UNEMPLOYMENT IN INDIA

PRESENTED BY-
HEENA M. SHAIKH.
M-COM SEM-1.
DIV- A ,ROLL.NO: 31.
YEAR: 2019-2020.
 WHAT IS UNEMPLOYMENT?
Unemployment occurs when a person who is actively
searching for employment is unable to find work.
Unemployment is often used as a measure of the health
of the economy. The most frequent measure of
unemployment is the unemployment rate, which is the
number of unemployed people divided by the number of
people in the labor force.

National Sample Survey Organization (NSSO) defines employment and unemployment on

the following activity statuses of an individual:
• Working (engaged in an economic activity) i.e. 'Employed'.
• Seeking or available for work i.e. 'Unemployed'.
• Neither seeking nor available for work.
• Unemployment rate = (Unemployed Workers/Total labour force) × 100.

DISGUISED UNEMPLOYMENT:
It is a phenomenon wherein more people are
employed than actually needed.
It is primarily traced in the agricultural and the
unorganized sectors of India.
TYPES OF
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.
Many people in India do not get job due to lack of
requisite skills and due to poor education level, it
becomes difficult to train them.

UNEMPLOYM CYLICAL
UNEMPLOYMENT:
ENT IN INDIA It is result of the business
SEASONAL UNEMPLOYMENT:
It is an unemployment that occurs during certain cycle, where unemployment rises during recessions
seasons of the year. and declines with economic growth.
Agricultural laborer in India rarely have work Cyclical unemployment figures in India are
throughout the year. negligible. It is a phenomenon that is mostly found
in capitalist economies
 MEASUREMENT OF UNEMPLOYMENT IN INDIA
• National Sample Survey Office (NSSO), an organization under Ministry
of Statistics and Program Implementation (MOSPI) measures
unemployment in India on following approaches:
• Usual Status Approach: This approach estimates only those persons as
unemployed who had no gainful work for a major time during the 365
days preceding the date of survey.
• Weekly Status Approach: This approach records only those persons as
unemployed who did not have gainful work even for an hour on any day
of the week preceding the date of survey.
• Daily Status Approach: Under this approach, unemployment status of a
person is measured for each day in a reference week. A person having no
gainful work even for 1 hour in a day is described as unemployed for that
day.
UNEMPLOYMENT STATISTICS
Based on findings from Centre for Monitoring
Indian Economy, latest data:
• The unemployment rate in India rose to 7.2
percent in February 2019, the highest since
September 2016, and up from 5.9 percent in
February 2018.
• The total number of employed persons in
February 2019 is estimated at 400 million against
406 million in the year-ago period and 407.5
million employed in February 2017.
• The labour participation rate fell from 43.2% in
January 2019 to 42.7% in February 2019.
 CAUSES OF UNEMPLOYMENT
• Large population.
• Low or no educational levels and vocational skills of working population.
• 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.
 IMPACT OF UNEMPLOYMENT
• The problem of unemployment gives rise to the problem of poverty.
• 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.
• Unemployed persons can easily be enticed by antisocial elements. This
makes them lose faith in democratic values of the country.
• 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.
• 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
COMPARISON OF EMPLOYMENT RATES ACCORDING TO

CENTER FOR MONITORING INDIAN ECONOMY (CMIE)

REPORT 2019

The Unemployment Rate According to sex,

in May-Aug raised to Male unemployment rate-
7.46% as of Jan-April According to the areas, The rate in May-Aug raised Education-wise,
6.87% Urban areas- The rate in to 6.1% as of Jan-April The rate of 10th-12th students
May-Aug raised to 8.4% 5.6% in May-Aug raised to 12.4%
as of Jan-April 7.6% Female unemployment as of Jan-April 11.1%
Rural areas- The rate in rate- The rate in May-Aug The rate of Graduate
May-Aug raised to 7.0% raised to 17.6% as of Jan- students in May-Aug raised
as of Jan-April 6.5% April 15.8% to 15% as of Jan-April
 STEPS TAKEN BY GOVERNMENT
• Mahatma Gandhi National Rural Employment Guarantee Act 2005:
The Government of India has taken several steps to decrease the unemployment
rates like launching the 
Mahatma Gandhi National Rural Employment Guarantee Scheme which
guarantees a 100-day employment to an unemployed person in a year. It has
implemented it in 200 of the districts and further will be expanded to 600
districts. In exchange for working under this scheme the person is paid 150 per
day.
• Steps taken on Disguised Unemployment:
Agriculture is the most labour absorbing sector of the economy. In recent years,
there has been a decline in the dependence of population on agriculture partly
because of disguised unemployment. Some of the surplus labour in agriculture
has moved to either secondary or the tertiary sector. The government has taken
steps in these sectors for the disguised unemployed people in these methods.
• National Career Service Scheme:
The Government of India has initiated National Career Service Scheme whereby a
web portal named National Career Service Portal (www.ncs.gov.in) has been
launched by the Ministry of Labour and Employment (India). Through this portal,
job-seekers and employers can avail the facility of a common platform for seeking
and updating job information. Not only private vacancies, contractual jobs available
in the government sector are also available on the portal.

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): 

launched in 2015 has an objective of enabling a large number of Indian youth to take
up industry-relevant skill training that will help them in securing a better livelihood.

• Start Up India Scheme:

launched in 2016 aims at developing an ecosystem that promotes and nurtures
entrepreneurship across the country.
LEAKED NSSO REPORT:
• A report on unemployment prepared by the
National Sample Survey Office's (NSSO's)
periodic labour force survey, has not been
officially released by the government.
• According to Business Today, this report is the
"first comprehensive survey on employment
conducted by a government agency after Prime
Minister Narendra Modi announced
demonetization move in November 2016".
• According to this report, the 2017–2018 "usual
status" unemployment rate in India at 6.1%, a
four-decade high, possibly caused by the 
2016 demonetization of large banknotes
 intended to curb the informal untaxed economy
.
• The BJP-led Indian government has claimed
that the NSSO report was not final.
 CONCLUSION
• Unemployment is a serious and an important challenge which
needs to be looked and removed from the country.
• Government should implement job opportunities for the young
youth who are willing to work.
• It creates negative affects to unemployed as they are jobless and
suffer from worse prospects to find new job and those who are
employed feel less secure to keep their jobs in future.
 SOURCE OF INFORMATION
• https://www.drishtiias.com/to-the-points/paper3/unemployment-i
n-india#targetText
• https://en.wikipedia.org/wiki/Unemployment_in_India
• https://unemploymentinindia.cmie.com
• https://www.business-standard.com/article/economy-policy/unem
ployment-rate-at-five-decade-high-of-6-1-in-2017-18-nsso-survey-
119013100053_1.html
• https://www.facebook.com/ForbesIndia/photos/a.215733059993/10
157634418549994/?type=3&theater
THANK YOU.