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Employment Situation in India

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 International Journal of Social Science & Management Studies - I.J.S.S.M.S.
Peer Reviewed–Refereed Research Journal, Indexing & Impact Factor - 5.2, Ex - UGC S.N. 5351
2020
ISSN : 2454 - 4655, Vol. - 6, No. – 10, Nov. - 2020

Employment Situation in India

Raghubar Prasad Singh
Research Scholar, University Department of Economics, Lalit Narayan Mithila University, Darbhanga (Bihar)
Pushplata Pandey
Research Scholar, University Department of Economics, Lalit Narayan Mithila University, Darbhanga (Bihar)

Abstract :- India is a developing country. The country from several years. Developing country
developing country are facing problem of with poverty and unemployment is in news but
unemployment. The major problem of India is now underemployment is the biggest problem in
underemployment. The reason behind it is India. Unemployment occur when a person who
underdeveloped secondary sector which is sector is who is actively searching for employment is
of 'employment creation' in the economy. The unable to find work. According to OECD definition
reason for rural unemployment and urban of unemployment is person above a specified age
employment are different. In rural not been in paid employment or self-employment
unemployment, reason is increasing population, but currently available for work during the
insufficient capitals, seasonal nature of reference period. The most frequent measure of
agriculture occupation, lack of skill. The causes of unemployment is 'unemployment rate' in which
urban unemployment are migration from rural the number of unemployed people divided by the
area, more supply of labour, lack of suitable job, number of people in the labour force.
new capital-intensive sector. The India is facing Unemployment is caused by various reason that
such level of unemployment which was never come from both the demand side of employment
seen in last 45 years that is 6.2 % of and the supply side of worker.
unemployment rate. The recent pandemic has
largely affected the employment situation in the Underemployment is a situation in which
country. The government has taken various steps those people who are employed but not able to
in the past to tackle it such as Kaushal Vikas get employment according to their ability and
Yojana, MANREGA, Garib Kalyan Yojana and so skill. on the other hand, unemployment is a
on. We can also learn a lot of from country like situation in which people willing to get job but
China which is most populous country of the unable to get job.
world but also a 'manufacturing hub 'of the The major portion of the workforce is in
world. The government should focus on skill for unorganised sector that is 80% of the working
development, adopt population control measure, population and willing people are not able to get
more industries should be developed, skill job according to their ability and skill lead to
enhancement, small and medium enterprises unemployment situation in India. According to
should be encouraged and so on. NSSO report 2017-18, unemployment rate is 6.2%
which is highest in last 45 years in Indian
Keywords :- Unemployment, Employment, job economy. There are three sectors in the Indian
Skills, workforce, economy, industry, government economy namely- Primary, Secondary and
etc. Tertiary sector. Indian economy should move
from primary to secondary then to the tertiary
Introduction :- The major problem of India is sector but India directly jump from primary to
underemployment. According to Arvind tertiary sector. Therefore, situation of
Panagariya former chairperson of India underemployment is seen in Indian economy and
thinktank's NITI Aayog, since the 73 years of that lead to a situation of underdeveloped
India's independence development has not reach secondary sector. It can be seen in comparison to
up to that level. India is still counted as poor primary and tertiary sector, there are more jobs

Off. 320, Sanjeevni Nagar, Garha, Jabalpur (M.P.) srfjournal21@gmail.com, www.srfresearchjournal.com, M. 9131312045, 0761-4036611
67
 International Journal of Social Science & Management Studies - I.J.S.S.M.S.
Peer Reviewed–Refereed Research Journal, Indexing & Impact Factor - 5.2, Ex - UGC S.N. 5351
2020
ISSN : 2454 - 4655, Vol. - 6, No. – 10, Nov. - 2020

in secondary sector. unemployment 7.5 rate and in 2020 due to

COVID-19 and economy recession, there are
China is a good example for the whole many small and medium enterprise are at the
world due to this reason. China is able to position of exit is also led to unemployment in the
compete with USA due to it developed secondary unskilled labour force.
sector. In all sector, China product can be seen Due to COVID-19 pandemic and then
easily which is a manufacturing hub of the world. lockdown in the country large numbers of people
In rural area of India more than 48% of became unemployed. Many people salary has
population is engaged in agriculture activity been reduced. Women also suffer from this
which lead to disguised unemployment in pandemic and became unemployed in large
agriculture sector. Underemployment and number. Due to lack of skill in people of labour
Unemployment has been study from a variety of class are returning to their native place due to
perspective including economics, management this pandemic. According to G20 report in world
psychology and sociology all meaning is a 81% of workforce have lost their job in India. In
situation in which a person is working or a person april, 23.4 percent have lost their job according to
is yet to find a job. a report. 40 crore people shift below the poverty
line.
Types of Unemployment :- Unemployment is big concern for our
1. Voluntary unemployment country which also create poverty which lead to
2. Involuntary unemployment starvation in country. Sustainable development
3. Cyclical unemployment Goal no. 1 and 2 tell us no poverty and no hunger
4. Seasonal unemployment number and goal 8 also tell about the decent work and
5. Technological unemployment economic growth which is very important for
6. Structural unemployment country development. Government of India
7. Disguised unemployment launch scheme like Make in India, Nirmal Bharat
There are certain steps to prevent scheme which are focusing on country
underemployment :- development and also make India self-reliant
1. Create job search strategy economy. To achieve this goal, government first
2. Consider vocational training reduce unemployment in India by giving
3. Gain more work experience opportunity to unemployed person in
4. Improve your resume government scheme. So that India will be able to
5. Increase your network reduce unemployment.
6. Focus on skill development rather than
Underemployment :- Underemployment refers to
degree
1. Over-qualification or over-education or
7. Financial support to entrepreneurs
employment of worker with higher education,
8. Development of infrastructure
skill level or experience in job that does not
9. Connecting rural to urban area
require such abilities. 2. involuntary part time job
10. Development of tourism
people consider as working part time involuntary
11. Industry based on local produce and asset
are those who want to have a fulltime job but
12. Setting of college for Ayurveda and
could not find it. 3. overstaffing or hidden or
homeopathy in rural area
disguised unemployment, the practice in which
13. Textile designing etc. are to be developed
business or employment worker who are not fully
Current Situation in India :- If any country there is occupied for example worker currently not being
growth in economy then, there will be increase in used to produce goods or services due to social
employment but the situation for India is restriction or because the work is highly seasonal.
different. In India economic growth is increasing Underemployment is a single cause for poverty
but employment is not increasing. In 2019 because although the worker may be able to find

Off. 320, Sanjeevni Nagar, Garha, Jabalpur (M.P.) srfjournal21@gmail.com, www.srfresearchjournal.com, M. 9131312045, 0761-4036611
68
 International Journal of Social Science & Management Studies - I.J.S.S.M.S.
Peer Reviewed–Refereed Research Journal, Indexing & Impact Factor - 5.2, Ex - UGC S.N. 5351
2020
ISSN : 2454 - 4655, Vol. - 6, No. – 10, Nov. - 2020

part time work, the part time work may not be lose their job and become unemployed or
sufficient for basic need. It is problem particularly under employed.
in developing country where the unemployment 8. Market changes- Underemployment can be
rate is quite low and on the other hand, caused by larger market changes example
unemployment it is a situation in which people automation has affected worker in industry
willing to get Job. In India, 80% of working ranging from restart to manufacturing to
population are in unorganised sector. transportation and warehousing.

Interrelationship between unemployment and Causes of Rural Unemployment :-

underemployment :- An unemployment and
1. Rapid increase in population - Increase in
underemployment are closely related as the later
population has affected rural employment
occur on account of the former for example
lead to a large extent. Agriculture is not very
mounting bill, expenses and responsibility
expanding sector, could not provide
required people take any job they can get even if
employment to mass population which result
it not in line with their respective skill set.
in unemployment.
The Bureau of labour statistics :- Reason for 2. Insufficient Capital - The capital available in
unemployment are - rural area is inadequate hence scope for self-
1. Mismatch of skill- Recent graduate employment is very low.
immigrated and re- established there is a 3. Seasonal Nature of Agriculture Occupation-
concern in new country they may suffer from Agriculture activity are seasonal in nature
underutilisation of skill from an older person they last for 4 to 6 months in a year. So, the
re-enter the workforce may find this skill no remaining period of year of agriculture's
longer matches. labour remain ideal they have no other job is
2. Lack of experience- Recent graduate may find lead to problem of unemployment in most
that themselves struggling to secure first job part of the year.
after college even at entry level require more 4. Lack of non-agriculture occupation because
experience. So, they do part time job and of seasonal nature of agriculture operation,
additional internship at a time. people are expected to add other than
3. Credential not acceptable- In many cases agricultural activities but this is not possible
highly skilled individual come to work in a because low rate of growth in other
new country but face difficulties finding work occupation.
because their foreign credential are not to be Causes of Urban unemployment :-
accepted so individual take necessary job 1. Migration from rural area due to lack of
that would otherwise be the seen as employment in rural area, there has been a
infectious position. continuous flow of people to urban areas.
4. Disabilities- In addition to individual with The migration of rural people to urban area
disabilities, mental illness someone inmates has resulted the labour force inconsistent
are often discriminated against in the with the demand for labour.
employment sphere. They are forced to take 2. The supply of labour rate outstrip the
job due to the fear of not finding another. demand and thereby creating
5. Low demand- Some individual with accepted unemployment in urban area due to lack of
experience and skill are victims of low training facility.
demand in their local job market. 3. The Other cause of unemployment among
6. Poor economy- In addition, anyone can find urban is lack of sufficient facility to meet
themselves in trouble if the economic take a them in suitable job.
turn for the worse, for example in COVID-19 4. New and improved technology introduction
many migrant workers even skilled worker in various sector- Technology has ended the

Off. 320, Sanjeevni Nagar, Garha, Jabalpur (M.P.) srfjournal21@gmail.com, www.srfresearchjournal.com, M. 9131312045, 0761-4036611
69
 International Journal of Social Science & Management Studies - I.J.S.S.M.S.
Peer Reviewed–Refereed Research Journal, Indexing & Impact Factor - 5.2, Ex - UGC S.N. 5351
2020
ISSN : 2454 - 4655, Vol. - 6, No. – 10, Nov. - 2020

service of labour in many enterprises into implementation process is very slow. Moreover,
the zone of automation and computer the government should make scheme for
system has increased the condition of underemployment. So that we can take the
unemployment. economic slowdown. Many individual are
available in society with good skill. Government
There is reason for large-scale
should provide them adequate facility to get
unemployment in India which create obstacles in
them job with the skill they have. Here is a saying
country development. Government should make
a simply do what the right the right way at the
different plan for rural and urban areas to reduce
right time.
the unemployment which is the big concern for
India. Today in unskilled sector MANREGA is
Government steps :- Government has taken playing a very important role in which unskilled
various steps like Nirmal Bharat, Kaushal Vikas and semi-skilled person get employment for
Yojana, Mudra Yojana, MANREGA, Garib Kalyan hundred days. Therefore, it is important to
Rojgar Yojana. In addition to it, government increase its budget. Government's make in India,
should focus on skill development. Mudra Yojana, startup yojana, skill India mission
like programme are encouraging government
Government Should take following measure to recently. Pradhanmantri shram Yogi Maan Dhan
reduce unemployment :- The problem of Yojana has been launched by government to
unemployment can be reduced by family planning reduce unemployment in the country. it is
and population control program. Steps should be important to encourage manufacturing sector in
taken by government of India to reduce the the economy, investment on infrastructure we
problem of unemployment in rural area by need to attract foreign investment in our country
controlling population by various population in small and medium enterprise. We should
measure. encourage fishery, poultry, Honey Bee sector
have to be improved. We can say that India
1. Industry should be developed in all sector of problem is not unemployment but it is
the economy. underemployment also. It is important to reduce
2. Introduction of Cottage and small-scale it so that India can become inclusive growth
industry. economy.
3. Provision of facility first depending on
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Off. 320, Sanjeevni Nagar, Garha, Jabalpur (M.P.) srfjournal21@gmail.com, www.srfresearchjournal.com, M. 9131312045, 0761-4036611
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Peer Reviewed–Refereed Research Journal, Indexing & Impact Factor - 5.2, Ex - UGC S.N. 5351
2020
ISSN : 2454 - 4655, Vol. - 6, No. – 10, Nov. - 2020

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5. Barbosa, Alexandre, Maria de Freitas, Cristina
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