UNEMPLOYME

NT
IN INDIA

INTRODUCTION TO
UNEMPLOYMENT
People are without jobs and they have actively looked for work but is
unable to find work
A measure of the health of the economy
Unemployment rate is the no. of unemployed persons to the no. of
people in the labor force
Idleness of manpower
Differs according to the level of economic development in a country

TYPES OF UNEMPLOYMENT IN
INDIA

CAUSES OF UNEMPLOYMENT
Economic condition
Slow growth process
Emphasis on capital intensive project
Excessive foreign technology
Increase in labor force
Inappropriate education system
Population
Corruption

INDIAN UNEMPLOYMENT - TREND

Unemployment India- 1991-2012 source- world bank
5.00

4.50

UNEMPLOYMENT RATE

4.00

4.40
4.00

4.00

4.30
3.80

3.90

4.30
3.90

4.40
4.10

4.30

3.90

4.20
3.90

3.90

3.50

3.50

3.40

3.40

3.00
2.50
2.00
1.50
1.00
0.50
0.00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Series1 4.00

4.00

4.40

3.80

3.90

4.30

3.90

4.30

4.10
3.90
YEARS

4.40

4.30

3.90

4.20

3.90

3.50

3.40

3.40

PLANNING COMMISSIONS
ESTIMATES OF UNEMPLOYMENT
Chronic unemployment / Usual principal status
employment

Weekly status unemployment

Daily status unemployment

MEASURES TO PROVIDE
EMPLOYMENT
Rural works programme
Marginal farmers and agricultural labourers
Small farmers development agencies
Integrated dry land agricultural development
Agro-service centres
Area development schemes
Crash programme for rural employment

SCHEMES BY THE GOVERNMENT OF

INDIA
S.NO.

EMPLOYMENT GENERATION PROGRAMME

YEAR OF
BEGINNING

OBJECTIVE/DESCRIPTION

Employment Guarantee Scheme of Maharashtra

1972

To assist the economically weaker sections of the rural society.

National Rural Employment Program (NREP)

1980

To provide profitable employment opportunities to the rural poor.

Rural Landless Employment Guarantee Programme

(RLEGP)

1983

For providing employment to landless farmers and laborers.

Integrated Rural Development Programme (IRDP)

1980

All-round development of the rural poor through a program of asset

endowment for self employment.

Jawahar Rozgar Yojana

1989

For providing employment to rural unemployed.

Employment Assurance Scheme (EAS)

1993

To provide employment of at least 100 days in a year in village.

Swarna Jayanti Gram Swarozgar Yojana (SYGSY)

1999

For eliminating rural poverty and unemployment and promoting self

employment.

2005

To create a right based framework for wage employment

programmes and makes the government legally bound to provide
employment to those who seek it.

4
5
6
7
8

Mahatma Gandhi National Rural Employment Guarantee

Act (MGNREGA)

EMPLOYMENT POLICY OF THE 11TH

PLAN
The employment generation strategy of the Eleventh Five Year Plan has
Envisaged reduction in underemployment
Movement of surplus low wage labor in agriculture sector to higher wage
More employment in the non-agricultural sector
Agriculture sector is projected to generate no additional employment
Employment in manufacturing, construction and transport & communication to grow at 4%, 8.2%
and 7.6% respectively
58 million employment opportunities to be created - expected to reduce unemployment rate to
below 5%

CHANGING OCCUPATIONAL
STRUCTURE

EMPLOYMENT RATE BY AGE GROUP

EMPLOYMENT RATE BY LEVEL OF

EDUCATION

STRUCTURE OF EMPLOYMENT IN
INDIA
Distinction between Organized and unorganized sector
EMPLOYMENT IN ORGANISED SECTORSPUBLIC AND PRIVATE

A56
(Lakh persons as on March 31)

1995

2000

2003

2004

2005

2006

2007

2008

2009

2010

2011

PUBLIC SECTOR
By branch
Central Government

33.95

32.73

31.33

30.27

29.38

28.60

28.00

27.39

26.60

25.52

24.63

State Governments

73.55

74.60

73.67

72.22

72.02

73.00

72.09

71.71

72.38

73.53

72.18

Quasi-Governments

65.20

63.26

59.01

58.22

57.48

59.09

58.61

57.96

58.44

58.68

58.14

Local bodies

21.97

22.55

21.79

21.26

21.18

21.18

21.32

19.68

20.73

20.89

20.53

Total

194.66 193.14

185.8 181.97 180.07 181.88 180.02 176.74 177.95 178.62 175.48

STRUCTURE OF EMPLOYMENT IN
INDIA
Relative share of
Self employment,
regular
salaried
employment and
casual labour

MGNREGA
Mahatma Gandhi National Rural Employment Guarantee Act came into force in
2006

Primary objective of guaranteeing 100 days of wage employment per year to

rural households
Key features:

Legal right to work

Time bound guarantee of work and unemployment allowance
Decentralized planning
Work site facilities
Transparency and accountability
Funding

STRUCTURAL CHANGES - THE NEED OF

THE HOUR
Arrest the decline in employment elasticity of the manufacturing
sector
Invest in health and education
Focus on skill development
Accelerate investments in infrastructure

REFERENCES
http://www.jagranjosh.com/general-knowledge/employment-generationprogrammes-1322712332-1
http://www.ies.gov.in/pdfs/sunita-sanghi-and-a-srija.pdf
http://planningcommission.gov.in/plans/planrel/12thplan/pdf/12fyp_vol3.
pdf
www.crisil.com/pdf/research/CRISIL_Research_Insight_Employment_Jan20
14.pdf
http://labourbureau.nic.in/EUS_2012_13_Vol_1.pdf
http://planningcommission.gov.in/reports/sereport/ser/restruc/stdy_rsturc
_ch1.pdf
http://blog.wisdomjobs.com/perspectives-of-unemployment-in-india/