This document discusses unemployment in India, including ways it is measured, types of unemployment, causes, statistics, steps taken by the government, and effects. It notes that unemployment is measured by usual status, current weekly status, and current daily status. Types include frictional, structural, cyclical, seasonal, and voluntary unemployment. Causes include population growth, lack of opportunities, seasonal jobs, and automation replacing labor. The government has implemented various schemes to address unemployment such as MGNREGA and skill development programs. Unemployment has negative economic and social impacts like increased poverty and loss of human resources.

1. UNEMPLOYMENT
AND
EFFECT ON
INDIAN ECONOMY
AVIRAL SINGHAL
15115036
B.Tech 3rd Year
Electrical Engineering

3. Unemployment
• Unemployment refers to a situation in which a
worker, who is capable of working and willing
to work do not get employment.

4. WAYS TO MEASURE UNEMPLOYMENT
• Usual Status: Estimates the number of people
unemployed for a long term. Gives lowest estimate,
especially for poor economy, as few can afford to
remain job less for long duration of time.
• Current weekly status(CWS): A person is said to be
employed for the week, even if he gets work for only
one day during that week.
• Current Daily Status(CDS): It counts every day’s
activity of the person over the week.

5. TYPES OF UNEMPLOYMENT

6. 1. Frictional Unemployment
• Frictional unemployment occurs because of
the time it takes for workers to find new jobs.
• Even if there are enough workers to satisfy
every job opening, it takes time for workers to
learn about these new job opportunities, and
for them to be considered, interviewed and
hired.
• Short-term

7. 2. Structural Unemployment
• Occurs because of an
absence of demand for
a certain type of
worker.
• Mismatches between
the skills employers
want and the skills
workers have.
• The structure of the
economy has changed,
not because of the
regular ups and downs
of it.

8. 3. Cyclical Unemployment
• Over time, the economy experiences many
ups and downs. That's what we call cyclical
unemployment because it goes in cycles.
• When the economy enters a recession, many
of the jobs lost are considered cyclical
unemployment.

9. 4. Seasonal Unemployment
• Occurs when a certain occupation is not in
demand for a particular season.
• Examples : Tourism, agricultural activities etc.

11. 5. Voluntary Unemployment
• Some people have a
continuous flow of
income from their
property or other sources
and need not work.
• This type of
unemployment is
National Waste of
Human Resource.

12. DISGUISED
UNEMPLOYMENT
Disguised
unemployment exists where
part of the labor force is
either left without work or is
working in a redundant
manner where worker
productivity is essentially
zero. It is unemployment that
does not affect aggregate
output.

13. CAUSES OF UNEMPLOYMENT
• High Population Growth
• Absence of Opportunity
• Seasonal Employment
• Slow developing
Industries.
• Migration Abroad
• Extensive Automation
and use of IT which has
replaced man power.
• Govt. emphasis more
on preserving the jobs,
rather than creating
new jobs.
• Till 5th Five year plan,
no serious efforts were
made on the issue of
Unemployment

14. STATISTICS

15. 60%
11%
5%
24%
57%
12%
6%
25%
54%
11%
10%
25%
Employment by Sector
Agriculture
Manufacturing
Construction
Services
2009-10
2004-05
1999-2000
Source:-
https://data.gov.in/

16. Scheduled
Castes
Scheduled
Tribes
OBC Others
All Social
Groups
2004-05 12 6.5 7.7 6.6 8.2
2007-08 11.9 7.5 7.9 6.4 8.4
0
2
4
6
8
10
12
14
UnemploymentRatio
Unemployment Ratio by Caste
(Rural)
2004-05
2007-08
Source:-
https://data.gov
.in/

17. Scheduled
Castes
Scheduled
Tribes
OBC Others
All Social
Groups
2004-05 11.4 7.5 8.5 7.1 8.3
2007-08 10.1 10 7.7 6 7.4
0
2
4
6
8
10
12UnemploymentRatio
2004-05
2007-08
Source:-
https://data.gov
.in/
Unemployment Ratio by Caste
(Urban)

18. Hindus Muslims Christians Sikhs
1993-94 8 8.4 12 10.3
2004-05 8.3 8.8 9.8 6.9
0
2
4
6
8
10
12
14UnemploymentRate(%) Unemployment Rate(%) by Religion
(Rural)
1993-94
2004-05
Source:-
https://data.go
v.in/

19. Hindus Muslims Christians Sikhs
1993-94 8.1 8.1 12.6 8.7
2004-05 7.3 7.3 10.2 5.1
0
2
4
6
8
10
12
14UnemploymentRate(%) Unemployment Rate(%) by Religion
(Urban)
1993-94
2004-05
Source:-
https://data.go
v.in/

20. Rural Urban
2004-05 1.7 4.4
2009-10 1.6 3.4
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5UnemploymentRate(%) Unemployment Rate(%) by Region
2004-05
2009-10
Source:-
https://data.go
v.in/

21. 0.0
2.0
4.0
6.0
8.0
10.0
12.0
%Unemployment Incidence of Unemployment
2004-05
2009-10
Source:- https://data.gov.in/

22. • Indian job seekers are becoming more and
more choosy with the level of their education
increasing.
• For every educational level, the rates are higher
among the youth (15-29 years) than the general
population
• The youth in India account for 25-29% of the
total population.
• In a labour surplus economy like India, many
youngsters remain unemployed and continue to
search for employment.
GRADUATES: HIGH UNEMPLOYMENT RATE

23. http://www.igidr.ac.in/pdf/publication/WP-2011-009.pdf

24. 0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Rural
Urban
All India
Rural Urban All India
LFPR 2004-05 44.6 38.2 43.0
LFPR 2009-10 41.4 36.2 40.0
Labour Force Participation Rate
LFPR 2004-05
LFPR 2009-10
Source:-
https://data.gov.in/

25. 0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Rural
Urban
All India
Rural Urban All India
WFPR 2004-05 43.9 36.5 42.0
WFPR 2009-10 40.8 35.0 39.2
Work Force Participation Rate
WFPR 2004-05
WFPR 2009-10
Source:- https://data.gov.in/

26. 0
20
40
60
80
100
120
140
160
180
200
1978 1983 1988 1994 2000 2005 2010 2012
Unemployment Participation per 1000 Persons
Male (Rural)
Female (Rural)
Male (Urban)
Female (Urban)
Source:- https://data.gov.in/

29. STEPS TAKEN BY GOVERNMENT
• Jawahar Rozgar Yojana
(1989) - Employment to
one member of poor rural
family for 100 days/year.
[30% reserved for
women.]
• Employment Assurance
Scheme (1994) - 100 days
of unskilled manual work
to the rural poor.
• Mahatma Gandhi National
Rural Employment
Guarantee Act
(MGNREGA) 2005
• Skill Development
Program- promoting
people to learn new and
in-demand skills for nation
building
• Make in India- promoting
manufacturing in India.
• Startup India- Become job
creator rather than job
seeker.
• Compulsory 3 Internship
Program.

30. UNEMPLOYMENT BENEFITS IN USA
• Unemployment insurance programs pay
money to workers who become unemployed
through no fault of their own.
• Extended Unemployment Insurance - Some
states provide 13 weeks of benefits during
periods of high unemployment.
• Unemployment insurance benefits are
taxable.
• Education Assistance.
• Self-employment Assistance.
https://www.usa.gov/unemployment

31. EFFECTS OF UNEMPLOYMENT
• Loss of human resource
• Increase in Poverty
• Social Problems
• Exploitation of Labours
• Decrease in per capita GDP

32. CONCLUSION
• Unemployment is major
social, political and
economic issue.
• Govt. has taken many
steps, some were good,
but many failed.
• Emphasize on full-time
employment.
• Emphasize on skill
development
• Strengthen Education
System.
• Invest for creating jobs
for new talent.