Types of Unemployment Exist in India

Unemployment means idleness of manpower. The state in which labour possesses necessary ability and
health to perform a job, but does not get job opportunities, is called unemployment.
The nature of unemployment differs according to the level of economic development in a country. India
is an underdeveloped economy. The following types of unemployment exist in India:

1. Rural Unemployment:
India is essentially a rural economy. According to 2001 Census, 72.2 per cent people live in villages.
Agriculture is their principal means of livelihood. Two kinds of unemployment exist in rural areas:
(a) Seasonal Unemployment:
This is primarily confined to agriculture. Agriculture does not provide employment round the year. It is
also known as perennial unemployment. Sowing and harvesting season ranges between five and seven
months.
For the rest of the period the cultivator has to remain idle. Experts believe that an Indian cultivator
remains unemployed for five to six months. When the next sowing season starts he again goes back to
cultivation. Therefore, it is called seasonal unemployment.
(b) Disguised Unemployment or Underemployment:
It is again a feature of the agrarian economies. When more people are engaged than actually required
for production, it is called disguised unemployment. If a part of labour force is withdrawn from the farm
the total output of the farm will remain unchanged. The withdrawn labour force will be termed as
disguisedly employed.
Under this situation the marginal productivity of labour (i. e., the addition to the total product) over a
wide range is zero. Indian agriculture is a self-employing sector. There is absence of alternative
occupations in the economy.
The burden of increasing population ultimately; falls on land and there is overcrowding on the farms.
Rigid social structure and joint family system encourage this overcrowding. No one appears to be
unemployed. But in reality, large part of the labour force is underemployed.

2. Urban Unemployment:

According to 2001 Census, 27.8 per cent population lives in urban areas. Therefore, the magnitude of
urban unemployment is not as high as that of rural unemployment. Two kinds of unemployment exist in
the urban areas:
(a) Industrial Unemployment:
The Britishers had totally destroyed the village based industries. The condition of artisans and farmers
was not good. They migrated to the urban areas in search of jobs. But they could only increase the
number of unemployed persons.
In recent years many industries have been modernized. New and automation techniques of production
have rendered many workers unemployed. It is called technological unemployment.
Industrial activities are increasing by leaps and bounds. Fluctuations in the business activities affect the
level of employment. Industrial recession of 1966-68 rendered many workers unemployed. Recent
power shortage in many states has slackened the industrial activity and increased the number of
unemployed persons. It is called cyclical unemployment.
(b) Educated Unemployment:
Indian universities and colleges have been producing lakhs of graduates every year. Education in India is
not job oriented. Students have been aimlessly studying different courses.
When they come out of college after completing their education, they fail to get suitable jobs. Educated
unemployment entails a waste of the countrys most valuable resource, the human capital.

The Problem Of Unemployment In India Economics Essay

In this mission iam planning to do about unemployment in India, and how the government overcome
the unemployment here, and what is the cost of unemployment, For more details, we can see the
following:
Unemployment in INDIA
India is a country with massive unemployment problems. Unemployment can function as a state of
inactivity for a man fit and ready to be defined. It is a condition of involuntary and voluntary
idleness. Some features of unemployment were identified as follows:
A. The incidence of unemployment is significantly higher than in urban areas in the countryside.
2. Unemployment for women than for men.

Three. The incidence of unemployment among the educated is much higher than the total
unemployment.
4. There is more unemployment in agriculture than in manufacturing and other key areas.
Economists and social scientists, thinkers have divided into different types of unemployment. In general,
unemployment can be divided into two types:
(1) Voluntary unemployment
predominate in this type of unemployment a person from working on his own desire to set wages, or
work. Whether he will have higher wages, or do not want to all.It actually makes social problem to social
disorder. Social problems and forces, such as a revolution, a social revolution, a class struggle, a financial
or economic crisis, a war between nations, mental illness, political corruption, mounting unemployment
and crime, etc. threatens a well-functioning society. Social values are often viewed as dynamic forces in
society. They contribute to the strength and stability in social order. But because of the rapid social
changes come new values and reduce some of the old values. Meanwhile, people are not able to reject
the old and fully accept the new total.Here is the conflict between the old and new, the inevitable result
that leads to social disorganization imposed in the situation. In economic terminology, this situation is
voluntary unemployment.
(2) Voluntary unemployment
In such a situation, the person who is unemployed to say nothing. This means that a person is separated
from the offer of work without pay, even if he is able to earn his salary, and also try to earn it. Methods
and types of unemployment is to Hock.
(3) Cyclical unemployment
This is a result of the economic cycle, which is part of the capitalist system. In such a system is more
unemployment and depression when it made a large number of people unemployed. Since such a
financial crisis is a result of the economic cycle, unemployment is a part of it.
(4) Sudden unemployment
If at the point where workers have been employed, there are some changes, a large number of
unemployed persons. It's all in industry, commerce and industry, where people are employed in a job
and suddenly, when the job is finished they will be asked to leave.
(5) Unemployment caused by the failure of some industries
in many cases, closing a business, a factory or an industry has. There can be various factors responsible
are disagreements between the parties, companies can be large losses or business may not prove to be
useful and so on.

(6) Unemployment due to a deterioration in business

in various industries, trade or business, sometimes it's worse. This deterioration is due to various
factors. The effectiveness of the employer, sharply lower profits competitions etc. are some of the
factors that lead to a deterioration in the industry and the company.
(7) Seasonal unemployment
certain industries and traders involved workers for a given season. If the season ended the workers are
made unemployed. Sugar industry is an example of this type of seasonal unemployment.

The problem of unemployment is enormous. Various issues have caused this problem .There are
individual factors such as age, disability and physical disabilities, to limit the people. External factors are
technological and economic factors. There is tremendous increase in population. Each year India adds to
the population again. be more than this every year about 5 million people are eligible to secure jobs. BA
is subject to ups and downs of economic cycles and globalization. Economic depression or sick industries
is often close to convincing their employees become unemployed. Technological development
contributes to economic development. But unplanned and uncontrolled growth of technology is chaos
on job opportunities. The data processing and automation have led to technological
unemployment. Strikes and lockouts are inseparable aspects of the industrial world. Because these
industries often face economic and production is lost. Since the employee does not receive salary or
wages during the strike they are suffering from financial difficulties. You are permanently or temporarily
unemployed .Today's youth are not ready to jobs that are considered socially demeaning or low rise.Our
education system has its own fatal error and their contribution to unemployment are preparing an open
truth .Our education is not the head of the young generation to become self-employed, on the contrary,
it makes them dependent on government agencies, which are difficult to achieve. Our state of the start
of the five-year plans, several employment initiatives and programs over the years, but generating, in
the absence of proper implementation and monitoring have failed, introduced to achieve the necessary
goals. Recently UPA government with Rural Employment Guarantee Programme , which will provide the
minimum days of employment to people living in villages. This is a laudable program, if sincere, because
it will provide employment for people reacted during natural disasters such as droughts, floods, etc.
measures to reduce unemployment may be more emphasis on creating opportunities for independent
work, increased productivity and income of the laity working poor, trying to shift focus from the
establishment of relief type of work for the construction of fixed productive assets in rural areas and,
instead, can anything be accelerated back to protectionist measures, the pace of privatization
HOW THE UNEMPLOYMENT Overcome
Unemployment problem can be resolved in India by introducing corporate farming system, improving
the marketing system, social security for farmers, subsidiaries

Indian agriculture is an area that can solve future unemployment situation in India, but this is the most
neglected area of the politicians and public officials.
Now I will list down some important points, this can be done.
Introducing Corporate farming system
The Soviet method of farming can not fit. The solution may be corporate agriculture, where companies
invest their money and share technology in agriculture, the benefit of farmers. Enhance the most
important agricultural scene in India, is water. For this we need to build large dams.
Agriculture in India need more support from industry. Food Machinery too.In India, only 2% of
agricultural production is processed. In developed countries it is as high as 80%.It is better to give back
to the farmers from their fields and also to remove as industry middlemen buy direct from farmers. The
Government must also invest irrigation technologies and more efficient, reliable and cost effective credit
system.
Improving the marketing system and social security
Promotion should also be improved. Social Security must be submitted for each person in India. It will
mean at least that people do not live in acute poverty if the crops fail, or they lose their jobs. However,
it should be clear that without the employment generated by services and manufacturing.
We can also help farmers, where traditional cultures have been a failure due to water shortages by
offering them help plant crops such as jatropha, which only need a small amount of water, and will also
help direct the business, as in productionhelps biofuels.
Subsidization of farmers and implement crop insurance scheme
Other suggestions would be complete crop insurance and farm subsidies are used instead of the
consumer. The government needs to subsidize farmers heavily to reduce the situation, the price of food,
and it is on the market at a competitive price available, instead of buying from the farmers and sell them
cheaply to the public.
The government has to subsidize everything first. Improved irrigation system must be created. We are
good at production, but if an effective system is down, it would be much better. Irrigation is the key. We
have natural resources, so we have to use it better. For example, completed in Gujarat, Sardar Sarovar
after the project, it would not only drinking water to Saurashtra / Kutch region, but also opportunities
for a better agricultural products in the not-so fertile land in the region. So there must be an increased
effort on the part of the government in developing a better infrastructure for agriculture.
Increasing storage
The government should create more space for the fall, as Indian granaries are overflowing and rot, while
people can not afford food die of starvation. We need to figure out a system that we can better manage
the food industry and better.

Why do farmers commit suicide?

Most farmers who commit suicide do a poor choice of plants and grow high-risk crops such as cotton,
tobacco, etc. drought and pests, these plants are much easier than others destroy. The government can
do about it much (and I know it works). You should read our research and consulting services and advice
to farmers to plant what and what not. In addition, much emphasis is placed on research to find plants
that are grown to diversify. Fruit crops, some cereals, pulses need less water and fewer resources
wisely.The education of farmers about these "non-traditional" options and opportunities are very
important.
Tightening of agricultural credit system
The agricultural credit system should be so tight that the farmers credit only if they are to make
informed decisions. In this way, farmers will not be in serious debt and not be forced to kill himself.
I think that if these steps are carried out effectively in agriculture, as agriculture in India can provide
employment for millions of people in rural and urban areas of the country people, the urban areas are
going to get work in other areas will return to their villages and hard work in agriculture, for the basic
living conditions for their activities in their area are doing.
I invite everyone not just the Indian community, but also the global Internet community, the entrances
to share in this concern.
COST unemployment
Most economists agree that high unemployment is not only costly to individuals and families directly
affected, but also local and regional economy and the economy as a whole. We can distinguish between
the economic costs of people without work and the social costs of doing so often follow.
Lost production of goods and services
Unemployment leads to a waste of scarce economic resources and reduces the duration of the growth
potential of the economy. An economy with high unemployment is to produce in its production
possibility frontier. The hours that work the unemployed can not ever be won.

But if unemployment can be reduced, the total national production increases, leading to an
improvement in welfare.
Fiscal costs of government
High unemployment has an impact on government spending, taxes and the amount of debt each year
An increase in unemployment leads to higher pensions and lower taxes revenues.When individuals are
unemployed, they receive not only treatment but also pay no tax.

Because they use less they contribute less to the government in taxes.
This increase in public spending and the decline in tax revenue could lead to higher public debt
requirement (known as a public sector net cash requirement) Score
Welfare loss of investment in human capital
Unemployment waste some of the scarce resources in the training of workers.Furthermore, workers
who are unemployed for long periods of de-skilled as their skills are increasingly in a rapidly changing
labor market dates. This reduces the chances of employment in the future, which, in turn, the financial
burden for the state and society.Check out the review on page Long-Term Unemployment
Social costs of unemployment
Rising unemployment is a social and economic disadvantage is - there is no correlation between rising
unemployment and rising crime and increasing social dislocation (increased divorce, the decline in
health and lower life expectancy).
Areas with high unemployment and declining real income and expenditure, and a growing number of
relative poverty and income inequality. Than younger workers are more geographically mobile than
older workers, there is a risk that areas with higher than average unemployment, suffering from an
aging workforce potential - making them less attractive as investment locations for new businesses.

solutions to Unemployment Problems in India

Among the various socioeconomic problems, which our country is facing today, the problem of
unemployment is one of the most serious Unemployment is defined as condition of a person who is
willing to work but unable to find a paying job.
There are various factors that are responsible for unemployment i country. Unemployment can be due
to seasonal layoff particularly in agricultural sector. It can be due to technological changes in an
automated industry or due to lack of adequate skills by the workers. Unemployment can also be due to
fluctuation in the economy. All these factors add to the problem of unemployment. And because of this
unemployment problem we are wasting our valuable human resource.
Why India even after 63 years of Independence is not able to so this problem? Even after so much of
planning, where are we lacking tackling this problem?
First thing that strikes everyone whenever the question unemployment is raised is our rapid growth of
population. The employment opportunities that are getting created in our country are not able to keep
pace with our population growth. According to Unit Nations population report, India with its annual
population grow of 1.65 percent is the largest contributor to the world's population growth, which

accounts for 21 percent of the annual increase in the world population and China is in the second
position with a contribution of 15 percent.
If our population grows at percent pace, there is no doubt we ill be surpassing China in the years to
come and the employment opportunities for our coming generation will become still more bleak.
Secondly, our system of education prepares our youth mostly for the white collared jobs. With no work
experience and unprepared for the challenges of work, many employers are reluctant to hire these first
time job seekers.
So, one of the hardest hit sections of the society is youth. These scenarios compel us to look at the
problems the society has to face because of the unemployment.
The problem of unemployment is going to have a multifaceted effect on the society. Unemployment in
the society has led to increase in the crime rate, increase in the poverty rate, and deterioration in the
health standards of the people.
Firstly, with regard to the increase in the crime rate in our towns and the cities, we find in most of the
cases, the youth are the main culprits the youth of the country, who are the real asset provided their
power is utilised properly, could contribute to the material prosperity of the country. On the other hand,
an unemployed youth may prove to be disastrous to a society. The increasing crime rate in the cities
speaks out that truth. Not a single day passes without having new about chain snatching, robbery and
murder. Another dangerous trend which we are witnessing is that of unemployed youths are being
enticed the antisocial elements and separatist movements. These antisocial elements and separatists
target unemployed youths for destabilizing our country using them as tools creating mayhem.
Secondly, India still has poverty on a large-scale. Unemployment is one of the reasons for this large scale
poverty. The families without having able-bodied members employed are pushed to the vicious circle of
poverty.
Thirdly, deterioration in the health standards of our countrymen aggravates the problem of
unemployment. Non-availability of the social security makes the life of an employed more difficult. It
affects his mental health, which in turn affects his physical health also. How can a person who is
struggling to get a square meal think of maintaining his health - en he falls ill? For an unemployed
person it is too costly to fall ill. A recent report in The Hindu, states that the people of Vidarbha
Maharashtra) have stopped seeking medical help for their ailments, as cannot afford to pay the doctor's
fee and buy the prescribed medicines.
Since the beginning of the Five-Year Plans, Government has taken several steps for increasing the
employment opportunities and eventually eradicating the unemployment problem. Some of the
centrally sponsored programmes are PMGSY (Pradhan Mantri Gram Swarozgar Yojana SEEUY (Self
Employed Scheme for Educated Unemployment Youth Jawahar Rozgar Yojana, etc., stands testimony for
this. But even then the problem still prevails then where are we failing? Let us look into the solutions for
this problem.

The first and foremost thing we have to do arrest the high rate a unemployment and provide
employment opportunities to our masses is to check the population growth.
As the gap between the employment opportunities created in the country and yearly output from the
educational institutions is too wide, it is very difficult to absorb the large number of fresher. Even
though the Government is spending crores of rupees towards control of population through the various
schemes, the rate of population growth has not drastically reduced. To tope it, the Government has
decided to abandon the 2-child norm.
Secondly, the current education system does not lay much emphasis- on the vocational education. Even
though a National Policy on Education has been adopted by giving high priority to vocationalisation of
the secondary education, but the quality of these vocational courses is far from satisfactory and hence
the progress on this front is very slow. The Government must look into it much more seriously and there
should be a continuous monitoring mechanism to evaluate the implementation of these programmes.
Only vocationalisation can help in diverting a part of the youthful workforce and ease the pressure on
the white-collar jobs.
Thirdly, agriculture is the backbone of the Indian economy. The Government must continue its policy
towards the encouragement of agriculture and development of agriculture-based industries. This will
arrest the problem of migration from the rural areas to urban areas. The Government has to take up
massive irrigation development programmes in the rural areas which will not only make the land
capable of cultivation but would also create jobs for the landless labourers and seasonally unemployed.
Provision of irrigation facilities is the main panacea for rural and agricultural development.
Fourthly, in order to check the rural migration to urban areas, there is an urgent need for the
development of the small towns intermediate cities. This will ease the pressure on the urban cities and
such restructuring helps in the development and use of the vast unutilized markets within the country
rather than excessive dependence upon the report activities.
Fifthly, the economic growth of the country has a bearing on the job market. When higher economic
growth is achieved through more productive use of all resources it results in higher per capita income
which in turn results in more savings and investment activities creating greater employment
opportunities in the country. Even though we had targeted a growth rate of 8 percent during the 10th
Plan period, we may end up with a growth of 7 percent because of slow down of the agricultural growth
and international oil prices.
Sixthly, because of the liberalization of the economy, we can see a new lot of foreign companies
investing in our country. Government must rue its liberalization policy in a smooth way and encourage
foreign companies to start their manufacturing units in our country, which in turn, would increase the
employment opportunities.
Now the latest mantra in India is that of Business Process Outsourcing and Call Centres. As has got the
largest pool of English speaking scientific and talented manpower it has become an obvious choice for
the foreign companies to outsource their non-core business processes to our country. But as we are

facing stiff competition from our neighbouring China and because of the recent allegations made against
our Call Centers, the Government must be careful in dealing with these situations and if necessary
stringent cyber laws need to be implemented.

Problems and Solutions to Unemployment in India

Unemployment means a person willing to work but unable to find a qualified job. Our country is facing
many problems but one of the serious problem is of unemployment. Many graduates, doctors,
engineers, scientist are unemployed or working underemployed. Due to unemployment we are wasting
our countrys human resource.
The unemployed rate in between age group 15- 29 has been increased since 2009-2010. According to
the Global Employment Trends 2014 the unemployment rate has raised to 3.8%, last year it was 3.7%.
The International Labour Organisation (ILO) has said in the recent report that India has shown rise in the
unemployment in the last two years.
If the problem of unemployment is solved it will help in development of the country. With Population of
1.20 billion in our country the unemployment rate is increasing day by day. The problem of
unemployment is rising but still many industries are facing the problem of skilled candidate for their
company. There is a boom of software companies, Outsourcing companies in India, but still facing the
problem of unemployment.
Here are some of the reasons why there is unemployment in India
1. There are employment opportunities in India, but the rising population problem creates the
unemployment. If the population grows in the same rate the next generation will face more
problems of unemployment. If there is vacancy for 1 position 100 or 1000 apply for the position
and only one gets the job and others remain unemployed.
2. Inflation
3. Indians dont take jobs which are below their grades. Many find it difficult to work at the below
qualification level job.
4. Low wages or salary below the market rate.
5. Many big industries look for the skilled candidate only, for their company.
6. Recession
7. Many Employers give preference to the experienced candidates only and not the fresher.
8. Not enough or new jobs: As per the experience & analysis from Get Sarkai Naukri, number of
new government jobs is decreasing every year. Government is not able to create enough jobs
keeping in mind the Indian population.

9. Slow business expansion

10. Advanced Technology: Earlier for a task hundreds or thousand people were required to do a
work but now due to the advanced technology only one person can do many peoples work.
With the advanced technology companies are hiring few persons to operate the machine. Give a
command on computer and the work is done this has cut off the employment of many.
11. Corruption: In Government sector and in some private sector people get the job by giving the
bribe. Even though the candidate is not that qualified but if he gives the bribe he gets the job. So
to get a government job give a bribe.The qualified candidate remains unemployed as no money
to give the bribe.
Problems caused due to unemployment

Unemployment and poverty goes side by side. The problem of unemployment gives rise to the
problem of poverty.

Young people after a long time of unemployment find the wrong way to earn money.

To get rid from the unemployment stress, they accept alcohol or drugs.

Unemployed youths accepts suicide as the last option of their life

Lower economic growth

Increase rate in Crimes. As the employed youth dont have anything to do they start doing
robbery, murder etc.

Health issues i.e it affects mentally as well as physically

Solutions to the unemployment in India

1. The very first solution for the unemployment is to control the rising population of our country.
Government should motivate people to have small families. Indian government has started initiatives to
control the population but still the population is rising.
2. The quality of Indian education should be improved. The current education system is not upto the
level. Government should keep a strict watch on the education system and try to implement new ways
to generate skilled labour force. Government should select a committee to look after the schools and
universities. The syllabus taught is of no use to the industries so the education should be as per the
current requirements of the industries. Before completing the education a practical knowledge should
be given.
3. Also todays youth should join the institute or select the course where proper training is given and the
course is as per the current industries requirements. Take the course as per your interest and which will
bright your future.

4. Government should encourage and develop the agriculture based industries in rural areas so that the
rural candidates dont migrate to the urban areas. More employment should be generated in rural areas
for the seasonal unemployment people.
5. Rapid Industrialization should be created.
6. Development of the rural areas will stop the migration of the rural people to the urban cities and this
will not put more pressure on the urban city jobs.
7. Government should allow more foreign companies to open their unit in India, so that more
employment opportunities will be available.

CONCLUSION
From the above we can see what unemployment is taking place in India, and what different types of
unemployment in India and what are the steps taken by Government to overcome the unemployment in
India and also we are seeing is what the costs of unemployment