A Comprehensive Essay on Unemployment Crisis in India

India as a developing nation and it is facing many social, economical and international problems.

Unemployment is one of the most common and highly prevailing problems in the country. The India is facing the unemployment issue since the times of independence and as the nation India is unable to generate enough employment opportunities for the educated class.


The problem of unemployment is not a recent phenomenon in India, over the past years, the employment trends did not have really any positive result.

The records and reports highlight that each year, around 2 crore people are unemployed individuals. 

These are the people who have gained the necessary knowledge and skills, and willing to work at the existing wage rate, but they are unemployed. Therefore, the youth of the nation lose all hopes, they don’t make efforts to find a job and indulge themselves in illegal and unsocial activities. 

As a result of this, there is a great fall in India’s labor force participation rate (LFPR).

The data suggests that the LFPR is just 40%, that means only 40% of the 2 crore unemployed individuals are coming forward to find a job for themselves. The individuals seeking jobs in different sectors are also now able to enjoy a great package. 

The pattern of employment and contribution to the growth of the economy has been highlighted below:


The Indian Economy is highly based upon the Agricultural sector. There are around 85% of the rural population derive their livelihood directly or indirectly from agriculture. Whereas, the agriculture sector of the nation is underdeveloped. 

The level of employment under this sector considers as disguised unemployment. Disguised unemployment means the number of individuals employed on a piece of land is more than the required workforce. 

One study conducted in the early post-independence times highlights that around one-third of the agricultural workers are disguised unemployed. Therefore, the people in the agriculture sector are regarded as excessively unemployed.

This leads to stagnation of the economy, as the primary sector is unable to contribute to the economic growth at a faster or better pace. Also, most of the farmers in India are small or landless farmers. They depend upon the conventional methods and thus, the yield produced is comparatively low and generates low returns.


The industrial sector in India is developing at a faster pace as compared to the agricultural sector. Industrial sector is providing the employment to many individuals. This is the reason for rural people migrating to the cities in hope of finding a job in any industry. 

A Comprehensive Essay on Unemployment Crisis in India

However, the Indian Industries have also failed in providing employment to all the job seekers.

There prevails different types of unemployment such as; open unemployment, structural unemployment, frictional unemployment, cyclical unemployment, etc. Also, there are many industries working under the informal sector.

Informal sectors have not any registration as per the governmental laws and regulations. So, the workers in these sectors do not get a proper employment package or facilities. They don’t make any contribution to the economic growth.

Unemployment crisis in india during COVID-19

The impact of the pandemic is adverse upon each and every individual of the nation. It has affected the lives of different individuals mentally, physically, economically and socially. 

The unemployment crisis in india was peak high during COVID-19 pandemic.

A Comprehensive Essay on Unemployment Crisis in India

Along with the threat to the physical wellbeing and mental health of the individuals, it also leads to losing the livelihood and degrading the living standards. 

Many people have lost their jobs due to this pandemic situation. The poor people or daily wagers, who were self-employed or working at the small unorganized industries. During pandemic they don’t have any source of earning. 

The data from the Periodic Labor Force Surveys (PLFS) highlights that the nation has witnessed some worst impacts during first phase lockdown. The PLFS shows the unemployment-employment trends in urban areas; it has observed a serious setback. 

Along with the local population, urban employment highly depends upon the migrants who come from the rural areas.

During pandemic rural migrants returned back to their villages due to no availability of work. 

While many have returned after the announcement of the unlocking around the nations.

This level of unemployment is not just a symptom of the “jobless” model of economic growth but it is also a recipe for political and social instability. 

The pandemic and the subsequent crisis in the employment-unemployment situation has only highlighted the fragile situation of the labor market. 

The unemployment crisis in india and jobless growth is a bigger pandemic.

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