UNEMPLOYMENT
Unemployment refers to the situation where individuals who are capable of working, and are actively seeking work, are unable to find a job. It is a critical economic indicator reflecting the health of an economy. It is a key economic indicator because it signals the ability (or inability) of workers to obtain gainful work and contribute to the productive output of the economy. More unemployed workers mean less total economic production.
The unemployment definition doesn't include people who leave the workforce for reasons such as retirement, higher education, and disability.
1.Pre-Independence Period: During British colonial rule, India's economy was primarily agrarian with limited industrialization. Unemployment was high due to the lack of industrial jobs and underdevelopment of other sectors. The drain of wealth by the colonial administration further exacerbated poverty and unemployment.
2.Post-Independence Era (1950s-1980s): After gaining independence in 1947, India adopted a mixed economy with a focus on planned development. Five-Year Plans were introduced to promote industrialization and reduce unemployment. However, population growth and slow economic reforms resulted in persistent unemployment.
i.Green Revolution: In the 1960s and 1970s, the Green Revolution transformed Indian agriculture, leading to increased productivity and reduced rural unemployment. However, it also led to regional disparities and did not completely solve the problem of underemployment. By the 1980s, agricultural productivity had increased significantly, but rural underemployment remained at about 10-15%.
3.Economic Reforms of 1991: India introduced significant economic reforms in 1991, liberalizing the economy, reducing trade barriers, and encouraging foreign investment. These reforms led to high economic growth and job creation in certain sectors, such as IT and services. However, the benefits were unevenly distributed, and structural unemployment remained a challenge.