Youth employment is prevailing across the globe including India. Developing countries like India young people lack skills, work experience, job search abilities and the financial resources to find employment. Developing countries like India find it difficult to provide employment opportunities to all educated youth. So, governments are more concerned about rising levels of youth unemployment and underemployment issues. Unemployment not only have direct impact one economic costs, but also due to the social impact of joblessness as manifested by increased crime, mental health problems, violence, drug taking and social exclusion. This unemployment is usually measured in terms of unemployment rate where the number of unemployed individuals will be divided by the total number of employed individuals.
According to ILO, public aged 16 and above will be called as unemployed if they are out of work, need a job, have vigorously wanted work in the last four weeks and are available to start work in the next two weeks, have found a job and are waiting to join the job in the next two weeks.
Unemployment is a major problem in many countries, especially India. There are many reasons for this, but technological progress can be figured out as one of the main reasons. Everything is getting computerized in these modern days and this in turn leads to unemployment by decreasing the number of labors needed for a work. Unemployment is used by the government as a statistic to measure the health of the economy. Based on the rate of unemployment, like if the rate is around 6% or more, then the government will try to stimulate the economy and create jobs.
The rate of unemployment is almost same in both rural and urban areas. Urban areas have more number of educated unemployed, and in the rural areas, labors and agriculturists will be unemployed for almost 6 months in every year. According to statistics, for each employed person there are six jobless looking for work and this statistics doesn’t include those who gave up and stopped looking.
Types of unemployment will include
- Cyclical unemployment
• Classical unemployment
• Voluntary unemployment
• Structural unemployment
• Frictional unemployment
• Hidden unemployment
• long term unemployment
Generally unemployment will be caused when the economy slows down and the companies will be forced to cut costs by reducing payroll expenses. Unemployment is caused by an imbalance between supply and demand of working hours. It can also be caused by competition in specific industry or company. Advanced technology can also be treated as one of the main reasons as numbers of workers are being replaced by machines. As India is the second largest in population, it also has more number of unemployed people.
Wisdomjobs.com is India's first skill assessment based job portal, and the only portal to focus on helping job seekers to get shortlisted rather than only being listedThis author has published 5 articles so far.