Nature and Extent of Unemployment in India

Unemployment in underdeveloped countries is both open and disguised. Like all other underdeveloped countries, India presently suffers mainly from structural unemployment which exists in open and disguised forms. 

Industrial Unemployment 

There are about 80 millions industrial workers in India. Over the past three decades unemployment in the industrial sector has increased as a result of extremely low growth rate of employment in the organised manufacturing industry.

Educated Unemployment 

Educated unemployment is, by and large, a part of urban unemployment. It arises when educated candidate does not find a job in accordance with his academic achievement. The rate of educated unemployment is as high as 4.2% per annum in the country. 

Seasonal Unemployment: 

Seasonal unemployment in agriculture is a normal condition in India. In seasonal unemployment, a person remains jobless for certain period of time, i.e. as in summer season. This is due to low gross irrigated area (there is 39.0% irrigation land of gross cropped land area). Off-season employment is quite low in the agricultural sector. 

Disguised Unemployment: 

The Indian agriculture is characterised by the existence of considerable amount of surplus labour. For the past three decades the demand for wage labour has increased in these areas and agricultural labourers have been brought from other parts of the country to meet it. In all other regions pressure of growing population has been increasing on land and it is believed that disguised unemployment still exists in these areas on a considerable scale.