Nature, types and Problems of Unemployment in India

<–2/”>a >Nature, types and Problems of Unemployment in India:-Unemployment may be defined as “a situation in which the person is capable of working both physically and mentally at the existing wage rate, but does not get a job to work”.

India is one of those ill-fated underdeveloped countries which is suffering from a huge unemployment problem. But the unemployment problem in India is not the result of deficiency of effective demand in Keynesian term but a product of shortage of capital equipment’s and other complementary Resources accompanied by high rate of Growth of Population.

Present unemployment problem in India is mostly structural in nature.

Unemployment problem of the country can now be broadly classified into:
(a) Rural unemployment and
(b) Urban unemployment.
(a) Rural Unemployment:
In India the incidence of unemployment is more pronounced in the rural areas.
Rural unemployment is again of two types:
(i) Seasonal Unemployment and
(ii) Disguised or perennial unemployment.
(i) Seasonal Unemployment:
agriculture, though a principal occupation in the rural areas of the country, is seasonal in nature. It cannot provide work to the rural population of the country throughout the year. In the absence of multiple Cropping system and subsidiary occupation in the rural areas, a large number of rural population has to sit idle 5 to 7-months in a year.
Seasonal Unemployment is also prevalent in some agro- based industries viz., Tea Industry, Jute Mills, Sugar Mills, Oil Pressing Mills, Paddy Husking Mills etc.
(ii) Disguised or Perennial Unemployment:
Indian Agriculture is also suffering from disguised or perennial unemployment due to excessive pressure of population. In Disguised Unemployment apparently it seems that everyone is employed but in reality sufficient full time work is not available for all.
In India, about 72 per cent of the working population is engaged in agriculture and allied activities. In 1951 more than 100 million persons were engaged in the agricultural and allied activities whereas in 1991 about 160 million persons are found engaged in the same sector resulting in as many as 60 million surplus population who are left with virtually no work in agriculture and allied activities.
(b) Urban Unemployment:
Urban unemployment has two aspects:
(i) Industrial unemployment and
(ii) Educated or middle class unemployment.
(i) Industrial Unemployment:
In the urban areas of the country, industrial unemployment is gradually becoming acute. With the increase in the size of urban population and with the exodus of population in large number from rural to the urban industrial areas to seek EMPLOYMENT, industrialization because of slow growth could not provide sufficient employment opportunities to the growing number of urban population.
Thus the rate of growth of employment in the Industrial Sector could not keep pace with the growth of urban industrial workers leading to a huge industrial unemployment in the country.
(ii) Educated or middle-class Unemployment:
Another distinct type of unemployment which is mostly common in almost all the urban areas of the country is known as educated unemployment. This problem is very much acute among the middle class people. With rapid expansion of general Education in the country the number of out-turn of educated people is increasing day by day.
But due to slow growth of technical and vocational educational facilities, a huge number of manpower is unnecessarily diverted towards general education leading to a peculiar educated unemployment problem in the country. The total number of educated unemployment increased from 5.9 lakh in 1962 to 230.50 lakh in 1994.
• Types of Unemployment
The most accepted Classification of Unemployment recognizes two broad types: Voluntary and Involuntary Unemployment.
Voluntary unemployment arises when an individual is not under any employment out of his own desire not to work. Could be from their total apprehension towards the concept itself, or it may be that an individual is unable to find work paying his desired wages and he doesn’t want to settle.
Involuntary unemployment encompasses all those factors that prevent a physically fit individual willing to work from getting an appointment. According to John Maynard Keynes, “involuntary unemployment arises due to insufficiency of effective demand which can be solved by stepping up Aggregate Demand through government intervention”. Involuntary Unemployment is further categorized into subheads;
1. Structural: Such employment stems from any structural change in the economy that leads to decline of specific industries. Long term changes in the market conditions, reorganization of the same, and sudden changes in the technological sector, creates a Skill Gap in the existing workers.
2. Regional: Globalization/”>Globalization-3/”>Globalization and relocation of jobs also leads to unemployment as workers are often unable to move to the new location where the employers currently hold positions.
3. Seasonal: In some industries production activities are season best and employment occurs only in peak seasons. Agro-based industries and tourism industries are examples of this form of unemployment.
4. Technological: This type of unemployment is either generated following the introduction of technologically advanced mechanization that renders manual labour redundant, or through inclusion of technology that the current labour force is ill-adapted to.
5. Frictional: This type of unemployment happens when the labour is either transitioning between jobs or is trying to find a job more suited to their skill set. Friction is generally referred to the time, energy and cost that a person invests while searching for a new job.
6. Educated: This form of unemployment happens when people with advanced degrees are unable to procure an engagement that is suited to their level of training.
7. Casual: Some occupations can only offer temporary employment to individuals and their engagements are subject to termination as soon as the demand subsides. Daily labourers who work on a day-to-day basis are example of such types of unemployment.
8. Cyclical: This type of unemployment refers to the periodic cycle of unemployment associated with cyclical trends of growth in business. Unemployment is low when business cycles are at their peak and high when the gross economic output is low. Several external factors like wars, strikes and political disturbances, natural calamities that affect business cycle are also contributors to cyclical unemployment.
9. Disguised: This is a scenario when more people are employed in a job than is actually required for it. This is hallmark of developing economies where availability of labour is abundant. It is primarily a feature of the agricultural and unorganized sectors.
Problems caused due to unemployment

 Unemployment and POVERTY goes side by side. The problem of unemployment gives rise to the problem of poverty.
 Young people after a long time of unemployment find the wrong way to earn Money.
 To get rid from the unemployment Stress, they accept alcohol or drugs.
 Unemployed youths accepts suicide as the last option of their life
 Lower economic growth
 Increase rate in Crimes. As the employed youth don’t have anything to do they start doing robbery, murder etc.
 Health issues i.e it affects mentally as well as physically,

Unemployment is a major problem in India. According to the International Labour Organization, the unemployment rate in India was 6.1% in 2020. This means that about 39 million people in India were unemployed.

There are many reasons for Unemployment in India. One reason is that the Indian economy is not growing fast enough to create enough jobs for the growing population. Another reason is that the Indian education system is not producing enough skilled workers to meet the needs of the economy.

Unemployment has many negative consequences. It can lead to poverty, social unrest, crime, and brain drain. It can also lead to a loss of productivity and increased government spending.

The Indian government has taken some steps to address the problem of unemployment. It has launched several programs to create jobs, such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDU-GKY). It has also made changes to the education system to make it more relevant to the needs of the economy.

However, more needs to be done to address the problem of unemployment in India. The government needs to create more jobs, improve the education system, and make it easier for businesses to start and operate. It also needs to address the issue of discrimination against certain groups of people, such as Women and minorities, which can make it more difficult for them to find jobs.

Unemployment is a complex problem, but it is one that the Indian government can and must address. By taking the right steps, the government can help to create a more prosperous and equitable India for all.

Nature of unemployment

There are three main types of unemployment: open unemployment, disguised unemployment, and seasonal unemployment.

• Open unemployment is when a person is actively looking for work but is unable to find any. This is the most common type of unemployment.
• Disguised unemployment is when a person is employed but is not working to their full potential. This can happen when there are too many people working in a particular sector or when there is a mismatch between the skills of workers and the needs of employers.
• Seasonal unemployment is when people are unemployed during certain times of the year, such as during the monsoon season. This is common in agricultural areas, where there is less work to be done during the off-season.

Types of unemployment

There are four main types of unemployment: cyclical unemployment, Structural Unemployment, Frictional Unemployment, and seasonal unemployment.

• Cyclical unemployment is caused by fluctuations in the economy. When the economy is in a Recession, there is less demand for goods and Services, which leads to job losses.
• Structural unemployment is caused by changes in the structure of the economy. For example, the decline of manufacturing and the rise of the service sector has led to job losses in manufacturing and an increase in job opportunities in the service sector.
• Frictional unemployment is caused by the time it takes for people to find new jobs after they have been laid off or quit their jobs. This can happen because there is a mismatch between the skills of workers and the needs of employers, or because workers need time to relocate to find new jobs.
• Seasonal unemployment is caused by changes in the demand for goods and services over the course of the year. For example, there are more jobs in the tourism industry during the summer months than during the winter months.

Problems of unemployment

Unemployment has many negative consequences. It can lead to poverty, social unrest, crime, and brain drain. It can also lead to a loss of productivity and increased government spending.

• Poverty: Unemployment can lead to poverty, as people who are unemployed are unable to earn a living. This can have a number of negative consequences, such as poor health, Malnutrition, and lack of education.
• Social unrest: Unemployment can lead to social unrest, as people who are unemployed may become frustrated and angry. This can manifest itself in protests, riots, and other forms of violence.
• Crime: Unemployment can lead to crime, as people who are unemployed may turn to crime as a way to make a living. This can include petty theft, drug dealing, and even murder.
• Brain drain: Unemployment can lead to brain drain, as educated and skilled people may leave the country in search of better opportunities. This can have a negative impact on the country’s economy and development.
• Loss of productivity: Unemployment can lead to a loss of productivity, as businesses are unable to find workers to fill open positions. This can lead to lower profits and a decrease in the standard of living.
• Increased government spending: Unemployment can lead to increased government spending, as the government may need to provide unemployment benefits and other social programs to help the unemployed. This can put a strain on the government’s budget and make it difficult to invest in other areas, such as education and Infrastructure-2/”>INFRASTRUCTURE.

Unemployment is a major problem in India. The unemployment rate in India is currently at 7.8%, which is higher than the global Average of 5.5%. There are many reasons for unemployment in India, including a lack of skilled workers, a mismatch between the skills of job seekers and the skills required by employers, and a lack of job opportunities in rural areas.

The government of India has taken a number of steps to address the problem of unemployment, including providing training to job seekers, creating jobs in the public sector, and promoting Entrepreneurship. However, these efforts have not been enough to reduce unemployment to a significant level.

Unemployment has a number of negative consequences for individuals and Society as a whole. Unemployed individuals are more likely to experience poverty, social exclusion, and mental health problems. Unemployment can also lead to crime and social unrest.

The government of India needs to take further steps to address the problem of unemployment. These steps should include providing more training to job seekers, creating more jobs in the private sector, and promoting entrepreneurship. The government should also invest in infrastructure and education to create a more conducive Environment for job creation.

Here are some frequently asked questions about unemployment in India:

• What is the unemployment rate in India?
  The unemployment rate in India is currently at 7.8%, which is higher than the global average of 5.5%.

• What are the reasons for unemployment in India?
  There are many reasons for unemployment in India, including a lack of skilled workers, a mismatch between the skills of job seekers and the skills required by employers, and a lack of job opportunities in rural areas.

• What are the consequences of unemployment?
  Unemployment has a number of negative consequences for individuals and society as a whole. Unemployed individuals are more likely to experience poverty, social exclusion, and mental health problems. Unemployment can also lead to crime and social unrest.

• What are the solutions to unemployment in India?
  The government of India needs to take further steps to address the problem of unemployment. These steps should include providing more training to job seekers, creating more jobs in the private sector, and promoting entrepreneurship. The government should also invest in infrastructure and education to create a more conducive environment for job creation.

Nature of Unemployment in India

1. Which of the following is not a type of unemployment in India?
   (A) Open unemployment
   (B) Disguised unemployment
   (C) Seasonal unemployment
   (D) Structural unemployment

2. Which of the following is the most common type of unemployment in India?
   (A) Open unemployment
   (B) Disguised unemployment
   (C) Seasonal unemployment
   (D) Structural unemployment

3. Which of the following is a major cause of open unemployment in India?
   (A) Lack of education and skills
   (B) Rapid Population Growth
   (C) Lack of job opportunities
   (D) All of the above

4. Which of the following is a major cause of disguised unemployment in India?
   (A) Low productivity of agriculture
   (B) Overpopulation in rural areas
   (C) Lack of capital Investment in agriculture
   (D) All of the above

5. Which of the following is a major cause of seasonal unemployment in India?
   (A) Agriculture is a seasonal activity
   (B) There is a lot of Migration of workers from rural to urban areas during the harvesting season
   (C) There is a lot of migration of workers from urban to rural areas during the off-season
   (D) All of the above

6. Which of the following is a major cause of structural unemployment in India?
   (A) Rapid changes in technology
   (B) Changes in the demand for goods and services
   (C) Changes in the structure of the economy
   (D) All of the above

Problems of Unemployment in India

1. Which of the following is not a problem caused by unemployment in India?
   (A) Poverty
   (B) Crime
   (C) Social unrest
   (D) All of the above

2. Which of the following is the most serious problem caused by unemployment in India?
   (A) Poverty
   (B) Crime
   (C) Social unrest
   (D) All of the above

3. Unemployment is a major cause of Poverty in India. This is because unemployed people do not have any income and they are unable to meet their basic needs.

4. Unemployment is also a major cause of crime in India. This is because unemployed people are often desperate and they may turn to crime in order to make a living.

5. Unemployment can also lead to social unrest in India. This is because unemployed people are often angry and frustrated and they may take to the streets to protest against the government.

Solutions to Unemployment in India

1. Which of the following is not a solution to unemployment in India?
   (A) Increasing the number of jobs
   (B) Improving the quality of education
   (C) Providing training and skills development
   (D) All of the above

2. The most important solution to unemployment in India is to increase the number of jobs. This can be done by promoting economic growth and by creating new industries.

3. Another important solution to unemployment in India is to improve the quality of education. This will help to ensure that people have the skills and qualifications that they need to get a job.

4. Providing training and skills development is also an important solution to unemployment in India. This will help to make people more employable and it will help to reduce the number of people who are unemployed.