The unemployment scenario in India has always been quite acute. With a huge population and slow growth of job opportunities, unemployment has been widespread in India. Large scale unemployment has led to several socio-economic problems like poverty, malnutrition, antisocial and criminal activities, drug and substance abuse, etc. The lack of proper unemployment insurance schemes has further aggravated this problem.
In the early 1990s, major economic reforms were undertaken in India. One of the major objectives of these economic reforms was to boost employment in the Indian economy. However, though the economic reforms were successful in raising productivity and attracting FDI (Foreign Direct Investment), the growth in job opportunities was not as high as had been expected.
Some of the important aspects related to the unemployment scenario in India are –
The growth in labor force in India is much higher than the growth of jobs.
Actual employment figures in India have mostly fallen short of estimated figures, as per the five year plans.
The unorganized sector in India accounts for 90% of the employment.
The unorganized sector consists of agricultural workers in the rural areas and contract and sub-contract laborers in the urban areas.
Self employment accounts for more than 60% of the employed population of India. Casual workers, who get jobs only at times and remain unpaid when they don’t have work, constitute 30% of the workforce, while only 10% are regular employees. Merely two-fifth of this 10% is employed in the government sector.
Around 70% of the labor force in India has education below primary level or is illiterate.
Another important factor in the unemployment scenario in India is underemployment. There exists very high underemployment in various sectors of the labor force in India. Disguised unemployment also exists in various sectors of the Indian economy. Regional imbalances in the unemployment scenario in India are another important factor. While some areas have higher employment opportunities, some areas have very low opportunities of employment. This has led to inter-state labor migration in the Indian economy.
Recent studies have revealed the fact that growth of unemployment in India at current rates can lead to devastating results. At this rate, India is expected to have a 30% unemployment rate by 2020. This would mean that there would be 21 crore jobless people in India. The decline in job creation in agriculture has been identified as one of the important reasons behind the increasing unemployment in India.
Various government schemes have been undertaken in India to tackle the problem of unemployment. Swarozgar Yojnas (self-employment schemes) have been launched by the government to help young educated Indians earn a living. Specific programs have been adopted for rural areas. Many people have migrated from rural areas to urban areas in search of employment in the last few decades. Schemes have been undertaken to provide proper training, guidance and financial assistance to needy people under self employment schemes. Focus on education and training has also been increased to increase employability of the people.