UNEMPLOYMENT TRENDS

The unemployment trend helps in figuring out the overall condition of a nation and therefore analyzing its relevance. Moreover, the discussions that have been done under this report are based on either trend of unemployment that is benignly noticed in India. It is mentionable that the trend of unemployment has risen as a result of the current pandemic situation across the globe where several lost their jobs. 

Defining unemployment

Unemployment is an economic term that needs to be understood so as to avoid the misconceptions related to it. It must be noted that unemployment refers to those individuals who do not get a job even after being willing to work. 

Causes of unemployment

Causes of unemployment can be several, that is it can be on the demand side, supply-side or even from the side of the employee or from the side of workers. In India, technology and science have developed much within the last decade. The organizations operating in India make the most out of advanced technologies to attain efficiency in their operation. This results in lower demand for human resources as a result of automation within the organization. Many job roles are becoming irrelevant as a result of the development of science and technologies. 

Demand-side unemployment is caused due to global recessions such as covid 19, high rate of interest. The causes of unemployment are listed below:

• High population rate
• The slow growth of the economy
• Slow industrialization
• Underemployment
• Caste system or racism persisting in India

Types of unemployment

Unemployment can be categorized into four different types as mentioned below:

“Demand deficient unemployment”

The major type of unemployment that is benignly noticed all across the globe mostly falls under this category of unemployment. It has also been witnessed within the economy of India. As a result of the pandemic, the demand for goods and services within the country has fallen. Moreover, as a restriction on the export of goods and services as a part of government guidelines to cope up with covid 19, the demand for imported goods has also fallen rapidly. As a result, the economy of India has faced a notable recession. Under such a situation the organization and companies operating in India choose to cut back their production and therefore they choose to not hire any more employees rather retrench labor which has ignited the unemployment problems within India.

“Frictional unemployment”

Frictional unemployment also refers to a certain type of unemployment in which a person working under an organization stays unemployed for a certain period as a result of either quitting the job or being fired. This has also been noted within the economy of India recently as a result of recession caused due to the sudden emergence of a pandemic where several organizations went for firing their employees as they needed less of them as a result of lower demand for the goods and services produced by the organizations. 

“Structural unemployment”

Structural unemployment is a type of unemployment under which the skills that are acquired by a job seeker do not match the criteria of requirements for a certain job. Geographical location also acts as a constraint that job seekers cannot move to a place where they can get jobs and this refers to structural unemployment. 

Voluntary unemployment:

Voluntary unemployment refers to a situation under which a person willingly quits their job and is therefore unemployed. It may be the situation if the employees find that working is not compelling. 

Trends in unemployment

The unemployment trend that is benignly witnessed in India has been more or less tried to be controlled. It has been witnessed that the unemployment rate in India was at a fall but this sudden emergence of the pandemic has resulted in a steep rise in their employment. Such a trend is being witnessed. Moreover, during 2017 the unemployment rate in India was around 5.41% which was 0.10 % lower than in 2016. In 2018 the unemployment within India fell to around 5.33 %. That is a decline of around 0.08 % has been witnessed. In 2019 the unemployment rate in India fell further to 5.27% that is a decline of 0.06 % was noted. But as 2020 came, a surge in the rate of unemployment has been noted in the economy of India. That is the unemployment rate rose to 7.71 % that is an increase of 1.84 % has been witnessed. The estimated unemployment rate in 2023 in India is 6.50 %. 

Conclusion

It can be concluded that if a worker from India can get a job in China, he or she might not move as a result of tension going between the two countries relating to allegations regarding the emergence of the covid 19 virus and many more or under a situation where China chooses not to provide a visa to any India citizen such is structural unemployment and there are many types of unemployment. Moreover, the pandemic has led to an increasing trend in unemployment in India.