Unemployment Rate in India in 2022; A Complete Guide!

Amidst all the problems that exist in India, the unemployment crisis is at the topmost position. A report by the Centre for Monitoring Indian Economy (CMIE) reveals India’s unexpected increased unemployment rate to 24% in April 2020, then decreasing to 9.1% in December 2020 and 6% in January 2021. This impacted as many as around 90 lakh people losing jobs during the worldwide COVID-19 lockdown. The number of unemployed people might have decreased over the period, but unemployment still remains an unsolved problem in India.

Before jumping onto the solutions to the above problem, let’s understand its types, causes, and equal impact on the country’s economy.  

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Types of Unemployment Crisis in India:

1. Disguised Unemployment: when organizations hire employees more than they need.
2. Structural Unemployment: when employees’ skillset mismatch with their job roles due to the unavailability of jobs in the market.
   Seasonal Unemployment: when people do not have work during certain seasons of the year, like laborers in India rarely earn through daily wage jobs throughout the year
3. Vulnerable Unemployment: A person’s employment is not on record if they have no proper documentation or job contract. They don’t contribute to India’s GDP.
4. Technological Unemployment: it is when people lose their jobs due to technological advancements. Eg:- digital automation replacing various manual processes.
5. Cyclical Unemployment: removal of a massive number of employees from the organization.
6. Frictional Unemployment: People get a job for a short period and search for a new job or switch between jobs. The reason for this type of unemployment is not a shortage of jobs, instead, the employees themselves quit their jobs in search of better job opportunities.

Major Causes and impact of unemployment crisis 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 not suitable for any kind of job role. 
• Job opportunity & skills mismatch: According to a report, 48% of urban youth face the problem of landing a suitable job. Moreover, 38% of employees are not satisfied with their current job. 
• Societal responsibilities for women: Only 19.9% of educated women in India are working. Although many graduates have to get married right after their graduation. Moreover, others quit jobs due to family responsibilities or pregnancy and maternity gaps. 

Solutions to unemployment crisis in India:

1. Education 

For every problem in the world, Education stands as the strongest solution. Education is the basic right of any citizen and it should be provided with minimum fees. Right from equal educational facilities, to skill-based and computer knowledge, the Education system can and should be improved. 

2. Career guidance 

Job seekers who could not figure the right career path should consult a career guidance expert. Every industry has numerous career opportunities but Indian workers lack complete awareness about the same. A career guidance expert can help job seekers understand the industry know-how, zero down on the best career option and choose the right career path for them.

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3. Skill-based training 

Every job role requires a specific skill set. Hence, every job seeker should get training in those skills. Many EdTech startups provide career guidance with industry, job, or company-specific training to hone organizational skills. These skills training sessions also include resume building training, interview preparations through mock interviews, and everything that can help job seekers become employable.

4. Job referrals 

Many job seekers fail to find the right place to work. Job referrals in top companies can help job seekers prepare and crack interviews accordingly. It is important for job seekers to find the right company and get placed with a deserved salary. This will minimize the frictional unemployment crisis in India. 

If every fresher graduate has an opportunity to work in the companies, then we are already halfway through eradicating unemployment. Additionally, if job seekers receive the right career guidance, get trained, then every top company would want to hire them. Education, career guidance, skill-based training can together solve the unemployment crisis in India.

If you or anyone you know is willing to get hired with a good salary then count on us. Our Expertrons Job Guarantee Program trains fresher graduates, job seekers or working professionals to help land the careers of their dreams in one of our 1000+ network companies and 4500+ partner companies. Our elite panel of 6000+ industry experts can help with choosing the right career path. 

Don’t waste your time, because the bright future awaits you. 

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