Presentation on Employment & Unemployment in India with references and data. Suitable for Management and Economics Students and similar.

1. EMPLOYMENT &
UNEMPLOYMEN
T IN INDIA
Presented by:
Sarfaraz Fahmi – Jamia Hamdard

2. Introduction
■ Employment: It refers to the situation when a person is able to earn his/her livelihood
either by self-employment or by working as wage-employment.
■ Un-employment: It refers to a situation when a person is able and willing to work doesn’t
get work at all or doesn’t get at the prevailing wage rate.
■ In India, a person working 8 hours a day for 273 days in a year is regarded as employed
on a standard person year basis.Thus, a person to be called an employed person, must
get meaningful work for a minimum of 2184 hours in a year.The person who does not
get work even for this duration, is known as unemployed person.
■ Rural and Urban Employment: In rural sector, most of the employment is in agricultural
and allied activities. Employment away from agricultural and primary activities, towards
secondary and territory sector is rather small. In urban sector, most of the employment is in
secondary and tertiary sectors.
■ Unemployment Rate: in India is expected to be 7.20 percent by the end of this quarter,
according toTrading Economics global macro models and analysts expectations. In the
long-term, the India Unemployment Rate is projected to trend around 7.50 percent in
2020, according to our econometric models.

3. Distribution of Employment by Sector
(%age wise)

4. Types of Unemployment
■ Frictional Unemployment
■ Seasonal Unemployment
■ Structural Unemployment
■ Cyclical Unemployment

5. Structural Unemployment
■ Structural Unemployment is
joblessness arising from mismatches
between workers’ skills and
employers’ requirements or between
workers’ locations and employers’
locations.
 Long-term problem, often
lasting several years or more.

6. Frictional Unemployment
■ Frictional Unemployment is short-
term joblessness experienced by
people who --
 are between jobs
 are entering the labour
market for the first time
 are entering the labour
market after a long absence

7. Seasonal Unemployment
■ Seasonal Unemployment is joblessness
related to changes in weather, tourist
patterns, or other seasonal factors.
 They are “short-term” and
predictable
 Positive: workers are often
compensated in advance
 Negative: they complicates
the interpretation of
unemployment data (most
applicable to countries with 4
seasons)

8. Cyclical Unemployment
■ Cyclical Unemployment
Is joblessness arising from
changes in production over
the business cycle.

9. Some other Forms of Unemployment
■ Disguised Unemployment:* This refers to the situation of unemployment that is not
open for everyone to see; it remains invisible.
■ Underemployment: It is a situation under which employed people are contributing to
production less than they are capable of. For example, a diploma holder in
engineering, if for the want of an appropriate job, starts shoe-shining, may be said to
be underemployed.
■ Open Unemployment: Under this category, fall all those who have no work to do.
■ Educated Unemployment: It is concerned with joblessness among the educated i.e.,
matriculate and higher educated.
■ Technological Unemployment: Technological unemployment is the unemployment
caused by technical progress; the skills of particular types of worker are made
redundant because of changes in the methods of production, usually by substituting
machines for manual services.
■ Demographic Unemployment: Demographic unemployment occurs when the
number of new workers entering the labour force through natural increase or inward
migration exceeds the number leaving the workforce.

10. Magnitude of Unemployment
FiveYearPlan Magnitude (In Million)
Beginning of the First Plan 3.3
Beginning of theThirdPlan 7.1
Beginning of the Sixth Plan 12
Beginning of the Eight Plan 23
Beginning of the Ninth Plan 34

11. Youth Population & Unemployment
22.01
25.01 25.65 26.08 26.56 26.65 27.5
0
5
10
15
20
25
30
1951 1961 1971 1981 1991 2001 2011
Proportion of youth to total
population (%)
#Further it is to be noted that youth population will reach about 45% of total population/Source: www.wire.in

12. IndianYouth, Poverty, & Unemployment
27%
27%12%
6%
4%
3%
21%
Unemployment
Poverty
Population growth
Corruption
Illiteracy
Terrorism
others
#Source: CSDS Data Unit. (Youth Study 2009). #Youth here is 15- 33 years.

13. Non-Worker AmongYouth Since 2001
Youth (%)
2001
Youth (%)
2011
Main workers(worked more
than 183 days in a year)
48.4 44.6
Marginal workers(worked
fewer than 183 days in a
year)
14.1 15.3
Non-workers 37.5 40.0
#Source: Census of India
 MainWorker: Works more than 183 days in a calendar year.
 MarginalWorker: Works less than 183 days in a calendar year.
 Non Worker: Who didn’t work at all.

14. RuralVs UrbanYouth (%)
Rural Urban
0
10
20
30
40
50
60
Main
Workers
Marginal
Workers
Non
Workers
2001
2011
0
10
20
30
40
50
60
Main
Workers
Marginal
Workers
Non
Workers
2001
2011
#Source: Census of India

15. Male vs Female (%)
Male Female
0
50
100
2001
2011
0
50
100
2001
2011
#Source: Census of India

16. Unemployment inYouth Graduate
(Urban/Under 29)
18.5
13.8
16.3
30.4
24.7
23.4
0 5 10 15 20 25 30 35
2004-05
2009-10
2011-12
Female(%)
Male(%)
#Source: NSSO Data (National Sample Survey Organization)

17. Causes of Unemployment in India*
■ Jobless Growth
■ Increase in Labour Force
■ Inappropriate Education System
■ Neo-liberal Economic Policy
■ Underdevelopment
■ Inadequate Employment Planning
■ Rapid Population Growth

18. Consequences of Unemployment
 Wastage of Productive Resources
 Loss of Resource Efficiency
 Adverse effect on Saving & Capital Formation
 Source of Exploitation
 Leads to Inequalities of Income
 Burden on Government
 Change in Work Attitude
 Adverse effect on Individual’s Personality
 Adverse Social and Political Effects

19. Steps to Reduce Unemployment*
■ ExpandingVolume ofWork
■ Appropriate Mix of ProductionTechniques
■ Special Employment Programmes
■ Manpower-planning
■ RaisingCapital Formation.

20. Full Employment
■ The situation when all those who
want the work and able to do and
get the work is called Full
Employment.