essay on unemployment class 12

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Essay on Unemployment

Here we have shared the Essay on Unemployment in detail so you can use it in your exam or assignment of 150, 300, 500, or 1000 words.

You can use this Essay on Unemployment in any assignment or project whether you are in school (class 10th or 12th), college, or preparing for answer writing in competitive exams. 

Topics covered in this article.

Essay on Unemployment in 150-250 words

Essay on unemployment in 300-500 words, essay on unemployment in 500-1000 words.

Unemployment is a pressing issue that affects individuals and societies globally. It refers to the state of being without a job or a source of income despite actively seeking employment. Unemployment poses significant challenges, both economic and social, for individuals and communities.

The consequences of unemployment are far-reaching. Financial instability decreased living standards, and a loss of self-esteem and confidence are common outcomes. Individuals may face difficulties in meeting their basic needs, providing for their families, and planning for the future. Moreover, unemployment can lead to social unrest, increased crime rates, and a strain on public resources.

Addressing unemployment requires a multifaceted approach. It involves creating favorable economic conditions, promoting job growth through investment and entrepreneurship, and providing individuals with the necessary skills and training for employment opportunities. Furthermore, social safety nets, such as unemployment benefits and job placement services, play a crucial role in supporting those who are unemployed.

Efforts to reduce unemployment should also focus on addressing structural issues in the labor market, promoting fair employment practices, and encouraging inclusive growth. Additionally, fostering a supportive environment for innovation, research, and development can stimulate job creation and economic prosperity.

In conclusion, unemployment is a complex issue with wide-ranging implications for individuals and societies. It demands comprehensive strategies that encompass economic policies, skill development, and social support systems. By addressing unemployment effectively, we can strive towards a society where individuals have access to fulfilling work opportunities and can contribute to the overall well-being and prosperity of their communities.

Title: Unemployment – The Economic and Social Challenge

Introduction :

Unemployment is a pressing issue that affects individuals, families, and societies worldwide. It refers to the state of being without a job or a viable source of income despite actively seeking employment. High levels of unemployment have significant economic and social consequences, making it a critical challenge to address.

Causes of Unemployment

Unemployment can stem from various factors. Economic downturns and recessions often result in job losses as businesses struggle to sustain their operations. Technological advancements and automation have also led to job displacement, particularly in industries that rely heavily on manual labor. Globalization and outsourcing practices have contributed to the relocation of jobs to countries with lower labor costs, creating unemployment in certain regions.

Impact of Unemployment

Unemployment has far-reaching implications. Financial instability resulting from joblessness can lead to increased poverty rates, limited access to healthcare, and housing insecurity. It also strains social cohesion, as unemployed individuals may experience psychological distress, low self-esteem, and a loss of purpose. Moreover, long-term unemployment can lead to skills deterioration and a loss of work experience, making it increasingly difficult for individuals to re-enter the labor market.

Addressing Unemployment

Addressing unemployment requires a multi-faceted approach:

Economic Policies: Governments should implement policies that promote economic growth, investment, and job creation. This includes fostering a business-friendly environment, reducing bureaucratic barriers, and providing incentives for entrepreneurship and innovation. Additionally, targeted industry development strategies can identify sectors with growth potential and encourage job creation in those areas.

Education and Skills Development: Investing in education and skills development is crucial to equip individuals with the necessary competencies for available job opportunities. Collaboration between educational institutions, employers, and government agencies can help bridge the skills gap and ensure that individuals are prepared for the changing demands of the labor market. Upskilling and reskilling programs can help unemployed individuals acquire new skills and improve their employability.

Job Creation Initiatives: Governments should prioritize job creation initiatives, particularly in sectors with high growth potential. This can be achieved through infrastructure projects, green technology investments, and support for small and medium-sized enterprises. Public-private partnerships can also play a significant role in stimulating job creation and economic development.

Social Safety Nets: Establishing robust social safety nets is crucial to support those facing unemployment. Unemployment benefits, healthcare coverage, and access to retraining programs can help individuals meet their basic needs and regain economic stability while actively seeking employment. Such support systems alleviate the financial burden and provide a safety net during challenging times.

Conclusion :

Unemployment is a complex and persistent socioeconomic challenge that demands comprehensive solutions. By implementing effective economic policies, investing in education and skills development, promoting job creation, and providing social safety nets, societies can mitigate the impacts of unemployment and strive toward a more equitable and prosperous future. It is essential to address this issue with urgency, as reducing unemployment rates not only improves individual well-being but also fosters economic growth and social cohesion.

Title: Unemployment – A Dual Crisis of Economic Stability and Human Dignity

Unemployment is a complex and pervasive issue that affects individuals, families, and societies at large. It refers to the state of being without a job or a viable source of income despite actively seeking employment. High levels of unemployment have severe economic and social consequences, making it a pressing challenge that demands effective solutions and interventions. This essay aims to provide a comprehensive analysis of the causes, impacts, and potential remedies for unemployment, recognizing its multifaceted nature and the need for a holistic approach.

I. Understanding Unemployment

Unemployment can be classified into various types based on its causes and duration. Structural unemployment arises from shifts in the economy, such as technological advancements or changes in market demand, rendering certain jobs obsolete. Cyclical unemployment, on the other hand, is caused by economic downturns and fluctuations in business cycles. Frictional unemployment occurs when individuals are between jobs or in transition, while seasonal unemployment is linked to seasonal variations in certain industries.

II. Economic Implications

Unemployment poses significant challenges to the economy at both micro and macro levels. At an individual level, it leads to a loss of income and financial instability, making it difficult for individuals to meet their basic needs, contribute to the economy, and plan for the future. Moreover, the lack of economic opportunities leads to a decrease in consumer spending, which negatively impacts businesses and reduces their profitability. This, in turn, can trigger downsizing, closures, and a negative cycle of job losses, further exacerbating the unemployment crisis.

On a macroeconomic scale, high unemployment rates hinder economic growth and development. The decline in consumer spending decreases demand for goods and services, creating a ripple effect throughout the economy. Governments also face challenges in generating tax revenues, leading to reduced public investment in infrastructure, education, and healthcare. Additionally, increased government spending on unemployment benefits and social support places a strain on public finances, potentially leading to higher budget deficits or cuts in other areas.

III. Social Consequences

Unemployment not only impacts individuals’ economic well-being but also has profound social implications. Financial instability resulting from joblessness can lead to increased poverty levels, housing insecurity, and limited access to healthcare, further exacerbating social inequalities. The psychological toll of unemployment cannot be overlooked, as individuals may experience feelings of anxiety, depression, low self-esteem, and a loss of purpose. This can strain relationships, lead to social isolation, and create a sense of hopelessness among the unemployed.

Furthermore, long-term unemployment can result in skills deterioration and a loss of work experience, making it increasingly difficult for individuals to re-enter the labor market. This perpetuates a cycle of unemployment and hinders upward social mobility, reinforcing existing inequalities and social divisions.

IV. Causes of Unemployment

Unemployment is influenced by a combination of economic, structural, and policy-related factors. Economic downturns, such as recessions or financial crises, can lead to widespread job losses as businesses struggle to stay afloat. Technological advancements and automation also contribute to job displacement, particularly in industries that rely heavily on manual labor. Globalization and outsourcing practices can result in the relocation of jobs to countries with lower labor costs, further aggravating unemployment in certain regions.

Inadequate education and skills training also contribute to unemployment. Rapid changes in the labor market demand individuals with up-to-date skills and knowledge. Failure to adapt and provide relevant training can leave individuals ill-equipped to secure employment in sectors with higher demand.

V. Addressing Unemployment

Effectively addressing unemployment requires a comprehensive approach that combines economic policies, education and skills development, job creation initiatives, and social safety nets. Some potential strategies include:

• Economic Policies
• Education and Skills Development
• Job Creation and Support
• Social Safety Nets

Economic Policies:

Governments should implement policies that foster a conducive business environment, promote investment, and stimulate job creation. This may involve reducing bureaucratic barriers, providing incentives for entrepreneurship and innovation, and investing in infrastructure projects to generate employment opportunities.

Education and Skills Development:

A focus on education and skills training is crucial to equip individuals with the necessary competencies for available job opportunities. Collaboration between educational institutions, employers, and government agencies can help bridge the skills gap and align education with labor market needs. Upskilling and reskilling programs should be promoted to ensure individuals can adapt to evolving job requirements.

Job Creation and Support:

Governments should prioritize job creation initiatives in sectors with growth potential, such as renewable energy, healthcare, technology, and infrastructure development. This can be achieved through investment incentives, public-private partnerships, and targeted industry development strategies. Additionally, providing job placement services, vocational training, and financial assistance to unemployed individuals can enhance their employability and facilitate their transition back into the workforce.

Social Safety Nets:

Establishing robust social safety nets is essential to provide temporary relief and assistance to those facing job loss. Unemployment benefits, healthcare coverage, and support for retraining can help individuals meet their basic needs and regain economic stability while actively seeking employment. Such measures help alleviate the negative impacts of unemployment and support individuals during periods of transition.

Unemployment is a dual crisis of economic stability and human dignity, impacting individuals and societies on multiple levels. The economic and social consequences of unemployment demand comprehensive and coordinated efforts to address its causes and mitigate its impacts. By implementing effective economic policies, investing in education and skills development, promoting job creation, and providing robust social safety nets, societies can strive towards reducing unemployment rates and creating a more inclusive and prosperous future for all.

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Best Essay On Unemployment with Outline for Students

Unemployment in pakistan essay with outline for the students of b.a, bsc, bcom and bcs.

In this post, you will find an Essay on Unemployment with Outline for the students of B.A, BSC, Bcom and BCS. Here are 3 different examples of this essay with different difficulty levels. You can write the same essay under the title, Essay on Unemployment, Essay on Unemployment in Pakistan, Unemployment essay in Pakistan, unemployment in Pakistan essay. The 1st essay is an outstanding essay with 477 words.

Outline of Unemployment Essays

• Unemployment is the mother of countless evils.
• In Pakistan, we find increasing unemployment in different fields.
• Overpopulation is a major cause of unemployment.
• The slow economic and scientific progress is perhaps the greatest cause of unemployment.
• The defective system of our education is also responsible for this serious problem.
• To get rid of this problem, we have to develop our economy on modern lines.
• Rapid industrialization can remove the dark clouds of unemployment.
• Our government is trying to solve this problem as early as possible.

Unemployment means not having enough jobs to employ the unemployed. Unemployment is the mother of countless evils. It pollutes the society and wrecks the political fabric of the county. It turns the law-abiding and honest men into criminals and dacoits. It is difficult to expect truth, nobility and honesty from a person who cannot have two square meals a day, and who cannot provide a morsel of food or a dose of medicine to his sick wife or ailing children. A long spell of poverty and unemployment is a great menace to the state.

In Pakistan, we find increasing unemployment in different fields. Thousands of B.A’s and M.A’s are idle as they cannot even get the jobs of clerks. There are many causes of large scale unemployment.

First of all, the population of our country and other developing countries is rising fast. It becomes difficult to meet the needs of all the additional population. If the population goes on increasing at the present speed, all efforts of the government to provide employment and food for the public are bound to fail.

The slow economic and scientific progress is perhaps the greatest cause of unemployment. Because of sluggish industrial growth, there are not many large factories and industrial centres where labourers, skilled workers and fresh graduates can get employed.

The defective system of our education is also responsible for this serious problem. We neglect technical education. Our young men do not like physical labour. There are not enough desk jobs available in the country. As a result, unemployment prevails in society. Moreover, the decline of the cottage and small industries are also a cause of unemployment. The increasing demand of goods is also a cause of unemployment. The demand for locally made products has decreased. This thing has created a lot of problems not only for the government but also for the highly skilled artisans.

To get rid of this problem, we have to develop our economy on modern lines. Our agriculture system is backward. We must develop it with new techniques. Besides, we need to develop our cottage industries. These industries need less capital and more manpower.

Rapid industrialization can remove the dark clouds of unemployment. In rural areas, small-scale industries should be set-up.  The government should set up new factories in as many places as possible. Unemployed and skilled workers will be able to get employment in large number.

Our government is trying to solve this problem as early as possible. But in spite of all much more is needed. The concept of education should be changed. Planned limits. The government must create a powerful stimulus for foreign investors. The menace of unemployment cannot be overcome without effective planning. It is only after a long struggle that we can get rid of this evil.

2. Essay On Unemployment, Causes and Solution with Outline

• Outline A World-wide problem.
• In Pakistan, unemployment is at its highest peak.
• A source of discontent.
• Causes of large-scale unemployment.
• A comprehensive plan is required to combat unemployment.

Essay On Unemployment In Pakistan for Class 10, Class 12 and Graduation

Unemployment is an economic term which shows an inability to find work for which one is suited by nature or attainments. It is a worldwide problem. Even rich and advanced countries like America, Britain and France suffer from unemployment. Its percentage varies according to the industrial and economic development of a country.

In Pakistan, unemployment is at its highest peak. All professions are over-crowded. A graduate is not welcomed in any office. There is no scope in the professions of medicine, engineering, law and education. Hundreds of qualified youngsters are wandering in search of jobs. Thousands of labourers and workers are jobless in cities and villages.

Unemployment is a social evil. It is a source of discontent, depression and anxiety for the educated as well as the uneducated people. Corruption, crime, unrest, sin and vices of all sorts prevail in a society where people are unemployed. It brings hunger, starvation, and disease. The frustrated youngsters are falling prey to violence, theft, terrorism, drugs-addiction, drug-trafficking and many other heinous crimes.

There are several causes of large-scale unemployment in Pakistan. Some are the following:

• Our defective education system is responsible for the high rate of unemployment. It only produces young men who hate manual labour. They want to get only some white-collar job. This system does not meet the economic needs of the country.
• The pace of economic development of the country is very slow. The mills and factories are unable to absorb all the jobless people. Moreover, ill-planned mechanisation and computer technology are also causing unemployment.
• In our country, a few privileged persons control the whole economy. Most of them are uneducated and unskill. But, the educated young men have neither the capital nor the opportunities to try their luck in business.
• The rapid growth of population is a major cause of unemployment. The resources of the country are not enough to maintain such a large population. The result is unemployment.

The large-scale unemployment is creating many social, economic, moral political and psychological problems in our society. Therefore, a comprehensive plan is required to combat unemployment. The education system should be reshaped to produce skilled manpower. the government should speed up the pace of economic development. Especially, the fields of energy telecommunication and transportation should be encouraged. The government should introduce self-employment schemes and set up small industries in rural and underdeveloped areas. Moreover, sincere and adequate steps should be taken to overcome the population explosion. The problem of unemployment cannot be eliminated entirely. However, it can be alleviated with devotion, sincerity and wisdom.

3. Easy Essay on Unemployment for Class 10, Class 12, FA, FSC, BA and BSC

A person who does not have work to earn his livelihood is called an unemployed person. Unemployment is a universal problem. Everybody faces it. Even developed countries like Britain and America face it. Unemployment exists at two levels in our country. There are uneducated people who have no source of income in this country. Unemployment also exists among educated people. This is very dangerous in its results.

Thousands of persons holding master’s degrees are out of job. There are numberless doctors, engineers and scientists who have degrees in their hands but they are unemployed. Even people with foreign qualification wander aimlessly in search of jobs. There are many thousands of unemployed labourers farm workers in villages and workers in cities who are daily breadwinners. Sometimes they do not get work for days and weeks together.

The causes of large-scale unemployment are many.

First, our system of education is defective. It does not fulfil our social and economic needs. It aims at producing clerks and peons instead of technicians and skilful workers. It needs scientists, technical hands and skilful workers. Our education produces young graduates who do not like to work with their hands. We must change our education and harness it to the economic needs of the country.

Secondly, our country is not much advanced in the industry. We have a few mills and factories. We cannot absorb jobless people in these factories and mills.

Thirdly, the industry of the country is controlled by a few privileged people. They do not let others share their experience and capital. If they make a little sacrifice, they can raise a network of industries in the country. The educated people have neither the opportunity nor the capital to set up an industry. The industrialists can give an incentive to the educated people to set up new factories and mills.

Fourthly, our population is increasing rapidly It is very difficult to provide jobs to such a large number of people. They go on increasing every year. Our country is underdeveloped and its sources are limited.

Large-scale unemployment has very bad effects on the progress of the country. Unemployed people do not take part in the development of the country. Moreover, the unemployed people in any society suffer from an inferiority complex. They suffer from the agony that they are worthless and good for nothing. Unemployment brings frustration and disappointment among the educated as well as the uneducated people. It brings in its wake hunger, starvation and disease. It produces a feeling of revolt among the unemployed.

Essay on Unemployment was previously in exams – P.U. 2002, P.U. 2007 B.Sc

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Unemployment and the New Education Policy Essay

Essay on unemployment and the new education policy for class 12, mains exam (upsc, psc, ssc).

Disguised unemployment: Occurs more people are employed than required.

Structural unemployment:  Occur when there is an incongruence between jobs available in the market and the skills developed by individuals exist.

ii)Guaranteeing quality early childhood care and education  for all children between 3-6 years

vii) Equitable and inclusive education is a major focus of the NEP for different sections of society including the marginalized sections such as scheduled castes and scheduled tribes. Inclusion also identifies and incorporates other genders than male and female like homosexuals, bisexuals and transgender.

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Essay on Unemployment in English (All Class) 1500+ words

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Download Essay on Unemployment in PDF from this page. Here we have provided the essay on the problem of unemployment for class 1, 2, 3, 4, 5, 6, 7, 8, 9 to 12. As everyone in this country should know about the consequences of being unemployed in a country. Also, multiple instances of essay like 100 words, 200 words or 10 lines are provided here to everyone.

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Short and Long Essay on Unemployment

Unemployment is one of the major obstacles in the development of any country. Unemployment is a serious issue in India. Lack of education, lack of employment opportunities and performance problems are some of the factors that lead to unemployment. The Government of India needs to take effective steps to eliminate this problem. One of the main problems facing developing countries is unemployment. It is not only one of the major hindrances in the economic development of the country, but also has many negative effects on the individual and the whole society simultaneously. 

Essay on Unemployment in 300 words for class 3, 4, 5

Unemployment is a curse for society. This not only has a bad effect on individuals but unemployment also affects the whole society. There are many factors that lead to unemployment. Here these factors were explained in detail and possible solutions have been suggested to control this problem.

Factors that can increase unemployment in India

• Increase in population

The rapid increase in the country’s population is one of the major causes of unemployment.

• Manda Economic Development

The slow economic growth of the country results in fewer employment opportunities for people, leading to unemployment.

• Seasonal business

A large part of the country’s population is involved in agriculture. Being a seasonal business it only provides work opportunities for a certain time of the year.

• The slow growth of the industrial sector

The growth of the industrial sector in the country is very slow. Thus employment opportunities in this sector are limited.

• The decline in cottage industry

Production in the cottage industry has fallen drastically and due to this many artisans have become unemployed.

Possible solutions to end unemployment

• Population control

This is the right time when the Indian government takes drastic steps to control the population of the country.

• Education system

The education system in India focuses on theoretical aspects rather than skill development. The system has to be improved to generate skilled manpower.

• Industrialization

The government should take steps to promote the industrial sector to create more employment opportunities for people.

• foreign companies

The government should encourage foreign companies to open their units in the country to create more employment opportunities.

• Job opportunities

Employment opportunities should be created in rural areas for those who remain unemployed for the rest of the time by working at a certain time.

The problem of unemployment in the country has been around for a long time. Although the government has initiated several programs for employment generation, desirable progress has not yet been achieved. Policymakers and citizens should make collective efforts to create more jobs as well as to acquire the right skills for employment. 

Essay on Unemployment 400 words for class 6, 7, 8

Unemployment in India can be divided into several categories including disguised unemployment, open unemployment, educated unemployment, cyclical unemployment, seasonal unemployment, technical unemployment, structural unemployment, long term unemployment, frictionless unemployment and casual unemployment. Before reading about all these types of unemployed in detail, we have to understand what exactly is called unemployment? Basically, unemployed is a person who is ready to work and is looking for an employment opportunity but is unable to find employment. Those who remain unemployed voluntarily or are unable to work due to some physical or mental health problems are not counted as unemployed.

Here’s a detailed look at the different types of unemployment:

Hidden unemployment

When people more than required is hired for a job. This condition is called as the hidden unemployment as removing these people will not affect the work. 

sessional Unemployment

As the name suggests this type of Unemployment is only in a specific season of the year. Usually works related to agriculture, Ice factory, resorts and sports industries are affected by this.

Open Unemployment

This means when labour in large number is not able to get a job which provides them with regular income. This situation arises when physical labour increases more as compared to the economy

Technical Unemployment

This situation arises due to the increasing technical machines and instrument to replace human work.

Structural  Unemployment

This type of unemployment occurs due to a major change in the economic structure of the country. It is the result of technological advancement and economic development.

cyclical unemployment

A decrease in the overall level of business activity leads to cyclical unemployment. However, this incident is only for a short time.

Educated unemployment

Inability to find a suitable job, lack of employable skills and faulty education system are some of the reasons that educated unemployed remain.

Contract unemployment

In this type of unemployment, people either work on a part-time basis or do the kind of work for which they are more qualified.

Preventive unemployment

This occurs when the demand for the labour force and its supply are not properly coordinated.

Long term unemployment

Long term unemployment is one that continues in the country due to rapid growth in population and low level of economic growth.

Sudden unemployment

Such unemployment occurs due to a sudden drop in demand, short term contracts or shortage of raw materials.

Although the government has launched several programs to control all types of unemployment, the results have not yet been satisfactory. The government needs to devise more effective strategies for generating employment. 

Essay on Unemployment in 500 words for class 9, 10

Unemployment is a serious problem. Several factors, including lack of education, lack of employment opportunities, skills shortage, performance issues and growing population contribute to this problem in India. The negative effects of this problem can be seen on the entire society along with the personal effects. The government has taken several steps to control this problem. Some of these are mentioned in detail as follows.

Government initiative to reduce unemployment

• Self-employment training

The program, started in 1979, was called the National Scheme of Training of Rural Youth for Self Employment (TRYSEM). It aims to reduce unemployment among youth in rural areas.

• Integrated Rural Development Program (IRDP)

To ensure full employment opportunities in rural areas in the year 1978-79, the Government of India launched the Integrated Rural Development Program. 312 crores were spent on this program and 182 lakh families benefited from it.

• Employment in foreign countries

The government helps people in getting employment in foreign companies. Special agencies have been set up in other countries to hire people.

• Small and cottage industries

In an effort to reduce the issue of unemployment, the government has also developed small and cottage industries. Many people are earning their living with this initiative.

• Golden jubilee employment scheme

The program aims to provide self-employment and wage-employment opportunities to the urban population. It consists of two schemes:

• Urban self-employment program
• Urban wage employment program
• Employment assurance scheme

This program was started in 1994 for 1752 backward classes in the country. Poor unemployed people living in rural areas were provided unskilled manual work for 100 days under this scheme.

• Drought prone area program (DPAP)

The program was launched in 13 states and covered 70 drought-prone districts with the aim of eliminating seasonal unemployment. The government spent Rs 474 crore in its seventh plan.

• Jawahar Rozgar Yojana

The program, launched in April 1989, was intended to provide at least one member in each poor rural family with the employment of fifty to one hundred days for a year. Employment opportunities are provided in the vicinity of the individual and 30% of these opportunities are reserved for women.

• Nehru Rozgar Yojana (NRY)

There are a total of three schemes under this program. Under the first scheme, the urban poor is subsidized to set up micro-enterprises. Under the second scheme, wage-employment is arranged for labourers in cities with a population of less than 10 lakh. Under the third scheme, the urban poor in cities is given employment opportunities matching their skills.

• Employment guarantee scheme

The unemployed people are provided financial assistance under this scheme. It has been started in many states including Kerala, Maharashtra, Rajasthan etc.

Apart from this, several other programs have been launched by the government to reduce unemployment.

Although the government is taking several measures to control the problem of unemployment in the country, a lot still needs to be done to prevent this problem in the true sense.

Essay on Unemployment in 600 words for class 11, 12

Unemployment is a serious issue. There are many factors which are responsible for this. Some of these include lack of proper education, lack of good skills and skills, inability to perform, lack of good employment opportunities and rapidly growing population. A look at unemployment stability, unemployment consequences and measures taken by the government to control it further.

Unemployment related statistics in India

The Ministry of Labor and Employment in India maintains unemployment records in the country. Unemployment figures are calculated based on the number of people who had no work for a substantial period of time during the 365 days prior to the date the figures were matched and are still seeking employment.

From 1983 to 2013, the unemployment rate in India was the highest at 9.40% with an average of 7.32 percent and in 2013 it was a record of 4.90%. In the year 2015-16, the unemployment rate was 8.7% for women and 4.3 percent for men.

Result of unemployment

There are serious socio-economic issues due to unemployment. This affects not only one person but the whole society. Some of the major consequences of unemployment are explained below:

• Rise in poverty

This statement is absolutely true that the increase in the unemployment rate has increased the poverty rate in the country. Unemployment is mainly responsible for inhibiting the economic development of the country.

• Crime rate increase

Unemployed unable to find a suitable job usually takes the path of crime as it is an easy way to make money. Unemployment is one of the main causes of the rapidly increasing cases of theft, robbery and other heinous crimes.

• Exploitation of labour

Employees generally take advantage of the lack of jobs in the market by offering lower wages. People unable to find a job linked to their skills usually settle for a low-paid job. Employees are also forced to work for a specified number of hours each day.

• political instability

Lack of employment opportunities results in a lack of trust in the government and this situation often leads to political instability.

• mental health

The level of dissatisfaction increases among unemployed people, which gradually leads to anxiety, depression and other mental health problems.

• Loss of skill

Staying out of a job for a long period of time leads to dull life and loss of skills. This reduces a person’s confidence to a great extent.

The Government of India has started several programs to reduce the problem of unemployment as well as to help the unemployed in the country. Some of these include Integrated Rural Development Program (IRDP), Jawahar Rozgar Yojana, Drought Prone Areas Program (DPAP), Training for Self-Employment, Nehru Rozgar Yojana (NRY), Employment Assurance Scheme, Prime Minister’s Integrated Urban Poverty Alleviation Program (PMIUPEP), employment offices, employment in foreign countries, development of small and cottage industries, employment guarantee scheme and Jawahar Gram Samridhi Yojana etc. Not.

Apart from providing employment opportunities through these programs, the government is also sensing the importance of education and providing skill training to unemployed people.

Unemployment is the root cause of various problems in society. Although the government has taken the initiative to reduce this problem, the measures taken are not effective enough. Due to this problem, various factors need to be studied thoroughly to see effective and integrated solutions. It is time that the government should recognize the sensitivity of the matter and take some serious steps to reduce it.

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• Government Exam Articles

Unemployment In India

The unemployment rate in India, amidst lockdown and restrictions on mobility, is 12.81% as of June 8th 2021 based on the data provided by the CMIE. Earlier, the unemployment rate in India shot up from 6.5 per cent in March 2021 to 8 per cent in April 2021, to 14.7% by May end, while the employment rate fell from 37.6 per cent in March to 36.8 per cent in April,  says the report of CMIE – Centre For Monitoring Indian Economy.

In 2020, the unemployment rate in India fell to 7% in September 2020 from the record high of 29% since the country went into lockdown from March 2020,  However, it later increased to 9.1% in December 2020.

The unemployment rate again declined to 6.5 per cent in January 2021 from 9.1 per cent in December 2020, while the employment rate surged to 37.9 per cent as compared to 36.9 per cent.

The lockdown to contain the coronavirus outbreak has forced many industries to shut down thus increasing unemployment across the country.

The unemployment in India stood at 6.1% in the financial year 2018 mentions the NSSO – National Sample Survey Organisation Report 2019. Candidates can check the detailed information on NSSO on the given link.

The topic of unemployment, the data related to unemployment in India and initiatives by the government to alleviate unemployment are important for aspirants preparing for competitive exams. It holds relevance in the general awareness section of various government exams like SSC exams, Bank exams, RRB exams, etc. 

Candidates can check the following links for General Awareness preparation:

• SSC General Awareness
• Bank General Awareness  

For candidates preparing for UPSC, unemployment in India can be asked in GS I or as an essay question. Therefore, this article will discuss detailed information on unemployment in India, types of unemployment, causes and government initiatives to control unemployment in India.

Candidates appearing for UPSC 2023 can go through the following links:

What is Unemployment?

Unemployment is a situation when a person actively searches for a job and is unable to find work. Unemployment indicates the health of the economy. 

The unemployment rate is the most frequent measure of unemployment. The unemployment rate is the number of people unemployed divided by the working population or people working under labour force.

Unemployment rate = (Unemployed Workers / Total labour force) × 100

National Sample Survey Organization (NSSO) defines employment and unemployment on the following activity statuses of an individual. NSSO, an organization under MoSPI – Ministry of Statistics and Programme Implementation measures India’s unemployment on three approaches:

• Daily Status Approach : unemployment status of a person under this approach is measured for each day in a reference week. A person having no gainful work even for one hour in a day is described as unemployed for that day.
• Weekly Status Approach: This approach highlights the record of those persons who did not have gainful work or were unemployed even for an hour on any day of the week preceding the date of the survey.
• Usual Status Approach : This gives the estimates of those persons who were unemployed or had no gainful work for a major time during the 365 days.

Types of Unemployment in India

In India, there are seven types of unemployment. The types of unemployment are discussed below:

• Disguised Unemployment : This is a type of unemployment where people employed are more than actually needed. Disguised unemployment is generally traced in unorganised sectors or the agricultural sectors.
• Structural Unemployment: This unemployment arises when there is a mismatch between the worker’s skills and availability of jobs in the market. Many people in India do not get job matching to their skills or due to lack of required skills they do not get jobs and because of poor education level, it becomes important to provide them related training. 
• Seasonal Unemployment: That situation of unemployment when people do not have work during certain seasons of the year such as labourers in India rarely have occupation throughout the year.
• Vulnerable Unemployment: People are deemed unemployed under this unemployment. People are employed but informally i.e. without proper job contracts and thus records of their work are never maintained. It is one of the main types of unemployment in India.
• Technological Unemployment : the situation when people lose their jobs due to advancement in technologies. In 2016, the data of the World Bank predicted that the proportion of jobs threatened by automation in India is 69% year-on-year.
• Cyclical Unemployment : unemployment caused due to the business cycle, where the number of unemployed heads rises during recessions and declines with the growth of the economy. Cyclical unemployment figures in India are negligible. 
• Frictional Unemployment : this is a situation when people are unemployed for a short span of time while searching for a new job or switching between jobs. Frictional Unemployment also called Search Unemployment, is the time lag between the jobs. Frictional unemployment is considered as voluntary unemployment because the reason for unemployment is not a shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities.

Aspirants preparing for UPSC Civil services exams or any government exams can check the relevant links given below to prepare more comprehensively –

Causes of Unemployment

The major causes of unemployment in India are as mentioned below:

• Large population.
• Lack of vocational skills or low educational levels of the working population.
• Labour-intensive sectors suffering from the slowdown in private investment particularly after demonetisation
• The low productivity in the agriculture sector plus the lack of alternative opportunities for agricultural workers that makes transition among the three sectors difficult.
• Legal complexities, Inadequate state support, low infrastructural, financial and market linkages to small businesses making such enterprises unviable with cost and compliance overruns.
• Inadequate growth of infrastructure and low investments in the manufacturing sector, hence restricting the employment potential of the secondary sector.
• The huge workforce of the country is associated with the informal sector because of a lack of required education or skills, and this data is not captured in employment statistics.
• The main cause of structural unemployment is the education provided in schools and colleges are not as per the current requirements of the industries. 
• Regressive social norms that deter women from taking/continuing employment.

Impact Of Unemployment

The unemployment in any nation have the following effects on the economy:

• The problem of unemployment gives rise to the problem of poverty.
• The government suffers extra borrowing burden because unemployment causes a decrease in the production and less consumption of goods and services by the people.
• Unemployed persons can easily be enticed by antisocial elements. This makes them lose faith in the democratic values of the country.
• People unemployed for a long time may indulge in illegal and wrong activities for earning money which increases crime in the country.
• Unemployment affects the economy of the country as the workforce that could have been gainfully employed to generate resources actually gets dependent on the remaining working population, thus escalating socio-economic costs for the state. For instance, a 1 % increase in unemployment reduces the GDP by 2 %.
• It is often seen that unemployed people end up getting addicted to drugs and alcohol or attempts suicide, leading to losses to the human resources of the country.

Candidates can check more relevant topics for competitive exams:

Government Initiative To Control Unemployment

Several policies have been initiated by the government to reduce the unemployment problem in the economy. The policies to reduce unemployment are highlighted below:

• In 1979 the government launched TRYSEM – Training of Rural Youth for Self-Employment The objective of this scheme was to help unemployed youth of rural areas aged between 18 and 35 years to acquire skills for self-employment. The priority under this scheme was given to women and youth belonging to SC/ST category.
• The Government launched the IRDP – Integrated Rural Development Programme (IRDP) in the year 1980 to create full employment opportunities in rural areas.
• A new initiative was tried namely RSETI/RUDSETI in 1982 jointly by Sri Dharmasthala Manjunatheshwara Educational Trust, Canara Bank and Syndicate Bank. The aim of RUDSETI, the acronym of Rural Development And Self Employment Training Institute was to mitigate the unemployment problem among the youth. Rural Self Employment Training Institutes/ RSETIs are now managed by Banks with active cooperation from the state and central Government.
• The Jawahar Rozgar Yojana (JRY) was started in April 1989 by merging the two existing wage employment programme i.e. RLEGP – Rural Landless Employment Guarantee Programme and NREP – National Rural Employment Programme on an 80:20 cost-sharing basis between the state and centre.
• MNREGA – Mahatma Gandhi National Rural Employment Guarantee Act launched in 2005 providing the right to work to people. An employment scheme of MGNREGA aimed to provide social security by guaranteeing a minimum of 100 days paid work per year to all the families whose adult members opt for unskilled labour-intensive work. For details on MNREGA check the link provided. 
• PMKVY – Pradhan Mantri Kaushal Vikas Yojana was launched in 2015. The objective of PMKVY was to enable the youth of the country to take up industry-relevant skill training in order to acquire a secured better livelihood. For further details on Pradhan Mantri Kushal Vikas Yojana check the given link. 
• The government launched the Start-Up India Scheme in 2016. The aim of Startup India programmes was to develop an ecosystem that nurtures and promotes entrepreneurship across the nation. Check detailed information on Startup India Scheme in the given link. 
• Stand Up India Scheme also launched in 2016 aimed to facilitate bank loans to women and SC/ST borrowers between Rs 10 lakh and Rs. 1 crore for setting up a greenfield enterprise. Details on Stand-Up India is given in the linked page.
• National Skill Development Mission was set up in November 2014 to drive the ‘Skill India’ agenda in a ‘Mission Mode’ in order to converge the existing skill training initiatives and combine scale and quality of skilling efforts, with speed. Check the National Skill Development Mission in detail. 

Like the above-mentioned schemes, there are various other schemes launched by the Government of India in order to address the social and economic welfare of the citizens and the nation.  The links of related schemes launched by the government are given below.

Candidates appearing for any competitive exams must keep up to date with information on PRASAD schemes. Aspirants can check in detail various Government Schemes which will be helpful for UPSC aspirants and for other competitive exams.

Unemployment in India – Important Questions

Q1.  Unemployment that occurs during the normal workings of an economy as people change jobs and move across the country is called _____.

• structural unemployment.
• natural unemployment
• frictional unemployment
• cyclical unemployment

Answer (3) Frictional unemployment

Q2.  The natural rate of unemployment is generally thought of as the

• the sum of frictional unemployment and structural unemployment
• the ratio of the frictional unemployment rate to the cyclical unemployment rate
• the sum of frictional unemployment and cyclical unemployment
• the sum of structural unemployment and cyclical unemployment

Answer (1) the sum of frictional unemployment and structural unemployment

Q3. A sales manager of an equipment manufacturing company loses his job because the company relocated the unit to another country is an example of ____ unemployment.

• Seasonal unemployment
• Frictional unemployment
• Cyclical unemployment
• Structural unemployment

Answer (4) Structural unemployment

Q4. When the rate of unemployment increases because of recession or depression. It is which type of unemployment?

• Cyclical Unemployment
• Frictional Unemployment

Answer (3) Cyclical Unemployment

Q5. Discouraged workers are not considered as a part of the labour force, so classifying them as unemployed would

• have an indeterminate impact on the unemployment rate
• not change the unemployment rate
• increase the unemployment rate
• decrease the unemployment rate

Answer (3) increase the unemployment rate

Candidates can check Previous Year Question Papers with solutions PDF to understand the type of questions asked in examinations related to such topics.

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Essay on Unemployment for Students in English | 500 Words Essay

December 20, 2020 by Sandeep

Essay on Unemployment: It is a serious social issue in India and a big global concern too. There are thousands of people who are not employed owing to the rising population and a steady decline in jobs, leading to unemployment. Automation of jobs, illiteracy, stiff competition, unavailability of resources, unqualified, political factors, etc. has given way to unemployment. Unemployment causes financial distress in families, hampers mental health and causes depression, anxiety, stress and other physical ailments.

Essay on Unemployment 500 Words in English

Below we have provided Unemployment Essay in English, suitable for class 6, 7, 8, 9 and 10 school students.

There is saying that “Give a man a fish, and he will be hungry again tomorrow; teach him to catch a fish, and he will be richer for all his life.” The importance of jobs in life is very significant to afford a good quality of life. Due to the increasing population and high competition, people are not able to grab jobs. This has led to recession and burden on the economy.

What is Unemployment: It is defined as a situation in which a person who is willing to do a job fails to find a job that earns him/her a living. It does not include people who are not looking for jobs.

Types of Unemployment

The unemployment rates are increasing, showing the slowdown in the economy. Unemployment can be classified mainly in two categories one in urban areas and others in rural areas. The major part of India’s population lives in rural areas.  There are different types of unemployment – open, disguised, and seasonal. In Urban areas, the infrastructure is well developed, and there are a lot of advancements in technology. The main types of unemployment here are Industrial, educated, and technological development.

• Open – It is a case in which there is no work to do. People are willing to work, but there is no work available.
• Disguised – It is a situation in which some individuals are noticeably employed but are literally unemployed. It is in the agricultural sector where there are way more people working than required.
• Seasonal – It means the needs of the workers are only in particular seasons. It points to a time period where there is less requirement than normal season.
• Industrial – The illiterate people who can work in manufacturing industries are eager to do work but not getting any work in urban areas. It is called Industrial unemployment
• Educated – When the person is educated but not able to find a job according to his academic qualifications. Then, it is called educated unemployment.
• Technological – Technological unemployment happens because of the advancement in technology. It has a significant impact on the organization, as productivity increases and efficiency enhances.

The most common types of unemployment in India is seasonal and disguised unemployment.

Reasons for Unemployment

• There are multiple reasons causing a great jump in the rate of unemployment. The biggest reason is the increasing rate of population. There is consistent growth in the population of India. The greater the population, the more the demands of the job seekers, but the advancement in technology causes a decrease in the labour force required.
• Another reason is the lack of education and skills among the youth. Job seekers are more, and well-skilled people are very less for the country. It is also called structural unemployment, where the skills needed for the job do not match the skills of the worker.
• The advancement in technology in this modern era is also taking away the jobs that can be handled by machines and systems. It has replaced unskilled labour, and the results are more effective and accurate. The production is faster, and the cost is minimised.
• Lack of capital threatens companies to pay for its operations. It makes it difficult to prepare for emergencies and sometimes difficult to pay its employees.

Consequences of Unemployment

There are severe consequences of unemployment, causing the economy to suffer. Mainly the people who are affected by it have to go through it. It causes an increase in suicide cases, stress levels boost up, crime rates surge, etc.  Unemployed people get demotivated and degrade their skills, which is bad for the economy. There are big impacts which include the loss of productive labour force in the country, which can help in growing GDP. It deteriorates the growth of businesses as well.

As many unemployed people cannot afford basic commodities, it causes fewer sales in businesses.  Social causes of long term employment are very substantial. It affects the health of individuals and their families. There is less consumption of nutritious diet, including fruits and vegetables. It can stop their physical and mental development. Again, not creating a valuable asset for the economy in the long run.

Initiative by Government

The government has taken several steps to solve this significant issue. Some initiatives were launched to curb this problem of unemployment. These initiatives include IRDP (Integrated Rural Development Programme), training for self-employment, NRY (Nehru Rozgar Yojana), Drought Prone area program, PMGSY (Pradhan Mantri Gram Sadak Yojana), Employment Guarantee Scheme and more.

The Employment Guarantee Scheme ensures a minimum of 100 working days with wages to do unskilled work. Training for self-employment aims at reducing employment among the youth. Moreover, the government is spending on irrigation, farms, and roads, etc. The government can take some more steps to reduce unemployment like population control, more Small- medium enterprises, good education system and improvement in agriculture.

Unemployment Essay

One of the major hindrances in the growth of any country is unemployment. Unemployment is a serious issue in India. Lack of education, lack of employment opportunities and performance issues are some of the factors that lead to unemployment. The government of India must take effective steps to eliminate this problem. One of the main problems faced by the developing countries is unemployment. It is not only one of the major obstacles in the country’s economic growth but also has several other negative repercussions on the individual as well as the society as a whole.

Long and Short Essay on Unemployment in English

We have provided below short and long essay on unemployment in English for your knowledge and information. These essays have been written in simple and impressive language to convey the message with minimum effort.

After going through these Essays on Unemployment you will know about the factors leading to unemployment in India; what are the possible solutions for the eradication of unemployment; different types of unemployment; initiatives taken by the government to reduce unemployment; unemployment statistics in India etc.

These Unemployment essay will be useful in your school/college events of essay writing, speech giving or debate.

Unemployment Essay 1 (200 words)

People who are willing to work and are earnestly looking for job but are unable to find one are said to be unemployed. It does not include people who are voluntarily unemployed as well as those who are unable to seek job due to certain physical or mental health problem.

There are various factors that lead to the problem of unemployment in the country. These include:

• Slow Industrial Growth
• Rapid Increase in Population
• Focus on Theoretical Education
• Fall in Cottage Industries
• Lack of alternative employment opportunities for the agricultural workers
• Technological Advancement

Unemployment does not impact only the individuals but also the growth of the country. It has a negative impact on social and economic growth of the country. Here are some of the consequences of unemployment:

• Increase in crime rate
• Poor standard of living
• Loss of skill
• Political instability
• Mental health issues
• Slow economic growth

Surprisingly, despite the negative repercussions it has on the society, unemployment is one of the most overlooked issues in India. The government has taken certain steps to control the problem; however, these have not been effective enough. The government should not just initiate programs to control this problem but also keep a check on their effectiveness and revise them if need be.

Unemployment Essay 2 (300 words)

Introduction

Unemployment is a curse to the society. It does not only impact the individuals but also the society as a whole. There are a number of factors that lead to unemployment. Here is a look at these factors in detail and also the possible solutions to control this problem.

Factors Leading to Unemployment in India

• Growth in Population

The rapid growth in the population of the country is one of the leading causes of unemployment.

• Slow Economic Growth

Slow economic growth of the country results in lesser employment opportunities for people, thereby leading to unemployment.

• Seasonal Occupation

Large part of the country’s population is engaged in the agricultural sector. With this being a seasonal occupation, it provides work opportunity only for a certain part of the year.

• Slow Growth of Industrial Sector

The growth of industrial sector in the country is slow. Thus, the employment opportunities in this sector are limited.

• Fall in Cottage Industry

The production in cottage industry has fallen drastically and this has left several artisans unemployed.

Possible Solutions to Eradicate Unemployment

• Population Control

It is high time the government of India should take stern steps to control the population of the country.

• Education System

The education system in India focuses majorly on the theoretical aspects rather than skill development. The system must be improved to generate skilled manpower.

• Industrialization

The government must take steps to boost the industrial sector to create greater opportunities for people.

• Overseas Companies

The government must encourage foreign companies to open their units in the country to generate more employment opportunities.

• Employment Opportunities

Employment opportunities must be created in rural areas for seasonally unemployed people.

The problem of unemployment in the country has persisted since long. While the government has launched several programmes for employment generation, desirable progress has not been achieved. The policy-makers and the citizens should make collective efforts in creating more jobs as well as acquiring the right skill-set for employability.

Unemployment Essay 3 (400 words)

Unemployment in India can be divided into many categories including disguised unemployment, open unemployment, educated unemployment, cyclic unemployment, seasonal unemployment, technological unemployment, underemployment, structural unemployment, frictional unemployment, chronic unemployment and casual unemployment. Before leaning about these types of unemployment in detail let us understand as to who exactly is said to be unemployed. It is basically a person who is willing to work and is seeking an employment opportunity, however, is unable to find one. Those who choose to remain unemployed voluntarily or are unable to work due to some physical or mental health issue are not counted as unemployed.

Here is a detailed look at the different types of unemployment:

Disguised Unemployment

When more than the required numbers of people are employed at a place, it is said to be disguised unemployment. Removing these people does not impact the productivity.

Seasonal Unemployment

As the term suggests, this is the type of unemployment that is seen during certain seasons of the year. The industries mostly affected by seasonal unemployment include the agricultural industry, resorts and ice factories, to name a few.

Open Unemployment

This is when a vast number of labourers are unable to seek a job that provides them regular income. The problem occurs as the labour force increases at a much greater rate compared to the economy’s growth rate.

Technological Unemployment

The use of technological equipments has also led to unemployment by reducing the requirement of manual labour.

Structural Unemployment

This kind of unemployment occurs because of a major change in the country’s economic structure. This is said to be a result of technological advancement and economic development.

Cyclic Unemployment

A reduction in the overall level of business activities leads to cyclic unemployment. However, the phenomenon is short-run.

Educated Unemployment

Inability to find a suitable job, lack of employable skill and flawed education system are some of the reasons why the educated lot remains unemployed.

Underemployment

In this kind of unemployment people either take up a job on part time basis or take up work for which they are over-qualified.

Frictional Unemployment

This occurs when the demand of labour force and its supply are not synced appropriately.

Chronic Unemployment

This is long-term unemployment that continues in a country due to the rapid increase in population and low level of economic development.

Casual Unemployment

This may occur because of a sudden fall in demand, short-term contracts or shortage of raw material.

Though the government has launched several programmes to control each type of unemployment, however, the results are far from satisfactory. The government needs to devise more effective strategies for employment generation.

Unemployment Essay 4 (500 words)

Unemployment is a serious problem. There are a number of factors including lack of education, lack of employment opportunities, lack of skill, performance issues and increasing population rate that lead to this issue in India. Unemployment has a number of negative repercussions on the individuals as well as the country as a whole. The government has taken several initiatives to control this problem. Some of these are mentioned here in detail.

Government Initiatives to Reduce Unemployment

• Training for Self Employment

Launched in 1979, the program was named, National Scheme of Training of Rural Youth for Self Employment (TRYSEM). It is aimed at reducing unemployment among the youth in the rural areas.

• Integrated Rural Development Programme (IRDP)

In the year 1978-79, the Indian government launched the Integrated Rural Development Programme to ensure full employment opportunities in rural areas. A sum of Rs. 312 crore was spent on this programme and as many as 182 lakh families benefited from it.

• Employment in Foreign Countries

The government helps people get employment in overseas companies. Special agencies have been established to hire people for work in other countries.

• Small and Cottage Industries

In an attempt to reduce the issue of unemployment, the government has also developed small and cottage industries. Several people are making their living with this initiative.

• The Swaran Jayanti Rozgar Yojana

This program is aimed at providing self-employment as well as wage-employment opportunities to the urban population. It includes two plans:

• Urban Self-Employment Programme
• Urban Wage Employment Programme
• Employment Assurance Scheme

The program was launched in as many in 1994 in as 1752 backward blocks in the country. It provided unskilled manual work for 100 days to the poor unemployed people living in rural areas.

• Drought Prone Area Programme (DPAP)

The program was started in 13 states and covered as many as 70 drought-prone districts with an aim to remove seasonal unemployment. In its seventh plan, the government spent Rs. 474 crore.

• Jawahar Rozgar Yojana

The program launched in April 1989 aimed at providing employment to a minimum of one member in each poor rural family for a period of fifty to hundred days a year. The employment opportunity is provided in the person’s vicinity and 30% of these opportunities are reserved for women.

• Nehru Rozgar Yojana (NRY)

There are a total of three schemes under this program. Under the first scheme, the urban poor are given subsidy to establish micro enterprises. Under the second scheme, wage-employment is arranged for labourers in cities having a population of less than 10 lakh. Under the third scheme, urban poor in the cities are given employment opportunities matching their skills.

• Employment Guarantee Scheme

Unemployed people are provided economic assistance under this scheme. It has been launched in a number of states including Kerala, Maharashtra, Rajasthan, etc.

Apart from this, many other similar programs have been launched to reduce unemployment.

Though the government has been taking several measures to control the problem of unemployment in the country a lot still needs to be worked upon in order to curb this problem in true sense.

Unemployment Essay 5 (600 words)

Unemployment is a grave issue. There are a number of factors that lead to it. Some of these include lack of proper education, lack of good skill set, inability to perform, lack of good employment opportunities and rapidly increasing population. Here is a look at the unemployment statics in the country, the consequences of unemployment and the measures taken by the government to control it.

Unemployment: Statistics in India

The Ministry of Labour and Employment of India keeps the records of unemployment in the country. The measure of unemployment is calculated based on the number of people who had no work for a substantial amount of time during the 365 days preceding the date of collation of data and are still seeking employment.

India saw an average of 7.32 percent unemployment rate from 1983 to 2013 with a highest of 9.40 percent in the year 2009 and a record low of 4.90 percent in 2013. In the year 2015-16, the unemployment rate shot up significantly with 8.7 per cent for women and 4.3 per cent for men.

Consequences of Unemployment

Unemployment leads to serious socio-economic issues. It does not only impact the individuals but the society as a whole. Shared below are some of the major consequences of unemployment:

• Increase in Poverty

It goes without saying that increase in unemployment rate results in increase in the rate of poverty in the country. Unemployment is largely responsible for hampering the economic growth of the country.

• Increase in Crime Rate

Unable to find a suitable job, the unemployed lot usually takes the path of crime as this seems to be an easy way of making money. One of the main causes of rapidly increasing cases of theft, robbery and other heinous crimes is unemployment.

• Exploitation of Labour

Employees usually take advantage of scarcity of jobs in the market by offering low wages. Unable to find a job matching their skill people usually settle for a low-paying job. Employees are also forced to work for more than the set number of hours each day.

• Political Instability

Lack of employment opportunities results in loss of faith in the government and this often leads to political instability.

• Mental Health

The dissatisfaction level among unemployed people increases and it can gradually lead to anxiety, depression and other mental health problems.

• Loss of Skill

Staying out of job for long period of time makes one dull and eventually results in the loss of skill. It also lowers a person’s self confidence to a large extent.

The government of India has taken several initiatives to reduce the problem of unemployment as well as to help the unemployed lot in the country. Some of these include the Integrated Rural Development Programme (IRDP), Jawahar Rozgar Yojana, Drought Prone Area Programme (DPAP), Training for Self-Employment, Nehru Rozgar Yojna (NRY), Employment Assurance Scheme, Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP) Development of Organized Sector, Employment Exchanges, Employment in Foreign Countries, Small and Cottage Industries, Employment Guarantee Scheme and Jawahar Gram Samridhi Yojana, to name a few.

Besides offering employment opportunities by way of these programs, the government is also sensitizing the importance of education and providing skill training to the unemployed people.

Unemployment is the root cause of various problems in the society. While the government has taken initiatives to reduce this problem, the measures taken are not effective enough. The various factors causing this problem must be studied well to look for effective and integrated solutions for the same. It is time the government should recognize the sensitivity of the matter and take some serious steps to reduce it.

More Information:

Essay on Poverty

Essay on Population

Essay on Food Waste

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Essay on Unemployment for Children and Students

Table of Contents

One of the major hindrances in the growth of any country is unemployment. Unemployment is a serious issue in India. Lack of education, lack of employment opportunities and performance issues are some of the factors that lead to unemployment. The government of India must take effective steps to eliminate this problem. One of the main problems faced by the developing countries is unemployment. It is not only one of the major obstacles in the country’s economic growth but also has several other negative repercussions on the individual as well as the society as a whole.

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Long and Short Essay on Unemployment in English

We have provided below short and long essay on unemployment in English for your knowledge and information. These essays have been written in simple and impressive language to convey the message with minimum effort.

After going through these Essays on Unemployment you will know about the factors leading to unemployment in India; what are the possible solutions for the eradication of unemployment; different types of unemployment; initiatives taken by the government to reduce unemployment; unemployment statistics in India etc.

These Unemployment essay will be useful in your school/college events of essay writing, speech giving or debate.

Unemployment Essay 1 (200 words)

People who are willing to work and are earnestly looking for job but are unable to find one are said to be unemployed. It does not include people who are voluntarily unemployed as well as those who are unable to seek job due to certain physical or mental health problem.

There are various factors that lead to the problem of unemployment in the country. These include:

• Slow Industrial Growth
• Rapid Increase in Population
• Focus on Theoretical Education
• Fall in Cottage Industries
• Lack of alternative employment opportunities for the agricultural workers
• Technological Advancement

Unemployment does not impact only the individuals but also the growth of the country. It has a negative impact on social and economic growth of the country. Here are some of the consequences of unemployment:

• Increase in crime rate
• Poor standard of living
• Loss of skill
• Political instability
• Mental health issues
• Slow economic growth

Surprisingly, despite the negative repercussions it has on the society, unemployment is one of the most overlooked issues in India. The government has taken certain steps to control the problem; however, these have not been effective enough. The government should not just initiate programs to control this problem but also keep a check on their effectiveness and revise them if need be.

Unemployment Essay 2 (300 words)

Introduction

Unemployment is a curse to the society. It does not only impact the individuals but also the society as a whole. There are a number of factors that lead to unemployment. Here is a look at these factors in detail and also the possible solutions to control this problem.

Factors Leading to Unemployment in India

• Growth in Population

The rapid growth in the population of the country is one of the leading causes of unemployment.

• Slow Economic Growth

Slow economic growth of the country results in lesser employment opportunities for people, thereby leading to unemployment.

• Seasonal Occupation

Large part of the country’s population is engaged in the agricultural sector. With this being a seasonal occupation, it provides work opportunity only for a certain part of the year.

• Slow Growth of Industrial Sector

The growth of industrial sector in the country is slow. Thus, the employment opportunities in this sector are limited.

• Fall in Cottage Industry

The production in cottage industry has fallen drastically and this has left several artisans unemployed.

Possible Solutions to Eradicate Unemployment

• Population Control

It is high time the government of India should take stern steps to control the population of the country.

• Education System

The education system in India focuses majorly on the theoretical aspects rather than skill development. The system must be improved to generate skilled manpower.

• Industrialization

The government must take steps to boost the industrial sector to create greater opportunities for people.

• Overseas Companies

The government must encourage foreign companies to open their units in the country to generate more employment opportunities.

• Employment Opportunities

Employment opportunities must be created in rural areas for seasonally unemployed people.

The problem of unemployment in the country has persisted since long. While the government has launched several programmes for employment generation, desirable progress has not been achieved. The policy-makers and the citizens should make collective efforts in creating more jobs as well as acquiring the right skill-set for employability.

Unemployment Essay 3 (400 words)

Unemployment in India can be divided into many categories including disguised unemployment, open unemployment, educated unemployment, cyclic unemployment, seasonal unemployment, technological unemployment, underemployment, structural unemployment, frictional unemployment, chronic unemployment and casual unemployment. Before leaning about these types of unemployment in detail let us understand as to who exactly is said to be unemployed. It is basically a person who is willing to work and is seeking an employment opportunity, however, is unable to find one. Those who choose to remain unemployed voluntarily or are unable to work due to some physical or mental health issue are not counted as unemployed.

Here is a detailed look at the different types of unemployment:

Disguised Unemployment

When more than the required numbers of people are employed at a place, it is said to be disguised unemployment. Removing these people does not impact the productivity.

Seasonal Unemployment

As the term suggests, this is the type of unemployment that is seen during certain seasons of the year. The industries mostly affected by seasonal unemployment include the agricultural industry, resorts and ice factories, to name a few.

Open Unemployment

This is when a vast number of labourers are unable to seek a job that provides them regular income. The problem occurs as the labour force increases at a much greater rate compared to the economy’s growth rate.

Technological Unemployment

The use of technological equipments has also led to unemployment by reducing the requirement of manual labour.

Structural Unemployment

This kind of unemployment occurs because of a major change in the country’s economic structure. This is said to be a result of technological advancement and economic development.

Cyclic Unemployment

A reduction in the overall level of business activities leads to cyclic unemployment. However, the phenomenon is short-run.

Educated Unemployment

Inability to find a suitable job, lack of employable skill and flawed education system are some of the reasons why the educated lot remains unemployed.

Underemployment

In this kind of unemployment people either take up a job on part time basis or take up work for which they are over-qualified.

Frictional Unemployment

This occurs when the demand of labour force and its supply are not synced appropriately.

Chronic Unemployment

This is long-term unemployment that continues in a country due to the rapid increase in population and low level of economic development.

Casual Unemployment

This may occur because of a sudden fall in demand, short-term contracts or shortage of raw material.

Though the government has launched several programmes to control each type of unemployment, however, the results are far from satisfactory. The government needs to devise more effective strategies for employment generation.

Unemployment Essay 4 (500 words)

Unemployment is a serious problem. There are a number of factors including lack of education, lack of employment opportunities, lack of skill, performance issues and increasing population rate that lead to this issue in India. Unemployment has a number of negative repercussions on the individuals as well as the country as a whole. The government has taken several initiatives to control this problem. Some of these are mentioned here in detail.

Government Initiatives to Reduce Unemployment

• Training for Self Employment

Launched in 1979, the program was named, National Scheme of Training of Rural Youth for Self Employment (TRYSEM). It is aimed at reducing unemployment among the youth in the rural areas.

• Integrated Rural Development Programme (IRDP)

In the year 1978-79, the Indian government launched the Integrated Rural Development Programme to ensure full employment opportunities in rural areas. A sum of Rs. 312 crore was spent on this programme and as many as 182 lakh families benefited from it.

• Employment in Foreign Countries

The government helps people get employment in overseas companies. Special agencies have been established to hire people for work in other countries.

• Small and Cottage Industries

In an attempt to reduce the issue of unemployment, the government has also developed small and cottage industries. Several people are making their living with this initiative.

• The Swaran Jayanti Rozgar Yojana

This program is aimed at providing self-employment as well as wage-employment opportunities to the urban population. It includes two plans:

• Urban Self-Employment Programme
• Urban Wage Employment Programme
• Employment Assurance Scheme

The program was launched in as many in 1994 in as 1752 backward blocks in the country. It provided unskilled manual work for 100 days to the poor unemployed people living in rural areas.

• Drought Prone Area Programme (DPAP)

The program was started in 13 states and covered as many as 70 drought-prone districts with an aim to remove seasonal unemployment. In its seventh plan, the government spent Rs. 474 crore.

• Jawahar Rozgar Yojana

The program launched in April 1989 aimed at providing employment to a minimum of one member in each poor rural family for a period of fifty to hundred days a year. The employment opportunity is provided in the person’s vicinity and 30% of these opportunities are reserved for women.

• Nehru Rozgar Yojana (NRY)

There are a total of three schemes under this program. Under the first scheme, the urban poor are given subsidy to establish micro enterprises. Under the second scheme, wage-employment is arranged for labourers in cities having a population of less than 10 lakh. Under the third scheme, urban poor in the cities are given employment opportunities matching their skills.

• Employment Guarantee Scheme

Unemployed people are provided economic assistance under this scheme. It has been launched in a number of states including Kerala, Maharashtra, Rajasthan, etc.

Apart from this, many other similar programs have been launched to reduce unemployment.

Though the government has been taking several measures to control the problem of unemployment in the country a lot still needs to be worked upon in order to curb this problem in true sense.

Unemployment Essay 5 (600 words)

Unemployment is a grave issue. There are a number of factors that lead to it. Some of these include lack of proper education, lack of good skill set, inability to perform, lack of good employment opportunities and rapidly increasing population. Here is a look at the unemployment statics in the country, the consequences of unemployment and the measures taken by the government to control it.

Unemployment: Statistics in India

The Ministry of Labour and Employment of India keeps the records of unemployment in the country. The measure of unemployment is calculated based on the number of people who had no work for a substantial amount of time during the 365 days preceding the date of collation of data and are still seeking employment.

India saw an average of 7.32 percent unemployment rate from 1983 to 2013 with a highest of 9.40 percent in the year 2009 and a record low of 4.90 percent in 2013. In the year 2015-16, the unemployment rate shot up significantly with 8.7 per cent for women and 4.3 per cent for men.

Consequences of Unemployment

Unemployment leads to serious socio-economic issues. It does not only impact the individuals but the society as a whole. Shared below are some of the major consequences of unemployment:

• Increase in Poverty

It goes without saying that increase in unemployment rate results in increase in the rate of poverty in the country. Unemployment is largely responsible for hampering the economic growth of the country.

• Increase in Crime Rate

Unable to find a suitable job, the unemployed lot usually takes the path of crime as this seems to be an easy way of making money. One of the main causes of rapidly increasing cases of theft, robbery and other heinous crimes is unemployment.

• Exploitation of Labour

Employees usually take advantage of scarcity of jobs in the market by offering low wages. Unable to find a job matching their skill people usually settle for a low-paying job. Employees are also forced to work for more than the set number of hours each day.

• Political Instability

Lack of employment opportunities results in loss of faith in the government and this often leads to political instability.

• Mental Health

The dissatisfaction level among unemployed people increases and it can gradually lead to anxiety, depression and other mental health problems.

• Loss of Skill

Staying out of job for long period of time makes one dull and eventually results in the loss of skill. It also lowers a person’s self confidence to a large extent.

The government of India has taken several initiatives to reduce the problem of unemployment as well as to help the unemployed lot in the country. Some of these include the Integrated Rural Development Programme (IRDP), Jawahar Rozgar Yojana, Drought Prone Area Programme (DPAP), Training for Self-Employment, Nehru Rozgar Yojna (NRY), Employment Assurance Scheme, Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP) Development of Organized Sector, Employment Exchanges, Employment in Foreign Countries, Small and Cottage Industries, Employment Guarantee Scheme and Jawahar Gram Samridhi Yojana, to name a few.

Besides offering employment opportunities by way of these programs, the government is also sensitizing the importance of education and providing skill training to the unemployed people.

Unemployment is the root cause of various problems in the society. While the government has taken initiatives to reduce this problem, the measures taken are not effective enough. The various factors causing this problem must be studied well to look for effective and integrated solutions for the same. It is time the government should recognize the sensitivity of the matter and take some serious steps to reduce it.

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• School Education /

Essay on Unemployment: 100 to 300 Words

• Updated on  
• Mar 30, 2024

Writing an essay on unemployment provides an opportunity to explore a critical issue affecting societies worldwide. Unemployment, a multifaceted problem, has far-reaching consequences that touch upon various aspects of individuals, families, and nations. In this essay, we will delve into the complexities of unemployment, examine its causes and consequences, discuss government initiatives, and shed light on potential solutions.

Table of Contents

• 1 What is Unemployment?
• 2 Essay on Unemployment in 100 words
• 3 Essay on Unemployment in 200 words
• 4 Essay on Unemployment in 300 words
• 5 Tips to Ace in Writing An Essay

Must Read: The Beginner’s Guide to Writing an Essay

What is Unemployment?

Lack of jobs leads to unemployment. It is a very serious economic and social concern that is happening all around the globe leading to many social ills. This issue is a major one and hence many governments are trying to address it. When people of a nation are employed, that leads to the economic and social well-being of that nation. To address it, the education system needs to be modeled differently so as to increase the employability of people. In democracies, political parties use unemployment as a core issue in their election manifestos.

Essay on Unemployment in 100 words

Unemployment refers to the condition when individuals, capable and willing to work, are unable to secure gainful employment. It is a pervasive issue across the globe, with varying degrees of impact on societies. Unemployment results in financial instability, and emotional distress, and hampers individual growth. Governments and organizations must collaborate to create opportunities for employment through skill development and policy implementation.

Essay on Unemployment in 200 words

Unemployment, a pressing concern globally, stems from multiple factors that hinder the workforce’s engagement in productive activities. It affects both developed and developing nations, contributing to economic imbalances and social disparities. The consequences of unemployment include reduced income levels, increased poverty rates, and strained government resources. Moreover, the psychological toll it takes on individuals and families can be severe, leading to stress, depression, and strained relationships.

Essay on Unemployment in 300 words

The intricate web of unemployment is spun from a mix of causes, ranging from economic fluctuations to structural shifts in industries. Cyclical unemployment, driven by economic downturns, and structural unemployment, resulting from a mismatch between skills and job openings, are widespread forms. Additionally, technological advancements lead to technological unemployment as machines replace human labour.

Unemployment has cascading effects on societies. Diminished purchasing power affects market demand, thereby impacting economic growth. As unemployment rates rise, so does the burden on social welfare programs and the healthcare system. The phenomenon also fuels social unrest and political instability, making it a challenge governments cannot ignore.

Governments worldwide have initiated strategies to tackle unemployment. Skill development programs, vocational training, and entrepreneurship initiatives are designed to equip individuals with market-relevant skills. Furthermore, promoting labour-intensive industries and investing in sectors with growth potential can generate employment opportunities.

In conclusion, unemployment is a complex issue that necessitates a multi-pronged approach. Governments, industries, and individuals must collaborate to alleviate its impact. Effective policy implementation, education reforms, and the cultivation of entrepreneurial spirit can pave the way towards reducing unemployment rates and fostering a more stable and prosperous society.

Tips to Ace in Writing An Essay

Before we dive into the specifics of unemployment, let’s briefly discuss some tips to enhance your essay-writing skills:

• Understand the Prompt: Ensure a clear understanding of the essay prompt to address all its components effectively.
• Research Thoroughly: Gather relevant information from credible sources to build a comprehensive and informed essay.
• Organize Your Thoughts: Create an outline to structure your essay logically, allowing your ideas to flow coherently.
• Introduction and Conclusion: Craft a compelling introduction to engage your readers, and a succinct conclusion to summarize your key points.
• Use Clear Language: Express your ideas using clear and concise language, avoiding jargon or overly complex vocabulary.
• Provide Examples: Illustrate your points with real-life examples to enhance understanding and credibility.
• Edit and Proofread: Revise your essay for grammar, punctuation, and coherence to ensure a polished final draft.

Also Read: Unemployment v/s Underemployment – What’s Worse?

Related Reads:-     

Unemployment refers to the state in which individuals who are willing and able to work are without gainful employment opportunities. It is a condition where individuals seek jobs but are unable to secure them, leading to financial instability and societal challenges.

Unemployment, as discussed in the essay, is a multifaceted issue encompassing the lack of employment opportunities for willing and capable individuals. It explores various forms of unemployment, its causes, far-reaching consequences on economies and societies, and the role of governments in implementing solutions to mitigate its impact.

Unemployment is the term used to describe the situation where individuals of working age are actively seeking employment but are unable to find suitable job opportunities. It signifies a gap between the available workforce and available jobs, often leading to economic and social challenges within a society.

Unemployment emerges as a prominent thread, influencing economic, social, and psychological realms. As we’ve explored in this essay, comprehending the causes and consequences of unemployment is pivotal in devising solutions. Governments, institutions, and individuals must strive collectively to unravel this issue’s complexities and weave a fabric of employment opportunities, stability, and progress. We hope that this essay blog on Unemployment helps. For more amazing daily reads related to essay writing , stay tuned with Leverage Edu .

Manasvi Kotwal

Manasvi's flair in writing abilities is derived from her past experience of working with bootstrap start-ups, Advertisement and PR agencies as well as freelancing. She's currently working as a Content Marketing Associate at Leverage Edu to be a part of its thriving ecosystem.

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10 lines Essay on “Unemployment” for Students of Class 10, 11, 12.

10 lines on unemployment.

• Unemployment refers to the state of not having a job or being out of work.
• It is a common economic phenomenon that affects individuals and countries alike.
• The unemployment rate is a measure of the percentage of the labor force that is currently without work, but actively seeking employment.
• Unemployment can have both short-term and long-term negative effects on individuals and the economy.
• In the short-term, unemployment can lead to financial hardship and insecurity.
• In the long-term, it can lead to a loss of skills and a decrease in productivity.
• Unemployment can also have a ripple effect, as the loss of income for individuals can lead to decreased spending, which can in turn lead to a decline in economic activity.
• Governments and central banks often try to mitigate the effects of unemployment through policies such as job training programs and monetary policy.
• Structural unemployment, caused by changes in technology or the economy, can be more difficult to address.
• Reducing unemployment and increasing employment are important goals for many governments and policy makers.

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• Causes and Effects of Unemployment

Unemployment - An Overview

Unemployed people are more likely to face a variety of challenges, including difficulty finding future employment and lower income. Unemployment has an impact on the economy and society as a whole. The longer a person is unemployed, the more likely they are to suffer negative consequences and contribute to the multiplier effect that unemployment has on the community.

Unemployment

In this piece, we look at what it means to be unemployed and how it affects people, society, and the economy. Furthermore, even if they expect to be hired again for the same position, people who are temporarily laid off are still considered unemployed. Let us know more about it in this article.

Employment and Unemployment

When a person is actively engaged in a job, business, trade, or profession, they are considered to be employed. Unemployed people are those who are actively looking for work but are currently unemployed . Every government's macroeconomic goal is to keep the unemployment rate low and solve the problem of unemployment. Full employment occurs when every worker is employed. The unemployment rate is 0%, which means that everyone who is able and willing to work is working.

Effects of Unemployment

Unemployed people can face a variety of challenges. There has been a difference between everyone and everybody. The longer someone is out of work, the more difficult these issues become. Individual consequences of unemployment include the following:

1. Lower Earnings

Unemployed people's income is reduced as a direct result of their inability to find work. Because wages are earned through employment, losing one reduces a person's available income.

2. Health Issues

Given how stressful being unemployed is, it's possible that it will lead to stress-related health problems like headaches, high blood pressure, diabetes, heart disease, back pain, and sleeplessness. These health problems frequently lead to more frequent doctor visits and more frequent usage of medications to treat the underlying diseases.

3. Negative Effects on the Family

The family of an unemployed person is also vulnerable to the negative effects of unemployment. Unemployed people face more challenges in their families and are less satisfied with their marriages and families, according to the Society for the Psychological Study of Social Issues.

According to the study, the stress of unemployment may have a negative impact on the well-being of spouses. Furthermore, several studies have found that the average income of children of unemployed parents is lower than that of children of employed parents.

Reasons of Unemployment

The current global economic crisis is the primary reason for unemployment. Among the many other factors that contribute to unemployment, one of the primary causes is the current and ongoing global economic crisis. The economic crisis has had a significant impact on international trade. The economic crisis has not been able to hold back previously wealthy nations.

A large number of technological advancements go without saying that we live in an extremely technologically advanced era. Previously, businesses required a large amount of labour to complete their tasks.

However, modern technology allows computers and other devices to complete even the most difficult tasks in a matter of minutes. Furthermore, only a few years ago, sending a single message or reply would take hours.

Jobs are becoming more specialised, and huge corporations offer their staff a wide range of facilities and advantages. This is the main reason why they have so many requirements when hiring personnel.

A person will not even be given consideration for the post at hand unless they meet all the prerequisites. People are having a very difficult time even getting an interview because job descriptions have grown so very detailed and specialised.

Issues Related to Unemployment

1. The Productivity-Wage Gap is Widening

In the country, inflation is still present, causing prices to rise. As a result, labourers demand higher pay and benefits, raising the cost and price of commodities while decreasing demand. This follows a period of declining output and, as a result, growing unemployment.

2. Uncertainty in Agriculture Sector

Despite scientific advances, agriculture in India is still depending on the whims of nature. Every year, millions of workers are forced to quit their jobs due to droughts, floods, and other natural disasters, causing agricultural uncertainty and unemployment.

3. Absence of a Comprehensive Employment Policy

There has never been a comprehensive or urgent employment programme in India. It is true that the problem of unemployment cannot be solved unless a strong employment-oriented development policy is formulated and implemented by the country's stable administration.

4. Improper Attitude Towards Employment

One of the key issues is the country’s educated population’s need for a job. They do not want to set up any startup or separate manufacturing facility. This negative attitude has increased unemployment as well. 

Besides these, unemployment is worsening due to difficulties in the manufacturing process, the social environment, societal ills, religious superstitions, political uncertainty, and industrial unrest.

Types of Unemployment

The Indian subcontinent faces Unemployment, both involuntary and voluntary, which can be examined under two broad categories, in relation to one another.

Rural Unemployment 

A majority of the Indian population resides in rural areas and thrive on agriculture as a primary means of livelihood. But this agrarian industry does not make up for adequate Employment for the entire population living in these areas. This leads to rural Unemployment which can be categorised into three major types, as have been discussed below.

In India, the downturn is systemic. To put it another way, economic output is insufficient to provide enough jobs. This has been going on for a while.

Open Unemployment

One of the most basic Unemployment situations is when an unemployed individual, seeking and available for work, is unable to get a job with a regular payment. This is termed open Unemployment. A major reason for this type of Unemployment is a rapidly expanding labour force in an economy with a slower growth rate. When it comes to open redundancy, identifying those who are unemployed is a simple task. Agriculture is a short-term occupation in India, and there is usually a high need for labour during sowing, weddings, and harvesting, but demand for labour drops significantly during the slack season.

The duration of periodic Unemployment in India varies by state, based on farming practices, soil type, and the potential of multiple cropping. Farmers in rainy agriculture are unemployed for four to six months per year. They are unable to find an alternative job at this time due to their illiteracy, poverty, and bad health.

Disguised Unemployment

This type of Unemployment is particularly rampant in the agricultural industry, contributing as the most common form of rural Unemployment in India. It presents a circumstance in which more individuals are engaged in a work than what is required due to lack of alternative job opportunities. This indicates that the removal of some of the workforce would not make a major difference in the production of a farm; that is, this surplus manpower has negligible to zero marginal productivity. The disguisedly impoverished are individuals who work for themselves and are overly numerous in relation to the resources with which they work, such that if a number of them were to be reassigned to other sectors of the country, the total output of the sector from which they were reassigned would not be affected, even if no significant reorganization took place. Another important cause of uncertainty is the high rate of Unemployment among educated rural youth. The growth of education has resulted in a large number of unemployed young people looking for work. However, they are unable to find work in the labour market. Unemployment of this nature has devastating implications. It causes some people to be frustrated and others to be dissatisfied.

Seasonal Unemployment

This type of Unemployment is seen with people working in industries with seasonal production. Industries like agriculture only need additional laborers for particular times of the year, for instance, harvest season. In such cases, these specific workers remain unemployed during the rest of the year, giving rise to Unemployment in rural areas.

Urban Unemployment

With rapid immigration and a population boom, India has seen remarkable growth in urban Unemployment in recent years. These can be further categorised into three types. 

Industrial Unemployment

This is the most commonly observed type of urban Employment due to an increasing rate of migration of workers from rural to urban areas. Every year, thousands of illiterate individuals travel to more developed areas in search of jobs of menial labour in production units and factories. Due to high demand, most of them suffer from industrial Unemployment meaning their inability to secure such jobs.

Structural Unemployment

Referred to as educated Unemployment, this is probably the most disappointing type of Unemployment. Structural Unemployment arises when an educated individual fails to find a job matching their qualifications. This occurs due to a lack of adequate job opportunities in concerned fields compared to the number of learned individuals.

Technological Unemployment

Rapid advancement in technology is leading to Unemployment of individuals who fail to match or adapt to required skills and, thus, become obsolete for the industry. This is mostly seen in employees belonging to the retiring age group.

What Causes Unemployment?

Following is a list of some of the most common causes of Unemployment in India.

A rapidly growing rate of the population overruns available Employment opportunities.

A negligible growth rate of the economy failing to keep up with a growing labor force.

Lack of proper infrastructure and required investment in sectors lagging.

The advent of smart technology and AI reduces human resources previously employed for those tasks.

Lack of necessary field-specific skills, as a result of school and college education not relevant to concerned industries.

Physical unskilled labor is undervalued by today's educational system. Physical labor is disliked by educated people. As a result, after completing formal schooling, the rural teenager seeks sedentary Employment in a government agency or a private company. They are both unable and reluctant to work in agriculture. As a result, rural Unemployment is exacerbated by the current educational system.

Indeed, there is no genuine attempt in India to plan for personnel. Employment has not been given the attention it deserves in our development strategy. It is not related to the development process because it is assumed that economic progress will lead to the establishment of job possibilities. However, this has not resulted in the integration of jobs and growth. Poverty, in general, and rural poverty, in particular, are caused by all of these reasons.

In India, the caste system is a major contributor to underdevelopment. It is a system of occupational distribution that limits rural residents' occupational mobility. In rural India, occupations are inherited due to the caste system. When the number of members of a caste grows faster than the demand for services, the remaining populace becomes unemployed.

India's agriculture is chaotic and diverse. Because even though the Indian farmer must willfully invest more to receive less, it follows an inverted economics model. Regional insecurity is a result of this.

The Indian farmer's traditional farming approach is outdated and unscientific. Agricultural productivity is hampered by a lack of improved farming technologies and a shortage of skilled labour. Fertilizer aversion, a lack of proper irrigation facilities, and insufficient funding to purchase sophisticated agricultural instruments, seeds, and vermicompost all have an impact on agricultural output. As a result, rural agriculture reduces its potential for Employment.

Agriculture does not keep the farmland busy all year. The rural population is frequently fully engaged throughout the sowing and harvesting seasons, and economically inactive during the post-harvest and before the following sowing season. Farmers in South India are only busy for five months of last year,  and the other seven months are spent doing nothing financially productive. Peasants all over India are in a similar situation. As a result, rural communities experience high levels of seasonal Unemployment.

Employment and unemployment are a not only crucial topic for CBSE Class 12 Commerce but is also a necessary concept for students to understand the working of a real economy. Vedantu comes with additional detailed explanations and examples to help you prepare Class 12 Economics projects on employment and unemployment. For step-by-step answers to questions like what is rural unemployment and what is industrial unemployment, visit our website or install the app today!

The Employment Generation 

Elevated enterprises account for a considerable amount of new jobs created, as measured by Employment expansion rates, and are important contributors to the country's economic growth . Small and medium-sized businesses (SMEs) create more net jobs than larger corporations. SMEs are key Employment producers, according to much research. According to these findings, job creation and job contraction occur hand in hand in all countries. It is common to see some companies shed employees while others gain, and some of them exhibit a considerable increase in the labour force, even in the same industry or market. 

The World Bank Group's commitment to entrepreneurship development as a major aspect of its tool for enhancing economic growth, Employment, and poverty alleviation in various countries is established in the World Bank Group's evaluation on small company activities (World Bank Review, 2001). The importance of SMEs in long-term global and regional economic recovery is increasingly becoming more widely recognised.

However, due to a lack of data, very little research has been done in this area. Small and medium-sized enterprises (SMEs) play a vital role in a country's industrial growth since they create more gainful Employment, utilise fewer resources, generate more money, and reduce poverty. It's plausible to assume that if SMEs had been given more weight in industrial development, prior patterns of disastrous economic development may have been averted. However, the significant role in a country's economic progress is seldom fully appreciated. As a result of the relevance and contribution of SMEs to economic activity, there is a substantial opportunity to boost their growth by increasing their operational efficiency.

Discuss in detail the case of how has the covid-19 Pandemic affected employment in our country where a lot of its population is already unemployed.

Ans: The pandemic has significantly worsened India's jobless situation, which is not surprising. The Indian economy has struggled to escape the grip of unemployment since all economic activity ceased in March 2020.

According to the Center for Monitoring Indian Economy (CMIE), 12.8 percent of Indians will be unemployed by June 2021. In March 2021, the unemployment rate was 6.5 per cent; by April 2021, it had risen to 8 per cent.

To understand how serious the situation is, consider that India's unemployment rate in 2018 was only 6.1 per cent. Before the pandemic, India's economy was already contracting; the lockdown exacerbated the situation.

It is unfortunate that so many intelligent, qualified people are unable to find work due to a lack of job opportunities. Today's large, prosperous corporations simply want to hire the best of the best.

A large corporation will not hire people who are unsure of what to do in a professional setting. Unemployed people frequently experience sadness and depression, so if you have a family member or friend who is unemployed, make sure you are available to them during their time of need and self-doubt.

FAQs on Causes and Effects of Unemployment

1. What are the Consequences of Unemployment?

Rural Unemployment has important repercussions for rural life, even though its effects are less visible than those of urban Unemployment.

The number of jobless people rises, putting more strain on land and many other limited natural resources. People in rural regions are increasingly relying on agricultural operations due to the lack of profitable industrial activity. As a result, the already small ownership is further subdivided. This has a negative impact on agricultural productivity.

A surge in the proportion of crimes in the rural sector is another result of increased Unemployment. Rural life used to be generally calm, but as Unemployment has risen, so has criminal activity, and the serene mood in rural areas has been significantly eroded. There has also been an upsurge in cases of drug misuse and drug peddling that were previously undetected. Rural unrest has increased as a result of this.

Unemployment has an impact on a human's social position, personal life, and feelings. It stifles his ambition, blunts his effort, depletes his self-respect, shatters his ambitions, and causes him to feel guilty for failing to care for and support his family. He becomes wayward or antisocial as a result of his prolonged joblessness.

Perhaps a brief period of Unemployment has far-reaching implications. It leads to suicide, and it forces women into unethical trafficking and social seclusion. In a subtle way, this affects the individual's morale and social life, as well as that of their family and community.

2. How does migration affect the lives of people?

Migration has a tremendous influence on the social and familial spheres. The joint family structure is rapidly disintegrating, resulting in the emergence of the nuclear family system.

3. What are the Key Sources of Official Information on India’s Employment?

There are three most relevant sources for official data and statistics on the country’s employment. These are:

Census of India

The National Sample Survey Organization

Directorate General of Employment and Training Data of Registration with Employment Exchanges

4. What is the Definition of Harmonised Unemployment Rates?

Harmonised unemployment rate (HUR) is a measurement of the total number of unemployed individuals as a percentage of the labour force or the total number of unemployed as well as employed citizens. This percentage defines these unemployed masses as people belonging to working-age who lack work, are looking for work, and have taken necessary measures to get employed.

5. What Do You Understand about the Unemployment Trap?

The unemployment trap or poverty trap refers to circumstances in which unemployment welfare systems put off unemployed individuals from joining the job industry. In such situations, individuals benefiting from unemployment feel that entering an average-paying work will not bring any significant improvement in their standard of living. The additional cost of going to work, along with the liability of paying taxes, adds to more losses than returns which urge these individuals to continue with their status of unemployment.

10 Lines on Unemployment

Unemployment is the situation of a person who neither has any job nor is he self-employed and he is actively searching for job. Unemployment is one of the biggest issues which India is facing for many years. Government launches many schemes but still they are unable to fulfill the increasing demands of the youths of the country.

Providing jobs and guaranteeing employment to youths were the steps to be taken for abolishing poverty but neither poverty was abolished nor the youths became employed. It is very important for the country to provide employment to the people for its overall development and equal distribution of wealth.

Ten Lines on Unemployment in English

We have provided 10 lines, 5 lines, 20 lines, few lines and sentences on unemployment in English for Class 1, 2, 3, 4, 5 and 6. You can add these lines in your essays and paragraph writing in your exam as well as in the school competition. This will also help you to write essay on unemployment, speech on unemployment, few lines on unemployment or few sentences on unemployment for class 1, 2, 3 and 4.

10 Lines of Unemployment

1) Unemployment is a curse to the society which slows the economic growth of a country.

2) It not only affects individual but also affects society and the nation.

3) Unemployment is a situation when a person does not have a paid job and seeking one.

4) Unemployment mostly occurs to a certain age group of 15-18 or 60-65 years.

5) Rapid growth of population is one of the leading factors of unemployment.

6) Slow economic growth also leads a country towards unemployment.

7) Slow growth in industrial sector is also one of the factors responsible for unemployment.

8) Unemployment leads to increase in poverty and hampers economic growth.

9) Due to unemployment the misguided youth might also indulge themselves in criminal activities.

10) Many employers also take undue advantage of labor force due to scarcity of jobs in country.

10 Lines and Sentences on Unemployment

1) Unemployment in India is one of the major crises which is affecting the lives of several people and their families.

2) The problem of unemployment must be considered as very serious and government must resolve this burning issue.

3) The education system in India provides ineffective and age old conventional education to youths which does not prepare students industry-ready.

4) Fall down in major sectors in India has also led to the result of less job creation and employment opportunities to youth.

5) Migration of people from rural to urban areas in search of jobs is also a reason since the jobs are less but demand is more.

6) Unemployment might also cause tensed situation and depression in youths which can prove troublesome for them.

7) Unemployment misguides youth and they might also become addicted to drugs and involve in criminal activities.

8) Government and societies must focus on population control so that better living conditions can be provided to people.

9) The need of hour says that education system of India must be improved with a stress on employment and research-based education.

10) Development of each corner of the country should be the prime focus of India as it will remove regional disparity and migration.

5 Lines of Unemployment

1) It means lack of jobs for skilled people.

2) It harms the development of the country.

3) It is due to many reasons.

4) It is also harmful to individuals.

5) Unemployment is high in India.

20 Lines of Unemployment

1) Unemployment refers to a situation when able people can’t find a suitable job to sustain their lives.

2) Over population is one of the main factors for unemployment as it leads to less jobs, more applicants.

3) Illiteracy is also one main factor behind unemployment, as illiterate person fails to acquire skills.

4) Industrialization, projects are some of the remedies by which unemployment can be controlled.

5) There is a need to generate new job opportunities in both government and private sectors.

6) Government should provide tax rebates, subsidies to private employers, to encourage hiring.

7) Necessary skills must be taught to the unemployed, to increase their employability.

8) People should be trained and financially supported in a particular trade to start their own business.

9) Unemployment causes poor social and financial growth of a nation, and must be dealt with strictly.

10) Unemployment also forces people towards criminal activities like theft, robbery and illegal trades.

11) Unemployment means an inability to earn livelihood to sustain one’s needs and family.

12) Unemployment isn’t only faced by poor, but also by educated persons unable to secure a job.

13) An unemployed person leads a socially deplorable life and is seen by others as a liability or a burden.

14) Unemployment is said to be a curse because it implies a sorry state of inability to meet bare needs.

15) Governments must be instrumental in promoting and generating new employment opportunities.

16) Employment opportunities must be generated also for those who never had any formal education.

17) Those without any formal education must be trained in crafts, agriculture and other skills.

18) Unemployment may lead to homelessness as the person is unable to pay the rent.

19) Unemployment also causes poor health and diseases not only for the sufferer but the family as well.

20) Unemployment also causes poor living standard and social status for the unemployed and his family.

Unemployment is a curse on India as a nation as well as on society. Many youths are wandering without any job and aim. They feel that their studies, education and qualifications all have gone in vein. Unemployment leads to many types of issues and troubles like suicides, crimes, drug addiction etc.

Government needs to address this at a war level and also must do efforts for job creation, simplifying the rule and laws and promoting self-employment.

Related Information:

Essay on Unemployment

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• Unemployment and Employment Generation

Did you know India has one amongst the highest unemployment rates in Asia? In 2017 it was at 3.4%. One of the most crucial concerns of any economy is unemployment. This lesson elaborates on the concept and calculation of unemployment rate, its causes and how it differs in rural and urban India.

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Unemployment: definition and calculation.

Unemployment is a regularly used term and normally refers to those who are ‘out of work’. In strictly economic terms, the unemployed include all those who are able and willing to work but cannot find work. This includes the pool of persons who seek work through employment exchanges, friends, relatives and other contacts and express their willingness to get employed, owing to the lack of work. Economists define an unemployed person as one who is unable to get work for even one hour during half a day.

The three major sources of official data on employment in India include:

• The National Sample Survey Organization
• Census of India
• Directorate General of Employment and Training Data of Registration with Employment Exchanges

(Source: Press Information Bureau)

We use the following formula to calculate it:

Unemployment Rate = (No. of Unemployed Persons / Total Labourforce) x 100

Here, labour force refers to all those persons willing and able to engage in productive activity or work.

Types of Unemployment

Rural unemployment.

India has roughly 70% of its population living in rural areas. Agriculture forms the mainstay of the rural population. But, not enough employment is available for all those living in the rural areas. This leads to unemployment, which can take three forms open, seasonal and disguised.

Open Unemployment

This refers to the situation in rural areas where people who are willing and actually able to work cannot find any work .

Disguised Unemployment

This particularly plagues the Indian agrarian scenario. In this case, more workers than required are engaged on the farm, where not all of them are actually productively contributing to creating output. Thus, the marginal physical productivity of many workers is zero. This happens when almost the entire family engages in farm production .

Seasonal Unemployment

The case with this is that workers remain out of work for a particular season. For example, workers hired only for the harvest season remain unemployed for the remaining part of the year. Or, if the industry itself is seasonal, workers naturally remain unemployed during the off-season.

Urban Unemployment

The unemployed in the urban areas have increased considerably over the years. Normally, the number of the urban unemployed is registered with unemployment exchange boards. It can also take various forms, as under-

Industrial Unemployment

Those illiterate persons who are willing and able to work in factories or industries in urban areas but cannot find work fall in this category. As rural-urban migration increases, urban unemployment also does.

Educated Unemployment

The most horrifying kind of unemployment is when the educated youth are unable to find appropriate jobs to suit their qualifications. With an improvement in education over time, skilled workers have increased in number but the number of available jobs has not increased correspondingly. This causes educated unemployment.

Technological Unemployment

This type of unemployment takes place every time technology upgrades and the existing workforce are unable to cope with the new technology. If the skills required to meet the new technology do not match the existing skill-sets of the employed workers and they cannot adapt, they become unemployed. Upgradation is a natural process, with cyclical obsolescence as one set of technology becomes irrelevant and gets replaced by another.

(Source: The Hindu)

Causes of Unemployment

To be able to deal with the problem of unemployment, it is now necessary for you to understand its causes in a country like ours. A slow rate of economic growth would mean that the national output is not increasing by much. It indicates that not enough jobs are being created to absorb the workers able and willing to work. Put simply, labour supply far exceeds existing job opportunities.

Another reason particular to India is its population growth rate . The number of people looking for jobs has multiplied manifold over the years as the population growth rate has soared high. The rising population proves to be a burden on the number of jobs that can actually be created in an economy with its limited resources. The recent population explosion is a contributing factor to decreased employment in the country.

Over-dependence on technology , domestic or foreign, has led to technological unemployment. This is because of less requirement of manual labour to accomplish tasks with greater dependence on machines and technology.

The lack of adequate fund-allocation and financial resources to curb unemployment is also leading it to rise. Proper governmental programs targeting the unemployed population, if not well-implemented, harm the employment situation of the country. Lack of committed support to deal with the job crisis causes employment to fall.

Employment Generation

The government has a key role to play in employment generation in the country. In fact, it must persevere to increase the employment levels of the country. In the light of this, governments in the past have acted to deal with unemployment in India. The National Rural Employment Guarantee Act (NREGA) was passed in 2005. The NREGA seeks to provide 100 days of guaranteed wage employment to rural households willing to perform unskilled manual work. It makes special provisions for women and for the distance within which the job must be available to job-seekers for convenience.

State and federal governments, over the years, have played a key role in enacting other social security programmes, providing unemployment allowances and conducting training programmes and encouraging on-the-job training to absorb more skilled labour into jobs.

The government has also strived to provide direct employment in government departments and offices at various positions and levels. It also helps in indirect employment through the production of goods and services that aid the ability of the private sector to invite more job applicants and create opportunities. One of the main allied objectives of these policy programmes is the idea of poverty alleviation , with other emphases on health, nutrition, a standard of living, education, road-building, infrastructure and rural development.

Solved Example for You

Question: Sanjeev gets work for two hours a day. For the rest of the day, he is looking for work. Can you classify him as an unemployed person?

Answer: Yes, Sanjeev is unemployed. This is as per the economists’ definition of unemployment that if a person does not get employment for even one hour during half a day, he is called ‘unemployed’. Sanjeev is employed for only two hours during a day and spend the remaining part of the day looking for work. So, he can be called unemployed.

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• Workers and Employment

5 responses to “Unemployment and Employment Generation”

Why unemployment rate is inceresed

bro first go and learn the spellings of increase

The unemployed beasts of yore Are not bred any more; They are a hindrance roaming around Where mechanical beasts abound!

The unemployed brains of today Are kindly kept at bay; They are a nuisance hanging around Where electronic brains abound!

Boghos Artinian MD

We can find most populas country in Asia and have low rate of people unemployment and are exporter is many diverse product range. It’s a hint, reader may understand what I mean. Employment with huge population is achievable, population itself is not a problem. It creates immense demand to give thrust for economic activities. Other countries (technology advances, devloped countries ) sees Bharat,India as a huge market to sell their technologically produced surplus output, to get maximum wealth.

Our economy is getting more and more technology driven. And economic power is going to holder of technology post liberalisation. (Import of ferign technology and interference of heigh devloped countries).For example digitalisation, it will help govt only to achieve minimum government (less people ) maximum governance (more control) objective. If one get a lesson on any subject over YouTube or over net why would there be a need of teacher then. If meetings can be done in conferences and work can be done at home, then why there is need of buildings for offices, chairs, and more utilities. And why there is employment for those people who deliver such utilities. Technological advancement be encouraged to places where human requirement is not needed( places where human life may be threaten or at risk). For instance, Technologically driven swearage sytem. technology if so devloped in our country should be exported to country where human capital is less and it’s use in our country be made limited.

Privatisation: there is sole difference of motive of private and government organisations. Where government firms motive is for welfare of public, on the other hand private firm objective is to exploite to get maximum profit. With liberalisation of economy and government encouraging privatisation/giving more power to private sector in country. Private sector has free choice in using techniques of production either capital incentive or labour avoiding and labour intensive techniques. Private sector in order to get maximum profit choose capital incentive techniques, resulting in less and less human employment.

There is no skill gap I believe and our education system is unnecessarily been blamed for it. Post liberalisation brought many diverse form work/services that where not know before. It is mainly a tail work which arises after adoption of technology derived from different avenues of different culture or countries.

Unidirectional policy of govt to pertucular sector develops a rat race among huge population. It caused a lot of talent drain and wastage of human efforts. This time to technology which will increase demand for technocrats. Huge population of Youth will divert there efforts to be become technology holder or to get fit into market demand despite having other apptitute.

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The Best Essay on Unemployment | Macroeconomics

Here is an essay on ‘Unemployment’ for class 8, 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Unemployment’ especially written for school and college students.

Unemployment can be divided into different types according to the reasons for its occurrence. For example, there is frictional unemployment, which arises when a person is temporarily unemployed while moving between jobs. Similarly, there is structural unemployment, when people find their skills are not employable because they have become technologically redundant or there is no demand for them in certain regions of the country where they live.

These types of unemployment are easy to explain. By comparison, there is an enduring controversy associated with the attempts to unravel what, if any, are the differences between classical and Keynesian unemployment. The classical economists believed in the Say’s Law of Markets and in wage-price flexibility. The operation of the Say’s Law (which states that demand creates its own supply) and sufficient wage-price flexibility, they believed, would ensure automatic full employment.

Thus, in the classical theory, there was no possibility of unemployment. If there occurred any unemployment it would be of a purely temporary nature. The cause of such unemployment was too high a real wage. And such unemployment would disappear quickly due to fall in real wage.

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The intuition behind the classicists’ analysis of unemployment comes from the standard apparatus of supply and demand curves. They have reached the conclusion that if the labour market does not equilibrate, it must be because the price, i.e., the real wage, is set at an inappropriate (and not at the market-clearing) level.

The demand for labour originates from the profit-maximising decisions of firms. Under competitive conditions, this leads firms to equate the real wage with the marginal product of labour. Hence the demand for labour schedule is a direct reflection of the marginal physical product of labour (MPP L ) function.

With a well-behaved aggregate production function, the MPP L will be a decreasing function of the level of employment, and so the demand for labour varies inversely with the real wage. Consequently, if the supply of labour exceeds the demand and there is a problem of unemployment, then the solution lies with a fall in the real wage as this will increase the quantity of labour demanded and close the unemployment gap.

In his General Theory Keynes disputed the classical analysis of unemployment and the associated policy prescriptions. He introduced the concept of involuntary unemployment that had something to do with inadequate demand in final commodity markets and which could be remedied with the management of demand by fiscal policy and possibly by monetary policy too.

In explaining the cause of unemployment, Keynes focuses on the role of nominal wage inflexibility. In his view, unemployment results from an inflexible money wage which prevents the real wage from adjusting downwards to increase the demand for labour. Thus the unemployment problem originates from an inappropriate real wage.

According to Keynes, the equality of the real wage to the marginal disutility of employment corresponds to the absence of ‘involuntary’ unemployment. (Keynes makes the simplification that the marginal utility of income is constant so that the marginal disutility of employment is the same as the marginal rate of substitution of income for leisure.) Keynes excluded frictional unemployment from involuntary unemployment.

However, it is important to note that Keynes also excluded unemployment “due to the refusal or inability of a unit of labour, as a result of legislation or social practices or of a combination for collective bargaining or of a slow response to change or of mere human obstinacy, to accept a reward corresponding to the value of the product attributable to its marginal productivity”.

Thus, Keynes chose to exclude union wage differentials as well as minimum wage legislation as sources of involuntary unemployment. Clearly, Keynes wanted to focus on a particular type of involuntary unemployment.

Don Patinkin also used the static labour supply definition in his well-known analysis of involuntary unemployment:

The norm of reference to be used in defining involuntary unemployment is the supply curve for labour as long as workers are ‘on their labour supply curve’—that is, as long as they succeed in selling all the labour they want to at the prevailing real wage rate—a state of full employment will be said to exist in the economy.

The above definition of involuntary unemployment based on the labour supply curve was used by the ‘classical’ economists. For example, in 1914 A. C. Pigou proposed measuring involuntary unemployment of a group of persons by the number of hours that these persons would have been willing to provide at the current rate of wages under current conditions of employment.

According to Keynes, however, classical theories (such as Pigou’s) did not admit the possibility of involuntary unemployment by union wage differentials or minimum wage legislation. But Keynes chose to classify this as voluntary.

The Natural Rate of Unemployment (NRU) :

There are two conceptually’ separate reasons why the real wage may fail to adjust to the competitive equilibrium value. Firstly, the institutions of the economy may not correspond to those of a competitive economy: information may be costly, there may be traces of monopoly, etc.

Within this institutional context, markets are assumed to clear and the associated level of unemployment is termed as the ‘natural’ rate of unemployment.

In the language of Milton Friedman:

“The ‘natural rate of unemployment’ is the level that would be ground out by the Walrasian system of general equilibrium equations, provided there is embedded in them the actual structural characteristics of the labour and commodity markets, including market imperfections, stochastic variability in demands and supplies, cost of gathering information and so on”.

Consequently, one way that unemployment might be tackled is through policies which attempt to lower the ‘natural’ rate by removing market imperfections.

A ‘natural’ rate of unemployment is the level of unemployment where inflation is anticipated. For this reason the term the non-accelerating inflation rate of unemployment (NAIRU) is often preferred to the title ‘natural’ to describe the level of unemployment.

The current view is that the natural rate of unemployment is the rate towards which the dynamic system is converging for a given underlying general equilibrium stochastic structure. It takes into account the actual structural characteristics of the labour and commodity markets, including market imperfections, search and mobility costs.

In simple terms, it may be regarded as that level of unemployment which nonetheless remains at full employment.

In truth, NRU is essentially a long-term phenomenon. It is the rate of unemployment towards which the economy gravitates in the long run, subject to the existing imperfections in the labour market which make it difficult for workers to find jobs easily and quickly.

According to Milton Friedman who introduced the term ‘natural rate’ argues that the term ‘natural’ is useful in separating the real forces from the monetary sources. Viewed from this perspective an important feature of the natural rate as emphasised by Friedman (1968) and E. Phelps (1967, 1970) is that it does not correspond to any particular rate of inflation. For any appropriately defined long run, the key implication of this is that there is no long-run trade-off between inflation and unemployment.

Following the Friedman lead, the natural and cyclical rates of unemployment are most often treated as separate and independent components. According to this view, cyclical unemployment is characterised as being included by temporary fluctuations in conditions resulting in temporary deviations of the actual rate from the natural rate of unemployment.

Empirical evidence, however suggests considerable covariance between cyclical and structural unemployment. For example, structural unemployment is likely to increase during recessions since firms in declining industries may find it optimal to accelerate eventual reductions in their labour force at such times. Significant covariance’s of this sort raise fundamental questions about the causality of unemployment as well as whether the natural rate of unemployment is an operative concept.

Since structural unemployment is most often interpreted as a component of the natural rate, this raises serious questions about whether natural and cyclical rates of unemployment are separate, independent and indentifiable components.

To sum up, there are two features of the NRU. Firstly, it is an inherently dynamic concept. Secondly, the natural rate is clearly not a fixed and immutable constant. Variations in the composition of the labour force, the rate of structural change, the flow of information and other factors affecting labour force mobility will change the natural rate.

There is widespread agreement in macroeconomics that when there are informational inadequacies leading to sticky prices and difficulties in forming expectations, unemployment may deviate from its ‘natural’ level.

According to Friedman, the government’s demand management policies may influence the ‘natural’ rate. He argues that the variability of inflation is directly related to the level of inflation.

So, more noise enters into price signals at higher rates of inflation with the result that the ‘natural’ rate rises with the rate of inflation,

In 1980 Tobin argued that “the operational NAIRU gravitates towards the average rate of unemployment actually experienced. Among the mechanisms which produce that result are improvements in unemployment compensation and other benefits enacted in response to higher unemployment, loss of on-the-job training and employability by the unemployed, defections to the informal and illegal economy, and a slowdown in capital formation as business firms lowers their estimates of needed capacity.”

If such hysteresis effects are accepted, then an expansionary demand policy — which leaves unemployment ‘temporarily’ below the ‘natural rate — will have a permanent influence because it contributes to reducing the ‘natural’ rate itself.

Job Search and Frictional Unemployment :

In recent years economists have been concerned with frictional unemployment. One proximate cause of unemployment is the mismatch between workers and jobs. Since labour is not homogeneous, a job loss does not immediately lead to job finding. Workers who are laid-off do not find a job easily and quickly.

Job finding itself is a resource-consuming and a time-consuming endeavour. The unemployment caused both the time required by a worker is called frictional unemployment. Such unemployment occurs because we do not live in the wonderful world of the classical economists.

It occurs because information about job availability is not freely available to workers and, even when it is available, it is imperfect. Moreover, workers are not geographically mobile. There are various barriers to labour mobility.

These two factors conjointly reduce the rate of job finding. Moreover, since workers differ in their abilities and performances and jobs also differ in their characteristics (in terms of rewards and sacrifices) different jobs require different skills and offer different wages. This is why an unemployed worker prefers to spend time and money to search out a job of his liking rather than accepting any job that comes along the line.

Frictional unemployment is also related to shift unemployment. Some unemployment occurs due to shifts in demand for consumer goods used by households and producer (capital) goods used by firms.

Since the demand for labour is an indirect (derived) demand, change in the pattern of demand for goods leads to a change in the demand for labour that is required to produce those goods.

Likewise, since different regions of a country produce different goods, the demand for labour may rise in one region (such as Maharashtra or Gujarat) and fall in another region (Orissa or Bihar). Such unemployment caused by a change in the composition of demand among industries or regions is called shift unemployment.

This is another type of frictional unemployment. Since sectorial shifts are occurring all the time in a dynamic economy, and since workers take some time to move from one sector to another due to lack of marketable skill or adequate information, frictional unemployment is a rule rather than an exception.

Frictional unemployment occurs for various other reasons, for example, when old firms face problems of demand recession (such as the workers of Hindustan Motors), when workers’ job performance is inadequate when judged by any standard, and when workers’ particular skills are not in demand any more. This has happened in cases of silent movie actors or typists or tram drivers in most parts of the world.

Frictional unemployment also occurs when workers voluntarily leave their jobs or move from one part of the country to another part (and try to search out better jobs).

Frictional unemployment occurs due to inter-sectoral imbalance between demand and supply forces, i.e., where there is excess supply of labour in one sector offering higher wages due to the fact that some workers from numerous low-paying sectors have crowded the few high- paying sectors.

Efficiency Wage :

A proximate cause of real wage rigidity and involuntary unemployment is associated with the efficiency wage theory. This concept is based on the famous Marshallian concept — the economy of high wages. Marshall first hypothesized that high wages promote efficiency and low wages retard it.

The idea was put into effect in the American manufacturing industry by Henry Ford who followed the practice of giving higher than the prevailing market wage so that the rate of labour turnover came down to a minimum. Ford’s basic objective was to ensure that his most productive workers did not quit after a short association with the organisation.

The efficiency wage theory explains why firms do not cut wages even when there is excess supply of labour. The theory is based on the belief that a wage cut would lower a firm’s wage bill no doubt, but it would also reduce a firm’s profits by lowering worker efficiency.

Various explanations have been offered to explain how wages affect labour productivity:

(i) Improved Health and Enhanced Productivity:

In less developed countries like India, high wages enable workers to improve their health by having a more nutritional diet. Healthy workers are usually found to be more productive than half-fed worker. So, it is in the Tightness of things to give workers a wage above the equilibrium level in order to maintain a healthy work force.

(ii) Low Labour Turnover:

The higher the wage rate, the stronger the incentive of workers to stay with the firm. If the quit rate can be reduced to a minimum, a firm can achieve economy in terms of the time spent recruiting and training new workers.

(iii) Reducing Adverse Selection:

The overall quality of a firm’s labour force depends on the wages it pays to its employees. A wage cut will force a firm’s best workers to take jobs elsewhere in other firms, leaving the firm with inferior employees who have hardly any opportunity outside the firm. This is an example of adverse selection since workers are more informed about their alternative opportunities outside the firm than the firm (the employer).

This is also known as hidden characteristics. So by paying a low wage, a firm may take the risk of hiring inferior workers (who do not have any opportunity outside the firm). One way of reducing adverse selection is to pay a wage above the equilibrium level. This improves the average quality of the work force. So, labour productivity automatically improves.

(iv) Overcoming the Moral Hazard Problem:

High wages also improve worker effort. The truth is that it is not always possible to monitor the work effort of employees. It is the task of the employees themselves to decide how hard to work. This is known as moral hazard, also known as the hidden action.

This refers to the hidden tendency of workers to put sub-optimal effort if their activities are not perfectly monitored. One way of reducing this moral hazard problem is to pay a high wage. The higher the wage, the higher the cost of the worker of being dismissed.

One way of increasing labour productivity is to pay a higher than market wage. This induces more and more of a firm’s employees not to shirk. The common theme of various efficiency wage theories (presented above in a summary form) is that by paying its workers a high wage, a firm can operate more efficiently.

This is why many firms choose to pay more than the market clearing wage. This induces workers to stay with their firms and not to engage in job search activities. But efficiency wage increases the magnitude of involuntary unemployment and creates real wage rigidity.

Economic Insight: Four Models of Efficiency Wage:

There are four models of efficiency wage. The common feature of all the models is that higher than competitive wage can be profitable. All the models are based on the hypothesis that output depends on worker effort and effort, in its turn, varies directly with the wage rate. The more a firm pays, the more effort it gets.

The models originating from the presumed source of positive effort-wage relationship are of the four types:

1. Shirking Models:

In most jobs, workers enjoy some discretion in deciding how hard they work. Piece rates are often impractical because it is not only difficult but virtually impossible to count the “pieces” and counting is costly. In the shirking models, firms pay above the market wages, engage in some monitoring and fire those workers caught shirking.

By paying above market wages, firms decrease the incentive to shirk, since defection then entails loss of rents. According to shirking models, high wage industries are those with high monitoring costs and/ or industries which bear a relatively high cost of employee shirking.

2. Turnover Models:

Firms may also wish to pay above market clearing wages to reduce turnover. High wages are paid to reduce quits. So it follows, by deduction, that the high-wage industries are those in which turnover costs are the highest.

3. Adverse Selection Models:

According to these models, employers cannot gain an insight into the ability of workers, either as potential entrants or on the job, in a costless fashion. It is assumed that the average quality of the applicant pool increases with the wage rate. The main prediction of these models is that industries which are more sensitive to quality differences, or have higher costs of measuring quality, will offer higher wages.

4. Fair-Wage Models:

The premise of these models is that workers will exert more effort if they feel that they are being treated fairly. This premise gives firms an incentive to pay wages above competitive levels whenever their workers’ perceived fair wage exceeds the competitive wage.

If workers believe that fairness requires firms to share rents with employees, then fair wage models predict that industries with high profits will be those which pay high wages. In Fig. 1, we show profit-wage trade-off. In short, industries’ high wages lead to low profits as is shown by the profit-wage curve pw 1 .

If the wage rate is pushed up from w 1 to w 2 , the rate of profit falls from π 1 to π 0 . In other industries high wages lead to high profit as shown by the curve pw 2 . If the wage rate is pushed up from w 1 to w 2 , the rate of profit goes up from to π 0 to π 1 .

The fair wage models also predict high wages in industries where teamwork and worker expectations are particularly important. However, the four models are not mutually exclusive. Firms might well pay above competitive wages to reduce shirking and, thus, attract high-quality applicants and improve worker morale.

Effect of Minimum Wage on Employment :

Since the government does not hire surplus labour in the way it buys surplus agricultural output, a labour surplus takes the form of unemployment which tends to be higher under minimum wage laws than in a free market. In general, those whose employment prospects are reduced most by minimum wage laws are the young, less experienced and less skilled.

As in all cases, a ‘surplus’ is a price phenomenon. Unemployed workers are not surplus in the sense of being useless or in the sense that there is no work for them. Most of these workers are perfectly capable of producing goods and services, even if not to the same extent as more skilled workers. The unemployed are made idle by wage rates artificially set above the level of their productivity.

Moreover, unemployed youth are prevented from acquiring the job skills and experience which could make them more productive—and, therefore, higher earners—in near future. Due to minimum wage laws, unemployment in European countries is higher than that in the USA. Since Switzerland and Hong Kong do not have minimum wage laws, they have very low unemployment rates. In recent years, some countries have allowed their real minimum wage levels to be eroded by inflation.

Related Articles:

• Major Causes of Unemployment: Job Search and Wage Rigidity
• Difference between Voluntary and Involuntary Unemployment
• Keynes’ Money-Wage Rigidity Model of Involuntary Unemployment
• Unemployment Rate Calculation Formula

Essay on “Unemployment” for School, College Students, Long and Short English Essay, Speech for Class 10, Class 12, College and Competitive Exams.

Unemployment

For a lay man unemployment means lack of job opportunities. The uneducated and educated both have fallen victims to this malady of unemployment. Unemployment has become a chronic feature of modern society. In our country it is very acute. If not tackled on war footing, a social revolution may usher in. At present unemployment has led to frustration and crimes.

Many factors are responsible for accentuating this problem of unemployment. Most conspicuous among them is population explosion. Whatever is achieved in terms of additional jobs is nullified by fresh hands seeking employment.

India is a rich country inhabited by the poor. India is rich in natural resources but they need exploitation. Expansion on all fronts in needed. Tracts of land need cultivation.

More dams could be built. More link roads could be made and tarred. Villages need electrification and other amenities. New schools, new dispensaries, libraries, etc. are needed. All these can provide work to millions.

Distaste for manual labour is responsible for unemployment or misemployment among the educated. Snobs love to be clerks but are not ready to do manual labour. There is no coordination between planning in technical education and industrial expansion. This causes unemployment among the engineers.

Extinction of the cottage industry and its replacement by large scale industry has rendered millions jobless. Machine made goods are preferred. Lack of vocational education also increases unemployment. Educated cannot start their own business. People living on charity do not like to work. They increase the numbers of the jobless.

Unemployment leads to tragic consequences. It breeds frustration among talented and this has increased brain drain. Unemployed persons to survive are ready to do anything. This has given a boost to anti-social activities. Unemployed youths embrace terrorism. Girls have adopted prostitution and boys have become pimps. Bonded labourers are on the increase. Unemployment gives rise to poverty and this leads to under-nourishment of our children, future citizens. Human exploitation is flourishing.

To solve this problem we will have to check the fast growing population. Vocational education must be given priority to inculcate dignity of labour in our youths. Proper encouragement should be given to cottage industries. Proper exploitation of natural resources will need more hands to work. Youths must give up their infatuation with white collared jobs. Above all, unemployed should be ready to use their hands and feet to labour.

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CBSE 2025: Class 10, 12 Sample Papers Expected Soon, Major Changes In Exam Pattern Unveiled

The Central Board of Secondary Education (CBSE) is expected to release the sample papers for the Class 10 and 12 Board Exams 2024-25 soon. The board exams for this academic year are scheduled to commence on February 15, 2025.

These sample papers are crucial as they provide insights into the type of questions that students might encounter, as well as the overall paper pattern for the exams. With the recent changes in the paper pattern for Class 12, many students, parents, and teachers are eagerly anticipating the release of the official sample papers.

In previous years, CBSE has typically released the sample papers for both Class 10 and 12 by July. However, this year, the delay has caused some anxiety among teachers and parents who are keen to help students prepare effectively. According to Times Now, the board is expected to release the sample papers shortly. While waiting, here's a brief overview of the expected paper patterns for the 2025 board exams for Classes 10 and 12.

CBSE Class 10 Sample Papers - Exam Pattern

For the Class 10 Board Examinations 2025, the paper pattern remains unchanged from the previous year. The syllabus has also not been revised, which means that the 2024 sample papers can still serve as a reference for students. Despite some rumours about an increase in multiple-choice questions (MCQs) to 50 per cent, the official paper pattern clarifies that only 20 per cent of the questions will be MCQs. Additionally, 50 per cent of the questions will be competency-based, which may include MCQs as well as other formats.

Since there have been no changes to the paper pattern, the structure of the questions is expected to remain consistent. Based on the 2024 sample papers, students can anticipate approximately 20 MCQs per subject. For those seeking further guidance, previous years' sample papers are available on the official CBSE academic website at cbseacademic.nic.in.

It's important to note that while the basic structure of the paper has not changed, the total number of questions may vary. Therefore, it's advisable for students to wait for the official 2025 sample papers before investing in any new study materials.

CBSE Class 12 Sample Papers - Exam Pattern

The paper pattern for the Class 12 Board Examinations 2025 has undergone significant changes, as announced in a circular released by CBSE on April 3, 2024. The most notable change is the increase in competency-based questions, which will now account for 50 per cent of the paper's weightage, up from 40 per cent in the previous year. While the proportion of MCQs will remain unchanged, the percentage of short and long-answer-type questions will decrease from 40 per cent to 30 per cent.

These changes are likely to affect the overall structure of the question papers. Although the CBSE has not yet provided an official release date for the sample papers, they are expected to be available by the first week of September.

The topic-wise weightage will remain the same, ensuring continuity in the areas of focus for students. Parents and students are advised to keep a close watch on the official CBSE website and cbseacademic.nic.in for the latest updates.

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Essay on “Unemployment Allowance” Complete Essay for Class 10, Class 12 and Graduation and other classes.

Unemployment Allowance

Unemployment among the educated youth is a very serious problem Unemployment prevails in both laboriously and professional sectors. After having completed their study, the young men and women are confronted with indifferent attitude of the society and govt. towards them. Growing frustration of the educated unemployed has resulted in the spread of violence and crime.

Truly speaking, the educated unemployed deserve sympathy from society. Having spent a lot of money on education of the children, parents also expect that their children should be financially independent. They should–– not be economically dependent on them. The parents have to look after other children too. Unemployed young men do not get sympathy from their parents. Such unfortunate depression. Therefore, the educated unemployed should be given some kind of financial relief in the form of unemployment allowance.

The question is that whether a poor country like India can afford this kind of unproductive expenditure. It is better if the amount of unemployment allowance is used to increase employment opportunities. Moreover, govt. has to spend large amount can higher education. It is alleged that the educated unemployed have already enjoyed the major allocation of funds reserve for higher education. Therefore, unemployment allowance is not a solution in a country poor like India.

Unemployment problem has been plaguing India since independence. There is hardly any sign of increase in employment opportunities for unskilled graduates and post-graduates. In case of skilled, semi skilled land highly skilled, there is very stiff competition. The irony is that the qualification on paper for the degree is greater in quality basis. Employers want, as it is their right, best buy for their money. The problem of unemployment has to be tackled at primary level education, outlet and by upgrading infrastructure in the country.

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