Unemployment

Unemployment refers to a situation in which an individual is without a job despite actively seeking employment. The causes of unemployment are varied and range from structural problems within the economy, such as a mismatch between jobs available and the skills possessed by potential employees, to personal factors like lack of qualifications or insufficient experience. Types of unemployment include frictional, structural, seasonal and cyclical.

Unemployment is a problem because it results in a waste of economic resources as unemployed people cannot contribute to economic output or the tax base. This affects both individuals who may suffer poverty, mental health issues and homelessness due to their unemployment status, as well as having wider impacts on the economy through increased public expenditure on benefits. High levels of unemployment can lead to stagnation and recession as fewer goods and services are demanded by households. 

The ratio of unemployment in India in 2022 is predicted to be 5%. India is unfortunately one of the countries that suffers from high levels of unemployment with over 6 million unemployed Indians in 2020, including many young people entering the labour market for the first time. To address this issue, the Indian government has introduced several schemes designed to help alleviate youth unemployment including support for entrepreneurship training and business start-ups as well as vocational training programmes for those seeking employment in certain sectors.

One possible solution for tackling long term structural unemployment is education and retraining schemes for workers who may be disadvantaged due to lack of necessary skills or qualifications required by employers. Such programmes could help ensure that people remain employable throughout their working lives even if industries change or decline in relevance due to advances in technology or automation processes.