The scene is a conversation between Parakshit and Bhavesh Verma (played by Shreyas). Parakshit has lost his job and is looking for support from Bhavesh. He isn’t aware that Bhavesh has lost his job too. Learning Perspectives will explore the meaning of unemployment in this blog.
What is Unemployment?
Unemployment is a condition where individuals are not in a state of being employed. They don’t have paid employment or are self-employed. An individual is actively searching for work yet they are unable to find any work. Unemployment reflects the state of the economic health of the country.
There can be many types of unemployment such as cyclical, frictional, and structural unemployment.
Cyclical Unemployment- As the name suggests, it deals with the different economic cycles. During the recession, unemployment increases as economic growth decreases.
Frictional Unemployment – This unemployment isn’t long-term. This occurs when the candidate has left a job and is searching for a new one. This process takes time as the candidate is involved in the selection process.
Structural Unemployment – As the name implies, there are certain structural changes that occur for this unemployment to take place. These could be related to technological changes or skills mismatch. For example, an entire department is rendered jobless due to the automation of work.
How is Unemployment measured?
Unemployment in the country is measured through the rate of unemployment. In India, this rate is reported by the Centre for Monitoring Indian Economy (CMIE). According to the latest report, as of 16th August 2022, the unemployment rate in India is 7.66%. This rate is calculated by dividing the number of unemployed individuals by the total number of people. In India, It is calculated separately for both urban & rural.
The government of India has launched many schemes to curb unemployment in the country. Some of these schemes are Ayushman Bharat, PM Awas Yojana – Gramin, Schemes for Unemployed Women, Atal Pension Yojana, etc.
State-wise reports of unemployment show that currently, the state of Haryana has the largest rate of unemployment in the country.