A STUDY ON UNEMPLOYMENT

IN INDIA

DONE BY:
ASHRITA CHAWLA
GRADE-XII
ECONOMICS
 TABLE OF CONTENTS

S.NO TITLE PAGE NO.

SYNOPSIS 3
I INTRODUCTION ON 4
UNEMPLOYMENT
II OBJECTIVES 6
III RESEARCH METHODOLOGY 7
IV LIMITATIONS 8
V UNEMPLOYMENT SCENARIO 9
IN INDIA
VI TYPES OF UNEMPLOYMENT 11
VII CAUSES OF 14
UNEMPLOYMENT
VIII EFFECTS OF 17
UNEMPLOYMENT
IX 20
X GOVERNMENT POLICIES 22
XI SUGGESTING TO REDUCE 26
UNEMPLOYMENT
XII CONCLUSION 26
XIII PICTURES 27
XIV BIBLIOGRAPHY 30
 Synopsis
A country’s economic performance is measured using three key indicators, one of which is
the unemployment rate. When adults who are willing and able to work cannot find a job, it
may be a sign that an economy is producing less than it could. On the other hand,
unemployment is also a natural phenomenon that even healthy economies experience. While
the official unemployment rate is helpful in representing the state of a nation’s workforce, it
does have some shortcomings that should be considered, such as excluding discouraged
workers.

There are three types of unemployment that economists describe: frictional, structural,
and cyclical. During recessions and expansions, the amount of cyclical unemployment
changes. Cyclical unemployment is closely related to the business cycle, and causes the
deviations of the current rate of unemployment away from the natural rate of unemployment.

In this study, an attempt is made to understand the different types of unemployment in India,
its reasons and effect on the Indian economy. The project also highlights the policies taken by
the government to reduce unemployment. The data is collected from secondary and primary
sources. A structured questionnaire was prepared then the data was collected by making a
google form and was circulated online. The respondents were of Uttar Pradesh, Delhi and
Tirupur.
 I.Introduction on unemployment
Unemployment is the common thing which is faced by many countries in the world, not
keeping in mind of their development and other measures through which it looks developed.
But the unemployment differs from a developed country to a underdeveloped and developing
country.

It is a major problem for the country and it indicates a situation where the total number of job
vacancies is much less than the total number of job seekers in the country. It is the place where
an unemployed person cannot find a meaningful or gainful job when the person is ready to
work by any means.

The unemployment rate is the measure of prevalence of unemployment and it can be calculated
by dividing the number of unemployed individuals by all the individuals currently in the labour
force.

Unemployment can have many sources, such as the following:

• New technologies and inventions.

• The status of the economy, which can be influenced by a recession.
• Competition caused by globalization and international trade.
• Policies of the government.
• Regulation and market.

Unemployment and the status of the economy can be influenced by a country through, for
example, fiscal policy. Furthermore, the monetary authority of a country, such as the central
bank, can influence the availability and cost for money through its monetary policy.

In addition to theories of unemployment, a few categorisations of unemployment are used for

more precisely modelling the effects of unemployment within the economic system. Some of
the main types of unemployment include structural unemployment, frictional unemployment,
cyclical unemployment, involuntary unemployment and classical unemployment. Structural
unemployment focuses on foundational problems in the economy and inefficiencies inherent
in labour markets, including a mismatch between the supply and demand of laborers with
necessary skill sets. Structural arguments emphasize causes and solutions related to disruptive
technologies and globalization. Discussions of frictional unemployment focus on voluntary
decisions to work based on individuals' valuation of their own work and how that compares to
current wage rates added to the time and effort required to find a job. Causes and solutions for
frictional unemployment often address job entry threshold and wage rates.

According to the UN's International Labour Organization (ILO), there were 172 million people
worldwide (or 5% of the reported global workforce) without work in 2018.

Because of the difficulty in measuring the unemployment rate by, for example, using surveys
(as in the United States) or through registered unemployed citizens (as in some European
countries), statistical figures such as the employment-to-population ratio might be more
suitable for evaluating the status of the workforce and the economy if they were based on
people who are registered, for example, as taxpayers.
 II.Objectives
• To analyse the types of unemployment in India.
• To study the main causes and effects of unemployment in India..
• To understand the different programmes initiated by the government to control
unemployment.
• To suggest methods to reduce unemployment.
 I. Research methodology

The study is based on secondary data and primary data. Secondary data is mostly collected
from websites, newspapers and some published books(including ncert). Primary data is
collected through a structured questionnaire with the help of google form. A total of 20
respondents were surveyed from the parts of Uttar Pradesh, Delhi and Tirupur.
 II.Limitations
• The primary data is collected from Delhi, Uttar Pradesh and Tirupur only.
• Primary data is collected from 20 respondents only.
• This project also contains data from secondary sources and it may not be accurate and
it mostly contains outdated information.
• The study was conducted for a short period of time.
 The unemployment scenario in India
India is one of the country who is badly hit by unemployment and it is still suffering. But the
unemployment is not the reason for deficiency of effective demand in Keynesian term but it is
the shortage of capital related things and many other resources and high growth of population.
By the UN labour report which was released in January 2017 one can state that Unemployment
in India had increased from 17.7 million in 2017 to 17.8 million in 2018 and would increase to
18 million in 2018. If we talk in terms of percentage it is 3.4 per cent in 2017-18. Most of the
unemployed people are found to be youth.
By the India skills report which was launched in 3rd CII National Conference on Skill
Development, 96 percent were found unemployable out of 100,000 candidates. It not only
shows the skills or talents of people but also how the labour had been hired by major industries.
The employers must look for skills rather than qualifications of a person. Because the
qualifications cant show the ability of a person.
They warned that the rate of jobless growth could severely impact India’s economy which
depends heavily on the middleclass population, engaged primarily in salaried jobs and
entrepreneurship. While GDP growth in India had been falling since the beginning of last year,
the coronavirus shock in 2020 had an overwhelming impact on India’s economy and jobs.
The pandemic and consequent lockdown laid bare the fragility of India’s formal job market,
which has collapsed.

The United Nations International Labour Organization has published its statistics for
unemployment in India, along with other nations, based on the international standards it has
adopted. In 2017, ILO updated its methodologies to make the labour force, employment and
unemployment trends measurement more accurate and more consistent across countries.
According to the ILO's 2018 World Employment of Social Outlook report, it adopted revisions
and measures for all countries so as to "encompass the inclusion of additional data points (e.g.
new or updated data for countries), removal of inconsistent data entries and revisions stemming
from the application of the internationally agreed criteria in the computation of unemployment
rates in countries where nation-specific, relaxed definitions of unemployment were previously
reported. These changes account for 85 per cent of the downward revision to global
unemployment figures". In 2017, the ILO adopted changes to its overall population data
estimates as well, for each country including India. The ILO uses a complex and diverse set of
population demographics, sample surveys and economic activity indicators to derive its
estimates.
 V.Types of unemployment
Economists primarily focus on three types of unemployment: cyclical, frictional, and structural.
Cyclical unemployment is the unemployment associated with the ups and downs of the
business cycle. During recessions, cyclical unemployment increases and drives up the
unemployment rate. During expansions, cyclical unemployment decreases and drives down the
unemployment rate.

• Disguised unemployment:

It is also known as hidden unemployment, this refers to a situation where labour that is
employed in a job is not actually utilised for the production of goods and services. In other
words, such employment does not contribute to the output of an economy and is thus akin to a
form of unemployment. Sometimes disguised unemployment could simply be a form of
underemployment wherein the skills of a labour force are not utilised to their full capacity. In
many other cases, however, such unemployment could simply be due to the lack of other
alternative avenues of production where the surplus labour could be employed profitably.

• Seasonal unemployment:

The seasonal unemployment is prevalent in those industries which are engaged in seasonal
production activities. Such as agricultural industry wherein the demand for workers is more
during harvesting than is required in other months in a year. Similarly, in the case of a hotel
industry, the demand for the catering staff as well as the housekeeping staff is more during the
peak season as compared to the demand in the off-season.

• Structural unemployment:

Structural unemployment is caused by a mismatch of skills between the unemployed and

available jobs. Structural unemployed is caused by changes in the economy, such as
deindustrialisation, which leaves some unemployed workers unable to find work in new
industries with different skill requirements. Structural unemployment occurs even during
periods of strong economic growth.
 • Cyclical unemployment:

Cyclical unemployment is a type of unemployment which is related to the cyclical trends in

the industry or the business cycle. If an economy is doing good, cyclical unemployment will
be at its lowest, and will be the highest if the economy growth starts to falter .

• Technological unemployment:

Technological unemployment occurs when developments in technology and working practices

cause some workers to lose their jobs. Technological unemployment is considered to be part
of a wider concept known as structural unemployment.

• Frictional unemployment:
Frictional unemployment is unavoidable. The good news is that it's usually short-term. It's one
of the components of natural unemployment. It is the lowest rate of unemployment in a growing
economy. Unemployment below that level means employers can't find enough workers to keep
producing all they can. It slows economic growth. The other component is structural
unemployment. It occurs when workers' skills don't match up with employers' needs.
Frictional unemployment is considered as voluntary unemployment because the reason
for unemployment is not a shortage of jobs, but in fact, the workers themselves quit their jobs
in search of better opportunities.

• Open unemployment:

Open unemployment is a condition in which people have no work to do. They are able to work
and are also willing to work but there is no work for them. They are found partly in villages,
but very largely in cities. Most of them come from villages in search of jobs, many originate in
cities themselves. Such employment can be seen and counted in terms of the number of such
persons. Hence it is called open unemployment. Naked unemployment is another term used for
open unemployment.
 • Educated unemployment:

When it is said that a person is educated in India meaning he has completed school, basic
graduation, but this is not sufficient enough to get a job in India. There are number of factors
contributing to this status, for example:

• Chronic unemployment:
The Chronic Unemployment means prolonged unemployment in the economy. In other
words, chronic unemployment is caused due to the long-term unemployment persisting in
the economy.
 II. Major causes of unemployment in India
Unemployment is caused by various reasons that come from both the demand side, or
employer, and the supply side, or the worker.

From the demand side, it may be caused by high interest rates, global recession, and financial
crisis. From the supply side, frictional unemployment and structural employment play a great
role. The major causes of unemployment are:

o Caste System:

In India caste system is prevalent. The work is prohibited for specific castes in some areas. In
many cases, the work is not given to the deserving candidates but given to the person belonging
to a particular community. So, this gives rise to unemployment.

o Slow Economic Growth:

Indian economy is underdeveloped and role of economic growth is very slow. This slow growth
fails to provide enough unemployment opportunities to the increasing population.

o Increase in Population:

Constant increase in population has been a big problem in India. It is one of the main causes of
unemployment. The rate of unemployment is 11.1% in 10th Plan.

o Agriculture is a Seasonal Occupation:

Agriculture is underdeveloped in India. It provides seasonal employment. Large part of

population is dependent on agriculture. But agriculture being seasonal provides work for a few
months. So, this gives rise to unemployment.

o Fall of Cottage and Small industries:

The industrial development had adverse effect on cottage and small industries. The production
of cottage industries began to fall and many artisans became unemployed.
 o Slow Growth of Industrialisation:
The rate of industrial growth is slow. Though emphasis is laid on industrialisation yet the
avenues of employment created by industrialisation are very few.

o Defective Planning:

Defective planning is the one of the cause of unemployment. There is wide gap between supply
and demand for labour. No Plan had formulated any long-term scheme for removal of
unemployment.

o Inadequate Irrigation Facilities:

Even after the completion of 9th five plans, 39% of total cultivable area could get irrigation
facilities. Due to lack of irrigation, large area of land can grow only one crop in a year. Farmers
remain unemployed for most time of the year.

o Immobility of labour:

Mobility of labour in India is low. Due to attachment to the family, people do not go to far off
areas for jobs. Factors like language, religion, and climate are also responsible for low mobility.
Immobility of labour adds to unemployment.

o Low level of education:

A low level of education is a main cause of unemployment. The better qualified people are, the
easier it is to find a job since the demand for well-qualified people is quite high.
In contrast, when people lack proper education, these people are at great risk for unemployment
since companies often do not want to employ them. Here technical or vocational education is
not yet provided so there is more of unemployment.
o Physical health problems:
Physical health issues may also contribute to an increased probability of unemployment.
Especially people who are suffering from disabilities may have it hard to find a job since
companies often refrain from employing disabled people.
Additionally, if you suffer from other serious health issues like chronic diseases, companies
may not want to employ you since they fear that you will often be sick and not a productive
worker.
 o Gender discrimination:
In some countries, there is still a huge gender gap between men and women. Women are often
not treated equally compared to men, which also translates into significantly worse job
opportunities.
Moreover, in some cultures, women are meant to stay at home and take care of the kids instead
of pursuing a career, which further increases the risk of unemployment since companies may
not be willing to employ women in these regions.
 III. Effects of unemployment
The impact of unemployment can be felt by both the workers and the national economy and
can create a ripple effect.

Unemployment causes workers to suffer financial difficulties that may lead to emotional
destruction. When it happens, consumer spending, which is one of an economy’s key drivers

of growth, goes down, leading to a recession or even a depression when left unaddressed .

Unemployment results in lowered purchasing power, which, in turn, causes lowered profits for
businesses and leads to budget cuts and workforce reductions. It creates a cycle that goes on
and on and on. Everyone loses in the end.

▪ Mental health issues:

Unemployment can lead to severe mental health problems, especially for people who made
their work their single purpose in life. These people may often find themselves in a difficult
mental state since they just basically lose their whole life once they become unemployed.

Some people may also feel not valuable when they have to stay at home instead of going to
work, which may lead to mental issues like depression.
▪ Lower life expectancy:
Unemployment may also lead to lower life expectancy. Especially people who are unemployed
for a quite long time may lose their will to live at one point since they often lack social contacts
and do not feel like a valuable member of society anymore. Moreover, physical and mental
health issues related to unemployment may further reduce life expectancy for the respective
persons.
▪ Homelessness:
Unemployment may also increase the chance of homelessness. Especially in cities with high
rents, people who become unemployed may struggle to keep their homes since they may no
longer be able to pay their rent.
Once they lose their homes, these people may end up homeless if they do not have family
members or friends who can help them out with accommodation.
 ▪ Poverty:
Unemployment, especially long-term unemployment, may also lead to a significant level
of poverty. Since most people rely on their jobs in order to be able to pay their bills, once these
people lose their jobs, they may no longer be able to afford the things for their daily life and
may suffer from significant poverty.

▪ Social isolation:
Losing your job may also lead you into social isolation. Since we spend so much time in our
jobs, many connections and friendships result out of it.
However, if you are unemployed, chances are that the number of social interactions you have
are quite limited, since many friends of yours may have to work and may not be able to spend
time with you.
Many social evils like dishonesty, gambling and immorality etc. arise due to unemployment. It
endangers law and order situation of the country. It causes social disruption in the society.

▪ Adverse effects on children:

Children who come from families with unemployed parents often have a greater risk of
unemployment themselves since parents often have a great influence on their children.
Imagine you grow up in a family where your mother and father are at home all day long and
do not care about working. Chances are that you might consider this behaviour as normal and
you may behave similarly to them once you turn into a grownup.
▪ Illegal activities:
Unemployed people, especially those who also suffer from drug addiction, may be willing to
engage in serious illegal activities in order to be able to satisfy their addiction since they feel
that they do not have too much to lose and are willing to take the risk to go to jail.
▪ Economic effects:
Apart from the effects of unemployment on individuals, there are also significant adverse
economic effects related to unemployment. Economies lose large amounts of money since they
have to financially support unemployed persons.
Moreover, they also lose significant levels of workforce, which further increases the financial
burden related to unemployment.
 ▪ Political instability:
There is political instability in the country due to unemployment. Unemployed persons
engage themselves in destructive activities. They consider Govts, worthless. Economic
development becomes difficult under conditions of political instability .
 Government policies
Mahatma Gandhi National Rural Employment Guarantee Act 2005:

The Government of India has taken several steps to decrease the unemployment rates like
launching the Mahatma Gandhi National Rural Employment Guarantee Scheme which
guarantees a 100-day employment to an unemployed person in a year. It has implemented it in
200 of the districts and further will be expanded to 600 districts. In exchange for working under
this scheme the person is paid 150 per day.

Apart from Employment Exchange, the Government of India publishes a weekly newspaper
titled Employment News. It comes out every Saturday evening and gives detailed information
about vacancies for government jobs across India. Along with the list of vacancies, it also has
the notifications for various government exams and recruitment procedures for government
jobs.

Steps taken on Disguised Unemployment:

Agriculture is the most labour absorbing sector of the economy. In recent years, there has been
a decline in the dependence of population on agriculture partly because of disguised
unemployment. Some of the surplus labour in agriculture has moved to either secondary or the
tertiary sector. In the secondary sector, small scale manufacturing is the most labour absorbing.
In case of the tertiary sector, various new services are now appearing like biotechnology,
information technology and so on. The government has taken steps in these sectors for the
disguised unemployed people in these methods.

National Career Service Scheme:

The Government of India has initiated National Career Service Scheme whereby a web portal
named National Career Service Portal (www.ncs.gov.in) has been launched by the Ministry of
Labour and Employment (India). Through this portal, job-seekers and employers can avail the
facility of a common platform for seeking and updating job information. Not only private
vacancies, contractual jobs available in the government sector are also available on the portal.

National Rural Employment Programme:

The National Rural Employment Programme offers people from the rural areas an equal shot
at job opportunities across the nation. The growing disparity in terms of personal finance
between those in the rural and urban areas has increasingly led to people from the rural areas
to move to the urban areas, making urban management difficult. The NREP aims to provide
employment opportunities in the rural areas, especially in times of drought and other such
scarcities.

Deen Dayal Antyodaya Yojana:

The Deen Dayal Antyodaya Yojana is a scheme that aims to help the poor by providing them
industrially recognised skills. The scheme is implemented by the Ministry of Rural
development. The purpose of the scheme is to eradicate both urban and rural poverty from the
country by providing necessary skills to individuals that help them find well-paying job
opportunities.

This is aimed to be achieved through skill training and skill upgrading which enables the poor
to get self-employed, elevate themselves above the poverty line, be eligible for bank loans, etc.

Government and employment generation:

In 2005 the government had passed an Act in the parliament known as National Rural
Employment Guarantee Act, 2005. It promises 100 days of guaranteed wage employment to
all rural households who volunteer to do unskilled manual work. This scheme is one of the
many measures the government has implemented to generate employment for those who are in
need of jobs in rural areas.

Since independence, the union and state governments have played an important role in
generating employment or creating opportunities for employment generation. Their efforts can
be broadly categorised into two:

1. Direct employment: In this, the government employs people in various departments for
administrative purposes. It also runs industries, hotels and transport companies, and
hence, provides employment directly to workers.
2. Indirect employment: When the output of goods and services from government
enterprises increases then, private enterprises which receive raw materials from
government enterprises will also raise their output and hence increase the number of
employment opportunities in the economy.

Training for Self-Employment:

This programme was launched on 15th August, 1979 by the Government of India. It is called
National Scheme of Training of Rural Youth for Self Employment(TRYSEM). 429 objective
of this programme is to reduce unemployment among the youth. During Seventh Plan about
11.6 lakh youth were imparted training under the programme.

Jawahar Rozgar Yojana:

The Jawahar Rozgar Yojana was started on 28th April 1989. The objective of this Yojana is to
provide employment to at least one member of each poor rural family for fifty to a hundred
days a year at a work place near his residence. A special feature of the scheme is that 30% of
the employment generated will be reserved for women. The Central government will finance
80% of the programme and the state government will have to bear only 20% of the expenditure
of this scheme. In 1989, National Rural Employment Programme and Rural Landless
Employment Guarantee Programmes were merged in the yojana.

Self-employment to Educated Unemployed Youth:

In 1983, a scheme namely self-employment of educated unemployed was initiated. Under this
scheme, loans up to Rs. 25,000 are given to those educated unemployed who have no other
financial resources. This scheme is enforced by District Industries Centres. Government will
give 25 percent as subsidy of the loans given by the banks under this scheme.

Nehru Rozgar Yojana (NRY):

This Yojana was started in 1989. There are three schemes under it. Under the first scheme,
subsidy is given to urban poor to set up micro enterprises. In 1995, under this programme, 1.25
lakh families have been benefited. Under the second scheme arrangements have been made for
wage-employment to labourers in cities with less than 10 lakh population by providing Indian
Economic Development and Elementary Statistic 'them basic facilities. In 1995, under this
scheme 93 lakhs man-days of employment have been provided. Under the third scheme, urban
poor in the cities are to be provided employment opportunities in jobs like house repairing etc.
Small and Cottage Industries:

In order to reduce unemployment, government if has made special efforts to develop small and
cottage industries. In 1995-96 about 33 lakh persons were employed in these industries.

Development of Organized Sector:

Many people are getting employment in organized public and private sectors. In 1995-96,
nearly 340 lakh persons got employment in large industries. In 1961, organized public sector
provided employment to 70 lakh persons; now it provides employment to 1 crore and 92 lakh
430 persons. Likewise, in 1961 organized private sector provided employment to 50 lakh
persons; in 2000 it provided employment to 89 lakh persons.

Employment Guarantee Scheme:

This Scheme has been launched in man; states, such as, Maharashtra, West Bengal, Kerala,
Rajasthan etc. Under the scheme unemployed persons are given economic assistance.

Employment Assurance Scheme:

The Employment Assurance Scheme (EAS) was launched in 1994 in 1752 backward blocks in
the country. The main objective was to provide 100 days of unskilled manual work to the rural
poor who are seeking employment.

The Swaran Jayanti Rozgar Yojana:

This plan began on December 1, whereas launching of this yojana, previous programmes meant
for providing employment to urban unemployed like Nehru Rozgar Yojana and Prime Minister
Integrate Urban Poverty Eradication Programme were merged into it. It aims at providing self-
employment or wage employment to urban unemployed and underemployed persons. It
comprises of two plans: (i) Urban Self- Employment Programme-(USE and (ii) Urban Wage
Employment Programme-(UWEP). Of the total expenditure on "Yojana, 75 percent will be
borne by the centre and 25 percent by the state governments. In the year 1997-98, a sum of Rs.
125 crore was spending on this yojana.

Jawahar Gram Samridhi Yojana:

Jawahar Rozgar Yojana has been restructured as Jawahar Gram Samridhi Yojana with effect
from April 1999. This Yojana has been formulated to improve the quality of life of the rural
poor by providing the additional gainful employment.

Additionally, the Economic Survey (2016-17) also indicates a shift in the pattern of
employment from permanent jobs to casual and contract employment. This temporary nature
of work has adversely affected the wages, employment stability and social security of the
workers. The Modi government initiated many new schemes to boost employment in India.
However, these schemes have not so far yielded the expected results.
 XI. Analysis and Interpretation
In the research process analysis and interpretation is the last and an
important part. It helps us to get findings which are interrelated to each
other by applying various techniques of statistics. From the primary and
secondary data we get a lot of meaningful information and can come to a
conclusion.

Analysis and interpretation was based on questionnaire, which gives the

primary data that is required for the study. Analysis and interpretation is
based on the opinion given by the respondent.
Table1.Age of Respondents

Ages No.of Percentage(%)

Respondents

21-25 8 40%

25-30 4 20%

30-35 6 30%

More than 35 2 10%

Total 20 100%

The above table shows that between 21 and 25 of age there

are 8 respondents who are unemployed, 25-30 there are 4
respondents unemployed, 30-35 there are 6 respondents
unemployed and more than 35 there are 2 respondents
unemployed.
Chart1:Age of respondents

Age of respondents
More than 35
10%

21-25
40%

30-35
30%

25-30
20%
21-25 25-30 30-35 More than 35
Table2.Gender of Respondents

Particulars No.of Percentage

respondents

Male 8 40%

Gender Female 12 60%

Total 20 100%

The above table shows that there are 40% male respondents
and 60% female respondents involved in the study.

Chart2:Gender of Respondents
Table3.Qualification of Respondents

Particulars No.of Percentage(%)

respondents

Graduate 11 55%

Qualification Post- 9 45%

graduate

Total 20 100%

The above table shows that there are 55% graduates and
45% post-graduates involved in the study.

Chart3:Qualification of Respondents
Table4:Occupation of Respondents

Particulars No.of Percentage(%)

Respondents

Employed ( in 11 55%
past but
unemployed
now)

Unemployed 3 15%
(still now)

Unemployed(due 4 20%
to some reasons)

Student 2 10%

Total 20 100%

From the above table it can be interpreted that some people

were employed in past but they became unemployed now
and some were unemployed from the beginning and at last
now everyone here are unemployed due to different reasons.
Chart4:Occupation of Respondents

Occupation of respondents
Student, 10%

unemployed(due to
some reasons), 20%

Employed( in past but

unemployed now),
55%

Unemployed(still
now), 15%

Employed( in past but unemployed now) Unemployed(still now)

unemployed(due to some reasons) Student
 Table5.Locality of Respondents

Particulars No.of Percentage(%)

respondents

Urban 15 75%

Locality Rural 5 25%

Total 20 100%

From this table it can be interpreted that 75% of

respondents belong to urban and 25% belongs to rural.

Chart5:Locality of Respondent
Table6.Wish to Work

Particulars No.of Percentage(%)

Respondents

Yes 17 85%

No 3 15%

Total 20 100%

From this table it can be observed that 85% of people wish

to work and 15% people denied to work due to personal and
family responsibilities, no suitable work was found, waiting
for new job to start, want to start their own business.

Chart6:Wish to work
Table7.Awareness about unemployment

Particulars No.of Percentage(%)

Respondents

Yes 18 90%

No 2 10%

Total 20 100%

From this table it can be observed that 90% people are

aware of the unemployment rate increasing in India and rest
10% are unaware.

Chart7:Awareness about unemployment

Table8.Proper job

Particulars No.of Percentage(%)

Respondents

Yes 14 70%

No 6 30%

Total 20 100%

From the table it can be seen that 70% people had a proper
job but 30% people didn’t.

Chart8:Proper job
Table9.Reason for unemployment

Particulars No.of Percentage(%)

Respondents

Own illness or 0 0
disability

Maternity/paternity 2 10%
leave

Personal or family 5 25%

problems

Had no 0 0
transportation

Non availability of 1 5%
suitable job

Covid 2 10%

Already have a job 1 5%

Doing CA 1 5%

Lack of skills 1 5%
 Waiting to start 7 35%
new business

Total 20 100%

From this table it can be inferred that 35% of people are

waiting for new business to start,25% of people are having
personal or family problems,10% of people having
maternity/paternity leave and rest includes non-availability
of work, corona, already have a job, doing CA, lack of
skills.

Chart9:Reasons for unemployment

Table10.Type of work preferred.

Particulars No.of respondents Percentage(%)

Job 12 60%

Business 8 40%

Total 20 100%

From this table it can observed that 60% people wants to do

a job and 40% people wants to start their own business.

Chart10:Type of work preferred.

 Table11.Type of job.

Particulars No.of Percentage(%)

Respondents

Full time 11 55%

Part time 5 25%

Either 4 20%

Total 20 100%

From the table it can be observed that 55% people wants full time
job,25% people wants part time and 20% people are fine with
either type.

Chart11:T.ype of job
Table12.Type of pay

Particulars No.of respondents Percentage(%)

Salary 19 95%

Wages 1 5%

Total 20 100%

From the table it can be interpreted that 95% people are

demanding for salary and rest 5% are demanding for wages.

Chart12:Type of pay
Table13:No.of jobs applied?

Particulars No.of respondents Percentage(%)

Less than 2 4 20%

3 to 5 11 55%

5 to 10 1 5%

More than 10 4 20%

Total 20 100%

From this table it can be inferred that 55% people have

applied for 3 to 5 jobs,20% people applied for less than 2
and more than 10 jobs and 5% people applied for 5 to 10
jobs.

Chart13 No. of jobs applied?

 Table14.Refused to work

Particulars No.of respondents Percentage(%)

No 16 80%

Yes 4 20%

Total 20 100%

From this table it can be interpreted that 20% refused to

work and the reasons can be (waiting for new business to
start, personal or family problems, maternity/paternity leave
and also includes non- availability of work, covid, already
have a job, doing CA, lack of skills) and 80% people never
refused to work.

Chart14:Refused to work
Table15:Government providing employment opportunities

Particulars No.of respondents Percentage(%)

Yes 6 30%

No 14 70%

Total 20 100%

From this table it can be interpreted that 30% people said

yes for government providing employment opportunities
and 70% people said No. So, even if government is providing
employment opportunities people are unaware of it and they
must create awareness through programmes.

Chart15: Government providing employment opportunities

Table16:Cause of unemployment in India

Particulars No.of respondents Percentage(%)

Economic 9 45%
recession

Increased birth 2 10%

rate

Increased 3 15%
technology

Illiteracy 2 10%

COVID 2 10%

More engineering 1 5%
colleges

Partiality 1 5%

Total 20 100%

From this table it can be inferred that 45% people chose

economic recession as cause of unemployment,10% people
chose increased birth rate and illiteracy,15% people chose
increased technology,5% people chose covid, more
engineering colleges, partiality.
Chart16:Cause of unemployment in India
 Table17:Foreigners effect unemployment

Particulars No.of respondents Percentage(%)

Yes 8 40%

No 12 60%

Total 20 100%

From this table it can be seen that 40% people told yes that
foreigners working in India effect the unemployment and
60% told no.

Chart17: Foreigners effect unemployment

Table18:Educational system responsible for unemployment?

Particulars No.of respondents Percentage(%)

Strongly disagree 0 0

Disagree 1 5%

Neutral 11 55%

Agree 5 25%

Strongly agree 3 15%

Total 20 100%

From this table it can be understood that 55% people had

answered neutral, 5% have agreed, 3 % people have
strongly agreed because they felt that current professional
and vocational streams are not aligned to the employment
requirement of the country, and only 1% of people
disagreed for the statement.
Chart18: Educational system responsible for unemployment?
 Table19.unemployment effects common people’s life.

Particulars No.of respondents Percentage(%)

Strongly disagree 0 0

Disagree 1 5%

Neutral 4 20%

Strongly agree 7 35%

Agree 8 40%

Total 20 100%

From this table it can be understood that 40% people have

agreed that unemployment affects common people’s
life,35% people strongly agree because unemployment leads
to stress, poverty, debt, etc, 20% neutral and 5% disagree to
the given statement.

Chart19. unemployment effects common people’s life.

Table20. Unemployment leads to corruption, dishonesty, crimes and
sins.

Particulars No.of respondents Percentage(%)

Strongly disagree 0 0
Disagree 0 0
Neutral 9 45%
Strongly agree 5 25%
Agree 6 30%
Total 20 100%
From this table it can be interpreted that 45% people were
neutral about unemployment leads to corruption, dishonesty,
crimes and sins, 30% people agree and 25% people strongly agree
about the statement.

Chart20: Unemployment leads to corruption, dishonesty, crimes and

sins.
Table21.Unemployment increases suicide rates
Particulars No.of respondents Percentage(%)
Strongly disagree 1 5%
Disagree 2 10%
Neutral 8 40%
Agree 7 35%
Strongly agree 2 10%
Total 20 100%
From this table it can be inferred that 40% people think the
unemployment increases suicide rate is neutral,35% people agree
because they feel without job they cannot manage their family,
10% some people disagree and some strongly agree, 5% disagree.
Chart21: Unemployment increases suicide rates
Table22. Unemployment affects the socio-economics status of the
family

Particulars No.of respondents Percentage(%)

Strongly disagree 1 5%
Disagree 0 0
Neutral 4 20%
Agree 8 40%
Strongly agree 7 35%
Total 20 100%
From this table it can be interpreted that 40% people agree that
unemployment affects socio-economic status of the family, 35%
people strongly agree because the unemployment leads to poverty,
20% people think its neutral and 5% people strongly disagree.

Chart22. Unemployment affects the socio-economics status of the

family
Table23. Unemployment leads to poor mental health.

Particulars No.of respondents Percentage(%)

Strongly disagree 0 0
Disagree 2 10%
Neutral 5 25%
Agree 10 50%
Strongly agree 3 15%
Total 20 100%
From this table it can be understood that 50% people agree and
15% people strongly agree that unemployment leads to poor
mental health as they feel that it leads to depression and develop
low self-esteem, 25% people think its neutral and 10% people
disagree.

Chart23. Unemployment leads to poor mental health.

XII. Suggesting some steps to remove
unemployment
• Controlling of population by introducing family planning methods.
• More employment opportunities can be generated by small scale industries and
there can be compulsory and free education and free food for workers children can
be provided by school.
• Government can provide good loan of interest rates for new startups.
• Can offer full time as well as part time job opportunities along with work from
home for women’s who are not able to go out because of kids and family to take
care of.
• Transform people into entrepreneurs by conducting some self-employment
programmes.
• Education System can be changed in India by including vocational and practical
courses.
• Professional training programmes can be conducted to improve skills.
• More companies or factories and industries can be opened.
• Government can create more industrial related and rural development schemes
and create awareness through programmes.
CONCLUSION

One of the most disturbing problems in India has been the

mounting rate of unemployment, both in the rural and urban

sectors. In case of rural sector, there has been both

unemployment and under employment. In urban sector, there has

been both educated and industrial unemployment. Unless

unemployment problem is solved, the future of India cannot be

bright. There will be no peace and prosperity in the country if

jobless people do not get a proper channel. The government of the

country needs to come up with ways to solve unemployment.

More jobs need to be made available to the youth. The education

system too needs to be revamped so that the educated youth and

others are skilled to take up jobs and find a source of livelihood.

It can be concluded from this study that lack of skills, lack of vocational

Education, partiality, increased birth rate, illiteracy, family and other problems
are the primary reasons for unemployment in India and

people awareness towards government schemes are very much limited.

XIII.PICTURES
The unemployment rate in India comparing (2018-2020):

The unemployment rate has increased a lot this year due to the COVID situation
than the other years.
The unemployment rate during the COVID situation:

It shows the unemployment rate graph was low over the years but
there is a sudden increase this year.
Unemployment rate comparing different states:

The graph shows that Tripura is the most affected city this year.
Unemployment rate comparing different countries:
 The graph shows that Greece has affected a lot.

XIV.Bibliography
Sandeep Garg, Indian Economic Development , Dhanpat Rai Publications,
Chapter-Employment: Growth, Information and other issues, Edition-1st
January 2021
Grade 12 Indian Economic Development Ncert book
Grade 9 economics Ncert book
Macroeconomics by Rudiger Dornbusch, Stanley Fischer, Richard Startz
https://www.khanacademy.org/economics-finance-domain/ap-
macroeconomics/economic-iondicators-and-the-business-
cycle/unemployment/a/lesson-summary-unemploymen
https://corporatefinanceinstitute.com/resources/knowledge/economics/u
nemployment/
https://www.economicshelp.org/macroeconomics/unemployment/causes/
https://environmental-conscience.com/unemployment-types-causes-
effects-solutions/
https://paycheck.in/labour-law-india/social-security/unemployment-
benefits
https://en.wikipedia.org/wiki/Unemployment_in_India#:~:text=Govern
ment%20policies,Mahatma%20Gandhi%20National%20Rural%20Em
ployment%20Guarantee%20Act%202005,unemployed%20person%20i
n%20a%20year
https://byjus.com/govt-exams/unemployment-in-india/
https://courses.lumenlearning.com/boundless-
economics/chapter/introduction-to
unemployment/#:~:text=looking%20for%20work.,Unemployment%2C
%20also%20referred%20to%20as%20joblessness%2C%20occurs%20
when%20people%20are,consequences%2C%20and%20solutions%20fo
r%20unemployment
https://www.indiatoday.in/business/story/how-years-of-jobless-growth-
have-come-back-to-haunt-india-during-covid-19-pandemic-1720748-
2020-09-11
https://en.wikipedia.org/wiki/Unemployment_benefits
https://www.economicsdiscussion.net/articles/suggestions-to-solve-
unemployment-problem/2287
https://economictimes.indiatimes.com/c/cyclicalunemployment/articlesh
ow/51841660.cms
https://www.thebalance.com/cyclical-unemployment-3305520
https://www.economicshelp.org/blog/glossary/technologicalnemploymen
t/#:~:text=Technological%20unemployment%20occurs%20when%20de
velopments,concept%20known%20as%20structural%20unemploy
https://www.livemint.com/technology/tech-news/indians-feel-technology-
will-automate-jobs-but-will-also-make-lives-much-better-
11570172026153.html
https://www.thebalance.com/what-is-frictional-unemployment-
examples-causes-rates-3305517
https://corporatefinanceinstitute.com/resources/knowledge/economics/fr
ictional-unemployment/
https://byjus.com/govt-exams/unemployment-in-india/
https://tradingeconomics.com/india/vulnerable-employment-total-
percent-of-total-employment-wb-data.html
https://www.gktoday.in/gk/types-of-unemployment/
https://www.quora.com/What-are-reasons-behind-educated-
unemployment-in-India
https://businessjargons.com/chronic-unemployment.html
Appendix:

Questionnaire on people’s view on the causes of unemployment in

India

1.Which locality do you belong to?

a. rural

b. urban

2.Do you wish to work or are you unemployed by your own

choice?

a. yes

b. no

3.Do you think unemployment rate has increased in india?

a. yes

b. no

4.Have you ever had a proper job?

a. yes

b. no

5.Reason for unemployment:

a. Own illness or disability

b. Maternity/paternity leave
c. Personal or family responsibilities

d. Waiting for new job to start

e. Had no transportation

f. No suitable work available

g. Other_____________(please specify)

6.Do you want to do a?

a. job

b. Business

7.If you are unemployed, which kind of job you are mainly
looking for?

a. full time

b. part time

c. either

8.The type of pay you prefer?

a. Wages

b. Salary

9.While searching for job, how many jobs did you apply?

a. less than 2

b. 3 to 5

c. 5 to 10
d. more than 10

10.Did you ever refused to work when you were given the chance?

a. yes

b. no

11.Is government providing employment opportunities?

a. yes

b.no

12.what are the main cause of unemployment in India?

a. economic recession

b. increased birth rate

c. increased technology

d. illiteracy

e. other_____________ (please specify)

13.Do you think foreigners working in India effect the

unemployment?

a. yes

b. no

14.Is our educational system also responsible for high

unemployment rate among the educated youth:

a. strongly agree
b. agree

c. neutral

d. strongly disagree

e. disagree

15.Unemployment affects common people’s life?

a. strongly agree

b. agree

c. neutral

d. strongly disagree

e. disagree

16.Unemployment leads to corruption, dishonesty, crimes and

sins.

a. strongly agree

b. agree

c. neutral

d. strongly disagree

e. disagree

17.unemployment increases suicide rates.

a. strongly agree

b. agree
c. neutral

d. strongly disagree

e. disagree

18.unemployment affects the socio-economics status of the

family?

a. strongly agree

b. agree

c. neutral

d. strongly disagree

e. disagree

19.unemployment leads to poor mental health.

a. strongly agree

b. agree

c. neutral

d. strongly disagree

e. disagree

20.suggestion to reduce unemployment?

_______________________________ (please specify)\