Unemployment in India

“Unemployment is like a headache or a high temperature — unpleasant and exhausting but not carrying in itself any explanation of its cause”.
                                                     ----- WILLIAM HENRY BEVERIDGE

1. What is Unemployment?

Unemployment is a state of joblessness in an economy. This unemployment is usually measured in terms of unemployment rate where the number of unemployed individuals will be divided by the total number of employed individuals. This unemployment can also be referred as joblessness or out of work. The Office of National Statistics (ONS) has given an official estimation of unemployment using the International Labor Organization definition.

According to this definition, public aged 16 and above will be called as unemployed if they are out of work, need a job, have vigorously wanted work in the last four weeks and are available to start work in the next two weeks, have found a job and are waiting to join the job in the next two weeks.

Unemployment is a major problem in many countries, especially India. There are many reasons for this, but technological progress can be figured out as one of the main reasons. Everything is getting computerized in these modern days and this in turn leads to unemployment by decreasing the number of labors needed for a work. Unemployment is used by the government as a statistic to measure the health of the economy. Based on the rate of unemployment, like if the rate is around 6% or more, then the government will try to stimulate the economy and create jobs.

The rate of unemployment is almost same in both rural and urban areas. Urban areas have more number of educated unemployed, and in the rural areas, labors and agriculturists will be unemployed for almost 6 months in every year. According to statistics, for each employed person there are six jobless looking for work and this statistics doesn’t include those who gave up and stopped looking.

Types of unemployment will include

• Cyclical unemployment
• Classical unemployment
• Voluntary unemployment
• Structural unemployment
• Frictional unemployment
• Hidden unemployment
• And long term unemployment

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Perspectives of Unemployment in India