UNEMPLOYM

ENT
IN INDIA
BY GROUP AG2

INTRODUCTION TO
UNEMPLOYMENT
People without
jobs; actively
looked for work
but unable to
find work

Idleness of
manpower

Unemployment
rate =
(Unemployed
Workers / Total
labor force) X
100

A measure of the
health of the
economy

Differs according
to the level of
economic
development in a
country

TYPES OF UNEMPLOYMENT IN
INDIA

CAUSES OF UNEMPLOYMENT
Economic condition
Emphasis on capital intensive project
Slow growth process
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
4.00
4.00

4.40
4.00

4.30
3.80

3.90

4.30
3.90

4.40
4.10

3.50

3.90

4.30

4.20
3.90

3.90
3.50

3.40

3.40

3.00
2.50
Unemployment
rate
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
Years

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

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

EMPLOYMENT GENERATION
PROGRAMME

YEAR OF
BEGINNIN
G

OBJECTIVE/DESCRIPTION

Employment Guarantee Scheme of

Maharashtra

1972

To assist the economically weaker sections of the rural society.

National Rural Employment Programme

(NREP)

1980

To provide profitable employment opportunities to the rural poor.

Integrated Rural Development

Programme (IRDP)

1980

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

endowment for self employment.

Rural Landless Employment Guarantee

Programme

1983

For providing employment to landless farmers and laborers.

Jawahar Rozgar Yojana (JRY)

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.

2001

To provide additional wage employment along with food security,

creation of durable community, social and vjccc economic
infrastructure in rural areas.

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.

2008

To generate employment opportunities in rural & urban areas

through setting up of new self-employment ventures/projects/micro
enterprises.

Sampoorna Gramin Rozgar Yojana (SGRY)

Mahatma Gandhi National Rural

Employment Guarantee Act (MGNREGA)

10

Prime Ministers Employment Generation

Programme (PMEGP)

EMPLOYMENT CHALLENGES
TH
FOR THE 12 FIVE YEAR
PLAN
Need for correct estimates/ projections of employment & unemployment at
frequent intervals

Need to expand employment opportunities in the formal sector, including the

services sector
Need to expand employment opportunities especially in the manufacturing
sector
Addressing the issue of productivity, both in the formal and informal sectors
Addressing the problems of specific categories-gender, minorities, SC/ST,
disabled people
Addressing the problems of the working poor
Challenge of employment in the face of recurrent economic crises

RECOMMENDATIONS OF THE
TH
12 FIVE YEAR PLAN
Rural industrialization: agro-based industries and other light goods industries have to be created in
the rural areas to ensure rural diversification
The overall employment growth in the manufacturing sector has to increase in a significant way by
the adoption of labour intensive technology and a shift in the industrial production in favour of labour
intensive goods
The small and medium sized enterprises have to grow sizably
Both employment and productivity growth in the unregistered manufacturing sector have to be
stepped so that employment in these units becomes gainful.
In order to provide a boost to the construction sector, rural irrigation programmes and major
infrastructure building programmes both in the rural and urban areas have to be initiated in a
significant way.
The IT sector and IT-related services have to grow so that they provide a major outlet to the skilled
manpower of the country.

CHANGING OCCUPATIONAL
STRUCTURE

Employment Across Various Sectors on UPPS basis

EMPLOYMENT RATE BY AGE GROUP

MIGRATION FROM RURAL TO

URBAN AREAS
Expansion in government services as
a result of WWII
Migration during the partition of India
The Industrial Revolution
11th five year plan that aimed at
urbanization for the economic
development of India
Greater economic opportunities
Infrastructure facilities in the urban
areas
Growth of private sector after 1990

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