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Introduction and definition of key terms In this project we have tried to develop an understanding of the unemployment problem in India along with key statistics derived from data made public by the Ministry of Labor and Employment through Report on Employment & Unemployment Survey 2009-10 and 2011-12 and finally try to find out causes and propose some solutions for dealing with this problem on a permanent basis.

For differentiating between the different categories in which population can be divided we will first have to understand what is economic activity? Economic activity s defined as any activity that results in production of goods and services that adds value to national product. The key definitions are derived from the report by ministry of labor bureau India. Employed: People who are engaged in any economic activity are generally termed as Employed.

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But employed people also includes persons who, despite their attachment to economic activity, have temporarily abstained from work for reasons of illness, injury or other physical disability, bad weather, festivals, social or religious functions or other contingencies.. Unpaid helpers who assist in the operation of an economic ctivity in the household, farm or non-farm activities are also considered as workers.

Being engaged in economic activity according to Labor Bureau includes the following – Worked in household enterprise (self-employed) as an own account worker Worked in household enterprise (self-employed) as an employer Worked in household enterprise (self-employed) as ‘helper’ Worked as regular salaried/wage employee Worked as casual wage labor in public works Worked as casual wage labor in other types of works Unemployed: People, who owing to lack of work, had not worked but either sought ork through employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or expressed their willingness or availability for work under the prevailing condition of work and remuneration are considered unemployed. Labor force: People who are either employed or unemployed during the reference period together constitute the labor force. Out of labor force: People who are neither working nor seeking or available for work for various reasons during the reference period are considered to be ‘out of labor force’. The people under this category are students, those engaged in domestic uties (housewives), pensioners, recipients of remittances, those living on alms, Total Population: Total population constitutes of the people who are in the labor force as well as out of labor force.

Matrices defining employment and unemployment Labor force participation rate: – Labor force participation rate (LFPR) is defined as the number of persons in the labour force per 1000 persons. LFPR = No. of employed + No. of unemployed persons X 1000 Total Population LFPR by different age groups (Per 1000) Period Male Female overall 2009-10 538 163 359 2011-12 774 254 529 The data extracted from the ministry of labor survey report indicates that the labor force participation in the period 2009-10 who were either employed or available for work per 1000 population were 359 which is increased in the year 2011-12 to 529 and the total population being 1182 million in year 2009-10 whereas in the year population was 1210 million.

Worker-population ratio: Worker-population ratio (WPR) is defined as the number of persons employed per 1000 persons. WPR = Number of employed persons X 100 Total population WPR by different age groups (in Per 1000 ) female Overall 140 325 751 During the period 2009-10 384 million people overall states covered are estimated to be employed with in total population being 182 million using the above equation the estimated overall worker population ratio is found to be 325 by different age groups which is increased to 508 for the year 2011-12. Proportion Unemployed: Proportion Unemployed (PU) is defined as the number of persons unemployed per 1000 persons.

PU = Number of unemployed persons X 1000 PU by different age groups (in Per 1000 ) 24 17 20 In the year 2009-10 proportion unemployed is estimated at 34 persons per 1000 population which is reduced to 20 during 2011-12. The total population is increased from 182 million to 1210 million. Unemployment Rate: Unemployment rate (IJR) is defined as the number of persons unemployed per 1000 persons in the labour force (employed & unemployed). IJR= Number of unemployed persons x 1000 Labour Force UR by different age groups (in Per 1000) 146 29 69 38 The unemployment rate for the year 2009-10 is estimated as 94 persons out of 1000 labor force which comes up to 9. 4% which is decreased to 34 persons out of 1000 labors reaching 3. 8 %. Below are the charts comparing the data of survey year 2009-10 and 2011-12 from ministry of labor force.

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