What is meant by Unemployment?
Unemployment is a situation when a person is capable and willing to work but is out of work due to several reasons and actively searching for a job. Unemployment is the key element in affecting the economy negatively. People who are working temporarily but do not have a proper occupation also come under the unemployment category. It is commonly measured by the unemployment rate, which is calculated by dividing the number of total unemployed people by the total number of people in a workforce. People who are not actively searching for any job opportunity and not working are not considered unemployed.
As per CMIE, this year’s India’s unemployment rate as per June 2021 statistics is 9.17%. The overall unemployment rate reached a high peak of 23.52% in the month of April last year (2020) amid the Covid-19 Pandemic wave but started falling from the next month. In May 2020, the unemployment rate was 21.73% and in June 2020, it was 10.18%.