1.      What is unemployment?
2.      Types?
3.      What are rural and urban areas?
4.      Who conducts the survey?
5.      What are the reasons for unemployment?
6.      Consequences of unemployment
7.      What government did?
8.      What can be done?

ü  The people who are interested to work for remuneration but are unable to find employment are called unemployed.



ü  Under employment: If a person is not employed to his full capacity. (An engineer working as a clerk).

ü  Disguised UNEMPLOYMENT: The labour whose marginal productivity is zero. The number of people that can be withdrawn from their present employment without reducing the total output.

ü  Seasonal UNEMPLOYMENT: Those who are unable to find work during particular season. (Agriculture sector).

ü  Technical UNEMPLOYMENT: UNEMPLOYMENT among the trained people.

ü  Educated UNEMPLOYMENT: All those who are passed matriculation or above and are unemployed.

ü  Urban UNEMPLOYMENT: This is Unemployment in Urban area.


·        This is an area where the minimum population is 5000.
·        The density of population is minimum 400.
·        75 percent male population engaged in non-agricultural activities.

ü  Rural UNEMPLOYMENT:  This is unemployment in rural areas.

 ural activities)ban area.
All the areas other than urban areas are the rural areas.

ü  Frictional UNEMPLOYMENT: This caused due to the mobility of the labour.

Who measures the unemployment rate in India?


NSSO (National Sample Survey Organization): 

ü  Now it is called National Sample Survey Office
ü  The Unemployment in India is measured by National Sample Survey Organization.

ü  The National Sample Survey Organization or NSSO, is an organization in the Ministry of Statistics and Programme Implementation of the GOI. 

ü  It is the largest organization in India conducting regular socio-economic surveys. NSSO was called NSS (National Sample Survey) when initiated in the year 1950.

ü  NSS was set up on the recommendation of PC Mahalanobis.

ü  NSS was renamed as NSSO in the year 1970.

ü  The governing body is National Statistical Commission that was formed in the year 2005. Previously it was governed by Governing Council.

ü  The NSSO is headed by DG and CEO.

ü  The NSSO has four divisions.
·         Survey Design and Research Division (SDRD)
·         Field Operations Division (FOD)
·         Data Processing Division (DPD)
·         Coordination & Publication Division (CPD).

(CSO: The Central Statistical Office which is one of the two wings of the National Statistical Organisation (NSO) is responsible for coordination of statistical activities in the country and for evolving and maintaining statistical standards.)
The NSSO developed 3 concepts of Unemployment:


ü  Usual Status UNEMPLOYMENT: This indicated the chronic unemployment. This refers to the long period of minimum 1 year.

ü  Current weekly status: A person who worked for at least an hour or more on any one or more days during the week is deemed to be employed.

ü  Current Daily status: This is the activity status of the person for each day of the preceeding 7 days. (Half-day: A person who works for one hour but less than 4 hours in a day. Whole day: Works for 4 hours or more)



·        Large scale population
·        Automation
·        Defective education
·        Under developed state of Indian economy
·        Agriculture sector saturation
·        Defective policies
·        Illiteracy
·        Immobility.



Unemployment is the root cause of many social and economic evils.

·        Poverty
·        Inequalities of income
·        Social tensions
·        Economic stagnation
·        Wastage of Resources.
·        Naxalism
·        Increase in crime rate
·        Low standard of living
·        Quality deterioration in education and health services

Programmes taken up by the Government:

1.      Public Works Programme – 1971. (Road, buildings)

2.      Small Farmers Development Agency (SFDA) – 1972

3.      Marginal Farmers and Agricultural Labourers Project (MFAL) – 1972

4.      Food for Work Programme – 1977 (During Janata Party)

5.      Integrated Rural Development Programme (IRDP) – 1978. (To support for self employment). IRDP is merged in Swarna Jayanti Gram Swarozgar Yojana in 1999.

6.      Training Rural Youth for Self Employment (TRYSEM) – 1979

7.      National Rural Employment Programme (NREP) – 1980. This is merged in Jawahar Rozgar Yojana in 1989.

8.      DWCRA – 1982. (Women form a group of 10 to 15 and saves 1 rupee each day for 1 year. Then a revolving fund of 25,000/- is given (Center and State 50:50) for taking up self employment.  This is merged with Swarna Jayanti Gram Swarozgar Yojana in 1999.

9.      Self Employment to the Educated Unemployed Urban Youth (SEEUY)-1983.

10.  Self Employment to the Educated Unemployed Rural Youth (SEERY)-1983.

11.  RLEGP (Rural Landless Employment Gurantee Programme) – 1983. This is merged in Jawahar Rozgar Yojana in 1989.

12.  Indira Awas Yojana (1985): For providing dwelling units.

13.  SEPUP (Self Employment Programme for the Urban Poor) – 1986. This is merged with NRY in 1989.

14.  NRY (1989): To improve living conditions for urban poor. Merged with Swarna Jayanti Shahari Rozgar Yojana in 1997.
15.  JRY (Jawahar Rozgar Yojana) – 1989: Merger of NREP and RLEGP. This is replaced with Jawahar Gram Samrudhi Yojana in 1999.

16.  Million Wells Scheme – MWS (1989) Merged with Swarna Jayanti Gram Swaraj Yojana.

17.  PMRY (1993): 1 lakh loan 15% subsidy subject to a ceiling of 7500/-. Later the amount was raised to 2 lakh.

18.  EAS (Employment Assurance Scheme) – 1993:

19.  Rural Employment Generation Programme – 1995.

20.  PMIUPUP (PM’s Integrated Poverty Eradication Programme) – 1995.

21.  National Food for Work Programme – 2004

22.  Rural Employment Guarantee Act – 2005

23.  PM’s Employment Generation Programme – 2008.

24.  NREGA: National Rural Employment Guarantee Act.

NREGA came into effect on February 2, 2006.

ü  The scheme was first launched in Bandlapalli village of Anantapur dist of AP.

ü  This is meant for providing 100 days guaranteed employment to every household.

ü  Job card is issued by the Panchayat.

ü  1/3rd work is reserved for women.

ü  Cost sharing is 90:10 (Central and State Government)  basis.
ü  10 percent extra payments if the work is provided outside a radius of 10 km. Wages are paid every week. Equal wages for men and women.
ü  Gram Panchayat is the principal authority for planning and implementation.
ü  NREGP was extended to all the districts on April 1, 2008.
ü  NREGP has been renamed as MNREGA on October 2, 2009.
ü  In January 2011 the government has increased the wages under MNREGA from 17 to 30 percent.
ü  Each person used to get Rs. 100/- under this scheme and increased between Rs. 117/- and Rs. 130/-.


25.  VAMBAY (Valmiki Ambedkar Awas Yojana): Launched in the year 2001. First launched in Hyderabad. 50:50 basis.

1.      CDP – 1952
2.      NES – 1953
3.      DPAP (Drought Prone Area Programme) – 1973
4.      DDP (Desert Development Programme) – 1978
5.      Integrated Wastelands Development Programme (IWDP) -1989
6.      Public Works Programme – 1971
7.      Indira Awas Yojana – 1985
8.      MPLADS – 1993 – 5 crores to each MP. The funds are non lapsable.
9.      Bharat Nirman – 2005. 6 areas. Roads, Housing, Electricity, Drinking Water, Tele connectivity and Irrigation.
10.  TPDS – 1997.
11.  Annapurna Yojana – 2000
12.  Anthyodaya Anna Yojana - 2000


Employment providing sectors in India:
Agriculture Sector – More than 50 % of the population.
Service sector - More than 25% of the population.
Industrial sector - More than 10% of the population.

ü  The NSSO (National Sample Survey Office), works under the Ministry of Statistic and Programme Implementation.
ü  The NSSO conducts Socio-Economic surveys to collect data from sample households, establishments and enterprises.
ü  The NSSO is the prime source of data on various aspects like employment, level of living, health, education, industrial performance etc.
ü  The NSSO collects the data through scientifically designed sample surveys.
ü  During the July 2011 – June 2012 socio-economic survey data on consumer expenditure, employment and unemployment and awareness about Indian system of Medicine is collected.

ü  The information collected by surveys is used for planning and policy formulation for overall development.