Article On Unemployment In India | Types & Causes {Step by Step} » ✔✔️✔



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Unemployment means a situation in which youth who are employable want to work but they do not get work.

According to the data released by the Ministry of Labor, about 7.8% of the youth in the urban area are unemployed whereas in a rural areas about 5.3% of youth are unemployed.

According to the National Sample Survey, the total number of workers in the Indian economy in 2011-12 was 472.5 million, while in 2017-18, the number of workers has reduced to 457 million.

One of the studies says, the Unemployment Rate in India has reached an all-time high of 23.50 % in April of 2020.

Types Of Unemployment

Rural Unemployment:
  1. Disguised unemployment
  2. Seasonal unemployment
Urban Unemployment:
  1. Educated unemployment
  2. Industrial unemployment
Other Types of Unemployment:
  1. Open unemployment
  2. Underemployment
  3. Structural unemployment
  4. Frictional unemployment
  5. Cyclical unemployment


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Causes of Unemployment in India

Article On Unemployment In India
Article On Unemployment In India
  • Slow Economic Growth
  1. Indian Economy was underdeveloped And still, it is a developing country with an Agriculture background.
  2. Its growth rate is exceptionally low Hence, its not able to generate employment opportunities as per the requirements.
  • Rapid Growth of Population
  1. Continuously rising population is another major cause.
  2. The growth rate of the population is so fast that our country is not able to generate opportunities for all of them Hence, the size of unemployment has increased continuously.
  1. Agriculture produces are dependent on seasonal factors. Which leads to seasonal unemployment when there is no season for crop production.
  2. On average 5 to 7 months are the idle months for the farmers due to seasonal factors.
  3. Nearly 15% of the total working population is engaged in disguised unemployment.
  • Lack of irrigation Facility
  1. So much planning for the development of the Agriculture sector looks insufficient.
  2. As still, more than 50% of agricultural land is not having a permanent source of irrigation.
  3. Lack of irrigation facilities forced farmers to produce a single crop. Hence, a single cropping system will reduce employment opportunities.
  • Joint Family System
  1. The joint Family system means remaining under a single roof with all family members.
  2. Joint Family System encourages disguised unemployment.
  3. Family members are dependent on the head rather than on self-dependence.
  • The decay of cottage and small Industries
  1. Cottage and small industries are sources of employment.
  2. As these industries are labour intensive But the emergence of large industries and competition from foreign brands leads to the decline of the cottage and small industries. Hence, it leads to a decrease in employment opportunities.
  • Low Savings and Investments
  1. There is a lack of capital to invest in the economy.
  2. The capital which is available is utilised toward the investment over large scale industries.
  3. It means the major portion of capital is used towards acquiring the technologies.
  4. Hence, there is a decrease in opportunities.
  • Limited Mobility of Labour
  1. Mobility means the movement of labour in search of a job.
  2. Labour does not move to the area where the job is available due to family and social constraints.
  3. Another reason is the diversity of languages, Religion and customs.

Economic and Social Consequences of Unemployment

  • Economic Consequences Of Unemployment In India

  • Non-utilisation of Manpower
  1. Unemployment leads to the underutilisation of available manpower.
  2. As we are not able to use the resources to the full capacity.
  • Loss of Output
  1. There is a loss of generating more output by using the available resources
  2. Hence unemployed people are not able to contribute.
  • Low Capital Formation
  1. Unemployment only increases the burden of government.
  2. By increasing the social consumption expenditures.
  3. These expenses do not contribute to capital formation.
  • Low Productivity
  1. The productivity of the agriculture sector is exceptionally low as compared to other countries.
  2. Low productivity leads to a low growth rate.


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  • Social Consequences Of Unemployment In India

  • Low Quality of Life
Unemployment decreases the quality of life.
As people are not having enough resources to fulfil their basic needs.
  • Greater Inequality
Unemployment leads to an increase in the gap between rich and poor.
It will lead to unequal distribution of income and wealth.
  • Social Unrest
Unemployment and other factors may lead to terrorism.
Involvement in Anti-National activities.
Class struggle means a struggle for those who are not having enough resources.
Unemployment divides the economy into having and have not.


The government should create a job-generating system and the youth seeking employment should insist on using it 100%.

Fixed wages and lack of employment are not only indicators of a weak economy but also point towards political instability and crisis in the country.

Ultimately, the need is that all the youth of the country should get work according to their ability and need, then only then a Healthy, Happy and Developed country can be imagined.

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