The document discusses unemployment in India, including its types, causes, impacts, and remedies. It defines unemployment and notes it is a serious problem in India due to issues like high population growth and slow economic growth. The types of unemployment discussed include rural unemployment like seasonal and disguised unemployment, as well urban unemployment such as industrial and educated unemployment. Causes mentioned include large population, inadequate education and skills, low investments, and regressive social norms. Impacts include increased poverty, crime, and loss of human resources. Remedies suggested are expanding rural employment programs, modernizing agriculture, developing non-farm rural activities, and promoting self-employment and small industries.

1. Unemployment Problem
Types
Nature
Causes
Remedies
1Jyoti Rastogi (Assistant Professor)

2. What is Unemployment ?
 Unemployment is a serious problem. It indicates a situation
where the total number of jobs is much less than the total job
seekers. It is a kind of situation where the unemployed
persons do not find any meaningful or gainful job in spite of
having willingness and capacity to work.
 Unemployment occurs when a person who is actively
searching for employment is unable to find work.
Unemployment is often used as a measure of the health of
the economy. The most frequent measure of unemployment
is the unemployment rate, which is the number of
unemployed people divided by the number of people in the
labour force.
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3. National Sample Survey Organization (NSSO) defines
employment and unemployment on the following
activity statuses of an individual:
 Working (engaged in an economic activity) i.e.
'Employed'.
 Seeking or available for work i.e. 'Unemployed'.
 Neither seeking nor available for work.
The first two constitutes labour force and unemployment
rate is the percent of the labour force that is without
work.
Unemployment rate = (Unemployed Workers / Total
labour force) × 100
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4. Unemployment in India
 Unemployment is a common economic malady faced
by each and every country of the world, irrespective
of their economic system and the level of
development achieved. But the nature of
unemployment prevailing in underdeveloped or
developing countries sharply differs to that of
developed countries of the world.
 While the developed countries are facing
unemployment, mostly of Keynesian involuntary and
frictional types but the underdeveloped or developing
countries like India are facing structural
unemployment arising from high rate of growth of
population and slow economic growth.
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5. Unemployment in India
 Structural unemployment may be open or disguised
type. But the most serious type of unemployment
from which those undeveloped countries like India
are suffering includes its huge underemployment or
disguised unemployment in the rural sector.
 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.
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6. Measurement of Unemployment in
India
6Jyoti Rastogi (Assistant Professor)
National Sample Survey Office (NSSO), an organization under Ministry of
Statistics and Programme Implementation (MSPI) measures
unemployment in India on following approaches:
•Usual Status Approach: This approach estimates only those persons
as unemployed who had no gainful work for a major time during the
365 days preceding the date of survey.
Weekly Status Approach: This approach records only those persons as
unemployed who did not have gainful work even for an hour on any
day of the week preceding the date of survey.
Daily Status Approach: Under this approach, unemployment status of a
person is measured for each day in a reference week. A person
having no gainful work even for 1 hour in a day is described as
unemployed for that day.

7. Types of
Unemployment
in India
Disguised
Seasonal
Structural
CyclicalTechnological
Frictional
Vulnerable
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8. Nature of Unemployment Problem in India
 Present unemployment problem in India is mostly structural in
nature.
 Unemployment problem of the country can now be broadly
classified into:
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Unemployment
In INDIA
Rural
unemployment
Seasonal
unemployment
Disguised or
perennial
Urban
unemployment
Industrial
unemployment
Educated or
middle class

9. Rural 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.
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10. Rural Unemployment
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.
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11. Urban 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.
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12. Urban Unemployment
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.
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13. Causes of Unemployment
 Large population.
 Low or no educational levels and vocational skills of working population.
 Inadequate state support, legal complexities and low infrastructural, financial
and market linkages to small/ cottage industries or small businesses, making
such enterprises unviable with cost and compliance overruns.
 Huge workforce associated with informal sector due to lack of required
education/ skills, which is not captured in any employment data. For ex:
domestic helpers, construction workers etc.
 The syllabus taught in schools and colleges, being not as per the
current requirements of the industries. This is the main cause of structural
unemployment.
 Inadequate growth of infrastructure and low investments in manufacturing
sector, hence restricting employment potential of secondary sector.
 Low productivity in agriculture sector combined with lack of alternative
opportunities for agricultural worker which makes transition from
primary to secondary and tertiary sectors difficult.
 Regressive social norms that deter women from taking/continuing
employment.
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14. Impact of Unemployment
 The problem of unemployment gives rise to the problem of
poverty.
 Young people after a long time of unemployment indulge in illegal
and wrong activities for earning money. This also leads
to increase in crime in the country.
 Unemployed persons can easily be enticed by antisocial
elements. This makes them lose faith in democratic values of the
country.
 It is often seen that unemployed people end up getting addicted to
drugs and alcohol or attempts suicide, leading losses to
the human resources of the country.
 It also affects economy of the country as the workforce that could
have been gainfully employed to generate resources actually gets
dependent on the remaining working population, thus escalating
socioeconomic costs for the State. For instance, 1 percent
increase in unemployment reduces the GDP by 2 percent
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15. Remedies to Rural Unemployment
Problem
Expanding Volume of Rural Works
Modernisation of Agriculture
Development of allied sector
Development of Rural Non-farm Activities
Appropriate mix of Production Techniques
Self Help Groups (SHGs) and Micro Finance
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16. Remedies to Urban Unemployment
Problem
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Rapid Development of Industries
Revamping Education System
Motivating for Self-employment
Development of Small Scale Cottage Industries
Development of Urban Informal Sector
Banking Support
Growing Participation of FDI

17. THANKS
17Jyoti Rastogi (Assistant Professor)