Unemployment in India


The country’s overall unemployment rate was estimated to be 4.9 per cent in 2013-14.

In case of women living in urban areas, the unemployment rate was 12.4 per cent, while in rural areas, it was 6.4 per cent.

The overall unemployment among women was 7.7 per cent across the country.

Gujarat has the lowest unemployment rate of 1.2 per cent, as per the fourth Annual Employment & Unemployment Survey report for 2013-14, released by Labour Bureau, under Union Ministry of Labour and Employment.

As per the study, the unemployment rate per 1,000 persons aged more than 15 years was lowest in Gujarat at 12, followed by Karnataka at 18, Maharashtraat 28, UT Chandigarh at 28, MadhyaPradesh at 29 and Telangana at 33.

Different Types of Unemployment in India

  1. Structural Unemployment: This type of unemployment is associated with economic structure of the country, i.e. rapidly growing population, technological change and their immobility fall in rate of capital formation.
  2. Under-employment: Those labourers are under-employed who obtain work but their efficiency and capability are not utilised at their optimum and as a result they contribute in the production upto a limited level.
  3. Disguised Unemployment: If a person does not contribute anything in the production process or in other words, if he can be removed from the work without affecting the productivity adversely, he will be treated as disguisedly unemployed. The marginal productivity of such unemployed person is zero.
  4. Open Unemployment: When the labourers live without any work and they don’t ind any work to do, they come under the category of open unemployment. Educated and unskilled labouress unemployment are included in open unemployment.