India is a developing country. It means it is on the verge of becoming a developed nation. Like other developing India is also facing several problems which are social, economic and political in nature. Any developed country should be the one which overcomes the obstacles and the problems.

India has the second largest population in the world. India is accommodating a huge population in itself. There are certain questions that are raised on India’s development. Primarily having a huge population and people are working but the per capita is less. Why? Secondly, are all the people employed in the country? The answers to these questions are not so rosy. India’s roadblock to development is ‘Unemployment.’

Unemployment refers to a situation in which an able bodied person is not getting employed for a certain period of time. In other words if a person is not working for a certain time frame then it is called unemployment. Unemployment has become a major problem for more than a decade. The unemployment situation has become worst year by year. One can see employment not only in urban areas but also in rural areas.The current employment rate is 7.20%. As per the recent report the employment rate increases annually by 3.4% which means in recent times the unemployment has increases from 17.7 million to 17.8 million. Therefore, it can be seen that there is less of supply and more of demand in the job market. There has to be a certain way to curb such problem in a way that the near future will not struggle.

Types of Unemployment:

  • Open Unemployment:

It refers to a situation in which the larger share of population is unemployed. In this employment people do not get regular wages and that the level of unemployment increases as the labour force increases.

  • Chronic Unemployment:

The unemployment which exists in a particular region, state or a country for a longer period of time is known as a chronic unemployment. Such kind of unemployment generally occurs due to economic problems in the area.

  • Casual Unemployment:

It refers to a situation in which people are employed for day to day activities. Such kind of unemployment is for shorter duration due to fall in demand, change of ownership etc.

  • Seasonal Unemployment:

This kind of unemployment occurs in the jobs which depend upon the seasons of nature. In other words the employment is booming due to the seasonal requirements. These consist of employment in industries like agriculture, ice manufacturing units, destination places etc. In seasonal unemployment the employment is for a shorter period till the time season prevails. The biggest example is agriculture. The crop takes at least 4 to 5 months to grow. Till the harvesting period employment persists but after the crop reaches the market the situation of unemployment begins.

  • Disguised Unemployment:

It can be referred to as the overcrowding of employees. It means that there are more employees in a job than they are required. If some of the people are removed than this will not affect the production. In this case there will be employees which will have zero productivity due to larger share of the people on one job. Such kind of employment generally occurs in the industry of agriculture especially in farming.

  • Educated Unemployment:

This unemployment occurs when a set of educated people are not able to get employment because their qualification does not match their job. This occurs due to poor education system, preference to white collar jobs, lack of skill etc.

  • Technological Unemployment:

The unemployment in which technology advancements causes reduce in the number of people in the industry is known as technological unemployment. Technology advancement has solved many queries of the people in a small time and that we take much more time in the work. There are certain examples such as drones by Amazon, robot waiters in restaurants etc.

  • Underemployment:

In this unemployment people contribute less potential in the job. Basically they are not doing the job as per the skill or the expertise they have. A person has more potential but the job he is doing is below his caliber.

  • Structural Unemployment:

This type of unemployment depends upon the economic structure of the country. the situation of employment depends upon the what are economic forces prevailing in the country that is demand and supply of the jobs in the economy.

Reasons for Unemployment:

  • Over Population:

India has a population of 1.2 billion people, making it the second largest populated country in the world. Day by day the population is increasing and therefore to build opportunities it will take time. Due to lack of opportunities in regards to the size of the population people are unemployed.

  • Caste System:

India has a rigid caste system which prevails in some areas. People who believe in caste system have divided the jobs they have on the basis of the caste. The good jobs or the high level jobs are for upper caste people and similarly the low level jobs are basically for lower caste or the poor people. The jobs are not given on the basis of one’s potential or caliber.

  • Nepotism:

It is a practice of favouring one’s acquaintance, family or friends in various fields by offering them a job or a portfolio. Generally people who have relatives who work in a good place they approach them and therefore are employed. But people who have more potential are left out or due to lack of approach they do not qualify for the jobs.

  • Joint Family System:

Traditional joint family system promotes that their children should be a part of their family business rather than going out and do a job. This will help in increase the business but at the same time if a business is small and there are people more than the required than some of the members will be unproductive and unemployed.

  • Slow Economic Growth:

Developing or underdeveloped countries like India generally have slow economic growth as compared to the growth in the developed countries. Therefore, due to slow growth there would be less of employment opportunities which will increase employment.

  • Demand and Supply:

Countries like India are developing countries which have other issues that have to be resolved. Therefore, there can be times where government can overlook certain problems. There have been no fixed or well developed plans by the government for promoting or increasing employment.

  • Use of robots and drones:

Due to technological advancements the life has become easy. But there are certain repercussions to it. The companies are now engaging robots and drones as these are faster, efficient and more effective as compared to humans. Recently companies like Amazon have engaged drones for faster delivery of products to the people. Similarly a restaurant in Bengaluru has engaged robots as waiters to serve people.

  • Lack of cottage industries:

The cottage industries were established by the Government with a view that it would create more employment opportunities in the rural areas. But it has been noticed that there lack of cottage industries in rural areas due to lack of knowledge, lack of resources etc there are limited or no cottage industries in rural areas which has led to people migrate from rural areas to urban areas. This has led to large scale urbanization in the cities.

Unemployment in India:

The unemployment in India is an alarming problem. It can be seen that a fair share of population is unemployed especially youth. After completing one’s education a person is of the view to get a job especially a white collar job. But in certain cases people suffer and that cause increase in the illegal activities in other words more criminal activities.

As per the survey done UN Agency ILO that is International Labour Organisation, in the year 2018 there were 18.6 million people were employed in India. According to them there will be around 18.9 million people by the year 2019. The reason which has come across is that there are more educational institutes than those of employment agencies in the country.

The recent statistics are as follows:

 One can see from the above mentioned chart that there has been a significant increase in the unemployment scenario. Within the span of 10 years the unemployment percentage has become double and that it will increase more and more if government does not take steps for generation of unemployment.

A recent survey stated that the unemployment would increase up to 7.20%. As per the reports there has been no full proof estimated data by any government organization regarding the present day unemployment situation.


Unemployment has been a major road block in the development process of the country. It is required that there should be a rapid generation of employment opportunities in India. Government must increase the liberalization as well as increase more trade aspects in India. There should be a check on corruption and red tapism in the working place. There should be more of practical training than theoretical knowledge.

The government has made many schemes for improving unemployment in India. From cottage industries and small scale industries to their newly established project ‘MAKE IN INDIA.’UNDER THIS PROJECT Government has allowed foreign enterprises to set up their manufacturing units or companies in India. Various projects have been established under the same.

There should be promotion of entrepreneurships in India. More awareness of capital market especially of ‘Venture Capital’ should be encouraged. This will help in more and more start ups by the youth and thereby if the startup becomes a major enterprise it would simultaneously increase the employment opportunities in the country.

There should be less to technological advancement in case of employment in the underdeveloped countries especially in India which may reduce more and more employment opportunities for the present youth.

It is rightly said that there is always a light to the other side of the tunnel. This can be applied to the same situation. India has shown its capability to be a super power but problems like such should be cub to the core so that the process of development can be smooth.