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What are the various types of unemployment? Examine the various steps taken by the government to overcome the problems of unemployment in India. । UPPSC General Studies-III Mains Solutions 2021


What are the various types of unemployment? Examine the various steps taken by the government to overcome the problems of unemployment in India.

( UPPSC, UP PCS Mains General Studies-III/GS-3 2021)


Unemployment is a situation where people actively seek employment but are unable to get jobs that matched their skills, qualifications, or expectations.

There are several types of unemployment that can occur in an economy. Here are some of the common types are-

Frictional Unemployment; refers to temporary unemployment that occurs when people are switching between jobs or entering the workforce for the first time after education or training.

Structural Unemployment; This type of unemployment arises due to a mismatch between the skills possessed by job seekers and the requirements of available jobs. It often occurs when there are changes in technology or a decline in certain sectors. This type of unemployment can be tackled by providing the necessary skills to the workforce.

Cyclical Unemployment; This type of unemployment occurs during economic downturns or recessions when there is a decline in overall demand for goods and services. For example, the Steel sectors face downtime every 10 years of the business cycle, during downtime, there is unemployment in the steel sectors, so this type of unemployment is called cyclical unemployment.

Seasonal Unemployment; This type of unemployment occurs due to the seasonal nature of certain industries. For example, the agriculture workforce may be unemployed during the dry season of agriculture.

Disguised unemployment; refers to a situation where more people are engaged in a task or job than actually required. This type of unemployment is commonly seen in the informal sectors ( like the agriculture sector) where productivity is low, and resources are underutilized.

The government of India has taken many steps to address the problem of unemployment, some of the important steps are listed below;

Skill development program; Government has launched many skill development programs like Pradhan Mantri Kaushal Vikas Yojna (PMKVY) and the National skill development mission where the workforce can get various necessary skills and training as per required jobs in the market. Skill development program helps to reduce structural unemployment in the country.

"Make in India" initiative; The main aim of the Make in India initiative is to attract foreign investment and promote the manufacturing sector, which can general employment opportunities in the manufacturing sectors.

MGNREGA (Mahatma Gandhi Rural Employment Guarantee): MGNREGA guarantees 100 days of wage employment in every rural household of unskilled laborers, this reduces rural unemployment in rural areas.

Start-up India and Stand-up India; Start-up India and Stand-up India promotes the growth of small business which can lead to job creation.

PM GATI Shakti National Master Plan; PM Gati Shakti National Master Plan is a more than 100 billion dollar infrastructure development project that can promote the development of infrastructure ( roads, railways, ports, airports, multi-model logistic parks), that will create millions of employment directly. It will also promote manufacturing and other business in the country, which will also create huge employment opportunities in the country.

Bharat-Mala, Sagarmala, and Smart Cities mission; These are also infrastructure development projects that will create job opportunities in construction, and also create job opportunities in other sectors of the economy.


In conclusion, we can say unemployment is a situation where people seek work. Types of unemployment include frictional unemployment, cyclic unemployment, seasonal unemployment, and structural unemployment. The government has taken many efforts to address unemployment like Make in India program, skill India, stand up India, and many infrastructure development initiatives.

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