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Wednesday, October 21, 2020

What is unemployment ? How the Crises of Unemployment can be solved In India in 2020?

What is unemployment? How the Crises of Unemployment can be solved  In India in 2020 ?

    Crises of Unemployment In India
What is unemployment ? How the Crises of Unemployment can be solved  In India  in 2020?

   Rising levels of the unemployment have been brought into sharp focus by a sharp contraction of 23.9% in India’s GDP in the First Quarter.

    The Lockdown are likely to result in the indian economy  contracting by over 10% in the full financial year.

    This is expect to result in more and

more people losing Jobs apart from fewer 

new entrants finding work.

    Yearly prediction Decline GDP – 10% in a year.

    GDP Contraction -23.9%

2) GDP contraction -

Manufacturing ,Production less and

Unemployment increases.

3) In other words the number of unemployed is likely to grow not just because more and more people entering the labour force fail to find jobs.

But also because several already employed are likely to lose their jobs.

Above mentioned factors 1 and 2 are


    Now I will discuss some criteria which everyone should know , ie .

    How to calculate the unemployment rate in india ?

What are the organizations involved in finding the Rate of Unemployment in India.

Lack of Data :

Any analysis of the jobs situation in India is marked by the lack of prompt

Data on employment and unemployment.

Real Time data, Job Analysis is a problem in India. 

India official data on unemployment provided through the

PLFS(Periodic Labour Force Survey ),which is conducted by The

National Statistical office under the Ministry of Statastics and programme implementation comes out with a considerable lag.

     The PLFS is an annual survey that also provides quarterly updates but the latest PLFS reports, which was released in june ,purtains to july 2018 to june 2019 period.

     Now two organizations NSSO and CSO 

combine together and collectively termed

as PLFS.

    There is a considerable lag in Real time Data (Analysis) , it takes Long time at least 

one and  two year delay.

Reports are published after a long duration.

In the absence of official estimates the surveys done by CMIE, are often seen as the benchmark.

However it should be understood that

CMIE and PLFS data are not comparable because of methodological and in particular difference /definitional.

Center for Monitoring Indian Economy (Think Tank) survey established in 1976.

Data analysis for

Household Income, Employment rate,Unemployment Rate in country.

Pattern of savings of individuals etc.

There is a difference in CMIE and Periodic labour force survey data.

In November 2019 a research paper by santosh mehrotra and jajati parida, published by the centre of sustainable employment at the Azim Premji University.

Analysed PLF’s 2017-18 data and found that for the first time in Independent India the total number of employed people declined between 2011-12 and 2017-18

State of employment and unemployment



2011 -2012








Total Unemployed

10 million (1 Crore)

30 million 

(3 Crore)

The worst affected were the youth those between the ages 15 and 29.

The total Number of unemployed youth went up marginally from 8.9 million in 2004-05 to 09 million in 2011-2012 but shoot up to 25.1 million by 2017-18.

The Covid Pandemic now has of course completely destroy the picture .

India could have as many as 50 million unemployed at present.

Jobs are less so unemployment increases.

CMIE ,Centre for monitoring Indian Economy since 2016 has been conducting its own survey’s to track employment and unemployment levels in India on a weekly basis.

However their definition for judging employment is far stricter and as such the data is not comparable to PLFS.

Covid 19 Job Crisis  : 50 Lakh affected in India .

Jobs Required in India

India needs to add around 10 million to 12 millions new jobs /vacancy each year for the coming decade.

A recent McKinsey study , too pegged the total number of non –farm jobs that India needed to create in the coming decade between 90 million to 140 million.

Cause of Unemployment in India

1)         Slow Rate of Economic Growth(GDP)

Overall economic growth is inversely proportional to unemployment rate.

2)         Population Control

  There is a relationship between demand and supply.

  If Demand is more and supply is less than the Rate of product will be increased.

  Same concept is applicable for students and Jobs.

  If Many Students participating in competition and jobs/vacancy is less than This is the worst situation.

Only intelligent and deserving candidate will get the job.

Other candidate will suffer and do not get employed.

So I want to say that  India’s increasing Population is one of the main reason behind unemployment problem in India.

3)         Undeveloped Agriculture Sector.

India’s agriculture sector is directly linked with Unemployment.

If  Government make suitable policies and provide

Proper set up of small scale industries in Villages .

Goverenment should focus on Agriculture based

Industries so that migration of farmers and their children will stop.

Than the migration of students will not occur and city population is not overcrowded.

In that case it is easy for government to control Unemployment.

4)         Effective Education System

Lack of proper education system is the cause of unemployment.

5)         Industry Growth Rate.

Government should make policies for increasing the Growth rate of industry.

6)Decreasing cottages and SSI(Small scale Industries)

7) Lack of proper planning.

8) Inadequate Educated Planning.

9)Low capital formation.

How to solve the problem of unemployment in India ?

1)         Accelerate growth of GDP.

As GDP(Gross domestic product)

increases unemployment decreases.

2)         Control Over Population

As the population decreases there is a chance of employment for all students in India.

Goverentment should run campaign for controlling population in India.

Awareness program for hazards of over population has to be conducted by Government of India.

3)Special Employment Programme.

This is a program conducted by Government for providing Employment to unemployed people.

Like 100 days employment program already conducted in India.

4)         Employment Exchange

Government should  provide special efforts to provide infrastructure to Employment Exchange so that exchange will work according to the requirement of the country and organize training program to unemployed peoples in India and then provide them employment

5)         Infrastructure Development

Better the infrastructure better will be the rate of employment.

Infrastructure development is  directly proportional to the rate of employment.

Road,Transport, School,Hospitals,

Bridges,dams,communication etc comes under Infrastructure development.

More is the Infrastructure development More is the employee needed for development.

Like labour, worker, Archtecture, Engineer etc

6)         Incouragement of small scale Enterprises.

More is the small scale enterprises more people get employed in it.

7)         Development of PSU(Public sector Unit)

More is the PSU in India , More chances of employment in PSU.

PSU (Public sector Unit) have organizations in which Government has some control .


PSU provide employment to large number of population.

8) Government should focus on imparting Technology Updates.

Skills are required in future for competing with the Globalization.

One of the latest Technology is Artificial Intelligency.

Educate young generation with Artificial Intelligency and Develop a Nation from Developing  Country to Developed Country.

I have already written a article on

Artificial Intellgency.

If interested in  reading Please visit

My website Blog



9)Our Prime Minister shri Narendra Modi has already mentioned that Tommorow will

be the day of Practical Knowledge.

Impart proper practical  approach and apply proper knowledge which we have studied in education is the need of the day.

ITI and polytechnic

Institutes are the backbone of our nation.

There are many trades in ITI , ie fitter, carpenter and many more .

ITI students get employed in Many PSU, like BHEL and also in Indian Railway.

I have already written a article on

How to Get Job after 10 th after doing ITI ?

If interested in  reading Please visit

My website Blog

Career options after 10 th (ITI)

Some of the the program like Startup India/Digital India ,a Initiative  program started by government of India.

Lets Discuss Startup India program in detail.

Start up India/Digital India Programe

Started by Government of India in 2015.

It is started for providing facilities for businesses.

Now Business is Recognized as Startup India.

There are certain terms and conditions in it like,

05 year from establishment date for a company is categorized under startup.

Now 05 year from establishment date for a company is changed to 07 year.

It means upto 07 year from establishment date company comes under startup India program.

For some companies like Biotech or pharma , medicine ,research based

Company the startup India progam is upto 10 year from the date of establishment.

Any company that is (LLB) Low level Business or Pvt(Private Limited company) comes under startup India.

Individual or proprietary company is not eligible for recognizing itself under start up india Program.

What is unemployment ? How the Crises of Unemployment can be solved  In India  in 2020?

There are certain benefits for companies under start up india program

1)         simplified Process of

registration .

2)         Funding by Government of India/Incentives

3)          Some facilities like tax break,patent registration,trademark ,copyright etc are provided for start up India program with ease.

4)         The main initiative for start up india is to provide employment opportunities to unemployed by providing skilled development program.

5)         Many Incubation centers has been established in India (Around 20) start up hub at NIIT.

(National Institue of Technology)

        07 Research Park established at IIT.

        Indian Institute of Technology

6)         Funding of Rs 10000 crore has been provided by government of India for start up progam.

Till date there are around 8000 companies registered themselves in start up India program.

But only 87 companies are running this program properly.

Challenges in StartUp India Program

This is a program started with great cause , to provide Employment and develop 

skills in peoples.

But this program is not succeeded as much as accepted due to lack of attention,

Inadequate Policy and  improper support from Government of india.

So These type of initiatives are Needed for solving the crises of unemployment.

But Government should be careful in solving these issues so that proper goal has been achieved.

In the last I will discuss the most important habits for capturing better opportunity

So you have to  develop these habits

in yourself for getting Jobs.

1 ) Effective Communication

2) Presentation.

3) Appear in interview.

4) Deal with hesitation and Group Discussion.

5) Solving Problem

6) Critical Thinking

7) Solving Conflict

8) Decision Making.

9) Empathy

10) How to behave.

11) Deal in frustration

12)How money works

13) Attitude.

So if you develop your skills and above mentioned habits in yourself. you will get your dream(Job) come true.