Unemployment in India

Unemployment records in India are kept by the Ministry of Labour and Employment of India.

77% of the families reportedly have no regular wage earner and more than 67% have income less than 11,000 per month. Around 58% of unemployed graduates& 62%of unemployed post graduates cited non-availability of jobs matching with education/skill

96 % were found unemployable out of 100,000 candidates.

Types of Unemployment

Voluntary Unemployment

Involuntary unemployment its types are given below-

Open Unemployment

Structural Unemployment

Frictional Unemployment

Cyclical Unemployment


Disguised Unemployment

Seasonal Unemployment

Technical Unemployment

Voluntary Unemployment 

when jobs are available but the people are not interested in being employed. It is a psycological in nature

Involuntary Unemployment

  the people are interested in being employed but jobs are not available . These are discussed in further slides……………… Open ,,Structural ,, Frictional ,, Cyclical ,,Under-employment ,,Disguised ,, Seasonal &Technical Unemployment ………

Open unemployment is a condition in which people have no work to do. They are able to work and are also willing to work but there is no work for them. They are found partly in villages, but very largely in cities. Naked unemployment is another term used for open unemployment.

Structural Unemployment

it occurs due to structural changes in the economy. Structural changes can be due to change in technology or change in the pattern of demand. In a developing country like India, structural unemployment exists both in the rural and the urban areas.

Frictional Unemployment

It occurs when a worker is shifting from one job to the other. During the mobility period, he may unemployed for some time. It is sometimes called search engine It is a temporary phenomenon.

Cyclical Unemployment

It occurs because of cyclical fluctuations in the economy ( mainly during Recession). recession and depression phases marked with low demand ( Man Power ) results in more unemployment and during the recovery phase unemployment is slowly reduced.This type of unemployment is mainly prevalent in developed countries . Also Known as KEYNESIAN UNEMPLOYMENT

Under-employment It is a situation under which employed people are contributing to production less than they are capable of. It can be in terms of time . Part-time workers come under this category.

Disguised Unemployment

A disguisedly unemployed person is the one who seems to be employed but actually he is not. His contribution to the total output is zero or negligible. When more people are engaged in a job than actually required, a state of disguised unemployment is created. It is mostly seen in rural areas. Also Known as CONCEALED( Shipi) Unemployment & Discourged worker effect

Seasonal Unemployment

It occurs only during seasonal months of the year.. Some productive activities are caried out only in a particular season or time so the workers who do this work be unemployed after the season end..e.g- Dhuri sugar mill workers.. In India, it is very common in agriculture sector. In certain type of industries also this type of unemployment is found. Disguised unemployment and seasonal unemployment are two most common types of unemployments found in rural India particularly in farm sector.

Technological Unemployment-

it is the lack or loss of job due to the technological changes or innovations . Means workers are replaced by the machines..  Is Prevalenting in India day by day

Causes of Unemployment in India:

  • Rapid growth of population and increase in labour force.
  • Underdevelopment of the economy.
  • Slow growth in the agricultural sector.
  • Defective system of education.
  • Absence of manpower planning.
  • Degeneration of village industries.
  • Inappropriate technology.
  • Slow growth of industrial sector.
  • Immobility of labour.
  • Jobless growth.

Measurement of Unemployment:

There are three measures or estimates of unemployment. These are developed by National Sample Survey Organisation (NSSO). They are:

1. Usual Status Unemployment

2. Weekly Status Unemployment:

3. Current Daily Status Unemployment:

Also known as open unemployment or chronic unemployment. This measure estimates the number of persons who remained unemployed for a major part of the year. This measure gives the lowest estimates of unemployment.

2. Weekly Status Unemployment:The estimate measures unemployment with respect to one week. A person is said to be unemployed if he is not able to work even for an hour during the survey period. In other words according to this estimate a person is said to be employed for the week even if he/she is employed only for a day during that week.

The reference period here is a day. If a person did not find work on a day or some days during the survey week, he/she is regarded as unemployed.

Normally if a person works for four hours or more during a day, he or she is considered as employed for the whole day