An Essay On The (VRS) Voluntary Retirement Scheme And Unemployment

India is a large country with large population. She is facing many problems at the same time. One of its biggest problems, which India is facing, is that of Unemployment. It demands an immediate solution because it threatens the peace, prosperity and stability of free India.

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VRS or voluntary retirement schemes are being implanted across al most all sectors in India to prevent the situation of Unemployment. The employees in banks and public sector undertakings have been given the option to retire with handsome benefits. It is also known as “Golden handshake”. The Nationalized banks took the lead and the bank officers grabbed the opportunity. They got 12 to 20 lakhs cash to start life afresh. A tough estimate of the number of VRS separations in the year 2001 is in excess of the two lakh. The scheme enabled to over-staffed units to get rid of surplus hands and thus to make long-term gains. It was designed to improve their competitiveness and efficiency.

As the scheme is implemented to prevent the unemployment but in fact VRS has actually increased the problem of unemployment. After getting the voluntary retirement they could not sit idle for long period. After all it is difficult for anybody to sit idle. A large number of skilled workers from VRS separation have created a new set of problems. The workers who have retired at an early age are still good enough to work. They accept jobs in private sector not for monetary gain so much as for keeping themselves busy. As a result, they have snatched the employment opportunities of the fresh job seekers. Secondly, the old hands agree to work for a smaller pay packet, which suits the employer.


Unemployment means forced idleness, it a young man or woman willing to work for his living is denied a job, he is unemployed. In the capitalist system there is very little scope for the working class. They kept them at starvation level. Now with the wide use of computers, they have been able to cut down the workforce by nearly 80 percent. What is the future of millions of jobless young men and women in such a situation? The unemployed have come to realize that only thing worse’ than being exploited is the state of being idle and penniless.

Employment opportunities in India today are almost nil. Even the Government, which used to be the largest employer, has stopped all recruitments, Industrial growth also has been negative over the last several years. As a result the unemployment rate is increased to 7.3 percent of the working population is the highest of the last decade.

A major cause of growing unemployment is global recession or the economic slow down all over the world. Information Technology sector no more offers a bright career. There is general slump. The invasion of cheap Chinese goods in Indian market is another deathblow to Indian industries.

One of our richest resources is human being, which is means as-well-as end of the production. Therefore this manpower should be utilized in proper way so that it becomes productive. It is a well-known fact that the very institution of democracy becomes weak if the number of unemployed people abnormally increases in a country. Apart from it if the manpower in our country is not utilized there are no chances of developing the economy of India. Unemployment cannot be more disastrous to any other country than to ours.


What is therefore required is a growth strategy that seeks to get the bulk of additional agricultural output from the states, which have yet to benefit from Green Revolution. They account 80% of the poor and 70% of the unemployed. Further more, if employment is to become the primary objective of developmental planning, a major part of additional output is the nineties and thereafter will have to be derived from the village and smalls scale industry sector which account 80% of industrial employment. A shift in the pattern of investment, the sources of employment generation and the development strategy all over will be required to avoid the payment of dole. So the way to tackle the problem of unemployment is to curb the causes behind it.

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