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Nature of unemployment in India

Most of the unemployment in India is structural in nature. Apart from structural unemployment, there is some cyclical unemployment. If we classify unemployment as urban and rural, we find that the total urban unemployment is mainly industrial and educated and rural unemployment is seasonal and disguised in nature. Industrial unemployment occurs from failure of the industrial sector to absorb the increasing labour force and when a large number of educated people remain unabsorbed, it results in educated unemployment. Seasonal unemployment results in agricultural sector when a large number of small and marginal farmers and labourers don’t get occupied during the off-season and disguised unemployment arises when people appear to be employed but not contributing anything to total production. It is estimated that over one-third of India’s work force is disguisedly unemployed.

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