Introduction:

It is a situation characterized by the existence of those able bodied person who are willing to work but have to do without a job that may yield them some regular income. Unemployment may be defined as a state of affairs in a country where there are large number of able bodied persons of working age who are willing to work but cannot get work at the current rate of wages. In India, unemployment secretly in several forms due to diverse economic conditions, a large workforce, and varying levels of education and skill. The main types of unemployment in India are.

Types of Unemployment:

• Disguised Unemployment: It refers to unemployment that is not open to every one to see, it is invisible. This type of unemployment occurs mainly in the agricultural sector, where more people are employed than necessary. For example, on a small farm, a family might all work together, but the output could remain the same even if fewer people were working. This type of unemployment is common in rural India.
• Seasonal unemployment: It is called as seasonal unemployment because it mostly occurs in agriculture. It is prominent in agriculture, where employment depends on seasons. For example, farmers may have work during planting or harvest season but remain unemployed in the off-season. This is also seen in other sectors like tourism and construction.
• Structural Unemployment: Basically India’s unemployment is structural in nature. This type of unemployment happens when there is a mismatch between the skills of job seekers and the requirements of available jobs. Structural unemployment in India is due to the education system not match with industry needs and technological advances that replace low-skilled jobs.
• Cyclical unemployment: This type of Unemployment occurs due to economic downturns or recession phases of the business cycle. It is present in capitalist economies when there is reduced demand for goods and services, leading companies to cut jobs. This type of unemployment was notably high during the depression pandemic in India.
• Frictional unemployment: It is temporary and occurs when individuals are between jobs, moving from one job to another, or are new entrants in the job market. It’s a natural form of unemployment in any economy, though it can be prolonged in India due to inefficiencies in the job search and placement processes.
• Educational Unemployment: This is unique type of unemployment in India, where a large number of educated individuals, especially graduates, remain unemployed due to a lack of job opportunities matching their qualifications. Over-qualification and underemployment are also part of this issue, as many educated individuals take up jobs that require less skill than they possess.
• Under-Unemployment: In this case individuals are working in jobs that don’t fully utilize their skills or provide enough work. For instance, a graduate working in a low-skill job is underemployed. Underemployment is particularly prevalent in the informal sector in India, where people work part-time or earn very low wages.
• Rural Unemployment: Rural unemployment encompasses various forms, including seasonal and disguised unemployment, and reflects the lack of non-agricultural job opportunities in rural areas. It is a significant issue given that a large percentage of India’s population lives in rural regions.
• Urban unemployment: It is growing as more people migrate from rural to urban areas seeking better opportunities. Types of unemployment in urban areas include educated unemployment, cyclical unemployment (affected by economic downturns), and underemployment in the informal sector.
• Casual unemployment: This type of unemployment occurs when individuals are temporarily laid off due to factors such as the nature of the job (e.g., day laborers) or weather conditions affecting work availability. In India, casual unemployment is frequent among daily wage laborers, especially in construction and agriculture.

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