The unemployment rate in the country during 2012-13 was estimated to be 13.3 percent of the age group 15-29 a government report has revealed.The labor ministry report on youth employment- unemployment scenario 2012-13 further revealed unemployment rate among the person who cannot read and write any language or are considered illiterate was the lowest with 3.7 present without work in the 15-29 age group.
It said one out of every three persons in the age group 15 to 29 years who have completed at least there graduation has been found to be unemployed.Based on the survey the report said that unemployment rate at all India level was 133 person out of 1000 person for the age group 15-29 years.Although the problem of Youth unemployment and under employment is prevalent around the world because young people lack skills, work expressions, job search ability and financial resources to find employment.
An unemployed person is one who is an active member of labour force and is able to and seek work but is unable to find work during specified period say a week, a month or a year.
Unemployment can be classified into following categories.
1)Structural Unemployment: – This type unemployment is associated with economic structure of the country. When demand for labour falls short to supply of labour due to rapidly growing population and their immobility, the problem of unemployment appears in the economy. Besides, due to growing population, rate of capital formation falls down which again limits the employment opportunities, this type of structural unemployment is basically related to this category of unemployment.
2) Under-Employment :- Those labourers are under-employment who obtain work but their efficiency and capability are not utilized at their optimum and as a result they contribute in the production upto a limited level. A country having this type of unemployment fails to exploit the efficiency of their labourers.
3) Disguised unemployment :- If a person does not contribute any thing in the production process or in other words, if he can be removed from the work without affecting the productivity adversely, he will be treated as disguisedly unemployed. The marginal productivity of such unemployed person is zero. Agriculture sector of underdeveloped/developing economics posses this type of unemployment at a large scale.
4) Open unemployment: – When the labourers live without any work and they don’t find any work to do, they come under the category of open unemployment. Educate unemployment and unskilled labour unemployment are included in the open unemployment.
5) Educated unemployment:- Even when a person who is educated/trained and skilled, fails to obtain a suitable job suited to his qualifications, he is to be educated unemployed. Presently this type of unemployment has become a problem for developing economies, particularly for India.
6) Frictional unemployment: – The unemployment generated due to the change in market conditions is called frictional unemployment. Agriculture is the main occupation in India. The supply condition still depends on weather’s mood and similarly demand conditions depend on availability of resources. Any change arising either of any or both creates a diversion from the equilibrium which results in frictional unemployment.