4. UNEMPLOYMENT OCCURS WHEN
A PERSON WHO IS ACT IVELY
SE A RCHING F OR EMPLOYMENT
IS UNA BLE TO F IND WORK.
UNEMPLOYMENT IS OF T EN USED
AS A ME ASURE OF THE HE ALTH
OF T HE ECONOMY. T HE MOST
F REQUENT ME A SURE OF
UNEMPLOYMENT IS T HE
UNEMPLOYMENT RAT E, WHICH
IS T HE NUMBER OF
UNEMPLOYED PEOPLE DIVIDED
BY T HE NUMBER OF PEOPL E IN
T HE L A BOR F ORCE.
U N E M P LO Y M E N T
4
5. T Y P E S O F
U N E M P LO Y M E N T I N
I N D I A
• D I S G U I S E D U N E M P LO Y M E N T
• S E A S O N A L U N E M P LOY M E N T
• S T R U C T U R A L U N E M P LOY M E N T
• C YC L I C A L U N E M P LOY M E N T
• T E C H N O LO G I C A L U N E M P LOY M E N T
• F R I C T I O N A L U N E M P LOY M E N T
• V U L N E R A B L E E M P LOY M E N T
• U N E M P LOY M E N T T R A P
6. TYPES OF UNEMPLOYMENT IN INDIA
6
Type Define
Disguised Unemployment
• It is a phenomenon wherein more people are employed than actually needed.
• It is primarily traced in the agricultural and the un-organised sectors of India.
Seasonal Unemployment
• It is an unemployment that occurs during certain seasons of the year.
• Agricultural laborers in India rarely have work throughout the year.
Structural Unemployment
• It is a category of unemployment arising from the mismatch between the jobs available in the
market and the skills of the available workers in the market.
Cyclical Unemployment
• It is result of the business cycle, where unemployment rises during recessions and declines
with economic growth.
Technological Unemployment
• It is loss of jobs due to changes in technology.
• In 2016, World Bank data predicted that the proportion of jobs threatened by automation in India
is 69% year-on-year.
Frictional Unemployment
• The Frictional Unemployment also called as Search Unemployment, refers to the time lag
between the jobs when an individual is searching for a new job or is switching between the jobs.
7. IMPACT
1. The problem of unemployment gives rise to the problem of poverty.
2. 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.
3. Unemployed persons can easily be enticed by antisocial elements. This makes them lose faith in
democratic values of the country.
4. 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.
5. 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
7
8. RATE OF
UNEMPLOYMENT IN
INDIA
• COVID-19 Lockdown Effect: Unemployment Rate
Over 23%
• How years of jobless growth have come back to
haunt India during Covid-19 pandemic
• Millions of Indians have lost jobs in the formal
sector since April due to the economic stress
caused by novel coronavirus. However, the
pandemic is not the only reason behind the
ongoing job crisis in the country.
8
9. UN-EMPLOYEMENT
RATE JANUARY TO MAY
2020(COVID-19)
• According to the latest report by think-tank
Centre for Monitoring Indian Economy (CMIE)
the employment rate had fallen to an all-time
low of 38.2 percent in March 2020. It stated,
“The fall since January 2020 is particularly
steep – almost spectacular. It seems to have
nosedived in March after having struggled to
remain stable over the past two years. Then,
there is a precipitous fall.”
• Further, CMIE also pointed out that the labour
participation rate in March this year was 41.9
percent, as compared to 42.6 percent in
February, suggesting the fall happened even
before the lockdown.
10. GOVERNMENT INITIATIVES
2.Skill India Mission:
Skill India Mission is a multi-sectoral
initiative launched to enhance the
employability of youth through skill
development and vocational training
programs. The mission aims to impart
industry-relevant skills to youth across
various sectors, including
manufacturing, services, construction,
and agriculture, thereby enhancing
their employability and facilitating their
transition to the workforce.
10
3.Start-up India:
Start-up India is an initiative launched
to foster entrepreneurship and
innovation by providing various
incentives, tax benefits, and regulatory
reforms to start-up enterprises. The
initiative aims to create a conducive
ecosystem for the growth of start-ups,
thereby generating employment
opportunities, promoting economic
growth, and fostering a culture of
innovation and entrepreneurship in
India.
1.Mahatma Gandhi National Rural
Employment Guarantee Act
(MGNREGA):
MGNREGA is a flagship social welfare
program aimed at providing guaranteed
wage employment to rural households,
thereby enhancing their livelihood
security and reducing distress
migration. Under this scheme, eligible
households are entitled to 100 days of
unskilled manual work per year, with a
focus on creating durable assets and
promoting sustainable development in
rural areas.
11. VARIABLES OF THE STUDY
11
• Primary Source: 16 Question
https://docs.google.com/forms/d/e/1FAIpQLSdyoew1Nap
R7_CTulxv6aQPMZHkxYcKzA0Zwap5NSMEsjI7fw/viewfo
rm?usp=sf_link
• Secondary Source
12. SUMMARY
12
• 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.
13. THANK YOU
Name & Enrollment No. :
1) Abinash Padhy (0231MBA024)
2) Ayushi Vaish (0231MBA206)
