NATIONAL LAW INSTITUTE UNIVERSITY,

BHOPAL

ECONOMICS -II

YOUTH UNEMPLOYMENT IN INDIA AND

EFFECTS OF DEMONITISATION

SUBMITTED TO: SUBMITTED BY:

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 ACKNOWLEDGMENT

We would like to express our heartfelt gratitude to Associate Professor Mr. Kumar for helping us
out with project and guiding us at step of the way. Without his support this work would not have
been possible and his contribution is invaluable to us. His classes are always enlightening and
stimulating for any law student.

We would also like to thank the official of Gyan Mandir library, NLIU Bhopal for helping us to
find the appropriate research material for my project. We are deeply indebted to our parents,
seniors and friends for giving us moral support and encouragement. Lastly, we would like to
thank God who has always given us power and strength in every walk of my life.

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 TABLE OF CONTENTS

ACKNOWLEDGMENT...................................................................................................................................2
OBJECTIVES..................................................................................................................................................4
STATEMENT OF PROBLEM...........................................................................................................................4
RESEARCH METHODOLOGY.........................................................................................................................4
REVIEW OF LITERATURE..............................................................................................................................5
INTRODUCTION...........................................................................................................................................5
CYCLICAL UNEMPLOYMENT AND KEYNES...................................................................................................7
YOUTH UNEMPLOYMENT............................................................................................................................8
CAUSES OF YOUTH UNEMPLOYMENT.......................................................................................................10
Labour markets and regulations.........................................................................................................12
Assistance and dependency...............................................................................................................13
RATE OF YOUTH UNEMPLOYMENT IN INDIA AND COMPARISON WITH OTHER COUNTRIES.....................13
EFFECTS OF DEMONITIZATION ON UNEMPLOYMENT…………………………………………….…………………………….18

SUGGESTIONS............................................................................................................................................19
CONCLUSION.............................................................................................................................................21
BIBLIOGRAPHY...........................................................................................................................................22

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 OBJECTIVES

 To understand the meaning and features of unemployment with special reference to youth
unemployment.
 To understand the causes of youth unemployment in India and to analyze the rate of
youth unemployment and comparison with other countries over the recent years.
 To understand the measures taken by government to mitigate the issue of unemployment
in light of demographic dividend and demographic transition.
 To study the adverse effects of demonetization on the Indian economy.

STATEMENT OF PROBLEM
Even if India has high proportion in demographic dividend, the youth population in our country
is facing severe unemployment problems.

RESEARCH METHODOLOGY
Doctrinal method of study was adopted in this Project. Doctrinal research method is the
secondary method of study which involves collection of data from resources such as books,
magazines, articles, research paper etc.

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 REVIEW OF LITERATURE
 JOB CRISIS IN INDIA by RAGHAVAN JAGANNATHAN
This book presents us with insights, explanations, and possible solutions to the aggravating
jobs crisis in India. Raghavan Jagannathan comprehensively and skillfully explains the
various micro and macro factors that impact the overall job scenario, including the rise of the
‘gig’ economy, the use of robots, new technologies and artificial intelligence (AI) that
displace human labor on the shop floor and in the services sector, and the economic
uncertainties that lie ahead. 

 NARRATING UNEMPLOYMENT by DOUGLAS EZZY

The book puts forward the idea that an individual’s response to job loss is a product of the
shape of the story a person tells about their experience.

 THEORY OF UNEMPLOYMENT by A.C. PIGOU

The book focuses on the main factors influencing youth unemployment and the transition into
the work force, bringing together evidence on demographic issues, economic growth and their
interaction with institutions. 

 THE GENERAL THEORY OF UNEMPLOYMENT, MONEY AND

INTEREST by JOHN MAYNARD KEYNES

Keynes’s theory is unquestionably significant in understanding of modern economics. The

book deals with the understanding of various kinds of unemployment and also deals with
measures to curb such situations.

INTRODUCTION

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Definition of unemployment has since 1954, been periodically revised its basic criteria remainsin
tact. According to International labor organization report in 1954, a person issaid to be
considered unemployed, if he or she during the reference period simultaneously satisfies:

 ‘Without work’; i.e, were not in paid employment or self-unemployment as specified by

the international definition.
 ‘Currently available for work’; i.e, were available for paid employment or self-employed
during the reference period; and
 ‘Seeking work’, i.e, had taken specific steps in a specified recent period to seek paid
employment or self-employed.1

Voluntary employment is attributed to individual decisions, whereas involuntary unemployment

exist because of socio-economic environment (including the market structure,
government intervention, and the level of aggregate demand).

TYPES OF UNEMPLOYMENT

1)  Open Unemployment:

Open unemployment is a situation where in a large section of the labour 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 labour force expands at a faster rate than the
growth rate of economy. Therefore all people do not get jobs.

2) Disguised Unemployment:

It is a situation in which more people are doing work than actually required. Even if some are
withdrawn, production does not suffer. In other words it refers to a situation of employment with
surplus manpower in which some workers have zero marginal productivity.2

So their removal will not affect the volume of total production. Overcrowding in agriculture due
to rapid growth of population and lack of alternative job opportunities may be cited as the main
reasons for disguised unemployment in India.

3)  Seasonal Unemployment:

1
https://pdfs.semanticscholar.org/6db7/223d68f4214cab76e5ec9b4fe9b8aec370a.pdf.
2
The increase in the output with the addition of one unit of factors of production is known as marginal productivity.

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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.

4) Cyclical Unemployment:

It is caused by trade cycles at regular intervals. Generally capitalist economies 3are subject to
trade cycles. The down swing in business activities results in unemployment. Cyclical
unemployment is normally a shot-run phenomenon.

5) Educated Unemployment:

Among the educated people, apart from open unemployment, many are underemployed because

their qualification does not match the job. Faulty 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. Educated unemployment may be

either open or underemployment.

6) Technological Unemployment:

It is the result of certain changes in the techniques of production which may not warrant much

labour. Modern technology being capital intensive requires lesslabourers and contributes to this

kind of unemployment.

7) 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.

CYCLICAL UNEMPLOYMENT AND KEYNES

3
Capitalism is an economic system in which capital goods are owned by private individuals or businesses. 

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Keynesian economics are the various macroeconomic theories about how in the short run – and
especially during recessions – economic output is strongly influenced by aggregate demand (total
demand in the economy). In the Keynesian view, aggregate demand does not necessarily equal
the productive capacity of the economy; instead, it is influenced by a host of factors and
sometimes behaves erratically, affecting production, employment, and inflation.

Keynesian economics developed during and after the Great Depression, from the ideas presented
by John Maynard Keynes in his 1936 book, The General Theory of Employment, Interest and
Money. Keynes contrasted his approach to the aggregate supply-focused classical economics that
preceded his book. The interpretations of Keynes that followed are contentious and
several schools of economic thought claim his legacy.

Keynes proposes his alternative based on the relationship between saving and investment. In his
view unemployment arises whenever entrepreneurs’ incentive to invest fails to keep pace with
society’s propensity to save (propensity  being one of Keynes’s synonyms for ‘demand’). The
levels of saving and investment are necessarily equal, and income is therefore held down to a
level at which the desire to save is no greater than the incentive to invest.

The incentive to invest arises from the interplay between the physical circumstances of
production and psychological anticipations of future profitability; but once these things are given
the incentive is independent of income and depends solely on the rate of interest r. Keynes
designates its value as a function of r  as the ‘schedule of the marginal efficiency of capital’.

Keynes begins the General theory with a summary of the classical theory of employment as he
saw it, which he encapsulates in his formulation of Say’s Law as the dictum ‘Supply creates its
own demand’.

Under the classical theory the wage rate is determined by the marginal productivity of labour,
and as many people will be employed as are willing to take work at that rate. Unemployment
may arise through friction or may be ‘voluntary’ in the sense that it arises from a refusal to
accept employment owing to ‘legislation or social practices..or mere human obstinacy’, but ‘the
classical postulates do not admit of the possibility of the third category’ which Keynes defines as
‘involuntary unemployment’.

YOUTH UNEMPLOYMENT

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There are 1.2 billion youth in the world aged between 15 and 24, accounting for 17% of the
world's population. 87% of them live in developing countries4. The age range defined by the
United Nations addresses the period when mandatory schooling ends until the age of 24. This
definition remains controversial as it not only impacts unemployment statistics but also plays an
important role in the targeted solutions designed by policy makers in the world.

Two main debates are ongoing today. First, defining the age range of youth is not as obvious as it
seems. Two theoretical perspectives have dominated this debate. Youth can be seen as a stage in
life between adolescence and adulthood or as a socially constructed group with its own sub-
culture, making it difficult to establish a comparable age range between countries. Second, the
definition of unemployment itself leads to the possibility of not accounting for a number of
young people left out of work. Those who do not have a job and are not actively seeking work –
oftentimes women – are considered inactive and are therefore excluded in unemployment
statistics. Their inclusion would substantially increase the unemployment rate.

Herein it is important to understand the definition of youth employment.

Youth unemployment is the unemployment of young people, defined by the United Nations as

15–24 years old. An unemployed person is defined as someone who does not have a job but is
actively seeking work. In order to qualify as unemployed for official and statistical measurement,
the individual must be without employment, willing and able to work, of the officially designated
'working age' and actively searching for a position. Youth unemployment rates tend to be higher
than the adult rates in every country in the world. 5The youth unemployment rate was around 10
percent in 2005, but they haven't reliably reported statistics to the United Nations over the
years. However, there has been an increase in young adults remaining in school and getting
additional degrees simply because there aren't opportunities for employment. These youth are
typically of a lower class, but it can represent a wide variety of individuals across races and
classes. They call the phenomenon 'timepass' because the youth are simply passing time in
college while waiting for a paid employment opportunity. In India, the employment system is
often reliant on connections or government opportunities

4
A developing country is a country with a less developed industrial base and a low Human Development
Index (HDI) relative to other countries.
5
https://en.wikipedia.org/wiki/Youth_unemployment.

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The aim of this project is to clarify the dimensions of youth unemployment by analyzing the
unemployment in the developing countries, specifically in India.

The problem of youth employment is a global issue. It is important to deeply examine the issues
of youth unemployment because it has high extent to the social factor. High unemployment
means a waste of limited resources and reaccelerates the long run growth potential of an
economy in the result of lower incomes, hence, lower aggregate demand and GDP growth rates.

(Employed doesn’t mean that young people have jobs corresponding their qualifications.)

The issue of unemployment is one of the most debated topics amongst the Indian Youth because
as soon as we speak of Indian youth few things come in our mind which includes:

 Large in numbers (sizeable population)

 Growing in size year after year, decade after decade
 Issue of educational facilities
 And of course- the problem of ‘ unemployment’ amongst them

The reasons behind why the Indian youth faces problem of unemployment has been mentioned
below:

1. Data from the Census clearly indicates that the proportion of Youth in Indian population
has increased over the years.
2. There are now ‘more’ and ‘better’ educational opportunities/facilities.
3. The employment opportunities are also expanding(if not in Govt. Sector but in the private
sector).
4. But in the differential rate of growth in employment opportunities and those becoming
employable (educated) has resulted in increasing problem of unemployment.
5. The growth of employment opportunities are much less compared to those who are
joining the workforce(both skilled and unskilled).

CAUSES OF YOUTH UNEMPLOYMENT

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Alarming growth rate of population: The most important factor is the alarming growth of
population6. The population of our country has exceeded 1.2 billion. We see that the population
is growing fast but there is no expansion of corresponding avenues of employment.

Inadequate growth of economic opportunities: In comparison with the growth of population,

the economic opportunities in the country in trade, industry, commerce, and agriculture have not
proportionately increased, with the result that there are more young men seeking employment
than there are opportunities to absorb them.

Defective Education System: Our system of education is also defective. It is not satisfactorily

related to the socio-economic needs of our people. Since the western system of education was
introduced in this country; people have all along shown a general tendency towards general
higher education. A certain degree of general education was also considered essential for
securing services in public offices and jobs in merchant offices. The lure of lucrative
opportunities in liberal profession have all along attracted the bulk of the young men with the
result that gradually all these lines have become crowded.7

Lack of technical qualification: They do not possess such technical qualifications as would

enable them to take to some technical lines. The society is thus confronted with the problem of
finding openings for the educated young people.

Industrial Unrest: Industrial unrest has also led to lockouts and layoffs.And thus, on the whole,
the situation is growing worse and gradually slipping out of control.

From education to employment: the skills crisis

The quality and relevance of education is often considered as the first root cause of youth
unemployment. In 2010, in 25 out of 27 developed countries, the highest unemployment rate was
among people with primary education or less.Yet, high education does not guarantee a decent

6
Population is the total number of persons inhabiting a country, city, or any district or area.
7
https://www.importantindia.com/16217/causes-and-solutions-of-youth-unemployment-in-india/.

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job. For example, in Tunisia, 40% of university graduates are unemployed against 24% of non-
graduates. This affects highly educated young females in particular. "In Turkey, the
unemployment rate among university educated women is more than 3 times higher than that of
university educated men; in Iran and the United Arab Emirates, it is nearly 3 times; and in Saudi
Arabia, it is 8 times".

Beyond the necessity to ensure its access to all, education is not adequately tailored to the needs
of the labour market, which in turns leads to two consequences: the inability for young people to
find jobs and the inability for employers to hire the skills they need. Combined with the
economic crisis and the lack of sufficient job creation in many countries, it has resulted in high
unemployment rates around the world and the development of a skills crisis. Surveys suggest
that up to half of all businesses have open positions for which they are struggling to find suitably
qualified people. One global survey found that more than 55% of employers worldwide believe
there is a "skill crisis" as businesses witness a growing mismatch between the skills students
learn in the education system and those required in the workplace. For many governments, a key
question is how they can bridge this gap and ensure that young people are equipped with the
skills employers are looking for.

Labour markets and regulations

First, a high level of employment protection regulations causes employers to be cautious about
hiring more than a minimum number of workers, since they cannot easily be laid offduring a
downturn, or fired if a new employee should turn out to be unmotivated or incompetent. Second,
the development of temporary forms of work such as internships, seasonal jobs and short term
contracts have left young workers in precarious situations. Because their jobs are temporary
contracts, youth are often the first to be laid off when a company downsizes. If they are laid off,
youth are typically not eligible for redundancy payments because they only worked with the
company for a short period of time. Once this work ends, many find themselves unemployed and
disadvantaged in the job search. However, some youth are entering work on a part-time basis
during tertiary education. This rate is low in countries like Italy, Spain and France but in the
United States almost one-third of students combine education and work.

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The legitimacy of internships has begun to be questioned. The purpose of internships is to allow
students or recent graduates to acquire work experience and a recommendation letter to add to
their curriculum vitae. However, many interns have complained that they are simply performing
basic grunt-work, rather than learning important knowledge and skills. Whether or not these
internship positions are now violating the federal rules that are in place to govern programs such
as internships remains to be seen. The internship however, seems to be the only viable alternative
to job placement for the young individual. With little to no job growth occurring, the
unemployment rate among those fresh out of college and at the later end of the 15-24 aged youth
spectrum is approximately 13.2% as of April 2012.

Assistance and dependency

Many countries around the world provide income assistance to support unemployed youth until
labour market and economic conditions improve. Although this support is strictly related to
obligations in terms of active job search and training, it has led to an emerging debate on whether
or not it creates dependency among the youth and has a detrimental effect on them. 

RATE OF YOUTH UNEMPLOYMENT IN INDIA AND COMPARISON

WITH OTHER COUNTRIES

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  The following graph shows proportion of youth population i.e, persons including in age
of 15-29 years.

30 26.56 26.65 27.

25.01 25.65 26.08
25
22.01
20

15

10

0
1951 1961 1971 1981 1991 2001 201

Unemployment Rate in India increased to 3.52 percent in 2017 from 3.51 percent in 2016.
Unemployment Rate in India averaged 4.05 percent from 1983 until 2017, reaching an all time
high of 8.30 percent in 1983 and a record low of 3.41 percent in 2014.

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 1 SAUDI ARABIA 25.02%
2 PORTUGAL 23.94%
3 RUSSIA 16.24%
4 UNITED KINGDOM 12.08%
5 CANADA 11.61%
6 DENMARK 10.97%
7 CHINA 10.80%
8 INDIA 10.54%
9 NORWAY 10.30%
10 UNITED STATES OF AMERICA 9.18%
11 PAKISTAN 7.68%
12 GERMANY 6.77%
13 UNITED ARAB EMIRATES 4.94%
14 JAPAN 4.6%
15 FRANCE 22.14%
16 CUBA 5.52%
17 SWITZERLAND 8.06%
18 BHUTAN 10.19%
19 NORTH KOREA 11.67%
20 AUSTRALIA 12.60%

8
www.TheGlobalEconomy.com.

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EFFECTS OF DEMONITIZATION ON UNEMPLOYMENT

Introduction
• The labour market in India has been witnessing numerous uncertainties including the problem
of world recession, and growing ‘automation’ particularly in the manufacturing sector. Today
major policy change like ‘demonetization’ is likely to make the employment scenario further
volatile by causing uncertainties to rise in labour market.

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• Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs
whenever there is a change of national currency: The current form or forms of money is pulled
from circulation and retired, often to be replaced with new notes or coins.
• The opposite of demonetization is remonetisation, in which a form of payment is restored as
legal tender.
• On 8th November 2016, the Government of India has announced the demonetization of all 500
and 1000 banknotes of Mahatma Gandhi Series.
• The move was taken to curb the menace of black money, fake notes and corruption by reducing
the amount of cash available in the system.

Effect of Demonetization on Employment:

• The Centre for Monitoring Indian Economy has estimated that 1.5 million jobs were lost after
demonetization. Alongside this loss of jobs, there has been a decline in the labour force
participation rate (LPR).
• For a developing economy like India, a drop in labour participation rate is a sign of an
economic slowdown.
• The All India Manufacturers’ Organization (AIMO), which represents traders and small-,
medium- and large-scale industries, conducted survey and has found a drop in employment of 60
per cent and loss in revenue of 55 after demonetization last year.

• Effect on Medium and large scale industries:

a) Medium and large scale industries engaged in infrastructure projects, such as big-ticket road
construction, reported a 35% cut in employment and 45% revenue loss. The industries like
foreign companies, engaged in export-oriented activities reported 30% job losses and 40%
revenue fall.
b) In the manufacturing sector, medium and large scale industries reported the least job-losses
are 5% and took a revenue hit of 20%.
c) It is further found that labour intensive units such as food and beverage, tobacco, textile,
leather, wood and jewelry employ nearly half of the total workers in the organized

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manufacturing sector of the economy. Given that nearly 84 percent of total factories have
employment in the range of 0 to 99 are affected by the recent move of the government.

• Effect on Informal Sector:

a. The informal sector presently employs more than 80% of India’s workforce. It includes
workers in small and medium industries, grocers, barbers, maids and others.
b. More than 95% of total transactions in informal sector are in cash form. The decision of
sudden ‘demonetization’ therefore led the labor market dynamics changed significantly by
rendering millions of informal workers exposed to increased uncertainty in employment; they
resorted to ‘reverse migration’.
c. Within manufacturing, labour intensive sectors such as textiles, leather and gems and jewelry
have already reported considerable job losses due to supply chain and market disruptions.
d. Demonetization is considered as a means of increasing formality in informal sector. But a
2009 OECD study on informal economies concluded that enforcing formality can be
counterproductive and lead to an increase in poverty.
e. Many daily wage workers or contract workers were rendered jobless due to paucity of cash in
the system. But even after re-monetization the number of new recruits has been reduced
considerably as compared to pre demonetization.
f. The 2016-17 economic survey also point out the decrease in demand for MGNREGA work in
the aftermath of demonetization.

• Effect on Agriculture:

a. Agriculture was expected to grow at 4% this year according to, but demonetization is likely to
dent that forecast. The impact is visible in different sub-segments. Winter crops such as wheat,
mustard, chickpeas are due for sowing in a fortnight. Wheat prices were already up due to low
stocks and anticipated shortfall in 2015-16 output and have firmed up further as demonetization.
b. The vulnerability of the small farmers in agriculture is best exemplified by the predominance
of marginal and small holdings in the country. Marginal and small holdings account for 85 per
cent of the landholdings. Farmers failed to find buyers or due to dearth of cash ended up getting

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low prices.

• Effect on Self-Employment:

a. Most of the self-employed workers lose their employment during the months of cash crunch.
They don’t able to sell their products because of cash crunch and lack of digital transactions
facilities.

Concerns:

• The drop in labour participation is in line with CMIE’s observation that new investments have
been falling. For a developing economy like India, a drop in labour participation rate is a sign of
an economic slowdown.
• Unlike in developed countries where labour participation is falling because of structural
(ageing) reasons, India is a growing economy with a young population.
• A slowdown hurts the younger new labour force. This is already evident. During January-April
2017, job losses were concentrated in the younger age brackets.

Way Forward

The decline in the Labour Participation Ratio should be a matter of deep concern for the Indian
economy. Persons may drop out of the labour force due to discouragement, the inability to find a
job. In the meantime, they may take up part-time jobs to make ends meet or may be compelled to
start a small business (“forced entrepreneurship”) as a desperate move for their very survival.

A remedy for this dismal state of affairs will not be forthcoming until the government recognizes
the reasons behind this phenomenon. Government should focus on ensuring growth, job creation
and investment. The urgent need is to get the private sector to start investing. One way to avoid
winds of deflation is to kick-start private investments.
There is a concerted attempt to improve ease of doing business, and technology is being used to
deliver public services without leakages.

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 SUGGESTIONS
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 today’s 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. Thus, it is very important for institutes and schools
to conduct career counselling sessions for the children at the right time.
4. Government should encourage and develop the agriculture-based industries in rural areas so
that the rural candidates don’t migrate to the urban areas. More employment should be
generated in rural areas for the seasonal unemployment people.9
5. Rapid Industrialization should be created. More incentives should be given to the people
opening a start-up and this way youthful population will be encouraged to carry out their
work.
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.
8. The introduction of vocational courses for the youth will also be considered a major step that
must be taken on a larger scale.

The situation regarding -

9
https://www.futureofeducation.com/profiles/blogs/problems-and-solutions-to-unemployment-in-india.

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1)Incapable engineers: After getting B.Tech degree no engineer is capable to do work without
at least 6 months or one year of training. This is a burden for companies so they are putting
freshers aside with a simple word “experience”.

2) Demand supply: There are nearly 4000 colleges across India. All producing 15 lakh
engineers per year but for every single job 300 members are competing. The ratio increases
every year due to the previous year unemployed.

3) Outdated syllabus: The technology is changing drastically but the syllabus of colleges is not
changing linearly with present technologies. So how can engineers survive and compete with
people with 10 year old syllabus.

4) Fake Faculty & facility: By the recent rides done on the Telangana state in India 900 fake
faculties have come out. Of course major faculty is also not efficient. The facilities provided
by the colleges are not at all satisfactory.

5) I.T sector development: for the past 10 years I.T sector developed all over the India. So
many people got jobs but the IT companies gave jobs to people who did not know software i.e
from fields like Electronics, Communication, Mechanical, Electrical etc. When I.T sector fails
those people are thrown out.

6) Prestige issue: Some of them feel that the B.tech degree is prestigious than a normal degree
and parents are also forcing them to think that way. In some states some people study
engineering for extra dowry in marriages.

Present scenario of engineering graduates:

1) Training for jobs: Engineers are moving to the major cities near to them with their degree for
training. They are staying and training until they get a job. Big cities like Hyderabad,
Bangalore, Chennai and Pune are filling with graduated and unemployed engineers. So many
training centers are cheating them by taking their unemployment as an advantage.

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2) Ready to do any sort of work: You can find engineering graduates working as private
teachers, bank employees, lecturers at the same college which he studied in. In an ugliest
scenario you can find them as a peon.

3) Going for higher studies: To postpone their unemployment status some are doing M.TECH
and M.E.

CONCLUSION
The youth unemployment is more sensitive to the cycle of economic activity as compared to that
of adult unemployment. The research deals with the definition of unemployment and it primarily
focuses on the problems associated with youth unemployment and the reasons behind, why such
a large youthful population is working more as bane rather than as a boon for the country. This
has been most suitably explained with the help of the situation of engineers in India, who despite
having the skills are still unemployed. Apart from this, the project encompasses the rates of
unemployment across various jurisdictions, which is supported with the help of various graphical
presentations. In furtherance to this, the demographic transition theory, the concept of
demographic dividend and the impact of the age structure of the Indian population on the
economic development has been discussed briefly. The Keynesian theory which is described in
his book-‘The General Theory of Employment, Interest and Money’ highlights the notion of
unemployment and it’s causes.

The percentage decline in employment during a recession is generally greater for youths than for
adults, but the percentage increase in employment during recovery is also greater than for adults.

BIBLIOGRAPHY

 Books:
1. Job crisis in India by RaghavanJagannathan.

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 2. Narrating Unemployment by Douglas Ezzy.
3. Theory of Unemployment by A.C.Pigou.
4. The General Theory of Unemployment, Money and Interest by John Maynard Keynes.

 Websites:
1. https://en.wikipedia.org/wiki/Youth_unemployment .
2. https://tradingeconomics.com/india/youth-unemployment-rate .
3. https://en.wikipedia.org/wiki/Demographic_dividend#India.
4. https://www.importantindia.com/16217/causes-and-solutions-of-youth-
unemployment-in-india/.

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