Unemployment: A nightmare for the educated people of India

Unemployment has always been a challenge for the government in any country. Technology and other factors have contributed to increased unemployment for the educated.

Unemployment in India

Nothing is permanent but change, Heraclitus wisely said. With the rapid changes in social and economic conditions and advances in technology, we have had many changes for the better. Unfortunately, with all of these come unemployment, a great challenge for any government. Yet it’s an all-pervasive phenomenon and inevitable in this rapidly-changing world.

Let us take a closer look at its causes, effects and latest trends among which are some predictions for the post-pandemic world.

What do statistics have to say?

According to the latest reports of the Centre of Monitoring India Economy (CMIE) in February 2019, the unemployment rate has reached 7.2% which is termed as the highest since September 2016.

Post pandemic, around 400 million people will face job loss and unemployment. Labor participation rate in January 2019 was 43.2% and in February 2019, it dropped to 42.7%.

Being a country with the largest number of youths and ignited minds, they lack proper skills, knowledge, education and jobs.

Types of unemployment in India

Unemployment in India
Picture courtesy: Lane Report

Disguised Unemployment

It is a type of unemployment in which there are people working more than what is required. It is one of the main problems in a country like India where these phenomena can be observed particularly in unorganised and agricultural sectors.

Seasonal Unemployment

Unemployment which occurs seasonally is called Seasonal Unemployment. Nowadays, many people are witnessed especially in rural areas where they are dependent on seasonal jobs like selling colors during Holi festival. This festival mainly occurs once in a year but on other days they don’t have any other job or income.

Structural Unemployment

It is a type of unemployment which arises when there is a bit of confusion or mismatch between the jobs available in the market and the skills required for the industry.

The outdated syllabus and knowledge which is shared in schools and colleges contribute to structural unemployment.

Technological Unemployment

With the advent of modern tech innovations and artificial intelligence (AI) there has been a significant reduction in jobs as the workload of 1 person is now taken by one machine and done rapidly. Technological Unemployment is a type of employment where an individual loses the job due to changes in technology.

Cyclical Unemployment

Unemployment which rises due to the recession and economic collapse is called Cyclical Unemployment. It is mostly found in capitalist economies. In the apt for the current scenario due to the global pandemic of Covid-19.

Vulnerable Unemployment

It is regarded as one of the main types of unemployment which is highly observed in India. It is characterised by lack of proper earning, low productivity and difficult conditions of work that threaten workers’ fundamental rights. They lack the records of the work that they are intended for doing.

Frictional Unemployment

Frictional unemployment a.k.a search unemployment is regarded as the time gap between an individual where he or she searches for a new job or looking for a job while doing their existing job. It is widely common in urban areas among youths.

How does unemployment affect us?

Unemployment in India
Picture courtesy: Statista

Unemployment has a larger impact on the country on various categories like poverty, economy, growth and human resource. Also, it has been witnessed that the unemployed youths with educational degrees in their hand shift their mind to earn a surplus of money at one go by indulging themselves in activities like crime, looting, kidnapping and others.

It disturbs the social strata and milieu which diverts other youths as well. They lose their faith in democratic values of the country. Getting addicted to drugs, alcohol and attempting suicide are also mostly observed in youths who are unfit, rejected or don’t get the right job.

How is unemployment in India calculated?

National Sample Survey Office (NSSO), established in 1950, is an organisation that aims at carrying out several surveys across the length and breadth of India on various subjects like agricultural, demographic, socio-economic and industrial purposes. It comes under the Ministry of Statistics and Programme Implementation measures (MoSPI).

They used to summon and gather the data from households and enterprises which are located in rural and urban areas. According to NSSO, they have defined the unemployment and employment in India as working (people who are employed), Unemployed (people who are seeking or available for work) and people who are neither going for both the divisions.

The way to calculate the unemployment rate in India is by dividing the number of workers by the total labour force, and multiplying it by 100.

(Unemployed Workers / Total labor force) X 100 = Unemployment rate)

What steps can be obtained to tackle unemployment?

The Indian government has adopted and taken several measures in order to provide jobs for the needy by commencing many projects and initiatives.

  • Training of Rural Youth of Self-Employment (Trysem): It was started in the year 1979 with an aim to help unemployed youths between ages 18 to 35 years, from the rural areas. It has reduced the unemployment level among the rural youths and women.
  • Integrated Rural Development Programme (IRDP): It was launched in 1980 to employ the unemployed youth of India from the rural areas.
  • Rural Development and Self-Employment Training Institute (RSETI): Started jointly with Sri Dharmasthala Manjunatheshwara Educational Trust (RUDSETI) in the year 1982, with Canara Bank and Syndicate Bank they aim to reduce the unemployment rate amongst the educated youth. They are broadly managed by private banks in collaboration with state and central government. 
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): It is one of the most popular initiatives which was launched by UPA government in 2005 for providing the right to work to people. The main motive behind this project is to provide social security by guaranteeing a minimum of a hundred days paid work per year to all the needy families of rural areas.
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY): After the Modi government came to power, they have initiated and launched many schemes for the jobs of the educated youths of India. The main aim of PMKVY is to enable the youth to take up industry relevant skills training in order to acquire a waged job.
  • Startup India: Another productive initiative which was launched by the present government with an aim to provide bank loans to women and people from SC/ST caste up to Rs 1 lakh to Rs 1 crore to startup their own enterprise or operation house.
  • National Skill Development Mission: A masterstroke of Modi government which was flagged off in November 2016 with an aim to drive skill India in in-order to collaborate the present skill training initiatives and join quality and scale of skilling efforts in a rapid manner.

We need to increase jobs in different fields, and innovation is the prime need to combat unemployment in our country.

Therefore, people should be aware of their independent skills and knowledge and should follow their passion to succeed in their life. It will definitely contribute to the decrease in unemployment.


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