Paragraph on Unemployment in India Types and Causes 400 Words
Introduction – Often times we hear about the word unemployment , unemployment is the situation of a person who is perfectly fit to do work and is actively seeking work to do but he is not able to find any job for himself. India has one of the highest unemployment rate in India , in percentage term it is around 8 percent of the Indian work force who are able to find any job. Unemployment rate that is the total unemployed people in the economy divided by the total work force present is not just a number but tool to measure the economic health of a country .In most countries these statistics are given out by the government , it is considered an important indicator of the development of a country.
Types of Unemployment–Unemployment could be voluntarily or involuntarily , both of them can be classified into 4 major unemployment types
1.) Frictional Unemployment –Scenarios like when people willingly change their job to search for a better opportunity in the economy comes under frictional Unemployment.It also includes freshers who are just looking for their first job.
2.) Cyclical unemployment –Cyclical unemployment is the deviations in the number of employed workers in the economic boom or recession of a country .
3.) Structural unemployment – Structural unemployment is the diminished workforce after a sudden change in the technology or way that a industry operates . For example – introduction of robots has reduced the works of human labours
4.) Institutional unemployment –Some institutional factors and incentives in the economy such as minimum wages , restrictive license contribute to institutional unemployment .
Reasons–There are numerous reasons why a country could see a surge in the unemployment rate in a country. In our country the rapid increase in the population is one major factor . It becomes tougher and tougher for an economy to produce more and more jobs for such a large number of people .The under development of a country also leads to fewer jobs opportunities . If a country heavily depends on its agriculture then it’s for sure to loose out to a country that has developed and created a large number of jobs. A poor education system also produces unqualified people for a position in the economy , the institution might not be willing to hire the worker as he won’t be beneficial for their growth.
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