Q15 · UPPSC PCS Mains 2021 · GS III · 12 marks · ~200 words in the hall · 2 min read

← Q14 Q16 →

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

Topic: Poverty, unemployment and inclusive growth. Syllabus: Issues of Poverty, Unemployment, Social justice and inclusive growth. Same official PYQ from year-wise 2021 and Poverty, unemployment and inclusive growth.

Revision summary

India’s unemployment is a stack: open, disguised, seasonal, structural, cyclical, educated, and underemployment. MGNREGA insures rural lean months; it is not industrial employment. MUDRA, PMEGP, and Start-up India push self-employment when wage jobs are thin. PMKVY and ITIs target skill mismatch; PLI and Make in India target missing factories. Post-lockdown ABRY tried to cheapen new EPFO hires. Decent regular jobs remain the gap.

Model answer

Introduction

Unemployment is the want of adequate work at the going wage. India does not have one unemployment; it has a stack: people with no job, people with too little job, and people in the wrong job for their schooling. Government steps therefore mix a rural wage floor, credit for tiny firms, skilling, and manufacturing incentives — none of which, alone, clears the stack.

Body

Various types

  • Open or open urban unemployment: people seeking work and not finding it, the textbook measured rate.
  • Disguised unemployment: extra hands on a small farm whose removal would not cut output — common in Indian agriculture.
  • Seasonal unemployment: lean months after harvest, construction monsoon gaps, and tourist off-seasons.
  • Structural unemployment: skills, region, or caste networks do not match where vacancies sit.
  • Cyclical unemployment: a downturn (the COVID lockdown was a sharp cycle) sheds labour that a boom had kept.
  • Educated / educated-unemployed: degrees without employable skill, a political type as much as an economic one.
  • Underemployment and informal casual work: hours and pay too thin to count as decent work even when “employed”.
  • Technological unemployment: machines and software replacing a narrow task, still smaller than the farm-and-informal pile but rising.

Government steps

  • MGNREGA puts a rural floor under seasonal and disguised slack; it is insurance, not a factory.
  • PMEGP, MUDRA, Start-up India, and Stand-up India try to turn a household into a micro firm when a wage job is missing.
  • Skill India / PMKVY, ITIs, and apprenticeships attack structural and educated mismatch.
  • PLI, Make in India, and industrial corridors try to grow the missing regular manufacturing jobs.
  • Aatmanirbhar Bharat Rozgar Yojana (EPFO-linked, post-lockdown) subsidised new formal hires for a window.
  • National Career Service, Rozgar Melas, and State job fairs are matching tools, not demand themselves.
  • Food, housing, and DBT do not create employment; they keep the unemployed eating while the job is missing.

The examination is that India treats unemployment as rural works plus self-employment plus skilling. The hard residual is regular, urban, non-farm wage work at scale.

Flow diagram

flowchart TD
  U[Unemployment stack] --> D[Disguised seasonal]
  U --> S[Structural educated]
  U --> C[Cyclical COVID]
  M[MGNREGA] --> D
  K[PMKVY ITI] --> S
  P[PLI MUDRA PMEGP] --> J[More nonfarm work]
  C --> A[ABRY relief]

Conclusion

Types include open, disguised, seasonal, structural, cyclical, educated, and underemployment. Government steps are MGNREGA, MUDRA-PMEGP, PMKVY, PLI-Make in India, and a post-COVID formal-hire subsidy. Those tools cut distress and mismatch; they have not yet produced enough decent regular jobs for the educated young.

Quick related

Students also ask

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2022 · Q4 · UPGS3 · 8 marks

    Financial inclusion is a critical part of the development process to achieve social justice. Comment.

    View answer →

  2. 2022 · Q11 · UPGS3 · 12 marks

    “Inclusive growth has now become the central point of developmental strategy.” Discuss the statement in the context of India. Also suggest remedial actions to achieve this growth.

    View answer →

  3. 2021 · Q3 · UPGS3 · 8 marks

    How does the strategy of inclusive growth intend to meet the objectives of inclusiveness and sustainability together? Explain.

    View answer →

  4. 2021 · Q16 · UPGS3 · 12 marks

    Discuss the growth of major industries in Uttar Pradesh and also highlight its various challenges.

    View answer →

  5. 2020 · Q13 · UPGS3 · 12 marks

    What are the major challenges in reducing poverty and inequality in India?

    View answer →

  6. 2020 · Q14 · UPGS3 · 12 marks

    What is meant by 'Line of Poverty'? Explain the 'Poverty Alleviation' Programme of India.

    View answer →

  7. 2019 · Q4 · UPGS3 · 8 marks

    What do you mean by 'Inclusive Growth'? How is inclusive growth helpful in reducing poverty and inequalities in India? Explain.

    View answer →

  8. 2019 · Q6 · UPGS3 · 8 marks

    Discuss how poverty is measured in India. Examine the steps taken to overcome rural poverty in India.

    View answer →

More from this paper

Q1 · UPSC Mains 2021 · UPGS3 · 8 marks

Discuss the Digital India Programme of India.

Economic planning and NITI Aayog

Digital India (2015, MeitY) is the Union digital-governance and infrastructure programme. Nine pillars cover broadband, mobile, CSCs, e-Kranti, manufacturing, and jobs. BharatNet, CSC 2.0, and PMGDISHA are the last-mile connectivity and literacy rails. DigiLocker, UMANG, Aadhaar, UPI, and DBT carry documents, services, and payments. Hardware PLI and GSTN sit on the same stack; power and literacy still cap use.

Q2 · UPSC Mains 2021 · UPGS3 · 8 marks

Examine the impact of globalization on employment of formal sector of India.

Economic planning and NITI Aayog

Post-1991 opening grew formal jobs in IT, ITeS, retail, banks, and some auto and SEZ plants. SEZ Act 2005 and Make in India named the park-and-investment rails. Contract labour and fixed-term hiring informalised much factory work even when the unit was registered. EPFO, ESIC, labour codes, and Atmanirbhar Bharat Rozgar Yojana are the social-security response. Net: more white-collar formality, weaker shop-floor security.

Q3 · UPSC Mains 2021 · UPGS3 · 8 marks

How does the strategy of inclusive growth intend to meet the objectives of inclusiveness and sustainability together? Explain.

Poverty, unemployment and inclusive growth

Inclusive growth shares output with the poor and lagging regions without exhausting nature. PMJDY, DBT, MGNREGA, DAY-NRLM, PMAY, and PM-KISAN are the equity rails. Ujjwala, Jal Jeevan Mission, Swachh Bharat, National Solar Mission, PM-KUSUM, and CAMPA are the green rails. NITI SDG India Index and Aspirational Districts score both together. The strategy works only if the same household gets income and a cleaner livelihood.

Toppers' copies

Toppers' copies for this question will be uploaded soon.