Unemployment in India

Topics: Unemployment, Economics, Underemployment Pages: 6 (1899 words) Published: July 2, 2010
Employment in simple words can be defined as an occupation by which a person can earn his living. And Unemployment is the inability of providing gainful work to people who are willing to work. And for a country like India, employment has become one of the major challenges of the current economy. Despite the economic reforms and the IT & BPO boom, the unemployment situation in India is getting worse. Therefore, emphasis is given on providing more employment opportunities which in turn reflects on economic growth of the country. Whenever we are talking about economic development, we cannot ignore young generation. Youth have been recognized as "the most vital section of the community". Among the other problems, the youths of India has been facing the unemployment problem. Life for an unemployed youth is very miserable in all aspects. They are in tremendous pressure from all sides. The question 'what are you doing?' without understanding the ground reality of employment opportunity questions the usefulness of his life. The problem lies with the high expectation of the family member and the society, who always nag him without knowing the mental tensions of the youth concerned and the situation around him. So the educated youth rushes after tuition for his livelihood forgetting almost all-important aspects of his life and getting less chance to think for the society and for himself too. Quite appropriately, the problem of youth unemployment has been recognized as an aspect of national unemployment problem. Educated youths have no stable and durable employment. An unemployed youth takes a long time to find work and secures it at an inadequate remuneration since job seekers far outnumber the available opportunities.

Basically Unemployment is of three types:
1.DISGUISED UNEMPLOYMENT:It is a situation which more people are engaged in an activity than the required ones. The people who are actually engaged in such an activity appear to be employed but are not fully employed. It is also known as underemployment. This problem is acute in rural areas.

Eg: A work can be completed with 2persons but if there are 6 persons do the same work , the additional 4 persons are considered as disguised unemployed.

2.SEASONAL UNEMPLOYMENT:During off-season there is unemployment of people engaged in such types of work or activities which cater to the seasonal demand.

Eg. Agriculture in India is a seasonal activity as it depends on monsoon.

3.STRUCTURAL UNEMPLOYMENT:The mismatch of available capital and the size of the labour force create persistent unemployment both in agriculture and industry. Lack of resource to provide employment.


When there is unemployment due to reduction of demand for goods, it is referred as CYCLICAL UNEMPLOYMENT.

If unemployment occurs owing to changes in technology, it is referred to as TECHNICAL UNEMPLOYMENT. These types of unemployment are harmless and prevail for short durations only.

According to the report on Global Employment Trends for Youth 2004 by the International Labour Organisation, (ILO) Geneva, there are 184 million unemployed people around the world, and among them, 47 per cent are young persons. Around 88 million young people between the ages of 18-24 are unemployed worldwide. India accounts for a major chunk of Asia's unemployed. By 2001, there were 212 million young people in India, but only 23.6 percent could be absorbed in the labour force. Simultaneously there's been a marked decrease in the number of jobs on offer from the organized sector (less than 10 percent). As a result, the emphasis of job creation has shifted to the informal sector

Since the Labour force grew at a quicker rate of 2.84 % than the Workforce, unemployment also rose. The incidence of unemployment increased from 7.31 % in 1999-2000 to 8.28 % in 2004-05. The decline in overall growth of employment...

Bibliography: http://www.thehindubusinessline.com/life/2005/07/22/stories/2005072200100400.htm
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