Unemployment in India: Types, Data, and Government Responses
TOPIC CLASSIFICATION
Subject: Indian Economy - Employment & Labour
Sub-topic: Unemployment - Types, Measurement, Data Sources, and Policies
Mains GS Paper-III: Employment generation; measurement issues; government schemes and interventions.
EXAMINER REASONING
Unemployment is a high-currency topic in UPSC - directly linked to the economy, social justice, and current affairs. Prelims tests: types of unemployment (disguised, structural, frictional, cyclical, seasonal), PLFS definitions (UPSS, CWS, CUS), and key indicators (LFPR, WPR, UR). Mains demands: (a) analysis of jobless growth, (b) effectiveness of government schemes (MGNREGA, PLI, PMKVY), (c) structural issues in Indian labour market (agriculture's declining share but stagnant employment). The PLFS 2023-24 data is the most recent hook.
Core Concept
Types of Unemployment:
| Type | Description | India-specific example |
|---|---|---|
| Disguised | Labour in excess; marginal productivity zero | Agriculture (estimated 40-50 million disguised unemployed) |
| Structural | Mismatch between skills and available jobs | IT-trained youth in non-IT economy |
| Frictional | Gap between leaving one job and starting another | Graduates during campus placement season gap |
| Cyclical | Related to trade/business cycles | COVID-19 lockdown spike (April-June 2020: 23.5% UR) |
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