UNEMPLOYMENT IN INDIA

INDEX

Meaning of unemployment
Causes of unemployment
Types of unemployment
Statistics of unemployment in India
Impact/effects of unemployment
summary
 MEANING OF UNEMPLOYMENT
IN INDIA

What Is Unemployment?
Unemployment represents the number of people in the work
force who want to work but do not have a job. It is generally
stated as a percentage and calculated by dividing the number of
people who are unemployed by the total work force
 CAUSES OF UNEMPLOYMENT IN
INDIA

The government defines those who want to work as people who

have actively looked for work within the past four weeks and
determines the number of people currently unemployed through
a monthly survey called the Current Population Survey.
People can be unemployed for many reasons:
They quit their position and are looking for a new one.
They were laid off due to lack of work and haven't yet been
rehired.
 CAUSES OF UNEMPLOYMENT IN
INDIA

.
The need for the skill set has gone down, and there are
limited positions available, which may lead to
unemployment until it train for a new position.
Technology has reduced the need for the type of
position.
 TYPES OF UNEMPLOYMENT

FRICTIONAL UNEMPLOYMENT
Different forms of unemployment occur, few are
not that harmful but few are very risky for the
society as a whole. People waiting for their first
job come under frictional unemployment.
 TYPES OF UNEMPLOYMENT

SEASONAL UNEMPLOYMENT
Then comes the seasonal unemployment and
this is specific to certain seasonal industries like
tourism and farming. To reduce this, people must
be encouraged to take other jobs in off season .
 TYPES OF UNEMPLOYMENT

STRUCTURAL UNEMPLOYMENT
The worst type of unemployment is
the structural one. It comes into picture when
there is a change in the structure of an economy.
It is long term unemployment and can be caused
by various reasons. Machines replacing human,
change in the behaviour of consumer, etc. are the
causes.
 STATISTICS OF UNEMPLOYMENT
IN INDIA

State of Kerala being the most literate state in

India had the highest rate of unemployment.

Whereas rate of unemployment in West Bengal

was 4.5% and in Assam it was 4.3%.

The farm sector now has 49% of the workers

whereas manufacturing sector has 24% and
services sector has 27% workforce.
 IMPACTS OF UNEMPLOYMENT

Apart from financial impact, unemployment has

many social impacts like theft, violence, drug
taking, crime, health as well as it leads to
psychological issues. Next comes the poverty that
is directly linked with unemployment as well as
inequality. Long term unemployment can actually
ruin the family and the society .
 SUMMARY

• One reason for unemployment is the time it takes for

workers to search for jobs that best suit their tastes
and skills.
• A second reason why our economy always has some
unemployment is minimum-wage laws..
• A third reason for unemployment is the market power
of unions.
• A fourth reason for unemployment is suggested by
the theory of efficiency wages.
 SUMMARY

• High wages can improve worker health, lower worker

turnover, increase worker effort, and raise worker
quality.
• The unemployment rate is the percentage of those
who would like to work but don’t have jobs.
• The Bureau of Labor Statistics calculates this statistic
monthly.
• The unemployment rate is an imperfect measure of
joblessness.
• ate is an imperfect measure of joblessness.