A STUDY ON UNEMPLOYMENT IN INDIA

Project Report submitted in partial fulfillment of the requirements for the

award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of
BENGALURU CITY UNIVERSITY

By

ALEENA SUSAN K

Reg.No. MB198206
Under the guidance of

Dr. TEJAS B VYAS

ASSOCIATE PROFESSOR

GIBS BUSINESS SCHOOL

BENGALURU CITY UNIVERSITY
 DECLARATION

I hereby declare that “A STUDY ON UNEMPLOYMENT IN INDIA” is the result

of the project work carried out by me, under the guidance of Dr. Tejas B Vyas in
partial fulfillment for the award of Master’s Degree in Business Administration by
Bengaluru City University.

I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other University or Institute for the award of any other degree
or Diploma or Certificate.

Place: BANGALORE Name: ALEENA SUSAN K

Date: 14/11/2020 Register Number: MB198206

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 GUIDE CERTIFICATE

This is to certify that the Project Report title “A STUDY ON UNEMPLOYMENT

IN INDIA” submitted by ALEENA SUSAN K, Reg No. MB198206 to Bengaluru
City University, Bangalore for the award of Degree of MASTER OF BUSINESS
ADMINISTRATION is a record of work carried out by her under my guidance.

Place: Bangalore

Date: 23/01/2021 Signature:

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 ACKNOWLEDGMENT

I thank the management of GIBS Business School for granting me permission to

access various facilities and knowledge.

I would like to extend my thanks and gratitude to my Guide and professor of GIBS
Business School Dr. Tejas Vyas sir. Thank you for your continuous motivation and
support you have given me throughout the entire project in order to finish this work
successfully. I express my gratitude to my teaching and non-teaching staffs as well.
I thank my family for their continuous motivation and support.

ALEENA SUSAN K

USN NO:MB198206

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 CONTENTS

Chapter CONTENTS Page no:

No:

1 Introduction 7

1.1 Introduction about the topic 8-9

1.2 Statement of problem 10-11

1.3 Need & Relevance of the study 12

1.4 Objectives 13

2 Methodology 14

2.1 Research Methodology 15

2.2 Data source & Collection method 15

2.3 Data Analysis 16-21

2.4 Limitations 21

3 SWOC Analysis 22

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3.1 Strength 23

3.2 Weakness 24

3.3 Opportunities 25

3.4 Challenges 26

4 Outcomes of the study 27

4.1 Causes of unemployment in India 28-29

4.2 Solutions for unemployment in India 30-31

4.3 Initiatives taken by the government against 32-33

unemployment

5 Experiences, Learnings & Conclusion 34

5.1 Experience & Learnings 35

5.2 Conclusion 36

6 Bibliography 37

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 CHAPTER - 1

INTRODUCTION

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 1.1 INTRODUCTION ABOUT THE TOPIC

Unemployment refers to a situation, where an individual searches for a job and not
able to find the job. Moreover, it is those people in the labor force or pool of people
who are available for work that does not have a proper job. Unemployment shows
the health of the economy. Unemployment is a common economic condition faced
by every country in the world, regardless of their economic system and the level of
development attained. But the nature of unemployment, prevailing in an
underdeveloped or developing country is very different from developed countries in
the world.

This project is undertaken to study the current unemployment scenario in

India. India is a developing country and unemployment has been considered as one
of the major problems in India. A lot of people are there who do not have a job.
Unemployment is very critical in India. Increasing population is the main cause of
unemployment and due to this demand for job is also increasing. Youth unemployment
is increasing year by year in India. If this situation continues, this will affect the Indian
economy.

Human resource is the greatest wealth of a nation. If they do not get proper
job, they will leave the country for seeking job from another country. Government
should take proper steps to retain the manpower in our country itself. If
unemployment increases year by year, that will result in the doom of our nation.

There was a drastic increase in the unemployment rate in April and May of
2020 during the initial stages of the Covid-19 pandemic. India is a developing
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country and Covid-19 affected Indian economy so bad. People who were employed
also lost their jobs during this pandemic. The unemployment rate in India has
increased to 8.35% in August 2020, according to data from the Centre for
Monitoring Indian Economy Private Ltd. The data trends put forward that the overall
unemployment rate has risen for the first time after declining since May.
Government has to take proper measures in order to get rid of this situation.

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 1.2 STATEMENT OF PROBLEM

India is a nation with enormous unemployment problems faced.

Unemployment rate is used to measure unemployment. It is the number of people
who are unemployed as a percentage of the labor force.

Many graduates, doctors, engineers, scientists, etc are unemployed or

underemployed. In a developing country like India, unemployment can be caused
by several reasons. High population, slow economic growth, lack of proper skills,
preference to experience, seasonal occupation, advanced technology, slow growth
of the economic sector, corruption, etc can be some of the reasons. Also, the situation
has become so severe that people who are highly educated are ready to do the job of
a sweeper. Moreover in 2020, condition became worse due to the Covid-19
pandemic.

If things continue like this, the situation in India will become very worse.
Poverty, labor exploitation, increase in crime rate, worsening of mental health, etc
will happen. As a result, all of this will eventually ruin the nation. We need to fix the
unemployment crisis in India through controlling the rising population, changing the
educational system, market reforms, re-skilling for digital interventions, changing
industrial techniques, encouraging and developing the agriculture-based industries
in rural areas so that we can stop the migration of rural candidates to urban areas,
etc.

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 Young people are one of the main assets of every country. In India youth
unemployment is increasing every year. Most of the young people are failing to get
jobs. Work experience, lack of proper skills, cutthroat competition, etc may be the
reason for this condition. Youth unemployment rate in India is 23.75% in 2020. This
is not a good sign for a developing nation like India.

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 1.3 NEED AND RELEVANCE OF THE STUDY

Unemployment is a problem which not only affects an individual but also it

will affect the nation as a whole. People engage in a variety of work. They do work
for earning. By engaging in various economic activities every working person is not
only contributing to national income but also actively participating in the
development of a country. The amount of employment generated in an economy is
an important economic indicator. It is very important to study unemployment.
Studying unemployment will help us to understand the overall condition of our
economy. Unemployment rate is used to measure unemployment. The
unemployment rate, whether it is high or low can have a major impact on the
economy and society. A rising unemployment rate indicates a weakening economy.

Joblessness has a lot of negative impacts. Families will not have income for
their basic necessities, and the nation as a whole is not able to contribute to the
economy in terms of the goods and services that could have been produced. To
understand causes and remedies for high levels of unemployment, we need to have
a keen study on unemployment.

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 1.4 OBJECTIVES

❖ To understand the unemployment scenario in India.

❖ To find out the causes and impact of unemployment.
❖ To find out possible solutions to reduce unemployment.
❖ To know about the government initiatives for reducing unemployment

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 CHAPTER – 2

METHODOLOGY

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 2.1 RESEARCH METHODOLOGY

Research methodology refers to the procedures and techniques which are used to
identify, select, process, and analyze information about a particular topic. There are
two types of research such as qualitative research and quantitative research.
Qualitative research refers to a research that focuses on collecting and analyzing
words and textual data, whereas quantitative research focuses on measurement and
testing using numerical data.

2.2 DATA SOURCE AND COLLECTION METHOD

Data collection means gathering quantitative and qualitative information about

specific variables with an aim of evaluating the outcome. Here, data are collected
from different secondary sources that have already been used as a data, collected for
this research. Both qualitative and quantitative methods are used here through
graphs, annual reports, etc. Data are collected from different sources such as
websites, magazines, newspapers, books, and other publications.

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 2.3 DATA ANALYSIS

Data Analysis is a process of applying statistical and logical techniques,

systematically to describe, illustrate, condense, recap, and evaluate data.

Here, by analyzing these following tables and graphs we will get some ideas about
the current unemployment scenario in India.

2.3.1 Analysis of unemployment rate in urban and rural areas of India

Month Unemployment rate (%)

India Urban Rural
Jan-20 7.22 9.7 6.06
Feb-20 7.76 8.65 7.34
Mar-20 8.75 9.41 8.44
Apr-20 23.52 24.95 22.89
May-20 21.73 23.14 21.11
Jun-20 10.18 11.68 9.49
Jul-20 7.4 9.37 6.51
Aug-20 8.35 9.83 7.65
Sep-20 6.67 8.45 5.86
Oct-20 6.98 7.15 6.9

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 Unemployment rate (%) India
25

20

15

10 Unemployment rate (%)

India
5

Unemployment rate in India ( Urban & Rural )

30

25

20

15 Unemployment rate (%)

Urban
Unemployment rate (%) Rural
10

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2.3.2 Comparison of unemployment rate in India and some other countries

UNEMPLOYMENT RATE (OCTOBER-2020)

COUNTRY RATE(%)

India 7

China 5.3

Russia 6.3

UK 4.8

USA 6.9

0
India China Russia UK USA

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 2.3.3 Analysis of Indian Youth Unemployment

(Year wise)

YOUTH UNEMPLOYMENT RATE (%)

YEAR UNEMPLOYMENT RATE

2015 22.34

2016 22.58

2017 22.72

2018 22.85

2019 23.34

2020 23.75

UNEMPLOYMENT RATE
UNEMPLOYMENT RATE

23.75

23.34

22.85
22.72
22.58
22.34

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2.3.4 Analysis of unemployment rate in India (State wise)

Unemployment rate (%)

STATES (India) Oct-20
Andhra Pradesh 6.6
Assam 3
Bihar 9.8
Chattisgarh 6.6
Delhi 6.3
Goa 11.5
Gujarat 4
Haryana 27.3
Himachal Pradesh 13.5
Jammu & Kashmir 16.1
Jharkhand 11.8
Karnataka 1.6
Kerala 3.9
Madhya Pradesh 3.1
Maharashtra 4.1
Meghalaya 4.6
Odisha 2.2
Puducherry 6.2
Punjab 9.9
Rajasthan 24.1
Sikkim 0.9
Tamil Nadu 2.2
Telangana 2.9
Tripura 11.6
Uttar Pradesh 3.8
Uttarakhand 9.2
West Bengal 10

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 Unemployment rate (%) Oct-20
West Bengal
Uttarakhand
Uttar Pradesh
Tripura
Telangana
Tamil Nadu
Sikkim
Rajasthan
Punjab
Puducherry
Odisha
Meghalaya
Maharashtra
Madhya Pradesh
Unemployment rate (%) Oct-20
Kerala
Karnataka
Jharkhand
Jammu & Kashmir
Himachal Pradesh
Haryana
Gujarat
Goa
Delhi
Chattisgarh
Bihar
Assam
Andhra Pradesh
0 5 10 15 20 25 30

From these tables and graphs, we can understand about the current unemployment
condition in India. Since it is a secondary data, these figures may not be accurate.

2.4 LIMITATIONS

• Since these data are secondary, figures may not be accurate.

• Time constraints.

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 CHAPTER – 3

STRENGTH, WEAKNESS, OPPORTUNITIES AND CHALLENGES

(SWOC ANALYSIS)

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 3.1 STRENGTH

➢ People will try to update their skill sets.

Unemployment will create zeal in people’s minds to get a job in any manner.
So, people will try to update their skill set in order to withstand competition
and get a job.

➢ More time with friends and family.

Due to unemployment, you may get more quality time to spend with family

and friends.

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 3.2 WEAKNESS

➢ Not enough money

If an individual is unemployed, he may not have enough money for his basic
needs also. Without money, it is very difficult to survive in our society.

➢ Health issues

This is one of the major problems of unemployment, which will affect an

individual so badly. We should give utmost importance to this situation.
Joblessness will lead an individual to several health problems like, anxiety,
depression, and other mental health issues.

➢ Poverty

Poverty is referred as a condition, where a person does not have the income
and basic necessities for a minimum standard of living. Due to unemployment
people are not getting any income for their livelihoods which will further leads
to poverty.

➢ Underutilization of resources

Another negative effect of unemployment is that a lot of resources available

in our country remain underutilized. In India, there are vast natural resources
but we are not able to utilize it to the desired extent. The main cause which is
responsible for this situation is unemployment and underemployment.

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 3.3 OPPORTUNITIES

➢ Start a business

Unemployment can be a better opportunity for some people. With creative

planning, people can start their own business. If people come up with good
business, it is not only beneficial for them but also for the nation as a whole.

➢ Growth of Agriculture sector

Due to unemployment, some people will think of turning towards the

agriculture sector. We can consider unemployment as an opportunity here, as
it not only helps the growth of the agriculture sector but, also for the growth
of our nation.

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 3.4 CHALLENGES

➢ Economic Issues

Unemployment is the biggest challenge for every country. The slow growth
of the economy will be the result. Unemployment will reduce the purchasing
power of our nation.

➢ Social Issues

Unemployment will create several issues in our society. If unemployment

persist like this, people will find the immoral ways to earn money. When
unemployment rates increase, violence and crime rates will also tend to rise.

➢ Migration

When jobs are not available in our country, people will tend to migrate to
other countries for jobs. This is also a challenge to our nation, as migration
will lead to a reduction in human resources of our country.

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 CHAPTER – 4

OUTCOMES OF THE STUDY

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 4.1 CAUSES OF UNEMPLOYMENT IN INDIA

❖ High population
Employment opportunities are there in India. But, when coming to the
population, India is overpopulated and it creates unemployment. If there is
one vacancy available for a job, thousands of people will apply for that
particular job and only one person will get the job and other people will remain
unemployed.

❖ Slow economic growth

In India, economic growth is happening at a very slow pace. So, it is very
difficult to provide employment opportunities for the rising population.

❖ Reluctance to do a particular job

Due to unemployment people are not getting proper jobs according to their
qualification. So, when they get job which is less than their qualification, they
are not willing to do that particular job. It is very difficult for them to do a job
which requires only low qualifications. The remuneration will also be less for
them when compared to their qualification.

❖ Work experience
This is a very important reason for unemployment in India. Employers always
want experienced people for the job and this makes it very difficult for a
fresher to get a job.

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❖ Advanced technology
Technology has become very advanced in today’s world. So, the human
requirement is less. In the olden days, for doing a task hundreds of people
were needed. But, now due to technological advancement only one person
may be needed for doing the same task.

❖ Corruption
In both the government sector and the private sector, people will give bribe to
get the job. Even though the candidates do not have the required qualifications
also, they will get the job simply by giving bribes.

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 4.2 SOLUTIONS FOR UNEMPLOYMENT IN INDIA

❖ The education system should be changed

As cutthroat competition is happening in the industry, every individual should
be capable of competing each other and for that, they should have proper
skills. For developing those skills, our education system should be changed.
We should improve the education quality in India.

❖ Control rising population

High population is a main cause of unemployment in India. High population
will create high competition for getting jobs. Increased population will create
several other problems also. We should reduce the increasing population in
our country.
❖ Industrial techniques should be changed
It is very essential that, instead of capital intensive technology, labor-intensive
technology should be encouraged. Production techniques should suit the
needs of the country.

❖ Encourage youngsters to do agriculture

The government should encourage youngsters to turn into the agriculture
sector. It will help in accelerating the growth of both the agriculture sector and
our nation by increasing export. Waste lands should be utilized for agricultural
purposes.

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❖ Self-employment should be encouraged

The government should encourage young people to self-employment and

should assist them with hassle-free loans

❖ Resumption of small scale industries

The revival of small scale industries are needed. Subsidies and other
incentives should be given for the development of these industries.

❖ Decentralization of industrial activity

To reduce unemployment, it is essential to decentralize industrial activity.
Centralization of industrial activities in one place will lead under developed
areas to have only fewer employment opportunities. So, industrial activities
should be decentralized and the government should adapt such kind of
policies for that.

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 4.3 INITIATIVES TAKEN BY THE GOVERNMENT AGAINST
UNEMPLOYMENT

In India unemployment rate is increasing every year. In order to tackle this

situation, proper actions from the side of government are must. Without government
intervention we cannot solve the unemployment problem in India. There are several
initiatives taken by the government of India to solve the problem of unemployment
in India. They are,

➢ Integrated Rural Development Programme (IRDP)

IRDP was started by the government of India in nineteen seventy eight and
implemented by 1980. Creating job opportunities in rural areas is the main
aim of this initiative.

➢ Mahatma Gandhi National Rural Employment Guarantee Scheme

This National Rural Employment Guarantee Scheme was set in motion on

February, two thousand and six. Improving livelihood of people in rural areas
by providing hundred days of wage employment is the intention of this
initiative.

➢ Training of Rural Youth for Self Employment (TRYSEM)

It was started on August 15th, 1979. Its main objective is to cut down
unemployment among the youth.

➢ Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

This was started on December one, 1997. Providing employment

opportunities to the people in urban areas through arranging ventures for self-
employment is the main goal of this program. It also provides training
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 programs to develop skills of poor people who lives in urban areas. It helps
the poor people in urban area to get employment opportunities and to
commence their own business.

Prime Minister’s Rozgar Yojana (PMRY)

This is a Central Government initiative launched in 1993. PMRY is a self-

employment scheme intended for the educated unemployed youth in India.
This is for poor families having income less than Rs. 25,000 per annum.

➢ Sampoorna Grameen Rozgar Yojana (SGRY)

SGRY scheme was a government initiative started in September 2001. Its

main aim is to provide employment for the poor people who are living in rural
areas. It helps them to get a better standard of living.

➢ Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

PMKVY was launched in 2015 by Prime Minister Narendra Modi, Its aim is
to enable young people in India to take training for developing skills which
are industry relevant. It will help them to gain a better standard of living.

➢ Start-Up India Scheme

This was started in two thousand and sixteen with the aim to develop an
environment that helps in promoting and nurturing entrepreneurship in the
country.

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 CHAPTER – 5

EXPERIENCE, LEARNING AND CONCLUSION

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 5.1 EXPERIENCES & LEARNINGS

➢ Got to know more about unemployment.

➢ Learned about the unemployment situation in India.
➢ Learned about the causes and impact of unemployment in India.
➢ Learned about solutions to reduce unemployment in India.
➢ Got to know about the initiatives taken by the government against
unemployment.

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 5.2 CONCLUSION

One of the most distressing problems which India is facing currently is the
increasing rate of unemployment, both in urban and rural areas. Providing ample
employment opportunities will help us to retain our human resource in India itself
by stopping them from migrating for jobs to other countries. Young people are the
future of our nation. The government should provide good amount of employment
opportunities for them. The government should give the utmost importance to reduce
this situation. If the unemployment problem is not solved, the future of India will
not be that bright.

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 BIBLIOGRAPHY

https://unemploymentinindia.cmie.com/

https://tradingeconomics.com/india/unemployment-rate

https://shodhganga.inflibnet.ac.in/

https://www.economicsdiscussion.net/articles/suggestions-to-solve-
unemployment-problem/2287

https://www.drishtiias.com/to-the-points/paper3/unemployment-in-india

https://libguides.wits.ac.za/c.php?g=693518&p=4914913#:~:text=Research%20me
thodology%20is%20the%20specific,study's%20overall%20validity%20and%20rel
iability.

https://www.linkedin.com/pulse/problems-solutions-unemployment-india-
manikandan-viswanathan

https://www.macrotrends.net/countries/IND/india/youth-unemployment-rate

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