Introduction
Unemployment is one of the major socio-economic issues faced by India. It refers to the condition where people who are willing and able to work at the prevailing wage rate are unable to find suitable employment. The problem of unemployment not only leads to financial instability but also affects social harmony and economic growth. To address this, the Indian government has taken several initiatives and implemented policies aimed at job creation, skill development, and economic expansion.
This article explores the various types of unemployment and examines the steps taken by the government to address this issue.
Types of Unemployment in India
Unemployment can be categorized based on different factors such as nature, cause, and duration. The major types of unemployment in India are:
1. Structural Unemployment
Structural unemployment arises when there is a mismatch between the skills possessed by the workforce and the requirements of the job market. This occurs due to technological advancements, changes in industry demands, or shifts in economic structure.
Example:
- The rise of automation and artificial intelligence (AI) replacing traditional manufacturing jobs.
- Lack of skilled labor in emerging sectors such as IT, biotechnology, and renewable energy.
2. Cyclical Unemployment
Cyclical unemployment is linked to the overall economic cycle. It occurs during periods of economic downturns or recessions when demand for goods and services falls, leading to job losses.
Example:
- The global financial crisis of 2008 led to massive layoffs across industries.
- The COVID-19 pandemic caused significant unemployment due to lockdowns and reduced economic activity.
3. Frictional Unemployment
Frictional unemployment is temporary and occurs when workers are transitioning between jobs, entering the labor market for the first time, or re-entering it after a break.
Example:
- A recent graduate looking for a job.
- A person switching careers or relocating to a new city.
4. Seasonal Unemployment
Seasonal unemployment happens when people are employed only during certain seasons and remain unemployed during off-seasons. It is common in agriculture, tourism, and other seasonal industries.
Example:
- Agricultural laborers who work during the sowing and harvesting seasons but remain unemployed during the rest of the year.
- Workers in the tourism industry facing unemployment during the off-season.
5. Disguised Unemployment
Disguised unemployment occurs when more people are employed than required, leading to inefficiency. Even if some workers are removed, overall productivity remains the same. This is a major issue in rural India.
Example:
- A farming family where five members work on a plot of land that only requires three people, resulting in reduced productivity per worker.
6. Underemployment
Underemployment occurs when individuals work in jobs that do not match their skills, qualifications, or potential. They may also be working part-time instead of full-time jobs.
Example:
- An engineering graduate working as a clerk due to a lack of suitable job opportunities.
- A highly skilled worker doing a low-paying job due to limited options.
7. Technological Unemployment
This type of unemployment is caused by technological advancements that replace human labor with machines or artificial intelligence.
Example:
- Automated teller machines (ATMs) reducing the demand for bank clerks.
- AI-driven chatbots replacing customer service representatives.
8. Educated Unemployment
Educated unemployment occurs when individuals with higher degrees or qualifications remain jobless due to a lack of opportunities or skill gaps.
Example:
- A large number of graduates and postgraduates struggling to find suitable employment due to an oversupply of degree holders in certain fields.
9. Casual Unemployment
Casual unemployment occurs when workers employed on a daily-wage or contractual basis lose their jobs due to external factors such as economic downturns or company closures.
Example:
- Daily wage laborers in construction losing jobs when a project ends.
- Contract workers being laid off when companies cut costs.
Government Initiatives to Overcome Unemployment in India
To tackle unemployment, the Indian government has launched several programs and policies aimed at job creation, skill development, and economic growth. Some of the major initiatives are:
1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) (2005)
MGNREGA is a landmark initiative that guarantees 100 days of wage employment per year to rural households willing to do unskilled manual labor.
Impact:
- Provides livelihood security to rural workers.
- Reduces migration from rural to urban areas.
- Boosts rural infrastructure development through projects like road construction and water conservation.
2. Skill India Mission (2015)
The Skill India Mission aims to equip youth with industry-relevant skills to enhance their employability.
Key Programs:
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides short-term skill training and certification.
- National Apprenticeship Promotion Scheme (NAPS): Encourages apprenticeship training in industries.
Impact:
- Enhances employment opportunities by bridging skill gaps.
- Promotes entrepreneurship and self-employment.
3. Make in India (2014)
This initiative focuses on promoting domestic manufacturing and attracting foreign investment to create jobs in 25 key sectors, including automobiles, textiles, and electronics.
Impact:
- Encourages job creation in manufacturing industries.
- Boosts India’s global competitiveness.
4. Start-up India (2016)
Start-up India supports entrepreneurs by providing financial incentives, tax benefits, and ease of doing business initiatives.
Impact:
- Encourages self-employment and innovation.
- Generates employment opportunities in emerging sectors.
5. Atmanirbhar Bharat Rozgar Yojana (2020)
Launched to boost employment generation post-COVID-19, this scheme provides incentives to employers to hire new employees.
Impact:
- Supports businesses in recruiting new workers.
- Encourages job creation in both formal and informal sectors.
6. Pradhan Mantri Mudra Yojana (PMMY) (2015)
PMMY provides financial assistance to small businesses and entrepreneurs through low-interest loans.
Impact:
- Promotes self-employment and micro-enterprises.
- Reduces dependency on traditional jobs.
7. National Career Service (NCS) Portal
This government initiative provides an online platform to connect job seekers with employers.
Impact:
- Enhances accessibility to job opportunities.
- Supports career counseling and skill assessment.
8. Digital India Initiative
This program aims to promote IT and digital services, creating new job opportunities in the technology sector.
Impact:
- Expands employment opportunities in the digital economy.
- Encourages rural employment through digital services.
9. Production-Linked Incentive (PLI) Scheme (2020)
The PLI scheme provides financial incentives to companies in key industries to boost domestic manufacturing and create jobs.
Impact:
- Increases industrial production.
- Generates large-scale employment in manufacturing sectors.
Conclusion
Unemployment is a multifaceted issue in India, influenced by economic, technological, and structural factors. The government has introduced several initiatives to tackle different types of unemployment through skill development, industrial growth, entrepreneurship support, and employment generation programs. While these efforts have yielded positive results, continuous reforms, investments in education, and alignment of skill development with industry demands are crucial for sustainable employment growth.
The future of employment in India depends on policy effectiveness, digital transformation, and adapting to global economic trends. A collaborative approach involving the government, private sector, and educational institutions can help address unemployment and create a prosperous workforce for the country.
