Internal

Introduction:

Unemployment problem refers to a situation when person actively search for job to earn money for his
livelihood but unable to get the same . Unemployment in India is due to many aspects which such as
the improper economic policy, Global situations, population growth etc. Unemployment will have
impact over the economy , social , mental and physical health of the person. Covid-19 outbreak further
enhanced the problem of unemployment in India.

With apprehension of fourth COVID wave and raising population the unemployment rate will further get
even worse if it is not tackled by effective measures of economic policies and welfare scheme by the
government

Analysis:

According to former chief economic adviser to the Government of India Arvind Subramanian “the pace
of job creation has been on a steady decline since 2011

The problem of unemployment further increased due to “Note bandi or Note ban” decision by the
government which majorly hit the small and medium scale industries . Also further to it inefficient
implementation of GST is one more criteria which impacted the small and medium scale industries.

With the COVid-19 outbreak in early 2020 in India and consequent lockdown seriously damaged the
industrial structure in India leading to sudden raise in unemployment

Data from the Centre for Monitoring Indian Economy shows that “country has been affected by severe
unemployment since the year 2011, the rate stood at 8.7% in January 2016,   It rose to a high 23.5 per
cent in April 2020 (during the lockdown), but was 7.9 per cent in December 2021 and 6.6 per cent in
January 2022”

The problem of unemployment showed the major impact of social life of youths which lead to increase
in suicide cases in India

According to the NCRB data, “suicides among the unemployed have been increasing and touched the
highest (3,548) in the pandemic year of 2020”

As per the data published by world economic forum suggest that there is strong link between the
unemployment rate and suicide rate globally

As per the study done by Carlos Nordt and colleagues at the University of Zurich “The Mean
unemployment rates and estimated relative risks of suicide associated with unemployment in four world
regions, 2000-11.”

The classification of formal sector and informal sector in India has different problems of employment
altogether

In the formal sector the qualified graduate will not get the suitable job as per his qualification & the
predominant corruption in government section and non willingness of government to fill the
government job vacancies is aggravating the situation for qualified youths to find suitable job
Internal

On the other hand government’s lack of pro-employment policies like privatization, weakening of labour
laws is no way helping generation of employment.

Despite having labor laws like The minimum wages act 1948 , Unorganized workers social security act
2008 and other related Labout laws the informal sector faces issues like job guarantee , minimum
wages and working conditions etc. (From book Labour Industrial law law by S.N Mishra)

The current global situation & Ukrine –Russia war created the impact on Indian economy leading to high
inflation and slow growth rate leading to increase in unemployment rate

According to International Labor Organization , “ Global unemployment expected to remain above pre-
Covid levels until 2023” & “The market recovery will be very slow” as claimed by Guy Ryder, ILO
director general.

Conclusion

Considering the current government’s economic policies, global situation and COVID-19 fourth wave
apprehension the unemployment rate will go up in coming days. However the rate of unemployment
can be reduced by having the effective implementation of economic policies and welfare schemes

Referances:

Labour Industrial Laws by S.N Mishra

Suicides among unemployed crossed 3,000 in 2020 Covid year: Govt in Rajya Sabha
https://indianexpress.com/article/india/25000-indians-ended-lives-unemploymentindebtedness-in-
2018-2020-govt-tells-rs-7764240/