Do you know the Unemployment rate in India? It reached 9.1% in December 2020, the highest rate in the past six months. One crucial reason for the unemployment crisis is the COVID-19 pandemic. The pandemic has forced many businesses to shut down and affected many people. 

The unemployment rate in India is on the rise. Consequently, India’s unemployment rate is 86. This is not good because the country ranked first is the worst in employment, and the country ranked last is the best in employment. Let me tell you more about the unemployment rate so you can better understand it. 

What Is The Unemployment Rate? 

The unemployment rate tells us about the percentage of people looking for a job in a country or state. To calculate the unemployment rate, the formula is to divide the number of unemployed persons by the labour force and multiply it by 100. 

What is the labour force then? The labour force represents the total number of people who are willing to work. In gene,ral it is the sum of employed and unemployed number of people. 

Do you know there are various types of unemployment? Let’s discuss them. 

Types Of Unemployment

Unemployment can be broadly organized into four categories. 

1. Demand Deficient Unemployment 

Unemployment that arises during a recession is demand-deficient. Simply when there is less demand for certain products and services. Consequently, companies lower production by reducing the workforce. Therefore, it is considered the biggest cause of unemployment. 

2. Structural Unemployment 

Structural unemployment occurs when a job is available but the candidate is not competent to join the company. There are many reasons for this. One main reason is the skills required for a job are not possessed by the candidate. Geographical location can also be a barrier. For instance, a job is available in the USA but the worker is looking for a job in India. 

3. Frictional Unemployment 

Frictional unemployment arises when someone is changing their job. This unemployment doesn’t rise during an economic recession. Also, It’s not bad because here workers are looking for the job that suits them best. 

4. Voluntary Unemployment 

Voluntary unemployment includes those circumstances where a person decides to resign from a job because it is not providing enough financial assistance. In other words, a person doesn’t want to participate in the workforce, not because of the unavailability of jobs but because of low income. 

Causes Of Unemployment 

Why is unemployment rising in India so rapidly? Some answers are:- 

• India is now the second-largest country by population in the world. Providing jobs to such a great mass is not easy. 
• Everyone is looking for a job but all of them don’t have the required vocational skills. 
• Education provided in schools and colleges does not match the industrial requirements. 
• Social norms like gender discrimination do not allow women to work and grow. 

Conclusion 

Unemployment is becoming a serious concern for India. Therefore, we must look for solutions to deal with unemployment. Like the implementation of strict laws against the birth of children. Also, educational institutes must focus on quality education rather than making students bookworms. Last but not least, gender discrimination should be stopped and we have to encourage and support women to shape their careers.