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Economy 10: Unemployment

What is Unemployment?
When a person is able to do work but not able to find work.

Unemployment Rate Formula:

(Unemployed Person / Total Work Force) × 100
Types of Unemployment

1. Disguised Unemployment (Hidden)

More persons are employed for a work which only a few can do. Concept by John Robinson.

2. Seasonal Unemployment

Depends upon the season (e.g., A.C. maintenance, agriculture).

3. Structural Unemployment

Mismatch between skills and available jobs.

4. Cyclical Unemployment

Due to economic boom or recession.

5. Technological Unemployment

Job loss due to technology/automation (e.g., A.I.).

6. Frictional Unemployment

Time gap when moving from one job to another.

7. Vulnerable Unemployment

Work in an unorganised sector where there is no record or data of the persons.

8. Educated Unemployment

When a person is overqualified for a job.

9. Open Unemployment

When a person is not interested in finding a job.

Periodic Labour Force Survey (PLFS)
Survey to calculate the Unemployment Rate.

Conducted by the NSO (National Statistical Office) under MoSPI.

In 2019, NSO was formed by merging:
1. CSO (Central Statistical Office)
2. NSSO (National Sample Survey Office)

Rural Areas

Survey conducted once in a year.

Urban Areas

Survey conducted every 3 months.

NREGA / MGNREGA

NREGA (2005): National Employment Guarantee Act.

  • Enacted during PM Manmohan Singh's tenure.
  • Guarantees 100 days of employment.
  • 2009: Name changed to MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act).
MUDRA Yojana (2015)
Micro Unit Development Refinance Agency.
  • Provides collateral-free loans up to ₹20 Lakh to MSMEs.
  • The scheme is under SIDBI (Small Industrial Development Bank of India).
  • Company must be registered under the Udyam Portal.

Loan Categories:

1. Shishu: Up to ₹50,000
2. Kishore: ₹50,000 to ₹5 Lakh
3. Tarun: ₹5 Lakh to ₹10 Lakh
4. Tarun+: ₹10 Lakh to ₹20 Lakh
Practice Quiz
Test your knowledge!

1. What is the basic definition of unemployment?

When a person does not want to work.
When a person is able to do work but not able to find work.
When a person retires from their job.
When a person is underqualified for all jobs.

2. How is the Unemployment Rate calculated?

(Unemployed Person / Total Population) X 100
(Employed Person / Total Work Force) X 100
(Unemployed Person / Total Work Force) X 100
(Total Work Force / Unemployed Person) X 100

3. What is Disguised or Hidden Unemployment?

When a person is unemployed but pretends to have a job.
When more people are employed for a job than are actually needed.
When unemployment data is intentionally hidden.
When a person is unemployed due to seasonal changes.

4. Which survey is used to calculate the unemployment rate in India?

National Health Survey
Periodic Labour Force Survey (PLFS)
Agricultural Census
Consumer Expenditure Survey

5. NSO (National Statistical Office) was formed in 2019 by merging which two offices?

CSO and NSSO
RBI and SEBI
NITI Aayog and MoSPI
FICCI and ASSOCHAM

6. Under the MUDRA Yojana, the 'Shishu' loan category provides loans up to:

₹10,000
₹50,000
₹5 Lakh
₹10 Lakh

7. In which year was the NREGA renamed to MGNREGA?

2005
2007
2009
2015

8. MUDRA Yojana provides collateral-free loans to MSMEs up to a maximum limit of:

₹5 Lakh
₹10 Lakh
₹20 Lakh
₹50 Lakh