Unemployment refers to the situation when a person is willing to do employment for earning a living but he is not getting employment.
If we want to understand in very simple words, then unemployment is directly related to lack of work or employment. Or it can be said that when the ratio of population of a country is less than the employment opportunities present there, then the problem of unemployment arises at that place. There can be many reasons for increasing unemployment like increasing population, lack of education, industrialization etc.
There are many good schools, colleges and universities in our country. Every year thousands of students pass out from there. But on the other hand, the rate of unemployment in India is increasing day by day. Gradually it is becoming a big problem of our country. An army of unemployed is appearing.
Unemployment is a curse for any country or society, it spreads poverty, hunger and mental disturbance on the one hand, and on the other hand it encourages anger and indiscipline among the youth.
Types of Unemployment
- Disguised Unemployment: This type of unemployment occurs when individuals appear to be employed but are actually not contributing to the economy, such as when multiple workers perform a job that could be done by a single person. This is often seen in agriculture and unorganized sector of the economy.
- Seasonal Unemployment: This type of unemployment occurs when workers are employed only during certain times of the year due to seasonal fluctuations in demand for goods and services. It is common in industries such as agriculture, tourism, and construction.
- Structural Unemployment: This type of unemployment occurs due to changes in the structure of the economy, such as changes in technology, demographics, and the demand for goods and services. It can result in workers being unable to find employment due to a lack of skills or qualifications needed for available jobs.
- Technological Unemployment: It is the loss of jobs due to change in technology.
- Frictional Unemployment: This type of unemployment occurs when workers are between jobs or searching for better employment opportunities. It is a temporary form of unemployment and may be caused by factors such as lack of information about job openings, geographical mobility, and differences in job requirements.
- Vulnerable Employment: This means that people are working informally without a proper job contract and thus have no legal protection. These persons are deemed ‘unemployed’ since records of their work are never maintained. It is one of the main types of unemployment in India.
- Cyclical unemployment: This type of unemployment occurs due to fluctuations in the business cycle, such as a recession or economic slowdown. It results in a decrease in demand for labor, which leads to higher levels of unemployment. These persons are considered 'unemployed' as a record of their work is never maintained.
- Casual unemployment: Such unemployment occurs due to sudden fall in demand, short-term contracts or shortage of raw materials.
- Open Unemployment: Open unemployment refers to when a large number of workers are unable to find a job that can provide them regular income. This problem occurs because the labor force grows at a rate much higher than the growth rate of the economy.
Causes of unemployment in India
- Population growth: India has a large and growing population, which puts pressure on the job market and can lead to high levels of competition for jobs.
- Lack of skills and education: A significant portion of the Indian workforce lacks the necessary skills and education to meet the demands of the modern job market. This can lead to structural unemployment, where there are jobs available but not enough workers with the required qualifications to fill them.
- Agriculture sector: The agriculture sector is a significant source of employment in India, but it is often characterized by low productivity, low wages, and seasonal work, which can lead to high levels of underemployment. Major part of the country’s population is engaged in agriculture. Being a seasonal business, it provides work opportunity only for a certain time of the year.
- Slow economic growth: India's economy has been growing at a slower rate in recent years, which can lead to a decrease in job creation and an increase in unemployment.
- Informal economy: A large portion of the Indian economy is informal, with many workers operating in low-paying, low-skill jobs that are not protected by labor laws. This can make it difficult to accurately measure the extent of unemployment in the country.
- Fall of Cottage and Small industries: The industrial development had adverse effects on cottage and small industries. The production of cottage industries began to fall and many artisans became unemployed.
- Social Factors: In India the caste system is prevalent. The work is prohibited for specific castes in some areas. In big joint families having big business, many such persons will be available who do not do any work and depend on the joint income of the family.
- Gender inequality: Women in India face significant barriers to accessing formal employment, including discrimination and a lack of education and training opportunities.
- Government policies: Policies such as labor laws, minimum wages, and regulations can have an impact on the job market and may discourage companies from hiring new workers.
Impact of unemployment
Unemployment has a significant impact on the Indian economy and society, including:
- Poverty: Unemployment can contribute to poverty and inequality, particularly among those who are unable to find work or who are underemployed.
- Economic growth: Unemployment can slow economic growth, as it reduces the purchasing power of individuals and limits consumer spending, which in turn can negatively impact businesses and industries.
- Social unrest: High levels of unemployment can lead to social unrest and political instability, particularly if large numbers of young people are unable to find work.
- Health: Unemployment can have a negative impact on mental health and well-being, as well as physical health due to reduced access to healthcare and a lack of resources to manage chronic conditions.
- Education: Unemployment can limit access to education and training opportunities, particularly among those who are unable to afford education and training programs.
- Crime: Unemployment can contribute to an increase in crime rates, particularly among young people who are unable to find work or who are underemployed.
- Family dynamics: Unemployment can have a negative impact on family dynamics, particularly if a sole breadwinner is unable to find work, leading to financial stress and strain.
Overall, unemployment has a significant impact on both the individual and the wider society. Addressing the causes of unemployment and promoting job creation and economic growth are crucial to improving the standard of living and well-being for all in India.
Measure to solve unemployment problem
There are several measures that could be taken to address unemployment in India, including:
- Promoting economic growth: Policies that encourage investment and business growth, such as tax incentives, can lead to job creation and help reduce unemployment.
- Skills development: Investing in education and skills development can help to address the skills gap and improve employability. This could include vocational training, apprenticeships, and other programs aimed at improving the skills of the workforce.
- Supporting small and medium-sized enterprises: Small and medium-sized businesses are often significant job creators, and policies that support the growth of these businesses can help to create employment opportunities.
- Encourage entrepreneurship: Encouraging entrepreneurship and supporting the growth of small and medium-sized businesses can help to create job opportunities.
- Investment in infrastructure: Investing in infrastructure, such as transportation networks, energy systems, and digital infrastructure, can create employment opportunities and improve economic growth.
- Promote innovation and research: Investing in innovation and research can help to create new industries and job opportunities.
- Encourage foreign investment: Encouraging foreign investment can lead to job creation and help to address the problem of unemployment.
- Addressing gender inequality: Policies that address gender inequality and promote the participation of women in the labor force can help to reduce unemployment rates.
- Labor market policies: Policies that protect workers' rights and promote fair labor practices can help to reduce unemployment rates and improve working conditions for those who are employed.
- Rural development: Rural areas are often characterized by high levels of underemployment and low productivity. Policies that support rural development, such as investment in agriculture and rural infrastructure, can help to create employment opportunities in these areas.
Overall, addressing unemployment in India will require a multi-faceted approach that includes both short-term and long-term measures aimed at improving economic growth, addressing skills gaps, promoting labor market policies, and supporting the growth of small and medium-sized enterprises.
Government initiatives to reduce unemployment
Along with reducing the problem of unemployment, the Government of India has started various programs to help the unemployed in the country. The Government of India is encouraging various projects involving substantial investment and public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP) of the Ministry of Micro, Small & Medium Enterprises, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) & Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) of the Ministry of Rural Development, Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) of the Ministry of Housing & Urban Affairs etc. for employment generation.
Besides these initiatives, various flagship programmes of the Government such as Make in India, Start-up India, Digital India, Smart City Mission, Atal Mission for Rejuvenation and Urban Transformation, Housing for All, Infrastructure Development and Industrial Corridors are also oriented towards generating employment opportunities.
Apart from providing employment opportunities through these programs, the government is also sensitizing the importance of education and providing skill training to the unemployed.
Coclusion
Unemployment is one of the main problems faced by developing countries. Unemployment is one of the major hindrances in the development of any country. Unemployment is a serious issue in India. Lack of quality education and skill, lack of employment opportunities and performance problems are some of the factors that lead to unemployment. It is not only one of the major obstacles standing in the economic development of the country but also has many negative effects on the individual and the whole society at the same time. Government of India needs to take effective steps to eliminate this problem.