Unemployment & Its

Related Govt.
Schemes
 U
N
I
T
02 Structure of the Indian Economy
A. Population
B. Human Development
C. Inequality & its measurement
D. National Income
E. GDP- Nominal, Real, PPP
F. Unemployment
G. Poverty
H. Skill development Programs
PREVIOUS YEAR QUESTIONS
UNEMPLOYMENT?
• Unemployment occurs when a person who is actively searching for work but
is unable to find one.
• It is often used as a measure of the health of the economy.
• It is a key economic indicator because it signals the inability of workers to
obtain gainful work to contribute to the productive output of the economy.
UNEMPLOYMENT
CAN BE DEFINED AS
a situation in which the person is capable of working both physically and
mentally at the existing wage rate, but does not get a job to work”.
TYPES OF UNEMPLOYMENT:
Open Unemployment
Structural Unemployment
Frictional Unemployment
Under-employment
Disguised Unemployment
Seasonal Unemployment
Cyclical Unemployment
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.

• Such unemployment 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.
STRUCTURAL UNEMPLOYMENT:
• This type of unemployment occurs due to a change in the structure of the economy.
• For example, the setting up of large mechanizedmanufacturing units in India led to the
decline of handicrafts.
• Most artisans were displaced because they did not have sufficient marketable skill.
• Structural changes can be due to change in technology (from labour intensive technology to
capital intensive technology) or change inthe pattern of demand.
• In developing country like India, structural unemployment exists both in rural and urban
areas.
• The mismatch in the regional or occupational pattern of job vacancies and the pattern of
worker availability results
FRICTIONAL UNEMPLOYMENT:
• This type of unemployment occurs due to the normal working of the economy.

• It occurs when a worker is shifting from one job to the other.

• During the mobility period, he may unemployed for some time.

• Such unemployment exists in almost every economy all the time.

FRICTIONAL UNEMPLOYMENT:
In other words,
• Frictional unemployment is the time period between jobs when a worker is searching for, or
transitioning from one job to another.
• It is sometimes called search engine and can be voluntary based on the circumstances of
the unemployed individual.
UNDER UNEMPLOYMENT:
• It is a situation under which employed people are contributing to production less than they
are capable of.
• It can be in terms of time (visible under-employment) or type of work (invisible under
employment).
• Part-time workers come under this category.
SEASONAL UNEMPLOYMENT:
• It occurs due to the seasonal nature of some industries.
• In some industries the demand for goods or services fluctuates seasonally.
• For example, hotels, restaurants, and ice-cream factories are fully staffed by employees
during the summer but many of those workers are laid off during the winter.
• In India, it is very common in agriculture sector.
• Disguised unemployment and seasonal unemployment are 2 most common types of
unemployment found in rural India particularly in farm sector.
DISGUISED UNEMPLOYMENT:
• When morepeople are engaged in a job than actually required, a state of disguised
unemployment is created.
• A disguisedly unemployed person is the one who seems to be employed but actually he is
not.
• His contribution to the total output is zero or negligible.
• It is mostly seen in rural areas.
• This form of unemployment is sometimes known as disguised unemployment.
• It can take several forms.
• For example, during a temporary fall in demand, employers may retain on their payrolls a
great number of employees than they can provide work for.
CYCLICAL UNEMPLOYMENT:
• All of the types of unemployment considered so far are the result of changes in the economy.

• This form of unemployment arises from the trade cycle and is sometimes referred to as
mass unemployment.

• Phases of boom, recession, depression and recovery are typical characteristics of a capitalist
economy.
 LEVEL OF REAL OUTPUT

TIME
UNEMPLOYMENT MEASUREMENT IN INDIA

The National Sample Survey Organization (NSSO),since its inception in 1950, does
the measurement of employment / unemployment in India.

There are 3 measures or estimates of unemployment provided by NSSO:-

• Usual Status Unemployment

• Weekly Status Unemployment
• Current Daily Status Unemployment
NATIONAL SKILL DEVELOPMENT MISSION

• NSDM was officially launched on 15.07.2015

on the occasion of World Youth Skills Day.

• The Mission has been developed to create

convergence across sectors and States in terms
of skill training activities.
DEEN DAYAL UPADHYAY GRAMEEN
KAUSHALYA YOJANA
• The Yojana aims at to give training to ten
lakh (1 million) rural youths for jobs.
• The minimum age for entry in the Yojana is
fifteen years compared to eighteen years in
the Aajeevika Skills Programme.
• Skill development training centers to be
launched so as to address the unemployment
problem within the rural area of the country.
PM KAUSHAL VIKAS YOJANA
• It aims to offer 10 million Indian youth
meaningful, industry relevant, skill based
training.
• The trainees will be offered a financial reward
and a government certification on successful
completion of training and assessment.
• This will help them in securing a job for a
better future.
• The scheme is implemented through the
NSDC.
PM YUVA YOJANA
• It is MSDE’s flagship scheme on
entrepreneurship education and training.
• It will provide entrepreneurship education
and training to over 7 lakh students in 5 years
(2016-20121) through 3050 Institutes.
• It will also include easy access to information
and mentor network, credit, incubator and
accelerator and advocacy to create a
pathway for the youth.
INDIAN INSTITUTE OF SKILLS
• It is aimed at making India the Skill Capital of
the World.
• The institute is being opened by the Skill
Development Ministry in partnership with
the Institute of Technical Education,
Singapore.
• Country’s first Indian Institute of Skills (IIS) will
be at Kanpur.
• The Ministry has decided to have 6 such
institutes.
PRAVASI KAUSHAL VIKAS YOJANA
• It was announced on the 14th Pravasi
Bharatiya Divas in 2016.
• To skill Indian youth seeking jobs abroad.
• PKVY will train and certify Indians, who are
keen on overseas employment in select
sectors, in line with international standards.
• It will be implemented by the NSDC through
its training partners and in consultation with
the Ministry of External Affairs and the Skill
Development Ministry.
PRAVASI KAUSHAL VIKAS YOJANA
• The programme aims to provides skills
training and enhance the employability of
unemployed youth of J&K.
• The Scheme will cover graduates, post graduates,
professional degree holders and three year
engineering diploma holders.
• The Scheme by MoHA aims to cover 40,000 youth
of J&K over a period of 5 years.
• Udaan trainees will be pai
minimum Rs 2500/- per month as
stipend during the training period.
SEEKHO OR KAMAO
• It aims at upgrading the skills of the minority
youths in various modern/traditional vocations.

• This can earn them a suitable employment

or make them suitably skilled to go for self-
employment.

• The trainee should be between 14-35 years of

age.
NAI ROSHNI
• It is the scheme for leadership development of
Minority Women.

• The objective of the scheme is to empower and in

still confidence among minority women.

• The trainee should be between the age

group of 18 years to 65 years.
Support to Training and Employment
Programme for Women
• The STEP scheme aims to provide skills that give
employability to women and to provide
competencies and skill.

• This will enable women to become self-

employed/entrepreneurs.

• Beneficiaries will be women in the age group of

16 years and above.
START-UP INDIA
• A flagship initiative of the Government of
India, intended to build a strong eco-
system for nurturing innovation and
Startups in the country
• Will drive sustainable economic growth
and generate large scale employment
opportunities.
ATAL INNOVATION MISSION
• AIM will be an Innovation Promotion Platform
involving academics, entrepreneurs and
researchers.

• Draw upon national and international experiences

to foster a culture of innovation, R&D and
scientific research in India.

• The platform will provide a network of world class

innovation hubs and grand challenges for India.
ATAL INNOVATION MISSION
Atal Innovation Mission (AIM) shall have two core
functions:-
1. Entrepreneurship promotion through Self-
Employment and talent Utilization (SETU),
wherein innovators would be supported and
mentored to become successful entrepreneur.
2. Innovation promotion: to provide a platform
where innovative ideas are generated.
ATAL INNOVATION MISSION
3. To support entrepreneurship among women and
SC & ST communities.

4. Loans in the range of Rs 10 lakh to Rs 1 crore for

setting up a new enterprise.

5. It will be done through refinance window through

the Small Industries Development Bank of
India(SIDBI) with an initial amount of Rs. 10,000
crore.
INTEGRATED RURAL DEVELOPMENT PROGRAMME
• IRDP started in 20 selected districts in 1976-77.

• In 1980, it was extended to all districts of the country.

• To create productive assets for the families in rural areas living below poverty line.

• Merged with self-employment programme called Swarn Jayanti Gram Swarozgar Tagore in
year 1999.
NATIONAL RURAL EMPLOYMENT PROGRAMME
• Launched in 1980.

• To create employment opportunities by building and maintaining community assets like

village roads, ponds and wells etc.

• In this programme, food grains are given for the work.

• NREP was merged with Jawahar Rozgar Yogana (JRY) in 1989.

RURAL LANDLESS EMPLOYMENT GUARANTEE
PROGRAMME
• Started in 1983.

• To provide 100 days of assured employment in a year to rural landless labour families.

• They were to be employed in job creating community assets.

• It was merged in JRY.

TRAINING OF RURAL YOUTH FOR SELF-EMPLOYMENT
• Started in 1979.

• To help unemployed rural youth between the age of 18 and 35 years to acquire skills for self-
employment.

• Priority was given to SC/ST Youth and Women.

JAWAHAR ROJGAR YOJANA
• Scheme came into existence in April 1989.

• To create additional employment for rural under-employed and unemployed.

• Funds would be released directly to the village panchayats which would launch the
employment programme according to the local needs of the people.

• In 1999, JRY was renamed as Jawahar Gram Samridhi Yojana.

Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA)
• Launched on February 2, 2005.

• The Act provides 100 days assured employment every year to every
• rural household.

• One-third of the proposed jobs would be reserved for women.

• If an applicant is not provided employment within 15 days s/he will be entitled to a daily
unemployment allowance.
OTHER SCHEMES
• Employment Assurance Scheme (EAS)

• Small and Cottage Industries

• Minimum Needs Programme (MNP)

• Indira Awas Yojana (IAY)

• Prime Minister’s Rozgar Yojana (PMRY)

• Jawahar Gram Samridhi Yojana (JGSY)

• Sampooma Gramin Rojgar Yojana (SGRY)

• Swarna Jayanti Gram Swarozgar Yojana (SGSY)

NOTE: Recording will be uploaded in app within 2 hr.
PRACTICE QUESTION
• Which of the following types of unemployment is found in India when people are employed

for a certain period of a year in tourist resorts and various tourism-related activities in the

mountain regions, but are unemployed in off-seasons?

a) Cyclical unemployment

b) Under employment

c) Seasonal unemployment

d) Disguised unemployment

NOTE: Recording will be uploaded in app within 2 hr.