India as a nation is faced with massive problem of unemployment. Unemployment can be defined as a state of worklessness for a man fit and willing to work. It is a condition of involuntary and not voluntary idleness.
Some features of unemployment have been identified as follows:
1.Unemployment rates for women are higher than those for men.
2.The incidence of unemployment is much higher in urban areas than in rural areas.
3.The incidence of unemployment among the educated is much higher than the overall unemployment.
4.There is greater unemployment in agricultural sector than in industrial and other major sectors.
TYPES OF UNEMPLOYMENT IN INDIA
1.Open Unemployment: Open unemployment is a situation where in a large section of the labor force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons. The labor force expands at a faster rate than the growth rate of economy.
Therefore all people do not get jobs.
2. Seasonal Unemployment: It is unemployment that occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts, ice factories etc., production activities take place only in some seasons. So they offer employment for only a certain period of time in a year. People engaged in such type of activities may remain unemployed during the off-season.
3. Cyclical Unemployment: It is caused by trade cycles at regular intervals. Generally capitalist economics are subject to trade cycles. The down swing in business activities results in unemployment. Cyclical unemployment is normally a shot-run phenomenon.
4. Educated Unemployment: Among the educated people, apart from open unemployment, many are underemployed because their qualification does not match the job. Facility education system, mass output, preference for white collar jobs, lack of employable skills and dwindling formal salaried
jobs are mainly responsible for unemployment among educated youths in India.
5. Structural Unemployment: This type of unemployment arises due to drastic changes in the economic structure of a country. These changes may affect either the supply of a factor or demand for a factor of production. Structural employment is a natural outcome of economic development and technological advancement and innovation that are taking place rapidly all over the world in every sphere.
6. Underemployment: It is a situation in which people employed contribute less than their capacity to production. In this type of unemployment people are not gainfully employed. They may be employed either on part-time basis, or undertake a job for which lesser qualification is required.
7. Casual Unemployment: When a person is employed on a day-to-day basis, casual unemployment may occur due to short-term contracts, shortage of raw materials, fall in demand, change of ownership etc.
8. Chronic Unemployment: If unemployment continues to be a long term feature of a country, it is called chronic unemployment. Rapid growth of population and inadequate level of economic development on account of vicious circle of poverty are the main causes for chronic unemployment.
9. Frictional Unemployment: Frictional unemployment is caused due to improper adjustment between supply of labor and demand for labor, lack of correct and timely information, seasonal nature of work, etc.
CAUSES OF UNEMPLOYMENT IN INDIA
The important causes of unemployment in India are:
- Slow growth in the agricultural sector.
- Defective system of education.
- Absence of manpower planning.
- Inappropriate technology.
- Slow growth of industrial sector.
- Jobless growth.