“A STUDY ON COVID-19 IMPACT ON UNEMPLOYMENT

IN INDIA”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

VAJJRA V VALLATH
(CCASBBARO3)

Under the supervision of

Asst. Prof. KALPA SIVADAS

DEPARTMENT OF MANAGEMENT STUDIES

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON COVID-

19 IMPACT ON UNEMPLOYMENT IN INDIA” is a bonafide
record of project done by VAJJRA V VALLATH, Reg. No. CCASBBAR03,
under my guidance and supervision in partial fulfillment of the requirement for
the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION
and it has not previously formed the basis for any Degree, Diploma and
Associateship or Fellowship.

Prof. C.L. Baby John Asst. Prof. Kalpa Sivadas

Co-ordinator Project Guide
 DECLARATION

I, VAJJRA V VALLATH, hereby declare that the project work entitled

“A STUDY ON COVID-19 IMPACT ON UNEMPLOYMENT IN INDIA” is
a record of independent and bonafide project work carried out by me under the
supervision and guidance of Asst. Prof. Kalpa Sivadas, Department of
Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Irinjalakuda Vajjra V Vallath

Date: CCASBBARO3
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

Principal-in-Charge, Christ College Irinjalakuda for providing various
facilities.

I am thankful to Prof. C.L.Baby John, Co-ordinator of Management Studies,

for providing proper help and encouragement in the preparation of this report.

I am thankful to Asst. Prof. Aslam P.S Class teacher for her cordial support,
valuable information and guidance, which helped me in completing this task
through various stages.

I express my sincere gratitude to Asst. Prof. Kalpa Sivadas, whose guidance

and support throughout the training period helped me to complete this work
successfully.

I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my

college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1–4

CHAPTER 2 REVIEW OF LITERATURE 5–9

CONCEPTUAL
CHAPTER 3 10 – 17
FRAMEWORK

DATA ANALYSIS AND

CHAPTER 4 18 – 37
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 38 – 41
& CONCLUSION

BIBLOGRAPHY

ANNEXURE
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:

4.1 Table shows the age wise classification of respondent. 19

4.2 Table shows the gender wise classification of 20

respondent.

4.3 Table shows the current working status of respondent. 21

Table shows whether the respondent have been able to

4.4 continue learning or working from home during the 22
pandemic days.

4.5 Table shows whether the respondent were unemployed 23

at the time of COVID-19 pandemic.

4.6 Table shows concern about the employment status in 24

the wake of COVID-19 pandemic scenario.

Table shows how respondent agree to the statement

4.7 "There was an increase on unemployment due to 25
COVID-19 pandemic"

4.8 Table shows the job crisis in the economy. 26

4.9 Table shows whether respondent received any 27

advice/help/assistance from the employment service.

4.10 Table shows whether respondent feels the economy is 28

recovering from slowdown.

4.11 Table shows whether respondent have ever refused a 29

job offer after lockdown.

Table shows whether respondent feel the

4.12 education/training they received in past can give them a 30
better job.

4.13 Table shows how respondent feel about the tight 31

competition in the job market after the lockdown.
4.14 Table shows will respondent feel worthless if they are 32
unemployed.

4.15 Table shows will the respondent feel happy in doing the 33
day to day activities if they are unemployed.

4.16 Table showing human resources go waste due to 34

unemployment.

4.17 Table showing whether unemployment lead to 35

exploitation of labour.

4.18 Table showing whether updating and improving with 36

skills can reduce the unemployment.

4.19 Table showing whether by enhancing the educational 37

standards can solve the problem of unemployment.
 LIST OF FIGURES

FIGURE
TITLE PAGE NO:
NO:

4.1 Figure shows the age wise classification of respondent. 19

4.2 Figure shows the gender wise classification of 20

respondent.

4.3 Figure shows the current working status of respondent. 21

Figure shows whether the respondent have been able to

4.4 continue learning or working from home during the 22
pandemic days.

4.5 Figure shows whether the respondent were unemployed 23

at the time of COVID-19 pandemic.

4.6 Figure shows concern about the employment status in the 24

wake of COVID-19 pandemic scenario.

Figure shows how respondent agree to the statement

4.7 "There was an increase on unemployment due to COVID- 25
19 pandemic"

4.8 Figure shows the job crisis in the economy. 26

4.9 Figure shows whether respondent received any 27

advice/help/assistance from the employment service.

4.10 Figure shows whether respondent feels the economy is 28

recovering from slowdown.

4.11 Figure shows whether respondent have ever refused a job 29

offer after lockdown.

Figure shows whether respondent feel the

4.12 education/training they received in past can give them a 30
better job.

4.13 Figure shows how respondent feel about the tight 31

competition in the job market after the lockdown.

4.14 Figure shows will respondent feel worthless if they are 32

unemployed.
4.15 Figure shows will the respondent feel happy in doing the 33
day to day activities if they are unemployed.

4.16 Figure showing human resources go waste due to 34

unemployment.

4.17 Figure showing whether unemployment lead to 35

exploitation of labour.

4.18 Figure showing whether updating and improving with 36

skills can reduce the unemployment.

4.19 Figure showing whether by enhancing the educational 37

standards can solve the problem of unemployment.
 CHAPTER 1

INTRODUCTION
Introduction
On 12 January 2020, the WHO confirmed that a novel corona virus was the cause
of a respiratory illness in a cluster of people in Wuhan city, Hubei, China, which
was reported to the WHO on 31 December 2019. The covid-19 pandemic in India
is part of the worldwide pandemic of corona virus disease 2019 (COVID-19)
cause by severe acute respiratory syndrome corona virus 2 (SARS-Cov-2). The
first case of COVID-19 in India, which originated from china, was reported on 30
January 2020. According to World Health Organization as on 14 August 2020,
number of cases of illness due to the COVID-19 virus on global level has risen up
to 2,07,30,456 confirmed cases and 7,51,154 deaths and on a national level
24,61,190 confirmed cases and 48,048 deaths.

The rapid spread of the COVID-19 virus throughout a country has lead to a lock-
down and social distancing policy in several countries including India. Due to the
social distancing policy and COVID-19 rapid increase have hit the economy
activity o the country as whole. Business across the world namely hospitality,
entertainment, aviation, tourism etc have seen a major negative impact. Factories,
restaurants, pubs, markets, flights, malls, universities, colleges, schools etc were
shut down. The ear of corona virus has limited the movement of individuals.
Direct contact in daily life; including buying and selling transaction have been
decreased significantly. These reductions in business transaction have led to the
lay-off of employees and workers. Major reason noted was, due to the significant
decrease in the sales transaction, which are the key income to the business and
which correspondingly led the business unable to pay salaries or wages of
employees and workers.

The inefficiency to pay-off the salaries or wages has led to the lay-off which
drastically affected the countries unemployment rate. According to Centre for
Monitoring Indian Economy (CMIE) country’s unemployment rate had spike to
27.11% for the week ended May 3, from 7% before the start of the pandemic in
1
mid-march. The purpose of this project is to find out whether unemployment or
lay-off that occurred are influenced by and are related to the COVID-19 pandemic.

1.1 Statement of problem

Based on the topic “COVID-19 impact on unemployment rate in India”, some

questions that need to be revealed in this study are as follows:

• How is the development of COVID-19 outbreak in India?

• How does COVID-19 pandemic affect unemployment in India?

1.2 Objectives of the study

In connection with the problem above, the purpose of the research on “COVID-19
impact on unemployment rate in India” is:

• Knowing the development of COVID-19 outbreak in India.

• Knowing the effects of COVID-19 pandemic on unemployment in India.

1.3 Research design

It is a well-established fact that any research has to be validated based on the

systematic collection and analyzing the data. For this study survey method is
adopted to collect the primary information from the people residing in Thrissur
using a set of questionnaire. The primary data is collected from 50 people residing
in Thrissur and the secondary data is collected from internet and books

1.5.1 Nature of study

For this descriptive and analytical research method is used. The main objective of
descriptive and analytical studies is to depict accuracy.

2
1.5.2 Nature of data

Primary data and secondary data are used.

1.5.3 Source of data

The primary source of data is through a questionnaire. The secondary data is

collected by referring the internet information and other textbooks are used for the
study.

1.4 Sample design

A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure adopted in selecting items for the
sampling design.

1.6.1 Nature of population

The nature of population is finite.

1.6.2 Sample unit

Sample unit represent people residing in Thissur District.

1.6.3 Method of sampling

The method used for sampling here is convenient sampling. The data is collected
through a questionnaire. Samples are selected from people residing in Thrissur.

1.6.4 Size of sample

A sample of 50 people residing in Thrissur has been considered for this study.

1.5 Tools for analysis

The tools for analysis used on this study are bar diagrams, percentage analysis, pie
charts, line charts and tabular representation of data.

3
1.6 Limitations

• The study is limited to 50 people.

• The interpretation is based on assumption that the respondents have given the
correct information.

1.7 Chapterisation

CHAPTER 1 : Introduction

CHAPTER 2: Review of literature

CHAPTER 3: Conceptual framework

CHAPTER 4: Data analysis and interpretation

CHAPTER 5: Findings, suggestions and conclusion.

4
 CHAPTER 2

REVIEW OF LITERATURE

5
2.1 Review of literature

A literature review or narrative review is a type of review article. A literature

review is a scholarly paper, which includes the current knowledge including
substantive findings, as well as theoretical and methodological contribution to a
particular topic. Literature reviews are secondary sources, and do not report new
or original experimental work. Most often associated with academic-oriented
literature, such reviews are a basis or research in nearly every academic field.

Empherical literature

Arnab Roy (2015) carried out a study on youth unemployment conditions in

India. The India is a fastest economic growing country in world. However, the
growths of youngsters’ population were occurred unemployment. The
unemployment is common for both developed and developing countries. The
education level is increased but the skill development is quiet critical subject. The
study focuses on youth unemployment, unemployment trend among youth,
problems faced by youth and challenges faced by youth. For the census of 2011,
28 % of youths were unemployed. More over 93 % of youths are working in
informal sector. The most important point is 40 % of Indian population aged
between 13 to 35 years. The current scenario youth is prone to frustration and lack
of interest to do something. The world development report is report on 2013, 9 %
of males and 11 % female youths are unemployed. Finally, this study concluded
that India need to create over one million jobs per annum.

Jabir Hasan Khan & Shemshad (2012) carried out a study on unemployment
levels of socio-economic deprivation in India: A regional prospective.
Unemployment is a very important problem compared to other problems in the
world. It is create severe problems like poverty, malnutrition and under nutrition,

6
hunger, houseline’s’, slums and squatter settlements, crimes, child labour,
inequality and begging. The study examine the various forms of unemployment in
India to inspect the geo graphical scale of socio-economic deprivation, to discover
the connection between the unemployment (dependent variable) and socio-
economic variables of deprivation (independent variables) in India. The study area
selected from whole India including union territories. Data collection was carried
out from secondary data like census of India publications New Delhi. The study
methodology is test of hypothesis and simple linear regression model. The results
shows the level of unemployment was high in northern parts of India compared to
southern parts of India and the level of socioeconomic deprivation was high in
northern central states.

Jaganath Behera (2013) carried out a study jobless growth in India in 2000’s.
This present study mainly concentrate on growth in output and employment in the
post reform era, nature of employment in the post reform era and relationship
between productivity and employment elasticity. The necessary data’s are carried
out from national account statistics (NAS) and national sample survey
organization (NSSO). This study were contains the detail of broad trends of out of
the Indian economy and growth in employment. In India 51 % of population were
worked in self-employment, 33 % peoples are causal labours and 16 % peoples are
regular labour. Data was carried out from 66th NSS report. The result shows that
to increase the national production capacity and increase exports on products.

Ritu & Nareshkumar (2013) carried out a study on trend and pattern of
unemployment and inflation in India. The Indian economy is a third largest
economy in the world, at the same time the growth of Indian economy was very
slow. For this situation lot of reasons were takes placed like poverty,
unemployment, inflation, fiscal deficit, account deficit and depreciation of rupees
value. The Indian population is increased in the rate of 2.1 % per year. In this
study shows India is the second highest unemployment country in the world after

7
South Africa. The unemployment rate is 9.8 million in January 2010. It is increase
to 10.8 million after January 2012. The work force is 47.2 crore. In India 52 %,
work forces are self-employed, 18 % of work force is monthly or daily wages
employees and 30 % employees are casual labours. The study focuses on factors
affecting inflation like increase in public expenditure, deficit financing and erratic
agriculture growth. Finally, it is concluding that inflation can be control by tight
monetary policy and unemployment can be reducing by expansionary fiscal
policy. The trend and pattern of inflation unemployment was 16.36 % and 11 %
(projected values) by 2020.

Elena Philip & Anthonima K. Robin (2015) carried out a study on globalization,
employment unemployment in India. This study based on the analysis of
globalization, Indian economy, employment and unemployment in India. The
study focuses on know the conditions of employment in different sectors and to
provide suggestions for employment opportunities. The data collection was carried
out from secondary data. The India having large number of youngsters in world
that people’s age is below 40. The employments of those peoples were very
difficult. The most of the youngsters from urban and semi-urban areas is
employed, but the people who came from rural areas are still seeking for
employment. This study was carried out the details of statistical reports about
agricultural and non-agricultural employment, surveys on employment and
unemployment in past years, employments in public and organized private sectors
in previous years and percentage distributions of workers in formal/informal
employments. From the survey, it is note that India is having 2.8 percentages of
open unemployment and 4.41 percentages of under unemployment. Overall
unemployment rate was 7.32 percentages. Finally, there is a need to generate the
employment opportunities. The jawahar rozgar yojana and the prime ministers
gram rozgar yojana shames will hope to reduce the level of under unemployment.

8
Bashir Ahmad Sofi & Effat Yasmin (2011) carried a study on magnitude of
educational unemployment among rural youth of Jammu and Kashmir. The
unemployment rate is depends on economic growth of the country. When the
production of country is increased and the employment has increased. In past
decades, India developed in economics growth, production, population and
employment as well as the unemployment rate increased. Every five years plans
have been provide employment opportunities, but it not enough compared to our
youth population. The unemployment was very high in rural India. The important
reasons for the unemployment are defective educational system, lack of
entrepreneurship and mismatch the skill requirements of employers. The study
focuses on examine the pattern and rate of unemployment in Jammu and Kashmir,
to list out main reasons for unemployment, to work out the role of employment
exchanges. Data collection was carried out from Secondary data. The study was
deeply discussed the unemployment rate and scenario of Pulwama district. The
result shows that education system is yet in a uneven position. Its focus is
concentrate on theory rather than on practical knowledge.

Sanjay Kumar (2012) carried out a study on unemployment in India: An over

view. This study is focusing on the over view of Indian unemployment scenario.
This paper was carrying details of types of unemployment, causes of
unemployment in India and provides suggestion to reduce unemployment. There
are many types of unemployment are available like structural unemployment,
cyclical unemployment, seasonal unemployment, under unemployment, open
unemployment, voluntary unemployment, in voluntary unemployment, educated
unemployment and frictional unemployment. The study focuses on causes of
unemployment are rapid population growth, limited land, seasonal agriculture,
fragmentation of land, backward method of agriculture, decline of cottage
industries, defective in education system and lack of transport and communication.
The study provided various suggestions to reduce the unemployment like to

9
control population, to change the education system for current needs and increase
the national production capacity.

Kiran .R & Subashini .K (2014) carried out a study on impact of economic

growth on employment in India. The study concentrates on economic growth and
employment opportunities after Independence. The India had a second fastest
growing economy after China. The gross domestic product (GDP) and national
capital incomes are always growing but the employment rate is not growing
compared to growth of GDP and national capital incomes. The study was
discussed the economic growth statistics and GDP growth from 1950 to 2012.
This study shows that India having fastest economic growth compared to other
country, but the employment provisions was lacked in various reasons. The
government will concentrate to rectify those factors immediately and its increase
the employment opportunities in India.

10
 CHAPTER 3

CONCEPTUAL REVIEW

11
12
3.1 Conceptual framework

The state of being without any work yet looking for work is called unemployment.
Economists distinguish between various overlapping types of and theories of
unemployment, including cyclical or Keynesian unemployment, frictional
unemployment, structural unemployment and classical unemployment. Some
additional types of unemployment that are occasionally mentioned are seasonal
unemployment, hardcore unemployment, and hidden unemployment.

Though there have been several definitions of "voluntary" and "involuntary

unemployment" in the economics literature, a simple distinction is often applied.
Voluntary unemployment is attributed to the individual's decisions, but
involuntary unemployment exists because of the socio-economic environment
(including the market structure, government intervention, and the level of
aggregate demand) in which individuals operate. In these terms, much or most
of frictional unemployment is voluntary since it reflects individual search
behavior. Voluntary unemployment includes workers who reject low-wage jobs,
but involuntary unemployment includes workers fired because of an economic
crisis, industrial decline, company bankruptcy, or organizational restructuring.

On the other hand, cyclical unemployment, structural unemployment, and classical

unemployment are largely involuntary in nature. However, the existence of
structural unemployment may reflect choices made by the unemployed in the past,
and classical (natural) unemployment may result from the legislative and
economic choices made by labour unions or political parties.

The clearest cases of involuntary unemployment are those with fewer job
vacancies than unemployed workers even when wages are allowed to adjust and so
even if all vacancies were to be filled, some unemployed workers would still
remain. That happens with cyclical unemployment, as macroeconomic forces

13
cause microeconomic unemployment, which can boomerang back and exacerbate
those macroeconomic forces.

Types of Unemployment

1. Demand deficient unemployment

It occurs when there is insufficient demand in the economy to maintain full

employment.

In a recession (a period of negative economic growth) consumers will be buying

fewer goods and services.

Selling fewer goods, firms sell less and so reduce production.

If firms are producing less, this leads to lower demand for workers – either
workers are fired, or a firm cuts back on employing new workers. In the worst
case scenario, the fall in demand may be so great a firm goes bankrupt, and
everyone is made redundant.

Demand deficient unemployment is associated with the theory of J.M.Keynes who

developed his General Theory of Money (1936) against a backdrop of the Great
Depression. During the Great Depression, unemployment soared in the US due to
the collapse of demand and fall in the money supply.

1.1 Problems of Demand Deficient Unemployment

Negative multiplier effect: In many cases, a rise in demand deficient

unemployment can further depress aggregate demand and make the recession
worse. Rising unemployment leads to lower demand and lower economic output,
causing a further decline in demand for workers. Furthermore, the rise in
unemployment causes a decline in consumer confidence as households worry that
they may be made unemployed. It can create a cycle of falling demand and rising
unemployment.

14
Youth unemployment rates: Unemployment rates amongst young workers often
increase the most during a recession. Older workers may get laid off, but the
biggest brunt is borne by young workers who find firms are not taking on new
staff. It is easier for a firm to cut back on hiring new workers than make existing
staff redundant under current labour market legislation.

Hysteresis: Demand deficient unemployment may also lead to a higher rate of

long-term unemployment. When people are made unemployed they may become
de-skilled and demotivated. Therefore, they may find it more difficult to get work
in the future. Therefore a period of demand-deficient unemployment could cause
higher structural unemployment and reduce the economies long-term productive
capacity.

2. Frictional unemployment

This is unemployment that occurs from the inevitable time delays in finding new
employment in a free market. It may also be called ‘search unemployment’ as it
relates to the time taken to search for new employment.

For example, if you graduate from university, you can’t necessarily expect to find
a job straight away which matches your skills. This period of searching for a job is
known as frictional unemployment.

Frictional unemployment will also occur when people are switching between jobs,
either because they have been made redundant or are looking for new
employment.

It would generally be classed as voluntary unemployment because workers are

choosing to remain unemployed rather than get the first job that comes along.

15
3. 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.

It is a form of supply-side unemployment and not insufficient aggregate demand
(AD). Policies to reduce structural unemployment include retraining and
geographical subsidies. Fiscal or monetary policy to boost AD will be ineffective
in solving structural unemployment.

3.1 Causes of Structural unemployment

Geographical immobility: This occurs when workers are unable to move from
areas of high unemployment to areas with labour shortages. This could occur due
to the difficulties of buying/renting a house. It could also be due to family
attachments to their current area. For example, often there are vacancies in London
but unemployment in outlying regions. However, it is difficult for the unemployed
to leave the northeast and find a place to live in London.

Occupational immobility: This occurs after changes in the economy, which lead
to shifting demand for skilled labour. For example, if there is a closure of
manufacturing firms, workers with skills for these types of jobs may struggle to
relocate in new industries where very different skills are required (e.g. IT skills,
teaching, accountancy). It takes time for people to retrain and older workers may
feel it is too difficult.

16
4. Voluntary unemployment

It refers to the situation when the worker deliberately chooses not to work because
of a low wage scale or not able to find out the suitable employment for him.

In other words, the voluntary unemployment is when the person decides not to
participate in the labor market, not because of the unavailability of jobs, but
because of not finding the jobs of his/her choice or is not satisfied with the wage
system.

The voluntary unemployment also gets created when the worker is neither willing
to work nor searches for a job, as he is satisfied with the amount given by the
government in the form of unemployment benefits. High-income tax rates could
also be one of the reasons behind a worker not choosing to work.

The lack of job information can lead to the unemployment. Such as first-time job
seeker might not have sufficient information about the nature of a job and decides
to remain unemployed until the time he gets the desired opportunity. Frictional
unemployment is also a form of voluntary unemployment wherein the worker
deliberately leaves his job in the search for better job pursuits.

Most of the times the unemployment is involuntary caused due to Socio-economic

factors such as aggregate demand, market structure, government intervention,
technological advancement, etc. The involuntary unemployment is therefore
beyond the worker’s control and unlike voluntary unemployment, it is not explicit
to an individual.

Main Causes of Unemployment in India

1. Cast 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.
17
2. 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.
3. 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.
4. 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.
5. Joint family system: In big 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. Many of them seem to be working but they do not
add anything to production. So they encourage disguised unemployment
6. 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.
7. Slow growth of industrialization: The rate of industrial growth is slow.
Though emphasis is laid on industrialization yet the avenues of
employment created by industrialization are very few.
8. Less savings and investment: There is inadequate capital in India. Above
all, this capital has been judiciously invested. Investment depends on
savings. Savings are inadequate. Due to shortage of savings and
investment, opportunities of employment have not been created.
9. Causes of under unemployment: Inadequate availability of means of
production is the main cause of under employment. People do not get
employment for the whole year due to shortage of electricity, coal and raw
materials.

18
 10. 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.
11. Expansion of universities: The number of universities has increased
manifold. There are 385 universities. As a result of this educated
unemployment or white collar unemployment has increased.
12. 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.
13. Immobility of labour: Mobility of labour in India is low. Due to
attachment to the family, people do not go far off areas for jobs. Factors
like language, religion, and climate are also responsible for low mobility.
Immobility of labour adds to unemployment.

Impact of Unemployment on economy

1. Exploitation of labour: Due to unemployment labourers are exploited.

They have to accept low wages and work under un-favourable conditions.
2. Industrial disputes: Industrial disputes arise because of unemployment. It
has adverse effects on employer-employee relations. Due to industrial
disputes, the unemployment rises.
3. Political instability: There is political instability in the country due to
unemployment. Unemployed persons engage themselves in destructive
activities. They consider Government, worthless. Economic development
becomes difficult under conditions of political instability.
4. Social problems: 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.

19
 5. Increase in poverty: Under the situation of unemployment a man has no
source of income. Unemployment causes poverty. Burden of debt increases,
Economic problems increase.
6. Loss of human resources: Due to unemployment, human resources go
waste. No constructive use of labour force is made. If human resources are
properly used, economic growth of the country will increase.

Other impact of unemployment

• The government suffers extra borrowing burden because unemployment

causes a decrease in the production and less consumption of goods and
services by the people.
• Unemployed persons can easily be enticed by antisocial elements. This
makes them lose faith in the democratic values of the country.
• Unemployment affects the economy of the country as the workforce that
could have been gainfully employed to generate resources actually gets
dependent on the remaining working population, thus escalating socio-
economic costs for the state. For instance, a 1 % increase in unemployment
reduces the GDP by 2 %.
• It is often seen that unemployed people end up getting addicted to drugs
and alcohol or attempts suicide, leading to losses to the human resources of
the country.

20
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

21
Data analysis and Interpretation
Data analysis is a process of inspecting, cleansing, transforming, and molding data
with the goal of discovering useful information, conclusion and supporting
decision-making. In today’s business, data analysis is playing a role in making
decision more scientifically and helping the business achieve effective operation.

Data interpretation refers to the implementation of processes through which data is

received for the purpose of arriving at an inference. The interpretation of data
assigns a meaning to the information analyzed and determines its signification and
implementation.

The importance of data interpretation is evident and this is why it needs to be done
properly. That is to say, the nature and goal of interpretation will vary from
business to business, likely correlating to the type of data being analyzed. For
carrying out any study the importance aspect that researcher need to look after in
relation to any research is with respect to findings of research based upon the
objectives of study. On the basis of this aspect appropriate analysis has been
undertaken in order to achieve the conclusion of research based upon the
objective.

22
Table 4.1 shows the age wise classification of respondent

Age No of respondent Percentage

20-22 9 18%
23-26 20 40%
27-29 5 10%
30 or above 16 32%
Total 50 100%
(Source: primary data)

From the above table 9 belongs to the age group of 20-22 and occupy 18%, 20
belongs to the age group of 23-26 and occupy 40%, 5 belongs to the age group of
27-29 and occupy 10%, and 16 belongs to the age group of 30 or above and
occupy 32%.

Figure 4.1 shows the age wise classification of respondent.

Age group

32% 18%

20-22
10% 40% 23-26
27-29
30 or above

23
Table 4.2 shows the gender wise classification of respondent

Gender No of respondent Percentage

Male 25 50%
Female 25 50%

Prefer not to say - -

Total 50 100%

(Source: primary data)

From the table showing above 25 belongs to the classification of male and occupy
50%, and 25 belongs to the classification of female and occupy 50%.

Figure 4.2 shows the gender wise classification of respondent.

Gender

0%

50% 50%
male
female
prefer not to say

24
Table 4.3 shows the current working status of respondent.

Options No of respondent Percentage

Employed 25 51%
Unemployed 16 33%
Self employed 7 14%
Student 2 2%
Total 50 100%
(Source: primary data)

From the respondent obtain 51% (25 respondent) are currently employed, 33% (16
respondent) are currently unemployed, 14% (7 respondent) are self employed, and
2%(2 respondent) are students.

Figure 4.3 shows current working status of respondent.

current working status

student 2%

self employed 14%

current working status

unemployed 33%

employed 51%

0% 10% 20% 30% 40% 50% 60%

25
Table 4.4 shows whether the respondent have been able to continue learning
or working from home during the pandemic days.

Options No of respondent Percentage

Yes 27 54%
No 23 46%
Maybe - -
Total 50 100%
(Source: primary data)

From the above table 54% of them where able to continue working/learning at the
time of pandemic and 46% of them where not able to work/learn.

Figure 4.4 shows whether the respondent have been able to continue learning
or working from home during the pandemic days.

working/learnig at home during pandemic

yes
46%
no
54%
maybe

26
Table 4.5 shows whether the respondent were unemployed at the time of
COVID-19 pandemic.

Options No of respondent Percentage

Yes 20 40%
No 30 60%
Total 50 100%
(Source: primary data)

From the above table 40% of them where unemployed at the time of pandemic and
60% of them where employed.

Figure 4.5 shows whether the respondent were unemployed at the time of
COVID-19 pandemic.

unemployed during pandemic

40%
yes
no
60%

27
Table 4.6 shows concern about the employment status in the wake of COVID-
19 pandemic scenario.

Option No of respondent Percentage

Strongly agree 21 42%
Agree 10 20%
Neutral 13 26%
Disagree 4 8%
Strongly disagree 2 4%
Total 50 100%
(Source: primary data)

From the above table it is clear that 21 respondent (42%) stongly agree that they
were concerned about their employment status at the wake of COVID-19, 10
respondent (20%) agrees, 13 respondent (26%) is neutral they neither agree nor
disagree, 4 respondent (8%) disagree and 2 respondent that is (4%) srongly
disagree.

Figure 4.6 shows concern about the employment status in the wake of
COVID-19 pandemic scenario.

Concerned about employment

8% 4%

42% Strongly agree

26%
Agree
Neutral
Disagree
20% Strongly disagree

28
Table 4.7 shows how respondent agree to the statement "There was an
increase on unemployment due to COVID-19 pandemic"

Option No of respondent Percentage

Strongly agree 29 58%
Agree 13 26%
Neutral 3 6%
Disagree 1 2%
Strongly disagree 4 8%
Total 50 100%
(Source: primary data)

From the above table it is clear that 29 respondent (58%) stongly agree to the
statement "There was an increase on unemployment due to COVID-19 pandemic ,
13 respondent (26%) agrees, 3 respondent (6%) is neutral they neither agree nor
disagree, 1 respondent (2%) disagree and 4 respondent that is (8%) srongly
disagree.

Figure 4.7 shows how respondent agree to the statement "There was an
increase on unemployment due to COVID-19 pandemic"

Increase in unemployent rate

70%
58%
60%

50%

40%

30% 26%

20%

6% 8%
10%
2%
0%
Strongly agree Agree Neutral Disagree Strongly disagree

29
Table 4.8 shows the job crisis in the economy.

Option No of respondent Percentage

Strongly agree 29 58%
Agree 18 36%
Neutral 2 4%
Disagree 1 2%
Strongly disagree - -
Total 50 100%
(Source: primary data)

From the above table it is clear that 29 respondent (58%) stongly agree about
severe job crisis in the economy, 18 respondent (36%) agrees, 2 respondent (4%)
is neutral they neither agree nor disagree, and 1 respondent (2%) disagree.

Figure 4.8 shows how respondent feel about severe job crisis in the economy.

job crisis in economy

4% 2% 0%

Strongly agree
Agree
36% Neutral
Disagree
58%
Strongly disagree

30
Table 4.9 shows whether respondent received any advice/help/assistance from
the employment service.

Options No of respondent Percentage

Yes 4 8%
No 37 76%
Sometimes 8 16%
Total 50 100%
(Source: primary data)

From the above table 8% of them received advice/help/assistance from the

employment service, 76% of them did noy received advice/help/assistance and
16% of them received it sometimes.

Figure 4.9 shows whether respondent received any advice/help/assistance

from the employment service.

advice/assistance/help
80% 76%

70%

60%

50%

40%

30%

20% 16%

10% 8%

0%
Yes No Sometimes

31
Table 4.10 shows whether respondent feels the economy is recovering from
slowdown.

Options No of respondent Percentage

Yes 23 46%
No 16 32%
Sometimes 11 22%
Total 50 100%
(Source: primary data)

From the above table 46% of them feels the economy is recovering from
slowdown. , 32% feels it is not recovering and 22% of them feels unsure about it.

Figure 4.10 shows whether respondent feels the economy is recovering from
slowdown.

Economy recovering
50%
46%
45%
40%
35% 32%
30%
25% 22%
20%
15%
10%
5%
0%
Yes No Sometimes

32
Table 4.11 shows whether respondent have ever refused a job offer after
lockdown.

Options No of respondent Percentage

Yes 3 6%
No 37 74%
Can’t say 10 20%
Total 50 100%
(Source: primary data)

From the above table 6% of them have refused the job offer, 74% have not
refused any before and 10% of them can’t say about it.

Figure 4.11 shows whether respondent have ever refused a job offer after
lockdown.

Reused job offer

80%
74%
70%

60%

50%

40%

30%

20% 20%

10%
6%
0%
Yes No Can’t say

33
Table 4.12 shows whether respondent feel the education/training they
received in past can give them a better job.

Options No of respondent Percentage

Yes 26 53%
No 14 29%
Sometimes 9 18%
Total 50 100%
(Source: primary data)

From the above table 53% of them feel the education/training they received in past
can give them a better job, 29% does not feel so and 18% of them are unsure about
it.

Figure 4.12 showing whether respondent feel the education/training they

received in past can give them a better job.

60%

53%
50%

40%

30% 29%

20%
18%

10%

0%
Yes No Sometimes

34
Table 4.13 shows how respondent feel about the tight competition in the job
market after the lockdown.

Options No of respondent Percentage

Yes 36 72%
No 6 12%
Sometimes 8 16%
Total 50 100%
(Source: primary data)

From the above table 72% of them feel there is a tight competition in the job
market after the lockdown, 12% does not feel so and 16% of them feel sometimes.

Figure 4.13 shows how respondent feel about the tight competition in the job
market after the lockdown.

80%

72%
70%

60%

50%

40%

30%

20%
16%
10% 12%

0%
Yes No Sometimes

35
Table 4.14 shows will respondent feel worthless if they are unemployed.

Options No of respondent Percentage

Yes 23 47%
No 19 39%
maybe 7 14%
Total 50 100%
(Source: primary data)

From the above table 47% of them feel worthless if they are unemployed, 39%
does not feel so and 14% of them feels maybe.

Figure 4.14 shows will respondent feel worthless if they are unemployed.

Feeling worthless

14%

47%

Yes
No
39%
maybe

36
Table 4.15 shows will the respondent feel happy in doing the day to day
activities if they are unemployed.

Options No of respondent Percentage

Yes 7 14%
No 30 61%
maybe 12 25%
Total 50 100%
(Source: primary data)

From the above table 7% of will feel happy in doing day-to-day activities even if
they are unemployed, 61% does not feel so and 25% of them feels maybe.

Figure 4.15 shows will the respondent feel happy in doing the day to day
activities if they are unemployed.

14%
25%

Yes
No
maybe

61%

37
Table 4.16 showing human resources go waste due to unemployment.

Option No of respondent Percentage

Strongly agree 20 40%
Agree 7 14%
Neutral 13 26%
Disagree 7 14%
Strongly disagree 3 6%
Total 50 100%
(Source: primary data)

From the above table it is clear that 40% stongly agree that human resources go
waste due to unemployment, 14% respondent agrees,4% is neutral they neither
agree nor disagree, 14% disagree and 6% strongly disagree.

Figure 4.16 showing human resources go waste due to unemployment.

6%
14%
40%
Strongly agree
Agree
26% Neutral
Disagree
14% Strongly disagree

38
Table 4.17 showing whether unemployment lead to exploitation of labour.

Option No of respondent Percentage

Strongly agree 27 54%
Agree 15 30%
Neutral 6 12%
Disagree 2 4%
Strongly disagree - -
Total 50 100%
(Source: primary data)

From the above table it is clear that 54% stongly agree that unemployment lead to
exploitation of labour, 30% respondent agrees, 12% is neutral they neither agree
nor disagree, and 4% disagree

Figure 4.17 showing whether unemployment lead to exploitation of labour.

0%

4%
12%
Strongly agree
Agree
54% Neutral
30%
Disagree
Strongly disagree

39
Table 4.18 showing whether updating and improving with skills can reduce
the unemployment.

Options No of respondent Percentage

Yes 40 80%
No 3 6%
maybe 7 14%
Total 50 100%
(Source: primary data)

From the above table 80% of them says updating and improving with skills can
reduce the unemployment, 6% does not feel so and 14% of them feels maybe.

Figure 4.18 showing whether updating and improving with skills can reduce
the unemployment.

90%

80% 80%

70%

60%

50%

40%

30%

20%
14%
10%
6%
0%
Yes No maybe

40
Table 4.18 showing whether by enhancing the educational standards can
solve the problem of unemployment.

Option No of respondent Percentage

Strongly agree 37 74%
Agree 7 14%
Neutral 1 2%
Disagree 4 8%
Strongly disagree 1 2%
Total 50 100%
(Source: primary data)

From the above table it is clear that 74% stongly agree that by enhancing the
educational standards can solve the problem of unemployment, 14% respondent
agrees, 2% is neutral they neither agree nor disagree, 8% disagree and 2%
strongly disagree.

Figure 4.18 showing whether by enhancing the educational standards can

solve the problem of unemployment.

2%
2%
8%

14%
Strongly agree
Agree
Neutral
74% Disagree
Strongly disagree

41
 CHAPTER 5

FINDING SUGGESTIONS AND CONCLUSION

42
Findings

It is revealed that when the global economy is on a slowdown mode no emerging

economy can grow at its normal pace. The Indian economy was grappling with its
own issues and COVID-19 made the matters worse. The industry was facing
demand problems, due to which business houses were reluctant to undertake capex
plans, unemployment was at its peak and exports which were consistently down
for several months. India has the problem could be more acute and long lasting ,
the economy was in parlous state due to Covid-19 struck. Due to the measures
adopted to prevent the spread of the Coronavirus Disease 2019 (Covid-19),
especially social distancing and lockdown, non-essential expenditures are being
postponed. This is causing aggregate demand to collapse across the India. In
addition to the demand reduction, there will also be widespread supply chain
disruptions, as some people stay home, others go back to their villages, imports are
disrupted, and foreign travel is stopped. This will negatively affect production in
almost all industries. Gradually the shock will spread to manufacturing, mining,
agriculture, public administration, construction – all sectors of the economy. This
will adversely affect investment, employment, income, and consumption, pulling
down the aggregate growth rate of the economy. Like India, several international
economies are becoming cognizant of the risk they face by being overly dependent
on one market.

✓ 40% of respondents belongs to the age group of 23-26.

✓ Both male and female occupy equal percentage.
✓ In this project 33% of the respondents are currently unemployed.
✓ It is found that 46% the respondent where not able to continue learning or
working from home during the pandemic days.
43
✓ It is found that 40% of the respondents were unemployed at the time of
COVID-19 pandemic.

44
✓ 42% of the respondent where strongly agreeing that they were concern
about the employment status in the wake of COVID-19 pandemic scenario.
✓ Majority agree to the statement that there was an increase on
unemployment due to COVID-19 pandemic.
✓ Majority feels there is a severe job crisis in the economy.
✓ Majority of the respondent feels worthless and will not be happy in doing
day-to-day activities if they are unemployed.
✓ 72% of respondent feel there is a tight competition in the job market after
the lockdown.

45
Suggestions

The rapid spread of COVID-19 cases has a huge impact on unemployment

because companies could not pay salaries or wages to employees. If the spread
continues to increase, the number of layoff cases that will be suffered by people
will also increase. Therefore, the community is expected to stay indoors and carry
out social distancing and other policies at thier best as what has been
recommended by the Indian government.

✓ As most of them are concerned about their work and will feel worthless and
unhappy while doing the day to day activities when they are unemployed
there must be steps taken to reduce the unemployment rate.
✓ Some of the steps which can reduce the unemployment are, by
developing/improvising the skills and by enhancing the educational
standards
✓ In addition, the government should also be more serious in handling
COVID-19 cases so that they can be overcome faster.

46
Conclusion
1. The COVID-19 case that first appeared on January 12, 2020 in India has
increased its number significantly and has spread to almost all provinces in India.
Even though vaccines have reached and there are still cases seen.

2. The trend between COVID-19 and unemployment shows the same direction.
The higher the number of COVID-19 cases in India, the higher the number of
workers affected by layoffs due to the COVID-19 pandemic. It can be concluded
that COVID-19 pandemic has an effect on unemployment.

47
 CHAPTER 5

BIBLIOGRAPHY

48
Bibliography

Journals:

Bashir Ahmad Sofi & Effat Yasmin (2011)

Jabir Hasan Khan & Shemshad (2012)

Sanjay Kumar (2012)

Ritu & Nareshkumar (2013)

Jaganath Behera (2013)

Kiran .R & Subashini .K (2014)

Arnab Roy (2015)

Elena Philip & Anthonima K. Robin (2015)

Websites:

https://www.slideshare.net/

https://www.researchgate.net/publication/341488867_THE_INFLUENCE_OF_COVI
D-19_ON_UNEMPLOYMENT_IN_INDONESIA

https://www.economicshelp.org/

https://www.thehindu.com/

https://www.who.int/

https://unemploymentinindia.cmie.com/

49
CHAPTER 6

ANNEXURE

50
 COVID-19 Impact on unemployment in
India
Hi I am vajjra v vallath , as a part of academics, we are conducting a study on "impact of
COVID-19 on unemployment in India" among the people residing Thrissur. If you could
sacrifice some of your valuable time to fill in the questionnaire, it would help in the
completion of our study.

1. Name

2. Email id

3. 1. Age

Mark only one oval.

20-22

23-26

27-29

30 or above

4. 2. Gender

Mark only one oval.

Female

Male

Prefer not to say

5. 3. what is your current working status

Mark only one oval.

Employed

Unemployed

self employed

student

6. 4. Have you been able to continue learning or working from home during the
pandemic days?

Mark only one oval.

Yes

No

Maybe

7. 5. where you unemployed at the time of COVID-19 pandemic?

Mark only one oval.

yes

No
8. 6. where you concerned about your employment status in the wake of COVID-19
pandemic scenario?

Mark only one oval.

Agree

Disagree

Neutral

Strongly agree

Strongly disagree

9. 7.how would you agree to the statement "There was an increase on unemployment
due to COVID-19 pandemic" ?

Mark only one oval.

Agree

Disagree

Neutral

Strongly agree

Strongly disagree

10. 8. Do you feel a severe job crisis in the economy ?

Mark only one oval.

Agree

Disagree

Neutral

Strongly Agree

Strongly disagree
11. 9. Have you received any advice/help/assistance from the employment service?

Mark only one oval.

Yes

No

sometimes

12. 10. Do you feel the economy is recovering from slowdown?

Mark only one oval.

Yes

No

Maybe

13. 11. Have you ever refused a job offer after lockdown?

Mark only one oval.

Yes

No

can't say

14. 12. Do you feel the education/training you received in past can give you a better
job?

Mark only one oval.

Yes

No

Sometimes
15. 13. Do you feel there is a tight competition in the job market after the lockdown?

Mark only one oval.

Yes

No

Maybe

16. 14. Do you feel worthless if you are unemployed?

Mark only one oval.

Yes

No

Maybe

17. 15. Will you feel happy in doing the day to day activities if you are unemployed?

Mark only one oval.

Yes

No

Maybe

18. 16. Do you agree that due to unemployment, human resources go waste?

Mark only one oval.

Agree

Disagree

Neutral

Strongly agree

Strongly disagree
19. 17. Do you agree that unemployment lead to exploitation of labour as they have to
accept low wages and work under un-favorable conditions?

Mark only one oval.

Agree

Disagree

Neutral

Strongly agree

Strongly disagree

20. 18. Do you think updating and improving with skills can bring down the
unemployment?

Mark only one oval.

Yes

No

Maybe

21. 19. would you agree to the statement " By enhancing the educational standards can
solve the problem of unemployment"?

Mark only one oval.

Agree

Disagree

Neutral

Strongly disagree

Strongly agree

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