Unemployment Rate
Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment and under-employment have been a long-standing problem in the Indian economy.
Types of Unemployment in India
- Disguised Unemployment: More people are employed than actually needed. It is primarily traced in the agricultural and the unorganised sectors of India.
- Seasonal Unemployment: Unemployment that occurs during certain seasons of the year. Agricultural labourers in India rarely have work throughout the year.
- Structural Unemployment: Unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market. Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them.
- Cyclical Unemployment: It is result of the business cycle, where unemployment rises during recessions and declines with economic growth. Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies.
- Technological Unemployment: It is loss of jobs due to changes in technology. In 2016, World Bank data predicted that the proportion of jobs threatened by automation in India is 69% year-on-year.
- Frictional Unemployment: The Frictional Unemployment also called as Search Unemployment, refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.
- Vulnerable Employment: This means, people working informally, without proper job contracts and thus sans any legal protection. These persons are deemed ‘unemployed’ since records of their work are never maintained. It is one of the main types of unemployment in India.
Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment and under-employment have been a long-standing problem in the Indian economy.
Types of Unemployment in India
- Disguised Unemployment: More people are employed than actually needed. It is primarily traced in the agricultural and the unorganised sectors of India.
- Seasonal Unemployment: Unemployment that occurs during certain seasons of the year. Agricultural labourers in India rarely have work throughout the year.
- Structural Unemployment: Unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market. Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them.
- Cyclical Unemployment: It is result of the business cycle, where unemployment rises during recessions and declines with economic growth. Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies.
- Technological Unemployment: It is loss of jobs due to changes in technology. In 2016, World Bank data predicted that the proportion of jobs threatened by automation in India is 69% year-on-year.
- Frictional Unemployment: The Frictional Unemployment also called as Search Unemployment, refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.
- Vulnerable Employment: This means, people working informally, without proper job contracts and thus sans any legal protection. These persons are deemed ‘unemployed’ since records of their work are never maintained. It is one of the main types of unemployment in India.
SUBJECT Variables
CMIE
Established in 1976, Centre for Monitoring Indian Economy (CMIE) is a leading business information company functioning primarily as an independent think tank. The unemployment rates are produced by CMIE using its Consumer Pyramids Household Survey machinery. It includes only those who are unemployed, are willing to work and are actively looking for jobs in its use of the unemployment rate, as it is more relevant and yields a lower unemployment rate.
- The all-India unemployment level increased to 7.8% in March 2023 from 7.5% a month ago.
- The annual all-India unemployment level in 2021-22 rose to a 6-year high of 8% (excluding the Covid impacted period of 2020-21).
- Unemployment levels rose more sharply in urban India than in rural areas in Mar'23. The unemployment level in urban India was recorded at 8.5% in March. In comparison, rural unemployment was recorded at 7.5% in comparison to 7.2% a month ago.
- The annual rural unemployment level in 2021-22 rose to a 6-year high of 7.5% (excluding the Covid impacted period of 2020-21). The annual rural unemployment level in 2021-22 rose to a 6-year high of 9.2% (excluding the Covid impacted period of 2020-21).
- Unemployment levels amongst job-seekers holding graduate degrees and higher were the most pronounced during Sep-Dec'22 at 17.2%, followed by those educated between 10-12th grade at 10.9%.
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