LYT mode

Presents

UNEMPLOYMENT
Specially for

RBI Grade B
Phase-2
Sr. No. Topic
1 Unemployment
2 Types of Unemployment
3 NSO Employment Measures
4 Causes and Cost of Unemployment
5 Formulas for various rates
6 NSSO 68th Round
7 Census, 2011
8 WESO Report, 2020
9 Engel's Law
➢ A person who is not under paid employement or self-employment and is capable as
well as willing to work, is known as unemployed.

➢ Only persons within the age group of 15-64 years (working age population) are
considered for employment calculations.

➢ The unemployment rate is the ratio of the number of unemployed people to the
number of people in the labor force.
➢ Open

➢ Structural

➢ Frictional

➢ Cyclical

➢ Under-employment
➢ Disguised

➢ Seasonal

➢ Casual

➢ Chronic

➢ Natural
➢ Loss of income

➢ Inefficient use of resources (human + physical)

➢ Rise of social as well as law and order problems

➢ Loss of govt revenue, which leads to less expenditure on social infrastructure and
human capital generation.
➢ Labour force participation rate = Number of people in the labour force X 1000
(LFPR) Total population

➢ Workforce participation rate = Number of employees x 1000

Total population

➢ Proportion unemployed = Number of unemployed people x 1000

Total population

➢ Unemployment rate = Number of unemployed people X 100

Total number of people in workforce
Workforce % Total Male Female
Rural 41.83 53.03 30.62
Urban 35.3 53.26 25.21
All India 39.79 53.26 41.83
Self-employed: 52.2%
Working population: main + marginal= 39.79%

Unemployment among

Illiterates > Literates

Rural > Urban
Females > Males
116 million skilled jobs employ 84 million literate & 32 million illiterate people.
World Employment and Social Outlook (WESO) Report – Trends 2020 (ILO)

➢ Globally, 185 million people are unemployed

➢ 165 million do not have sufficient paid work

➢ 120 million people have given up their jobs, or lack access to labour market

➢ Thus, a total of 470 million people are troubled by the problem of employment.

➢ 267 million people (15-24 years) are not in employment, education or training.

➢ 630 million people (1 in 5 people who are employed) are affected by working
poverty (earning less than $3.4/day)
With increase in income of a household, the proportion of expenditure on food declines and
the proportion of money spent on other products & savings increases.