Unemployment refers to the process of those who are eligible for work and seeking work not finding gainful employment.

Economic Challenges of Unemployment:

Trap India in low-income trajectory (ex. jobless growth)

Lower tax base and reduced resource realization for the govt.

Unemployment also may lead to recession in the longer run.

Social Impact of Unemployment:

Increasing inequality violates welfare state (Ex: 1/4 of population with 40% of India's wealth)

Affect human capital development. Ex: low levels of education, health will perpetuate demographic curse.

Adverse impact on exclusive growth. Ex: 94% of women are anaemic (with no employment, difficult to reserve)

May fuel anti-social activities especially in sensitive regions. Ex: unemployed youth from cadres of insurgents

Solutions → Minimize inequalities in wealth (Poorest 40% – DFRP)

Support labor-intensive development (UK FTA – boost to textiles)

Promote human capital development (JRM POSSHAN, ABJAY)

— Amrit Mahapatra · AIR 121