Subject: Economics

Class: M.A. 4th Semester

Year/Semester: 2020-2021
Name of thePaper: Labour Economics
Topic: Unemployment in India
Sub-topic: Unemployment in India
Key-words: Unemployment

Dr. Rakesh Kumar Tiwari

Department of Economics
Faculty of Social
Science
Mahatma Gandhi Kashi Vidyapith
Varanasi-02
E: mail: drrakeshtiwari@mgkvp.ac.in
Unemployment in India
 Contents
• Meaning of Unemployment
• Labour Force
• Unemployment Rate
• Definition of Unemployment
• Types of Unemployment
• Classification of Unemployment in India
• India Unemployment Rate
• Unemployment During Five Year Plans
• Effects of the Problem of Unemployment
• Causes of Unemployment Problem in India
• Suggestion to Solve the Unemployment
Problem in India
• Government Measures for Promoting
Employment
• Questions
• References
 Meaning of Unemployment
• Unemployment in a country is a state in
which there are many workable people in
the country, they are ready to work at the
current rate of wages but they are not
getting work due to many reasons.
When estimating unemployment only those
individuals are counted who:
A. Able to work.
B. Willing to work.
C. Willing to work at the prevailing wage
rate.
 Labour Force
• Those persons who are not eligible to work
like - old, sick, children, students etc. are
not included in unemployment. Similarly,
those who do not want to work are also not
included in unemployment. This notion of
unemployment is called the "Labour Force
Approach ".
 Unemployment Rate
• The unemployment rate is the rate that is
estimated by dividing the number of
unemployed people by the number of labor-
forces.

No. of Unemployment
• Unemployment Rate = X 100
Labour Force
 Definition of Unemployment
• Prof. Pigou defines it as, "A man is unemployed
only when he is without a job or not employed
and also desires to employed,“
• According to Virus and Stone, Unemployment
occurs when people are able to work and would
willingly accept the prevailing wage paid to
someone with their skills cannot find
employment.
• According to Rafin and Gregori, "An
unemployed person that person who is not
currently employed, is activity looking for
work, is currently available for work at the
existing wage rate".
 Types of Unemployment
• Voluntary Unemployment
• Disguised Unemployment
• Open Unemployment
a) Cyclical Unemployment
b) Structural Unemployment
c) Frictional Unemployment
• Seasonal Unemployment
• Technological Unemployment
• Educated Unemployment
Classification of Unemployment
in India

Unemployment in
India

Rural Urban
unemploy unemployment

Industrial
Disguised Seasonal unemployment Educated
Unemployment Unemployment unemployment
 India Unemployment Rate
• The unemployment rate in India rose to 7.8
percent in February 2020, the highest since
last October, from 7.2 percent in the previous
month. In rural areas, the rate increased to 7.4
percent from 6.0 percent in January, while in
urban areas, it fell to 8.7 percent from 9.7
percent. The highest jobless rates were
recorded in Tripura (28.4 percent), Haryana
(25.8 percent) and Jammu & Kashmir (22.2
percent), while the lowest were recorded in
Puducherry (1.8 percent), Tamil Nadu (2.1
percent) and Goa (2.8 percent).
 Unemployment During Five
Year Plans
•
 Effects of the Problem of
Unemployment
• Increase in poverty
• Loss of human resources
• Political Instability
• Social problems
• Industrial Disputes
 Causes of Unemployment
Problem in India
• Explosive Increase in Population
• Slow Rate of Economic Growth
• Low Rate of Capital Formation
• Backwardness of Indian Agriculture
• Lack of Manpower Planning
• Defective Education System
• No Significant Place to Cottage and Small
Scale Industries
• Causes of Disguised Unemployment
• Immobility of Labour
• Illiteracy
 Suggestion to Solve the
Unemployment Problem in
India
• Increase in the Rate of Economic Growth
• High Rate of Capital Formation
• Educational Reforms
• More Expansion of Employment
Exchanges
• Policy Towards Seasonal Unemployment
• Encouragement for self-employment
• Employment opportunities for women
• Promotion of Cooperative Industries
• Encouragement to Small Scale Units
• Special Employment Programmes
 Government Measures for
Promoting Employment
• Jawahar gram Samridhi Yojana (JGSY)
• Swarnjayanti Gram Swarozgar Yojana
(SGSY)
• Employment Assurance Scheme (EAS)
• Sampoorn Grameen Rozgar Yojana (SGRY)
• National Social Assistance Programme
• Pradhan Mantri Gramodaya Yojana
i. Pradhan Mantri Gram Sadak Yojana
ii. Pradhan Mantri Gramodaya Yojana(
Gramin Aawas)
iii. Pradhan Mantri Gramodaya Yojana- Rural
Drinking Water Project
• Swarna Jayanti Shahri Rozger Yojana
(SJSTY)
• Indira Aawas Yojana (IAY)
• Samagra Awaas Yojana
• Food for Work Programme
 Question
1. What does unemployment mean? What are
the types of this? Explain
2. What does unemployment mean? What are
its main effects?
3. Describe the current state of
unemployment in India. Give appropriate
suggestions to solve this problem.
4. Describe the reasons for unemployment in
India. What efforts has the government
made to solve this problem?
 References
• Dutt & Sundaram, “Indian Economy”
• P.K. Gupta, “Labour Economics”
• V.K. Puri & S.K. Mishra, “Indian
Economy”
• Dr. Sinha, “Labour Economics”
• TRADING ECONOMICS