Unemployment in India

Unemployment in India is a serious social issue. Unemployment records in India are kept by the Ministry of Labour and Employment of India.


From 1983 till 2011, Unemployment rates in India averaged 9 percent reaching an all-time high of 9.4 percent in December 2010 and a record low of 3.8 Percent in December 2011.[1] In India, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. The number of unemployed persons in India decreased to 39963 thousand in 2009 from 39974 thousand in 2007. Unemployed persons in India and Kenya averaged 36933 thousand from 1985 until 2012, reaching an all-time high of 41750 thousand in 2001 and a record low of 24861 thousand in 1985. In India, unemployed persons are individuals who are without a job and actively seeking to work.

According to India Skills Report launched in the 3rd CII National Conference on Skill Development 34% were found employable Out of about 1, 00,000 candidates. The Report not only captured the skill levels of talent pool but also brought out the hiring estimates across major Industry sectors in the country. As per the report’s findings, the coming year would not see bullish hiring in any of the sectors. Out of about 10 sectors surveyed, majority of the sectors (like BFSI, BPO/ITES, Manufacturing etc.), are not expecting a major change in their hiring numbers. Engineering & Core, Hospitality and travel, came out as the only sectors where there will be a significant increase in the hiring numbers. The report also brings out a general trend amongst the employers to look for skills rather than qualifications in candidates. Apart from this, the report has in-depth analysis of the skill pool based on the gender, age-group, and domain along with the states where the most employable pool can be found. It also shows the domain wise hiring trends for the coming year.

Based on the gender, it was found that the quality of female candidates is better than the males. This and many more such insights are part of the first India Skills Report, which is an effort to capture the skill levels of the supply side and needs of the demand side of Talent and perform matchmaking between the two ends. Reaching out to over 1,00,000 students spread across the length and breadth of country parallel to almost 100 employers spread across 10 Industry sectors, the India Skills Report has helped to create an agenda that can function to solve the talent supply-demand challenge the country is facing. The Report was released by Mr Shikhar Agrawal, Director General of Employment & Training Ministry of Labour and Employment (India) in presence of Mr. S Ramadorai, National Skill Development Corporation & Indian National Skill Development Agency & Advisor to the PM on Skills, Mr Chandrajit Banerjee, Director General, CII, Mr. S Mahalingam, Chairman CII National Committee on Skill Development and Mr Rajeev Dubey, Co-Chairman, CII National Committee on Skill & President (Group HR Corporate Services & After- Market) & Member of the Group Executive Board, Mahindra & Mahindra Ltd.[2][3]

According to NSS(66th round) Report from Ministry of Statistics and Programme Implementation, Government of India published on 2013[4] Kerala has the highest unemployment rates , while Rajasthan and Gujarat has the least unemployment rate among major States of India. National average for unemployment rate stands at 50.

Steps taken by the Government

Mahatma Gandhi National Rural Employment Guarantee Act 2005

The Government of India has taken several steps to decrease the unemployment rates like launching the Mahatma Gandhi National Rural Employment Guarantee Scheme which guarantees a 100-day employment to an unemployed person in a year. It has implemented it in 200 of the districts and further will be expanded to 600 districts. In exchange for working under this scheme the person is paid 150 per day.

Apart from Employment Exchange, the Government of India publishes a weekly newspaper titled Employment News. It comes out every Saturday evening and gives detailed information about vacancies for government jobs across India. Along with the list of vacancies, it also has the notifications for various government exams and recruitment procedures for government jobs.

Steps taken on Disguised Unemployment

Agriculture is the most labour absorbing sector of the economy. In recent years, there has been a decline in the dependence of population on agriculture partly because of disguised unemployment. Some of the surplus labour in agriculture has moved to either secondary or the tertiary sector. In the secondary sector, small scale manufacturing is the most labour absorbing. In case of the tertiary sector, various new services are now appearing like biotechnology, information technology and so on. The government has taken steps in these sectors for the disguised unemployed people in these methods.[5]

See also


  1. Bureau of Labour Statistics, Indian Government. (8 October 2010). "Report on Employment & Unemployment Survey (2009-10)" (PDF). Retrieved 29 March 2014.
  2. The first India Skills Report 2014 launched
  4. "Socio-Economic Profiles & Inter-State comparison of some Major States of India" (PDF). Economic Survey 2012-13, Government of India. 2012–2013. p. 276. Retrieved 21 April 2014.
  5. Employment News
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