Context: In a recent survey by Centre for Monitoring Indian Economy (CMIE), Unemployment in India has increased to 8.3% in August 2022.

Key Data:

1. The Urban unemployment is higher (9.6%) in comparison to rural unemployment which stands at 7.7%.

2. The Labor Participation rate has fell from 37.6% to 37.3%. Labor Participation Rate defines that’s section of working population in the economy which is currently seeking jobs or have a job.

3. The highest rate of unemployment is in Haryana (37.3%), followed by Jammu and Kashmir (32.8%), Rajasthan (31.4%)

4. The lowest rate of unemployment is in Chhattisgarh (0.4%), Meghalaya (2%), Maharashtra (2.2%) followed by Gujarat and Odisha (2.6%).

Reasons of Increasing Employment in India:

1. Low or Inadequate Educational or Vocal Skills: According to a report by FICCI, majority of college graduates does not possess skills or knowledge as per Industry/market standards which results into structural unemployment.

2. Minimal Support by Government: Legal hurdles in financing, weak linkages between primary and secondary sectors, increased inflation has made businesses and small enterprise helpless.

3. Low Growth in Agriculture: Farmers disappointed with growth and productivity of agriculture has shifted to cities in search of jobs which has increased the quantum of unemployment.

4. Patriarchy: Regressive social norms which hinders women to seek jobs in open market has pulled women from labor participation force.

Impact of Employment:

1. Burden on exchequer: Increase in unemployment could increase the burden on government as more people register for government aid. IN case of India, more people enroll in MNREGA.

2. Anti-social: Lack of jobs make people frustrated and could engage them in anti-social activities such as riots, violence.

3. Waste of Human Resource: People in order to cope with situation, gets addicted to drugs and alcohol which leads to wastage of Human resources.

4. Decline in National Income: Increase in unemployment leads to widespread poverty which further decrease consumption and brings down the national income.

Steps taken by government to tackle Unemployment:

1. Atma Nirbhar Bharat Yojana: It was launched to incentivize employers for creation of employment along with social security and restoration of loss of employment during COVID-19.

2. Pradhan Mantri Rojgar Protsahan Yojana: Launched in 2016 to to incentivize employers for creation of new employment. The beneficiaries registered till 2019 will continue to get the benefit till 2022 from date of registration.

3. MNREGA: It a guaranteed wage program where 100 days of employment in one financial year is provided upon registration in rural India.

4. PLI Scheme: It was announced by Finance Minister across 13 sectors which is now extended to more than 25 sectors to create national manufacturing champions and generate employment opportunities for country youth.