India’S Unemployment Rate Hit 45-Year High (Download PDF)


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The assessment by the National Sample Survey Office conducted between July 2017-June2018, showed the unemployment rate stood at 6.1 percent, the highest since 1972 - 73. The data released by Labour Ministry showed 7.8 % of all employable urban youth being jobless, while the percentage for the rural was 5.3%.

The report on periodic labour force survey (PLFS) from July 2017 to June 2018 had on comparison with previous surveys concluded that the joblessness was at the highest level in 45 years.

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This Image Show in India’s Unemployment Rate Hit 45-year High

This image show in India’s Unemployment rate hit 45-year high

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This is Image Show in India’s Unemployed

This is image show in India’s unemployed


  • The unemployment number comes as another set of data released on 31 May 2019 showed that the economy grew at 5.8 % in the January-March, its slowest pace in 17 quarters, and falling behind China’s pace for the first time in nearly two years.

  • Female labour participation rate in urban areas for the quarter ending December 2018 was 19.5%, compared with 73.6 % for males.

  • As per The head of the government-funded National Statistical Commission the non-publication of jobs data that had been due for release in December and alleged interference by other state agencies over backdated GDP data.

  • As per The Centre for Monitoring Indian Economy, a leading independent think-tank, the country lost as many as 11 million jobs last year.

  • It is inter-disciplinary in nature as it brings together advanced techniques in mechanical, low power electronics, software and UI design together.

  • It is a result of sustained efforts over four years of a multi-organizational team comprising academics, two industry partners and a user organization.

  • India’s economy has been expanding by 7 percent plus annually, the fastest pace among major economies but the uneven growth has meant there are not enough jobs created for millions of young Indians entering the workforce each year.

Causes of Unemployment

  • Structural Unemployment: It is a form of involuntary unemployment being caused by a mismatch between the skills that workers possess and the skills demanded from workers by employers.

  • Cyclical Unemployment: This unemployment occurs when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction.

  • Frictional Unemployment: The unemployment which exists in any economy due to people being in the process of moving from one job to another.

  • Technological Unemployment: This unemployment is due to the technological change.

  • Seasonal Unemployment: This unemployment occurs when people are unemployed at certain times of the year. Examples of industries where demand, production and employment are seasonal include tourism and leisure, farming, construction and retailing.

Employment Reducing Strategies

  • Encouraging Entrepreneurship

  • Providing an Earlier Career Guidance

  • Improving work incentives thereby making work pay to reduce benefit dependency and expand the size of the labour supply.

  • Focusing on human capital - education and training a long run strategy to make the workforce more employable and to raise the level of labour productivity.

  • Launching skill development training programmes matching the industry standards.

  • Stimulating the demand from both the public and private sector - keeping aggregate demand high to drive the creation of new jobs.

  • Lower employment taxes to increase labour demand - for example, a reduction in national insurance contributions.

- Published/Last Modified on: August 13, 2019


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