Unemployment in India

Unemployment in India

There are more than 6 crore well educated youth in India who are unemployed. There has been a drastic increase in the literacy rate in India over the past few decades, unfortunately leading to a massive increase in the unemployment rate. Employment growth in the Organized sector, both public and private combined, registered a decline by -0.32 percent between 1994-2005. With the present situation of economic recession, the number of unemployees is increasing exponentially.



The share of agriculture in the total employment has come down from 61.67% in 1993-94 to 52% in 2004-05. It is a threatening decrease considering the fact that Agricultural income is a major share of Indian Economy. Trade, hotel, restaurant, transport and communications sector showed a growth in the employment rate. But, as I have said earlier the jobs in these sectors are highly vulnerable and they tend to impart a sense of insecurity feeling among the employees. Most of the youth are left to pursue a self employment or small scale business career. But, they too had a severe blow with the raising number of multinational companies, supermarkets and wholesale shopping malls. In India, it seems that there is a huge money flow but this flow bypasses the poor.

Various types of Unemployment seen in India

1. Structural Unemployment: When demand for work falls short of the supply of labour force, this type of unemployment arises. Unemployment in India is basically of this category. Huge population is a main factor for this.

2. Under-employment: Some people are employed, but their efficiency and capability are not utilized to the optimum level. This kind of employment is increasing due to cut throat competitions and people who are more qualified than necessary also are willing to do a lesser job to get a job srcurity. This is usually seen in the Public sector. This is uniquely dangerous in itself because an under-employed person may either develop disinterest in his work or may opt to corruption to earn more money which he thinks he ought to get for his over-qualification.

High Competition –> UNDER-EMPLOYMENT –> Corruption –> Black Money —-> Fall in the Economy

3. Seasonal Unemployment: This occurs due to change in the demand with change in the seasons. Agriculture and agriculture related sectors experience this kind of unemployment. Indian Agriculture ensures employment for only 7-8 moths and the agricultural labours remain unemployed for the rest of the year.

Dry Season –> No crops –> SEASONAL UNEMPLOYMENT—-> Urban Migration

4. Open Unemployment: When people who are willing to work and are capable to work cannot find any work, they come under this category. Educated unemployment and unskilled labour unemployment are of this kind. The increasing migration from rural to urban areas is the main cause for this.

Urban Migration –> OPEN UNEMPLOYMENT –> Slum Dwelling —>Communicable Diseases —-> Prostitution-->Antisocial Behaviour

Since my childhood I have come across many people who always criticize the State (or) the Government for all the miseries in that particular country. They tend to compare their motherland with some other better developed nation and justify their criticisms. No country is short of miseries. Every country has it’s own problems.

Source : Govt. Jobs Material