Types of Unemployment in India
Disguised Unemployment
This kind of unemployment is prevalent in the agricultural industry,
where it has resulted in the employment of more people than is
necessary. For example, a farming family working on a tiny area of
land; even though all of them may work on the land, the income
from this property is insufficient to meet the family's basic needs.
Therefore, this unemployment is often not accurately tracked.
Structural Unemployment
The structural unemployment is a long-term unemployment that
mostly occurs when criteria do not meet. When the skill set needed
for the job and the worker's qualifications do not match, this gap
becomes the main barrier to employment. Due to the market's rapid
change and the daily emergence of new skilled jobs, any employee
who wants to stay in the company mustt increase their skill set,
regardless of their existing position.
Frictional Unemployment
Typically, this kind of unemployment is transient. Additionally, it
presents the fewest economic challenges. When people freely shift
jobs, it happens. Finding a new career normally takes some time
after leaving a firm. Like graduates, those who are only now
beginning to hunt for employment contribute to frictional
unemployment.
Seasonal Unemployment
A portion of the business depends on the specific season, and the
workers' skills are required exclusively at that time. These types of
workers fall short of completing a year's worth of work.
Causes of Unemployment in India
1. Rapid growth of population and increase in labour force.
2. Underdevelopment of the economy.
3. Slow growth in the agricultural sector.
4. Defective system of education.
5. Absence of manpower planning.
6. Degeneration of village industries.
7. Inappropriate technology.
8. Slow growth of industrial sector.
Effects of unemployment in India.
Unemployment is the situation of actively looking for employment
but not being currently employed. The five effects of unemployment
in India are:
1. Unemployment leads to a depressed economy and depression
among people.
2. The standard of living of people remains low due to
unemployment.
3. Unemployment increases the poverty rate and decreases the
standard of public health.
4. Increase in criminal activities can also be seen due to employment
because they are unable to fulfil their needs
5. It also affects society and disturbs the economic balance of the
country.
6. Unemployed people will become a liability to the country.
7. It increases the number of dependent population in the country.
Schemes by the govt to reduce unemployment
[Link] Minister Rozgar Yojana
To address the issue of unemployment, the Indian
Government implemented the Prime Minister Rozgar
Yojana (PMRY). This program intends to provide self-
employment options to tens of thousands of educated
unemployed adolescents. The primary concept of this
strategy is self-employment in rural regions, which is
seen as the most effective way to address the growing
unemployment problem.
The major goal of this initiative is to give unemployed
but educated youth easy subsidized financial support.
The scheme’s only objective Is to encourage
participants to develop their own businesses in the
manufacturing, business, service, and trade sectors.
[Link] Yuva Yojana
If you are thinking, “what is Saksham Youva Yojana?”
No worries got you covered. It is an evolving initiative
by the State Government of Haryana and is
concentrated on the betterment and welfare of the
unemployed and educated youth. It was a scheme
launched in the year 2106 for unemployed youth. Well,
the core objective of the project is to provide these
educated youngsters with monthly financial assistance.
It focuses and aims at providing employment
opportunities among them and placing them in
different departments of the state government.
3. Prime Minister’s Employment Generation
Program The major goal of this scheme was to
promote employment opportunities to both rural
and urban areas by establishing new self-
employment ventures, projects, and micro-
companies. It assists in bringing up all the local
traditional craftspeople, as well as rural and urban
children, under the program to turn their skills into
profit-generating businesses.
4. Agriculture loans are a highly important scheme for
unemployed people working in agriculture.
Unemployed agriculture graduates aged 22 and up
can apply for the scheme and start their own
business in the promising field. Under this
initiative, the Government of India collaborates
with numerous banks and NBFCs to assist
unemployed youth in the agriculture industry.
The following are the differences in the
nature of unemployment in rural and urban
areas:
1 Population: Urban areas are highly populated but rural areas are
less populated. Educated unemployment is mostly found in urban
areas as most of the people are skilled but they have less
opportunity. In rural areas, with fewer work opportunities, more
people are engaged where less is required. This is called disguised
unemployment.
2 Occupational: People in rural areas are mostly dependent on
agriculture. Thus, seasonal unemployment is found in rural areas
where cultivation is hampered due to seasonal changes.
3 Industrial: Urban areas are more developed than rural areas
because of industrialization. Because of increased industrialization,
more people migrate to urban areas. Overpopulated urban areas
have more industrial unemployment.
What should be done to reduce unemployment in India
Change in industrial technique- to solve the unemployment
problem, a production technique focusing on the needs and means
of the country should be adopted. Capital-intensive technology
should be replaced by labour-intensive technology.
Dealing with seasonal unemployment- As agro-based and
agriculture sectors provide only seasonal employment. Measures like
multi-cropping, animal husbandry, horticulture, plantation, and
horticulture should be adopted. Also, industries like the cotton
industry should be promoted.
Changes in the Education system- There is a need to change the
present education system. It should emphasize vocational education
rather than imparting static knowledge. Colleges and universities
should be available to students who wish to pursue higher
education.
Assistance on Self-employment- Most people in India are self-
employed, but unfortunately, due to a lack of professional
knowledge, they are not able to get the desired results. Therefore,
they should be helped by giving technical training and using the raw
material properly.
Introduction of new governmental measures- The government
should take the initiative to increase labour productivity and develop
better employment opportunities for all.
Population control- Population is one of the major concerns
associated with the unemployment rate. Therefore, the population
rate must be checked, especially in rural areas where birth control
methods and family planning considerations must be discussed
more.