Unemployment in India

Unemployment in India refers to the state of joblessness among individuals who are actively seeking employment in the Indian economy. Despite being one of the fastest-growing economies in the world, India has been grappling with the issue of unemployment for several years.

Types of Unemployment

Unemployment in India can be categorized into various types:

• Structural Unemployment: This type of unemployment occurs when there is a mismatch between the skills that workers in the economy can offer and the skills needed for the available jobs.

• Frictional Unemployment: This refers to the time period between jobs when a worker is searching for or transitioning from one job to another.

• Cyclical Unemployment: This type of unemployment occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.

• Seasonal Unemployment: This occurs when people are jobless at certain times of the year because they work in industries where they are not needed all year round.

Causes of Unemployment

The causes of unemployment in India are multifaceted and include:

• Population Growth: Rapid population growth has been a major cause of unemployment in India. The rate of job creation has not been able to keep up with the growth in the working-age population.

• Lack of Skills: The lack of necessary skills and education among the workforce has also contributed to the unemployment problem.

• Economic Fluctuations: Economic downturns or slowdowns often lead to job losses and increased unemployment.

Impact of Unemployment

Unemployment in India has several negative impacts:

• Poverty: Unemployment often leads to poverty as individuals without jobs are unable to earn an income.

• Social Unrest: High levels of unemployment can lead to dissatisfaction among the youth, leading to increased crime rates and social unrest.

• Economic Impact: Unemployment can lead to a waste of resources and can act as a drag on the overall economic growth of the country.

Government Initiatives

The Government of India has implemented several initiatives to tackle the issue of unemployment, such as:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): This act guarantees 100 days of wage employment in a year to rural households.

• Skill India: This initiative aims to train over 40 crore people in India in different skills by 2022.

• Make in India: This initiative aims to create job opportunities and enhance skills by focusing on 25 sectors of the economy.

See Also

• Economy of India
• Poverty in India
• Education in India