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Current Unemployment Rate in India: Data & Affecting Factors in 2022

Amidst all the problems that exist in India, the unemployment crisis is the centre of the economy.

The number of unemployed people might have decreased over time, but unemployment remains an unsolved problem in India.


A report by the Centre for Monitoring Indian Economy (CMIE) reveals the highest unemployment rate in India, which increased to 24% in April 2020, then decreased to 9.1% in December 2020 and 6% in January 2021. 

The current Unemployment Rate in India is 8.3%. This impacted around 90 lakh people losing jobs during the worldwide COVID-19 lockdown. 

Before jumping onto the solutions to the above problem, let’s understand its types, causes, and equal impact on the country’s economy, which will go hand in hand with understanding the unemployment percentage in India.

Also read: How to manifest a job offer using the Law of Attraction?

Several types of Unemployment in India

Let’s discuss the different kinds of unemployment prevalent in India – 

  1. Cyclical Unemployment

This type of unemployment occurs due to fluctuations in the business cycle. 

  1. Structural Unemployment

Structural unemployment is a type of unemployment that occurs due to a mismatch between the skills of the job seekers and the requirements of the available jobs. 

  1. Seasonal Unemployment

Seasonal unemployment is a type of unemployment that occurs due to the seasonal nature of some industries. 

  1. Frictional Unemployment

Frictional unemployment occurs when workers search for new employment opportunities between jobs. 

  1. Open Unemployment

Open unemployment is a type of unemployment where individuals are willing to work but no jobs are available.

  1. Disguised Unemployment

Disguised unemployment occurs when individuals are employed, but their productivity is low or unnecessary.

Major Causes of Unemployment in India

Major Causes and impact of the unemployment crisis of high unemployment rate in India:

  • Large population: India has crossed 1,389,456,823 population already with only $1,877 (nominal; 2020 est.) $6,284 (PPP; 2020 est.) per capita income 
  • Low or no educational levels: As per NSO’s report, India’s average literacy rate is 77.7%. Almost 2 million graduates and half a million postgraduates are still unemployed in India.
  • Low employment skills: Around 47% of graduates in India are unsuitable for any job role. 
  • Societal responsibilities for women: Only 19.9% of educated women in India work. However, many graduates have to get married right after their graduation. Moreover, others quit jobs due to family responsibilities or pregnancy and maternity gaps. 

Also Read Highest-paying job opportunities for women in the 21st century

Solutions to reduce the crisis of Unemployment rate in India

  1. Encouraging entrepreneurship

One of the best ways to reduce unemployment is to encourage entrepreneurship.

The government can provide financial support, training, and mentoring to aspiring entrepreneurs. This will help create new businesses, which will generate employment opportunities.

  1. Increasing investment in infrastructure

Investing in infrastructure such as roads, railways, airports, and ports will create new job opportunities. It will also attract foreign investment, which will create more jobs.

The government should focus on creating an environment that is conducive to investment and business growth.

  1. Improving the education system

Improving the education system is essential for reducing unemployment in India.

The government should invest in improving the quality of education and providing vocational training.

This will equip young people with the skills and knowledge they need to succeed in the job market.

  1. Job referrals

Many job seekers cannot find job opportunities and fail to get placed at a high salary.

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If every fresher graduate has an opportunity to work with top companies, then we are already halfway through eradicating the unemployment rate in India.

  1. Focusing on agriculture

Agriculture is one of the largest employers in India. The government should focus on improving the productivity and efficiency of the agriculture sector.

This will create more job opportunities and boost the economy.

  1. Supporting small and medium-sized enterprises

Small and medium-sized enterprises (SMEs) are a significant source of employment in India.

The government should provide financial support and other incentives to SMEs. This will encourage their growth and create more job opportunities.

  1. Promoting tourism

Tourism is a sector that has the potential to create a significant number of job opportunities in India.

The government should invest in promoting tourism and improving the infrastructure in tourist destinations. This will create more jobs and generate revenue for the country.

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Frequently Asked Questions

  1. What is the current unemployment rate in India in 2022?

As of my knowledge cut-off, the most recent data on the unemployment rate in India is from 2021, and the rate was around 6.5%.

However, the impact of the COVID-19 pandemic on the Indian economy and job market has likely caused a significant increase in unemployment since then.

  1. What are some factors affecting the unemployment rate in India in 2022?

Some factors affecting the unemployment rate in India in 2022 include the ongoing impact of the COVID-19 pandemic, economic slowdown, lack of job opportunities in specific sectors, and automation replacing human labour in certain industries.

  1. How has the COVID-19 pandemic affected the unemployment rate in India?

The COVID-19 pandemic has had a significant impact on the unemployment rate in India, causing a significant increase as businesses were forced to close or reduce operations due to lockdowns and other measures to curb the spread of the virus. 

  1. What measures are being taken to address the high unemployment rate in India?

The government of India has taken several measures to address the high unemployment rate, including providing financial support to businesses to help them keep workers on the payroll, launching employment generation schemes, etc.


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