We all know what unemployment means, it means the population of people who are actively searching for a job and are unable to find one. It reflects the health of the economy.
But then, what is the unemployment rate?
The unemployment rate simply is the ratio of the number of people unemployed divided by the working population or people working under labor force.
Unemployment rate = (Unemployed Workers / Total labor force) ├Ч 100
According to the reports of Center For Monitoring Indian Economy (CMIE), after the Covid outbreak in India, the unemployment rate is continuously rising. It is due to the necessary imposed restrictions on business, trade and travel. A lot of companies were shut down during this time.
One of the major crises India has witnessed after Independence is loss of life, resources, reduction in GDP, and rise in unemployment.
|
Date |
Unemployment Rate |
|
March 2021 |
6.5% |
|
April 2021 |
8% |
|
June 2021 |
12.81% |
Types of Unemployment in India
Now, there are seven types of unemployment found in India. LetтАЩs know a little about everything.
|
Type |
Meaning |
| Disguised Unemployment | Type of unemployment where people are employed more than actually needed. |
| Structural Unemployment | Type of unemployment where people don’t get jobs related to their skills. |
| Seasonal Unemployment | Type of unemployment where people are employed only in specific seasons of the year. Other seasons, they wander without work. |
| Vulnerable Unemployment | Type of unemployment where employees don’t sign contracts and thus, are at risk of being exploited by the employers or not paid wages are promised. |
| Technological Unemployment | Type of unemployment created where people lose their jobs because of advancement in technology. |
| Cyclical Unemployment | Type of unemployment created due to change in business cycles. Like unemployment rises during recessions and declines with the growth of the economy. |
| Frictional Unemployment | Type of unemployment created by employees themselves for a short span of time while searching for new and better employment opportunities. |
The Government of India has recently launched many schemes to eradicate unemployment like National Skill Development Mission in 2014, Stand Up India Scheme in 2016, Start-Up India Scheme in 2016, and PMKVY тАУ Pradhan Mantri Kaushal Vikas Yojana was launched in 2015.
References:
https://byjus.com/govt-exams/unemployment-in-india/
https://byjus.com/govt-exams/unemployment-in-india/
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