MAJOR PROJECT REPORT

ON

“IDENTIFYING THE FACTORS BEHIND THE UNEMPLOYEMENT IN INDIA”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF BACHELORS IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

Prof. Sunil Kumar Yadav

Associate Professor, RDIAS

SUBMITTED BY:

Akant

Enrollment No. 42280301718

BBA, Semester 6th

Batch 2018– 2021

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2015 Certified Institute

NAAC Accredited: A+Grade (2nd Cycle), Category A+ Institution (by SFRC, Govt. of NCT Delhi)

(Approved by AICTE, HRD Ministry, Govt. of India)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, MadhubanChowk, Outer Ring Road, Phase-1, Delhi-110085

 TABLE OF CONTENTS

Page No

Student Declaration…………………………………………………………1

Certificate from Faculty Guide……………………………………………...2

Acknowledgement…………………………………………………………..3

Executive Summary…………………………………………………………………..4

Chapter 1: Preamble

1.1 Introduction…………………………………………………………….5

1.2 Objectives ……………………………………………………………..6

1.3 Research methodology ………………………………………………..6

1.4 Importance & Scope of the Study …………………………………….7

Chapter 2: The Problem

2.1 Description ……………………………………………………………8

2.2 History …………………………………………………………….…12

Chapter 3: Literature Review …………………………………………….18

Chapter 4: Data Collection and Analysis

4.1 Designing questionnaire………………………………………………20

4.2 Result and analysis…………………………………………………....23

Chapter 5: Findings & suggestions……………………………………….31

Chapter 6: Conclusion……………………………………………………32

Chapter 7: References…………………………………………………….34
 Student’s Declaration

This is to certify that I have completed the Project titled “IDENTIFYING THE
FACTORS BEHIND THE UNEMPLOYEMENT IN INDIA” under the
guidance of “Dr. Sunil Kumar Yadav” in the partial fulfilment of the
requirement for the award of the degree of “Bachelors in Business
Administration” from “Rukmini Devi Institute of Advanced Studies, New
Delhi.”

It is also certified that the project of mine is an original work and the same has
not been submitted earlier elsewhere.

Name of the Student- Akant

Enrollment No.- 42280301718

Class & Section- BBA 6th sem, Evening A

1
 Certificate from Faculty Guide

This is to certify that the project titled “IDENTIFYING THE FACTORS

BEHIND THE UNEMPLOYEMENT IN INDIA” is an academic work done
by “Akant” submitted in the partial fulfilment of the requirement for the award
of the degree of “Bachelors in Business Administration” from “Rukmini Devi
Institute of Advanced Studies, New Delhi.” under my guidance and direction.

To the best of my knowledge and belief the data and information presented by
him in the project has not been submitted earlier elsewhere.

Name of the Faculty- Dr. Sunil Kumar Yadav

Designation of the Faculty- Associate Professor

RDIAS

2
 ACKNOWLEDGEMENT

The successful completion of this project required supervision and assistance

from few people. I am using this opportunity to convey my gratitude to
everyone who helped me throughout the project dissertation. I am thankful to
my faculty mentor DR. Sunil Kumar Yadav for his aspiring direction,
invaluably constructive condemnation and friendly advice during the project
work. I am genuinely grateful to him for sharing his truthful and enlightening
views on a number of issues related to the project. I owe my intense gratitude to
him as he took keen interest on our project work and guided me all along, till
the completion of my project work.

Thank you,

Akant 42280301718

BBA 6th sem

3
 Executive Summary

Unemployment has been a major problem in India for a long time.

Unemployment is a global phenomenon, as international organizations such as
the ILO predict an increase in unemployment in India in the coming years.
There are a number of factors that contribute to this problem. The government
has taken various measures to prevent the problem. However, this is also
increasing day by day. The study is trying to find all the possible factors
affecting the unemployment rate in India. Also, this study will show the
condition of unemployment in India, the situation of education unemployment,
the current unemployment rate in India, population growth, and the various
types of unemployment that exist in India. The research has also tried to make
some suggestions to combat the problem. Continued efforts are needed to
eliminate this problem.

4
 CHAPTER 1

Preamble

1.1 INTRODUCTION

The unemployment rate is a measure of the prevalence of unemployment

and it is calculated as a percentage by dividing the number of unemployed
people in the current population. In times of recession, the economy often
faces high levels of unemployment. According to a report by the
International Labor Organization, more than 200 million people worldwide
or 6% of global workers were unemployed in 2012. There is still a great
deal of controversy over the causes, causes and solutions of inefficiency.
Old economics, new economics, and the Austrian School of Economics
claim that market methods are the most reliable way to solve
unemployment. These views contradict foreign intervention in the labour
market, such as trade unions, labour laws, lower wages, taxes, and other
regulations that they say undermine labor employment. Kynnesia's economy
underscores the state of unemployment and recommends the government's
economic intervention which it says will reduce unemployment during the
recession. This view focuses on the recurring shocks that suddenly reduce
demand for goods and services thereby reducing the demand for labor.
Keynesian brands recommend government interventions designed to
increase labor demand; these may include financial incentives, job-created
job creation opportunities, and expansion financing policies. His name,
economist John Maynard Keynes, believes that the cause of unemployment
is the desire of investors to earn more money than to produce more products,
which is not possible unless civil society organizations generate new
revenue.

5
 1.2 OBJECTIVES

• To know the scenario of unemployment in India.

• To study relevant literature with respect to unemployment.
• To study the major causes for unemployment.
• To explore significant factors for the improvement of
employment in India.

1.3 RESEARCH METHODOLOGY

An exploratory research will be undertaken, by conducting survey to get the

information. Primary data will be collected by means of questionnaires.

Primary Data: Primary data will be collected by means of questionnaires.

Structured questionnaire will be formulated to cover the following: “Study on
Unemployment in India”

Secondary Data: literature survey would be carried out using online E-journal,
working papers as published by various institutions in India. For the purpose of
secondary data, documents/reports the secondary data will be collected by
referring to various articles and journals.

Geographical Area: Delhi Urban Area

Sampling: Simple random sampling will be used in the proposed study. Surveys
are usually carried through questionnaires.
6
 1.2 Importance & Scope of the Study

Importance: -

The unemployment rate is defined as the percentage of unemployed workers in

the total labour force. This rate is widely recognized as a key indicator of the
performance of a country's labour market. As a closely watched economic
indicator, the unemployment rate attracts a lot of media attention, especially
during recessions and challenging economic times. This is because the
unemployment rate doesn't just impact those individuals who are jobless–the
level and persistence of the factors of unemployment have wide-ranging
impacts across the broader economy.

Unemployment adversely affects the disposable income and savings of families,

decrease the purchasing power of people, diminishes employee morale, and
reduces an economy's output.

In order to understand the causes and the remedy for high levels of
unemployment, we need to seek information on different aspects of
unemployment. Statistics about the number of unemployed people, the period
for which they have been unemployed, their skill levels, the trend in
unemployment and regional disparities in unemployment helps policymakers so
that they can interpret them and hopefully make better-informed decisions about
steering the economy and countering unemployment.

Therefore, this study is needed to know all the aspect of unemployment

including cause and effects and remedy for it according to the current trends and
previous catastrophes

SCOPE: -

The present study is focused to identify the factors influencing unemployment

and also to study the methods to curb unemployment. This study addressed and
suggested ways to control the problem of unemployment with respect to present
trends with reference to the catastrophes of the past.

7
 Chapter 2 : The Problem

2.1 DISCRIPTION

Unemployment means a person willing to work but unable to find a qualified

job. Our country is facing many problems but one of the serious problems is
unemployment. Many graduates, doctors, scientists, engineers are unemployed
or working underemployed. Due to unemployment, we are wasting our
country’s human resources.
The Youth unemployed rate in-between age group 15- 29 has been increased
since 2009-2010. Currently, it is prevailing at the rate of 23.75%. According to
the CMIE (Centre for Monitoring Indian Economy), the unemployment rate in
Dec 2020 jumped to 9.1% from the 6.5 percent unemployment rate reported in
November.
If the problem of unemployment is solved it will help in the development of the
country. With a population of 1.39 billion in our country, the unemployment
rate is increasing day by day. The problem of unemployment is rising but still
many industries are facing the problem of skilled candidates for their company.
There is a boom of software companies, pharmaceutical sector, Outsourcing
companies in India, but still facing the problem of unemployment.

Unemployment causes the following problems: -

1. Unemployment gives rise to the problem of poverty.

2. The government suffers an extra borrowing burden because
unemployment causes a decline in the production and less consumption of
goods & services by the consumers.

8
3. People unemployed for a long time may indulge in illegal and wrong
activities for earning money which increases crime in the country.
4. Unemployment affects the economy of the country as the workforce that
could have been gainfully employed to generate resources actually gets
dependent on the remaining working population, thus escalating socio-
economic costs for the state. For instance, a 1 % increase in unemployment
reduces the GDP by 2 %.
5. It is often seen that unemployed people end up getting addicted, leading
to losses to the human resources of the country.

Types of Unemployment in India

1. Open Unemployment
Open unemployment is a situation in which a large number of workers do not
find work that can provide them with a normal income. This type of
unemployment can be identified and calculated according to the number of
unemployed people. Workers are growing faster than the rate of economic
growth. That's why not everyone gets jobs.

2. Disguised Unemployment
It is a situation in which more people are doing work than is actually necessary.
Even if some are removed, production does not affect. In other words, it refers
to a situation of employment with surplus manpower in which some workers
have zero marginal productivity. Therefore, their removal will not suffer the
volume of total production. Overcrowding in agriculture due to rapid population
growth and lack of diverse job opportunities can be cited as the main causes of
disguised unemployment in India.

9
3. Seasonal Unemployment
It is a type of unemployment that occurs at certain times of the year. Restricted
to other industries and activities such as agriculture, holiday resorts etc.,
Production activities occur only during certain seasons of the year. Therefore,
they offer a job only part-time. People who participate in such activities may
remain unemployed during the off-season.

4. Cyclical Unemployment
It is caused by trade cycles at regular intervals. Generally capitalist and business
man are subject to trade cycles. The down swing in business activities results in
unemployment. Cyclical unemployment is generally a shot-run phenomenon.

5. Educated Unemployment
Many educated people are not employed full-time because their qualifications
do not match the work. The theoretical education system, mass layoffs,
unemployment skills, white job vacancies, and declining paid jobs are the main
reasons for unemployment among educated youth in India. Educated
unemployment may be either underemployment or open.

6. Technological Unemployment
It is caused by the change in production strategies that may not reassure many
workers. Modern technology that encourages more money requires fewer
workers and increases this type of unemployment.

7. Structural Unemployment
Structural unemployment arises due to radical changes in the structure of the
country's economy. These changes may affect the supply of a factor or the
demand for a particular production item. Structural employment is a natural

10
outcome of technological advancement, ED, innovation that are taking place
rapidly all over the world in every field.

8. Underemployment
It is a situation in which people employed have to contribute less than their
actual capacity to the work. In this type of unemployment people are not fully
employed. They may be employed either on part-time basis, or working in a job
for which lesser qualification is required. For example, a Graduate may work as
a clerk for which only 12th pass is enough.

9. Casual Unemployment
It is a condition where person is employed on a day-to-day basis, this type of
unemployment may arise due to short-term contracts, shortage of raw materials,
decline in demand, change of ownership etc.

10. Chronic Unemployment

If unemployment continues to be a long-term issue in the country, it is called
chronic unemployment. Rapid growth of population and inadequate levels of
economic development on account of vicious circle of poverty are the main
causes for chronic unemployment.

11. Frictional Unemployment

Frictional unemployment is caused due to improper adjustment between supply
of labour and demand for labour. This type of unemployment is caused by staff
instability, lack of relevant and timely information, type of seasonal work. etc.

11
 2.2 HISTORY

Unemployment in India is one of the biggest social problems. Unemployment

records are maintained by the Indian Department of Labor and Employment.
After independence, the issue of employment had a different meaning during
the different employment processes at different times. In the early years of
development planning, unemployment was not expected to emerge as a major
problem. It was predicted that the right growth rate and the most labor-intensive
sectors would prevent any increase in unemployment and this expectation
continued from the Five-Year Plan to another between the 1950s and 1960s.
However, the economy grew at a slower pace (about 3.5 compared to the
planned average of 5 percent per year) and workers grew much faster than the
increase in employment, doubling the unemployment rate between 1956-1972,
from about 5 to 5 10 million and increase the unemployment rate from 2.6 to
3.8 percent from 1983 to 2011. It peaked at 4,17,50,000 in 2001 and a record
low of 2,48,61,000 in 1985.

In India, the unemployment rate measures the number of active job seekers as a
percentage of the workforce. In 2004-05, the number of unemployed people was
11.3 million, which dropped to 9.8 million in 2009-10 but also increased to 10.8
million in 2011-12 under normal circumstances. However, according to the
CDS the number of unemployed days decreased from 34.3 million in 2004-05
to 28.0 million in 2009-10 and to 24.7 million in 2011-12. Therefore, the
unemployment rate under the CDS has dropped dramatically from 8.2% in
2004-05 to 5.6% in 2011-12. The unemployment rate in India is estimated at
3,69,33,000 from 1985 to 2012 or we can say that India's unemployment rate of
9 percent reached a peak of 9.4 percent in December 2010 and a record low of
3.8 percent in December 2011 until 2012.

According to the India Skills Report presented at the third CII National
Development on Skill Development Conference, 34% of recruits could be
employed by an estimated 1,000 people. The Report not only identified skills
levels of the talent pool but also revealed employment levels across all major
sectors. Industry in the country. According to the report, next year you would
not see strong employment in any of the sectors. Of the approximately 10
categories surveyed, most of the sectors (such as BFSI, BPO / ITES,
Manufacturing, etc.), do not expect significant changes in their hiring numbers.

12
Engineering & Core, Hospitality and travel, has emerged as the only areas
where there will be a significant increase in employment numbers. The report
also highlights the common practice among employers to seek skills rather than
qualifications for candidates. In addition to this, the report contains an in-depth
analysis of the pool of skills based on gender, age, and the location and
locations of the most widely available pool. It also shows the trend of the smart
hiring domain for the coming year. In terms of gender, it has been found that the
quality of female candidates is better than that of men. This and many such
insights are part of the first report of the India Skills Report, which is an attempt
to capture the skill levels on the supply side and the needs of the needy Talent
side and to make comparisons between the two sides. Reaching more than
1,00,000 students spread across the length and breadth of the country in
proportion to the nearly 100 employers spread across 10 Industrial Sectors,
India Skills Report has helped create a workable agenda to address the skills
demand the country is facing. The report was released by Mr. Shikhar Agrawal,
Director-General of Labor and Training Department of Labor and Employment
(India) before Mr. S Ramadorai, National Skill Development Corporation &
Indian National Skill Development Agency & Advisor to the Premier of Skills,
Mr. Chandrajit Banerjee, Director General, CII, Mr. S Mahalingam, Chairman
CII National Committee on Skill Development and Mr. Rajeev Dubey, Co-
Chairman, CII National Committee on Skill & President (Group HR Corporate
Services & After-Market) and member of Group Executive Board, Mahindra &
Mahindra Ltd. According to the NSS (round 66) A report from the Department
of Statistics and Programs, the Indian government that published in 2013 in
Kerala has the highest unemployment rate, while Rajasthan and Gujarat have
the lowest unemployment rate in the major Indian provinces. The national
unemployment rate stands at 50

13
 Trend of unemployment in India

Unemployment rate of India from 2011 to 2019

It is clear that the unemployment rate since 2011 to 2017 has been constant on
the scale 5%. In 2018, there was a significant increment in unemployment rate
as it hit the 45 years high record. In 2019, it rises to 7.2%. But there is
continuous increment in the population of the country since the starting of 2011.

Year Population Unemployment Rate

(in Millions) (in %)

2011 1247.44 M 5.64%

2012 1263.58 M 5.65%

2013 1279.49 M 5.67%

2014 1295.29 M 5.61%

2015 1311.05 M 5.57%

2016 1326.80 M 5.51%

2017 1342.51 M 5.42%

2018 1358.13 M 6.1%

2019 1364.73 M 7.2%

14
 Unemployment rate post-covid (CMIE REPORT)

The unemployment rate has been growing in the country for the last couple of
years. The rates were higher in urban areas than in rural areas and saw a similar
trend among gender. The unemployment situation in the country was the major
cause of worry and anxiety among many Indians. The coronavirus (COVID-19)
pandemic had only accelerated the unemployment rates, and the situation is
expected to improve with many joining the labor force in the days following
lifting of lockdown restrictions.

15
 Youth unemployment rate from 1999 to 2020

The youth unemployment rate refers to those in the workforce who are 15 to 24
years old and who are unemployed but actively seeking it. In general, youth
unemployment rates are higher than adult unemployment rates, and India is no
exception: youth unemployment in India is significantly higher than the national
unemployment rate.

By 2020, India's youth unemployment rate was 23.75%. According to the

source, the details are ILO estimates. Over the past decade, India's youth
unemployment rate has been fluctuating by 22 percent.

16
Share of unemployment across India in 2019, by educational qualification

The graduates, who have a 16.3 per cent share, made up the highest unemployment rate
in 2019. Thiswas followed by individuals with a post graduate degree or above
with a share of 14.2 percent. Therefore, the unemployment rate in the country
was higher among youth with higher educational qualifications.

17
 CHAPTER 3: LIRATURE REVIEW

Dr. Niyati Chaudhary (2020) found that the unemployment rate in India is
increasing and one of the reasons for this is a rapid increase in the Indian
population and as a result the continued increase in the number of unemployed
people. Educated unemployment is one of the types of unemployment
prevailing in India Unemployment in urban areas is much higher than in rural
areas. Then it was found that the person having educational qualification more
than Graduation are having maximum educational unemployment. Then it was
found that the labour force participation rate is decreasing every year in India

Khem Chand & Rajesh Tiwari (2018) found that economic growth has a
negative impact on the unemployment rate. These findings are in line with
Okun's law which explains the negative relationship between economic growth
and unemployment. An implication of the finding is that in order to reduce the
problem of unemployment, the focus should be on boosting economic growth.
The relationship between the unemployment rate and the economic growth rate
has been found by Okun. According to Okun ’Law 1% increase in
unemployment is related to a 2% decrease in real GDP

Rubee singh (2018) studied that inflation was found as insignificantly

influential for GDP & unemployment with negative correlation. She concluded
that inflation possess a role which is influential but for GDP and unemployment
with insignificant levels in macroeconomic factors of India. stated that India has
17.5% population of the world & 1.21 crore people according to Indian Census
of 2011. The research study by various charts and data proved that
unemployment is a major problem in India. It is one of the big challenges in the
way of development of India.

Youngsik Hwang (2017) found that the Government should develop effective
human resource management strategies from the public sector, and the private
sector also needs to develop plans to recruit potential employees after
graduation. Collaboration between the public sector and the private sector is
needed to address the problem of total inefficiency.

Dr. Ashwani Kumar (2016) analysed that in case of rural sector, there has
been both unemployment and under employment. In urban sector, there has
been both educated and industrial unemployment. It was advised that self-
employment should be encourage by Government, transport and communication

18
should be improve in rural area, agriculture should be Modernized, Cottage and
small-scale industries should be developed. Subsidies and other incentives
should be given to private sector, Investment in heavy and basic industries and
consumer goods industries should be increased and e government should open
Technical and Vocational colleges and manual labor should be made
compulsory. Big factories should be attached to these colleges. More stress is to
be given to practical side.

Bhavika Joshi, Serene Shekhar and Sarita Sanwal (2015) found that
entrepreneurship has positive impact on economic development in India.
Entrepreneurship gear up capital formation, generate huge employment,
improve standard of living of the people of the nation, boost up wealth creation
and decentralized distribution of economic resources, increases GNP and per
capita income, promote country’s export, facilitates overall development. Thus,
entrepreneurship should be encouraged among youth through interventions such
as short courses in which youth are taught with the dimensions of
entrepreneurship and some financial assistance may also be built to encourage
entrepreneurs.

Bhavika Joshi and Serene Shek Nher (2015) focused on finding factors of
unemployment, rural and urban unemployment scenario of India. As per the
article, projected global youth unemployment rate was 12.6%. India takes
seventh place in unemployment as compared to other countries in the world.
The estimated rural and urban unemployment was 16% and 34% respectively.
This study concluded that the entrepreneurship would reduce the unemployment
in India and it would lead to economic growth in India

Murat S, et al. (2014) analysed empirically the relationship between economic

growth and unemployment rate in applying the Okun’s Law. Based on the VAR
methodology and Engel-Granger cointegration test, Murat found no causal
relationship between these two variables and a change in the growth rate of real
GDP doesn’t causes a change in the rate of unemployment and vice-versa.

Kirandeep Kaur (2014) researched on the relationship between

unemployment, GDP Growth Rate, inflation rate & exchange rate in India. Data
was collected by secondary data like World Bank, Reserve Bank and Economic
Survey of India from 1990 to 2013. This article concluded that inflation rate and
exchange rate were suggestively affecting the unemployment.

19
 CHAPTER 4

DATA COLLECTION AND ANALYSES

4.1 DESIGNING QUESTIONNAIRE: -

1. What is your name?

2. What is your educational qualification?

• 12th pass
• Under graduation
• Post-graduation
• Other

3. Which area you belong to?

• Urban
• Rural

4. Do you think corruption (giving bribe to get job) and reservation are
challenges for those who actually deserve the job?

• Yes
• No

5. Do you think that economic growth has a significant impact on

unemployment?

20
 • Yes
• No

6. Do you think educated unemployment is more than overall

unemployment in India due to lack of job opportunity?

• Yes
• NO

7. Do you think theoretical education is one of the reasons of educated

unemployment in India?

• Yes
• No

8. How much your family income or business got affected after the
implementation of government policies like GST and demonetisation?

• Slightly increased
• Slightly decreased
• Neutral
• Significantly increased
• Significantly decreased

9. How much covid pandemic has impacted your family income or

business?

• Slightly increased
21
 • Slightly decreased
• Neutral
• Significantly increased
• Significantly decreased

10. Do you think entrepreneurship has positive impact on employment rate?

• Yes
• No

11.Do you think there is necessity for the reforms in the education system?

System for better employment in our country?

• Yes
• No

12.Do you think Government should make policies to decentralise the

industrial activities as big Industrialist creates monopoly and take over
the share of small traders?

• Yes
• No

22
 4.2 Result and analysis

The respondents are catogerigerised into two factors that is their occupation and
their region.

OCCUPATION

The below diagram shows the qualification of the respondents. It was found that
there are 14% respondent who are just 12th pass out, 85% are undergraduate and
there is only 1% respondent who are post graduate.

Area

The below diagram is showing the percentage of demography of respondents

and what is the percentage of respondents who lives in rural or urban region.
The below diagram is showing that about 96% of the respondents are from
urban areas and about 4 % of the respondents are from urban area.

23
Corruption and unemployment

It is found that corruption is a threat for qualified people who are seeking for
job but unable to find. The following results shows that 96% of respondents
believe that corruption is a big challenge for qualified candidate who do not get
job just because someone unqualified candidate give bribe to the top authority
and get the same job. In India under the Government sector and in some private
sector people get the job by giving the bribe. Even though the candidate is not
that qualified for that particular job but if he gives the bribe, he gets the job.
Therefore, to get a government job give a bribe. The qualified candidate
remains unemployed as no money to give the bribe.

24
Economic growth and unemployment

It was asked to the respondent if there is any relationship between economic

growth and unemployment. It was found that 99% respondents thinks that there
is significant impact of economic development on unemployment rate. This
suggest that a government should frame more policies to promote
industrialisation in our country to increase GDP.

Educated unemployment and overall unemployment

When we asked respondent about the educated unemployment, 96% of the

respondents agreed that the educated unemployment is more than the overall
unemployment. The reason behind it are lack of sufficient jobs and poor
schooling as well as the theoretical kind of education on offer at most colleges.
This makes large numbers of graduates unsuitable for employment that has a
profile related to their degrees.

25
Theoretical education system and unemployment

In Indian education system the almost school & universities follow theoretical
education. So, it was asked the respondents that is this one of the reasons of
unemployment in India? 89% responded with ‘yes’ and remaining 11%
responded with ‘No’. So, it is clear that Theoretical education system push the
country back because it do not built the students ready for the industries job as
they lack the enough skill and practical knowledge for the job.

26
Government policies and unemployment

The government of India implemented two major polices that is demonetization

and GST in 2016 and 2017 respectively to boast the economy. It was asked to
the respondent that what was the effect on their family income after the
implementation of these policies then it was resulted that the family income of
36% respondent got slightly decreased, 4% got significantly decreased and 55%
remained constant. But for the 4 % of respondent their family income got
slightly increased and for 1% respondent their family income got significantly
increased. It is clear that lot of people either lost their jobs or their salary cut off
due to these policies effect. Due to GST, a mild inflation was seen in some
products due to higher GST rate imposed on them and demonetization caused
the immobility of cash which further caused lower demand leading to lower
production leading to job losses.

Effect on family income

60
50
40
30
20
10
0
Slightly increased Slightly deacresed Neutral Significantly Significantly
decreased increased

Effect on family income

27
Covid pandemic and unemployment

We all are familiar with the consequence of the covid pandemic in all over the
world. So, we asked our respondent about the effect of covid on their family
income or business. The outcomes shows that 30% respondent has faced
significant decline in their family income,42% of respondent faced slightly
decline and the family income of 21% respondent remained same. Although the
income of 3% and 4% of respondents got significantly increased and slightly
increased respectively. This happened just because covid resulted as the
shutdown of many businesses and services.

Effect on family income by Covid

45
40
35
30
25
20
15
10
5
0
Slightly increased Slightly decreased Neutral Significantly increased Significantly decreased

Effect on family income by Covid

28
Entrepreneurship and unemployment

To find out the relationship between the indentureship and unemployment, it

was asked to the respondent if they think entrepreneurship has a positive impact
on employment rate. 94% respondent agreed that entrepreneurship has positive
impact on employment. This suggest that Government should make more
policies to promote entrepreneurship amongst the youth.

Education system and unemployment

when we asked our respondent is there any necessity for reforms in the
education system of India for the betterment of employment condition, it was
found that 95% agreed to that. This show majority of students still thinks our
education system lacks in many aspects and there is need of root change in that.

29
Industrial activities and unemployment

When we asked our respondent about the decentralisation of industrial activities

it was found that 94% respondent agreed to that. This shows that
decentralisation of industrial activities is important aspect to reduce
unemployment. If industrial activities are centralised at one place, there will be
less employment opportunities in the under developed region. So, Government
should adopt such policies which encourage decentralisation of industrial
activity.

30
 Chapter 5: FINDINGS & SUGGESTIONS

Followings are the facts found in the research: -

• It was found that the unemployment rate in urban areas is more than that
in rural areas.
• It was found that the number of unemployed persons in India is
increasing every year.
• Then it was found that as the population of India has increased from
1247.44 million to 1364.73 million so the unemployment rate in India has
increased from 5.64 % to 7.2% from 2011 to 2019
• Corruption that is giving bribe to get job is a challenge for educated
people who actually deserve the job.
• The ratio of graduate unemployment is much more than the other
unemployment.
• Economic growth has a negative impact on unemployment.
• Theoretical education system is one the factor of unemployment in India.
• Government policies like GST and demonetization push down India to
huge job lose.
• Covid has the biggest impact on unemployment as its shutdown the many
businesses and service for many months.
• Entrepreneurship has a positive impact on employment.

Suggestions

• Government should frame the policies to control population.

• Government should promote transparency to avoid the bribe culture in
Government jobs.
• More policies should be framed for self-employed people. Development
of small and cottage industries should be encouraged. Young
entrepreneurs should be assisted with hassle free loans.
• There is need for a reform in Education system
• There is need of decentralisation of industrial activities to avoid the
monopoly and give equal opportunity to everyone.

31
 Chapter 6

CONCLUSION

On the basis primary and secondary data, we can conclude that followings are
the factors of unemployment in India: -

• Increase in Population: - Constant increase in population has been a big

problem in India. It is one of the main causes of unemployment. Then it
was found that as the population of India has increased from 1247.44
million to 1364.73 million so the unemployment rate in India has
increased from 5.64 % to 7.2% from 2011 to 2019.

• Seasonality of Agricultural Occupations: - In 2016, agriculture and

allied sectors like animal husbandry, forestry and fisheries accounted for
15.4% of the GDP with about 41.49% of the workforce in 2020.
Agriculture offers unemployment for a large segment of the population,
but only for several months out of the year. The result is that for a
considerable portion of the year, many agricultural workers lack needed
employment and income. More stable sources of income are essential to
permit the fulfilment of basic needs.

• Theoretical education system: - The main cause of educated

unemployment is the education provided in schools and colleges are not
as per the current requirements of the industries.

• Expansion of Universities: -The number of universities has increased

manifold. There are 875 universities in India which includes state
university, central university, and deemed university. This leads to the
mismatch of demand and supply of graduate qualification in Industries.
As a result of this educated unemployment or white-collar unemployment
has increased.

• Slow Economic Growth: - Indian economy is underdeveloped and role

of economic growth is very slow. This slow growth fails to provide
enough unemployment opportunities to the increasing population.

32
• Loss of Small-Scale/Cottage Industries: - Industrial development has
made cottage and small-scale industries considerably less economically
attractive, as they do not offer the economies of scale generated by large-
scale mass production of goods. Oftentimes the demand for cheap, mass-
produced goods outweighs the desire for goods that are handcrafted by
those with very specific skill and expertise. The result is that the cottage
and small-scale industry have significantly declined, and artisans have
become unemployed as a result.

• Corruption: - In India giving bribe to get a Government job is like a

tradition. This thing is bad for those who don’t have the money to give as
bribe to get the Job but deserve the job because of his enough skills and
eligibility. Therefore, this thing encourages the educated unemployment
in India.

• Centralisation of economic activities: - When industrial activities are

centralised at one place, then it creates less employment opportunities in
the under developed areas. Also, this creates the situation of monopoly
which further resulted as inflation then less demand that leads to less
production activity.

• Poor Government policies: - Some major policies like GST and

demonetization implemented by the Government of India had a great
negative impact on the economy of India. Crores of jobs were lost by
these policies. Also, these policies drove small businesses to the brink.

• Covid pandemic: - This covid pandemic resulted as a total lockdown all

over the country. Unemployment went up to nearly 24 percent in April
2020. This was possibly a result of a decrease in demand as well as the
disruption of workforce faced by companies.

33
 Chapter 7

REFERENCES

1. Bhavika Joshi, Serene Shekhar & Sarita Sanwal (2015),

‘Entrepreneurship: A Way Out for Unemployed Youth in India’, IJMSS-
International Journal in Management & Social Science, Vol.03, No.2,
pp841-850.
2. Rajesh Kumar, Dr. K Murali (May 2016), ‘A Critical Review on
Unemployment & Economic Growth, Engineering Education & Civil
Engineers, Career Up Graduation in India’, International Research
Journal of Engineering & Technology, Vol.3, Issue 5 .
3. Dr. Ashwani Kumar (Mar. 2016), ‘Unemployment Main Problem Of
Indian Society’, International Journal of Advanced Educational Research,
Vol.1, Issue 2, pp49-52.
4. Dr. Rubee Singh (Mar.2018), ‘Impact of GDP & Inflation on
Unemployment Rate: A Study of Indian Economy in 2011-2018’,
International Journal of Management, IT & Engineering, Vol.8, Issue
5. Gil-Alana, L.A. (2010). A seasonal fractional multivariate model. A
testing procedure and impulse responses for the analysis of GDP and
unemployment dynamics. Empirical Economics, 38(2), 471-501.
6. Graetz, B. (1987). Unemployment, social policy and public opinion.
Australian Journal of Social Issues, 22(4), 321-31.
7. Hassan, M. & Nassar, R. (2015). Effects of debt and GDP on the
unemployment rate: An empirical study. Journal of International Business
Disciplines, 10(2), 52-69.
8. https://www.macrotrends.net/countries/IND/india/unemployment-rate
9. https://www.statista.com/statistics/812106/youth-unemployment-rate-in-
india/
10.https://www.statista.com/statistics/1001039/india-unemployment-rate-by-
education-level/
11.CMIA (2021), Unemployment rate,
https://unemploymentinindia.cmie.com/
12.India today(5/01/2021), Explained: Why India’s unemployment rate is
rising sharply despite economic recovery,
https://www.indiatoday.in/business/story/explained-why-india-s-
unemployment-rate-is-rising-sharply-despite-economic-recovery-
1756074-2021-01-05

34