The Challenge of Unemployment in India

India has faced constant problems with their unemployment. Unemployment can be classified as a person unable to find a job even if he or she is completely capable and willing to work. Unemployment in India is described by underemployment (Underemployment occurs when people are not specifically classified as being unemployed, but their work income is very low) or disguised unemployment (unemployment of workers that is not shown on statistics). These are government ideas in order diminish unemployment and solve the problem by giving financial help to the government, businesses, public sector, etc.

Ninth Five Year Plan

One of the main problem of unemployment is India is it does not have the necessary resources to find jobs for such an immense population. According by a national report by 2020 around 716 million people will be without a job.  India’s government created a Plan called Ninth Five Year Plan which ran through 1997- 2002 in order to increase decrease poverty, increase human development and industrialization. The main objectives of the plan were:

• Create liberal Market
• Generate employment opportunities
• Stabilize prices in order to accelerate economy
• Check population increase
• Prioritize agriculture and increase rural development
• Education, safe drinking water, energy and transport
  

  India's Labor Force

  However, it has fallen short of target. India’s labor force is growing at a rate of 2.5 % a year but employment just grows at a rate of 2.3%. In consequence, India has the test of not only absorbing workers to the market, but also clearing the buildup. Around 60% of India’s labor force is self-employed which many of them are very poor, 30% are casual workers earning very low wages and just 10% are regular workers. Also around 90% of the workers work in unorganized sectors meaning they do have the privilege of social security or other benefits.

India's Unemployment Rate

The rate of India’s unemployment this year has decreased this year from 8% to7%. Nevertheless, it is important to recognize that is very difficult to measure the unemployment in India due to the high levels of disguised unemployment 

• Year...Unemployment rate...Rank.....Percent Change....Date of Information
• 2003................8.80 %.........110...........................................2002
• 2004................9.50 %.........105..............7.95 %..................2003
• 2005................9.20 %..........83.............-3.16 %...............2004 est.
• 2006................8.90 %..........91.............-3.26 %...............2005 est.
• 2007................7.80 %..........92............-12.36 %..............2006 est.
• 2008................7.20 %..........86.............-7.69 %...............2007 est. 

What is the cause of this Unemployment ?

And Why the India?

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