JAYSHREE PERIWAL

HIGH SCHOOL

ECONOMICS PROJECT ON

CONTEMPORARY EMPLOYMENT
SITUATION IN INDIA

SUBMITTED BY:
TAMANNA JORRA
12 COMMERCE D
 What is contemporary employment?
A contemporary work or employment is the work that is done with
regards to the current nature of skills, as employment includes the
training and the development and the remuneration and the other
associated employment benefits.
In the case of contemporary employment, the current prevailing situation in
India is that there is lack of employment.
The issue of unemployment has existed in India for a long time now.

Unemployment sources
 new technologies and inventions
 the status of the economy, which can be influenced by a
recession
 competition caused by globalization and international
trade
 policies of the government
 regulation and market

Types of unemployment
Classical unemployment : Classical unemployment is a type of
unemployment caused by real wages being too high in the economy.
Too high real wages mean firms cannot afford to employ all available
workers so some are left unemployed
Cyclical unemployment : Cyclical unemployment is a type of
unemployment where labour forces are reduced as a result of business
cycles or fluctuations in the economy, such as recessions

Structural unemployment : unemployment resulting from

industrial reorganization, typically due to technological change, rather
than fluctuations in supply or demand.
Frictional unemployment : the unemployment which exists in
any economy due to people being in the process of moving from one job
to another.

Hidden unemployment : refers to people who are unemployed,

but not reflected in official unemployment rates. It includes those who
stopped looking for work due to discouragement and those who worked
but were underused. Sometimes, the term hidden unemployment is
also called disguised unemployment.

Long-term unemployment :  The lack of work for an

extended period of time, often defined as six months or longer

MEASUREMENT OF UNEMPLOYMENT

WHY LABOUR FORCE ARE THE MOST PREFERRED

METHOD OF UNEMPLOYMENT
Since they give the most comprehensive results and enables calculation of
unemployment by different group categories such as race and gender. This
method is the most comparable.

IMPACT ON LABOURS IN INDIA DUE TO COVID

The novel coronavirus (COVID-19) pandemic and ensuing lockdowns have
severely affected the labor market. In India, the pandemic and the
prolonged lockdowns have led to a reduction or complete loss of their
livelihoods, which has disproportionately affected the migrants and the
working poor.
COVID-19 impact: Coronavirus led to a volatile
employment trend throughout 2020:
COVID-19 impact on employment: Coronavirus pandemic brought the economy of India to a halt over the past

one year, and numerous people have lost their jobs, especially women. A recent study in Delhi found that in eight

months, the unemployment rate in the national capital increased by 17%, with about 83% of women respondents

choosing to permanently opt out of participating in the workforce. A similar trend has been observed throughout

the country, and this at a time when the participation of women was already declining in the workforce with each

passing year.

As per Centre for Monitoring Indian Economy (CMIE) estimates, between mid-2016 and early 2020, the female

labour participation rate, which is the percentage of women working out of all women falling in the working age,

fell from 16.4% to about 11%. And now, it has been estimated that this number might have further been pushed

this figure down to 9% due to the pandemic.

CMIE data also stated that while women accounted for only about 10.7% of the total workforce in

2019-20, they formed about 13.9% of the job losses India witnessed in April 2020. What’s worse is the

fact that by the time November rolled about, while most men recovered their jobs, women did not

have the same fate. What is striking about the trends in the high-frequency unemployment rates

based on the current daily status of CMIE is the volatility of the rates throughout the covid-19 period

save those during the absolute lockdown periods. For example, the overall unemployment rate for

August 2020 was 8.35% and in the next month it dropped to less than 7%, then it rose to a rather

higher level of 9.06% in December 2020. The volatility has some implications for the labour market

and earnings. This confuses people as to whether to enter the labour market or not. People dropped

out of the labour force far more speedily than they did before.

TYPES OF UNEMPLOYMENT IN INDIA

 Open unemployment
 Cyclical unemployment
 Seasonal unemployment
 Educated unemployment
 Technological unemployment

REASON OF UNEMPLOYMENT IN INDIA

 Increased Population
 Education system
  Lack of interest in the industrial sector
 Preference to experienced

STEPS TAKEN BY THE GOVERNMENT

 MAHATMA GANDHI NATIONAL RURAL GUARANTEE ACT 2005
 NATIONAL CAREER SERVICE SCHEME