrease of ratio of male-female pay in the urban countries. But its impact in the rural countries is non being felt and this is perchance due to the undermentioned grounds:

Although misss ‘ school registration rate has risen, their school completion rate has non risen to the same extent and with instruction less than SSC degree, rewards are low and chance of employment is instead limited.

Girls who complete above primary or SSC level normally come from better off families and hence they may non come in the labour market.

The better paid occupations are normally offered to work forces. The rate of employment creative activity is deficient even for male workers as revealed by rise of underemployment rate. Therefore male female pay difference continues to be high.

Slow gait of decrease of gender pay spread ( or even reversal in the urban countries ) indicates that the social factors act uponing female pay have non shown much betterment.

Social forces include the followers:

Employers consider adult females as secondary earner who can accept low pay

Employers consider adult females ‘s work every bit light work

Society ‘s belief that better paid occupations should travel to work forces

Womans have lower bargaining power and therefore may be paid lower pay

Institutional procedures do non supply equal support to adult females workers

Employers ‘ belief that certain occupations should non be offered to adult females every bit long as work forces are available.

The landowning employers in rural countries were asked a inquiry in 1986 about why they do non prosecute adult females in the field activities of harvest production. They replied that male workers are available and why should they use adult females. Employers when asked the same inquiry in 2005 gave really similar reply and said adult females do non hold the experience and male workers work in groups where adult females can non be included.

Male-female pay difference, which is seemingly linked with pure gender prejudice, in fact, reflects the lower bargaining power of adult females. A figure of factors runing at both family degree and social degree consequence in lower bargaining power of female workers seeking paid occupation. For illustration, households ‘ male defenders ( particularly from low income groups ) sometimes maintain a force per unit area that adult females accept employment even if the pay is low. Womans without male earner in the family are required to gain to guarantee endurance.

The perceptual experience that adult females are secondary earners besides influences the institutional pay puting procedure. Minimum pay recommended for the sub-sectors with a higher portion of female workers is normally lower than sub-sectors of fabrication industries dominated by male workers.


How to take unemployment:

The faster information spreads about occupation gap and worker ability for the workers and farms.

The cyberspace may assist ease occupation hunt and decreased frictional unemployment.

In add-on public policy can play a function that can cut down the economic system ‘s natural rate of unemployment.

Newspaper ads, internet occupation sites, college arrangement office and word of oral cavity all help distribute information about occupation gap.

Increasing the worker instruction through schools or different preparations.

Inventing new working Fieldss.


Recommendation about monetary value degree:

Keeping a sound monitory policy.

Over all monetary value degree in an economic system must set to convey money supply and money demand into balance.

Reducing the power of mob. In order to avoid unreal monetary value hiking.

Fulfill the demand by importing necessary goods.

The basal twelvemonth of consumer monetary value index should be updated.


It is a affair of great concern that so many decennaries after independency, reliable series of one-year informations on existent pay in major sectors are non available. Necessary stairss should be taken to bring forth one-year informations on existent pay in major sectors individually for urban and rural countries. These informations should hold a recent base twelvemonth and the deflators should be suitably chosen.

For each sector, the of import sub-sectors should be taken into history and appropriate weight should be attached. This is most of import for fabrication, which now consists of many new sub-sectors which did non be before the 1990 ‘s and the published pay informations for fabrication consists of sub-sectors with low weights in recent period. In add-on there is demand for separate series of existent pay of male and female labour force and leaden norm of these two.

National sample studies, particularly HIES and LFS are utile as they provide informations on both pay and underemployment. A comparing of study consequences at three points during 1996 to 2006 reveals a figure of interesting characteristics of pay and underemployment.

Analysis of informations on regional fluctuation of pay shows that the former does non change concomitantly with the alterations of regional difference in caput count ratio of poorness.

Harmonizing to Labor Force Survey information, there has been a rise of existent pay during both 1996-2000 and 2000-2006 period, although the mean addition per twelvemonth has been lower in the latest sub-period. Real pay in agribusiness continued to increase during 2000 to 2006 period although at a decelerated gait ( 13.2 % over the 6 twelvemonth period ) . Since both studies ( HIES and LFS ) show rise of underemployment rate and stagnancy or slow growing of pay, these are likely to be right appraisals. The incompatibility between alteration of existent pay and poorness diminution over the period 2000-2005/06 makes it all the more of import that a reliable existent pay series is generated which can function as a signal for the labour market every bit good as supply an alternate index of poorness state of affairs