Chapter 7 UNEMPLOYMENT IN INDIA
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Unemployment in India refers to the situation where a
significant portion of the population capable of working is unable to find
suitable employment opportunities. This issue is multifaceted and can take
various forms, including:
1. Open Unemployment: This
occurs when individuals are actively seeking employment but are unable to
secure jobs.
2. Underemployment: This refers
to a situation where individuals are employed but their skills are
underutilized, or they are working in jobs that do not match their
qualifications or aspirations.
3. Structural Unemployment: This arises due to a mismatch
between the skills possessed by the workforce and the skills demanded by
employers. It can occur due to rapid technological advancements, changes in
industry structure, or inadequate education and training programs.
4. Seasonal Unemployment: Certain sectors, such as
agriculture, experience fluctuations in demand for labor based on seasonal
variations, leading to temporary unemployment during off-seasons.
5. Youth Unemployment: This
specifically pertains to young people who are actively seeking employment but
are unable to find suitable jobs. It is often exacerbated by a lack of experience
and opportunities for skill development.
6. Urban vs. Rural Unemployment: There can be significant
disparities in unemployment rates between urban and rural areas, with urban
centers typically experiencing higher rates due to factors such as migration and
limited job opportunities.
7. Cyclical Unemployment: This type of unemployment is
linked to fluctuations in the business cycle. During economic downturns,
businesses may reduce their workforce, leading to increased unemployment rates.
Addressing unemployment in India requires a multifaceted approach that includes measures to stimulate economic growth, enhance education and skill development programs, promote entrepreneurship, and ensure effective labor market policies.