Indian unemployment rate is only 3.69%, i.e., only 3.69 out of 100 people are unemployed. So why does everyone say unemployment is very high in India?
India’s
unemployment rate is much higher than 3.69%. Governments always alter
the statistics to look good but in this instance, it is beyond
comprehension. Similarly USA also doesn't have 5% unemployment rate. It
is much higher.
From 1983 till 2011, Unemployment rates in India averaged 9 percent reaching an all-time high of 9.4 percent in December 2010 and a record low of 3.8 Percent in December 2011. In India, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
It should be number of people actively looking for a job as a percentage of the employable people.
The number of unemployed people in India decreased to 39963 thousand in 2009 from 39974 thousand in 2007. Unemployed persons in India averaged 36933 thousand from 1985 until 2012, reaching an all-time high of 41750 thousand in 2001 and a record low of 24861 thousand in 1985. In India, unemployed persons are individuals who are without a job and actively seeking to work.
So if you see in 1985, 2 crore 48 lakh and sixty-one thousand people who were unemployed ( these are the figures from govt mean whom they found particularly registered) and other factors like
Cyclical Unemployment That means one out of four people were willing and able to work, but could not find work!
Frictional unemployment
occurs because of the normal turnover in the labor market and the time
it takes for workers to find new jobs. Throughout the course of the year
in the labor market, some workers change jobs.
Structural unemployment,
which occurs because of an absence of demand for a certain type of
worker. This typically happens when there are mismatches between the
skills employers want and the skills workers have. Major advances in
technology, as well as finding lower costs of labor overseas, lead to
this type of unemployment.
But here in India, we have another type of unemployment i.e. underemployment .Most of Engineers and MBA graduates and even PhD scholars write clerk exams or apply for 10+2 jobs.
On
the floor, reality is over 30% of youth aged 15-29 in India are not in
employment (roughly 30 million), education or training (NEETs),
according to this 2017 report by Organisation of Economic Cooperation
and Development (OECD), Live mint reported on March 6, 2017.
India
needs 23 million jobs annually, according to a Kotak Securities report,
but over the last 30 years, the country has created about seven million
jobs every year, India Spend reported on February 23, 2016.
And if you ask why so much higher unemployment
Here’s the answer Reason of unemployment in India
In last, It's not that most aren't hiring...It's that most aren't hireable".
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