Employment and Unemployment
1 Quick Explanation 1–3 min
Unemployment = people willing & able to work at the going wage but unable to find it.
India's problem is more underemployment (disguised unemployment) than open unemployment.
2 Detailed Notes
Comparison
Types of unemployment
| Type | Meaning |
|---|---|
| Open unemployment | Persons seeking work but not finding it |
| Disguised unemployment | More people working than needed — MP of labour ~ 0 (common in agriculture) |
| Seasonal unemployment | Work only in some seasons (farming) |
| Structural | Skills don't match available jobs |
| Cyclical | Due to business cycle slumps |
| Frictional | Between jobs / searching |
Key idea
Rural vs urban unemployment
- Rural: disguised (agriculture), seasonal.
- Urban: industrial (open), educated unemployment, casual labour.
- Educated unemployment high among graduates — skill mismatch.
Key points
Trends
- Workforce distribution: agriculture highest share but shrinking; services & industry rising.
- Rise of self-employment and casual labour; 'gig economy' growth.
- Jobless growth — output grows faster than employment.
Key points
Measures
- Higher growth in labour-intensive sectors (textiles, tourism, construction).
- Skill development: Skill India, PMKVY, vocational training.
- Employment schemes: MGNREGA (rural guarantee), Start-Up India.
- MGNREGA: 100 days of guaranteed wage employment per rural household.
In One Minute
Unemployment types: open, disguised, seasonal, structural, cyclical, frictional. India: disguised & seasonal rural, educated urban. Fix: growth + skills (Skill India) + MGNREGA.
Important for Exam
- ⭐ Types of unemployment with examples (4 marks).
- ⭐ Disguised unemployment — definition & example.
- ⭐ Jobless growth meaning.
- ⭐ MGNREGA and Skill India.
Watch & Learn
Watch on YouTubeEmployment and Unemployment - Indian economic development - Part 1
by Rajat Arora
Why watch? All types with real data and schemes.
Open on YouTube Watch on YouTubeEmployment and Unemployment - Indian economic development - Part 1
by Rajat Arora
Why watch? Quick classification with examples.
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