Jus Rerum 2020-10-12: 8 Min

Unemployment in Pandemic 2020

Author: Falguni Agrawal

Student of Bhartiya Vidyapeeth Deemed to be University, New Law College, Pune

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This COVID-19 situation not only hampered our lives but also the economy. It has created a wide gap in the growth rate of two different years. This spread has not decreased the cases of hike in the growing prosperity of the country but also made the country full of poverty. People in the present situation are not just losing their jobs but also do not have any job security which seems to be very essential in this pandemic crisis. India has not only witnessed the downfall of GDP of the country but also the cases are increasing at a higher pace. 

As of 30th April, 33610 cases and 1075 deaths were reported from 32 states/ Union Territories in India. With India’s population being more than 1.3 billion people, the lack of proper drinking water and overall poor socioeconomic conditions, we are facing a threat to the lives of many people in the fight against Covid-19. 


The novel Coronavirus disease (Commonly called as COVID-19) has already strained over 6.9 million people all over the world, taking over 4,00,000 lives in over 300 countries. Most of the cases were reported in the United States of America, Brazil, and Russia. Few countries like China and South Korea have somewhat tried to flatten the rate of this virus, while on the other hand, others are finding it a little hard to cope with the situation.  

From the effect of Coronavirus, India is not the only country that has not been affected. It has too been affected by cases more than 3 lacs. With a population of more than 1.3 billion, India has become the epicenter of COVID-19. Due to the increasing number of cases, the World Health Organization has stated that “future of the pandemic will depend on how India handles it.”

Unemployment in India amidst COVID-19:

The unemployment rate fell to 7% in September 2020 from the record of 29% since the country went into shutdown. This increasing rate of coronavirus outbreak has led to shutting down of industries and layoff of individuals. 

Unemployment is the situation where a person searches for job availability but is unable to find the opportunity. The unemployment rate is the number of people unemployed divided by the working population. 

Unemployment rate = (Unemployed Workers / Total labour force) × 100

Types of unemployment in India:

In India, there are 7 kinds of unemployment. They are discussed as under: 

  1. Disguised Unemployment: This is the type of unemployment where more people are engaged in activity than necessary. This is usually seen in rural or agricultural areas. 

  2. Structural Unemployment: This situation occurs when there is a mismatch between the skills of the workers and the availability of jobs. 

  3. Seasonal Unemployment: This situation occurs when people do not have work during a particular season like winter, summer.

  4. Vulnerable Unemployment: People in this category are formally unemployed while informally without any contracts. This is the main type of unemployment found in India.

  5. Technological Unemployment: This situation occurs when people lose their jobs due to advancement in technology. From 2016, jobs threatened by automation are raised by 69% year by year. 

  6. Cyclical Unemployment:  Unemployment occurs due to the change in the business cycle. People tend to lose their jobs due to recession and depression. 

  7. Frictional Unemployment: Unemployment happens when people remain unemployed for a short period, when searching for a new job. At this time, this type of unemployment is called frictional unemployment. 

Reasons for Unemployment: 

India’s unemployment rate has significantly improved in the last few weeks; however, the paradigm shift is not only because of rising jobs but also due to the left of a large number of people from the job market. The fall in the unemployment rate seen in recent weeks is meaningless and misleading in the face of a falling labor participation rate and a falling trend in the employment rate, Centre for Monitoring Indian Economy (CMIE) said. 

Work from home: 

Recent changes in the job facility are the new method of work from home, but we can still find that people from different sectors are made to work for long hours irrespective that their schedule for the job is over. They are made to work as labor. The managers are just focusing on just completing the pending work and not taking care of their workers. The main reason for avoiding this feature is the increment of fatigue among employees. Some of the major companies are asking their employees to return back and join the firm again. But, in present, most of the firms have old generations’ managers that prefer controlling their workers more than themselves. Due to this fact, companies feel that the concept of Work from Home will remain as just an alternative to fall back on business in the near future. 

Surely, following five months into the examination, a few associations have distinguished the cons, which incorporate diminished degree for advancement. They seem enthused about getting workplaces pulsating with individuals again once the pandemic is leveled out. This accomplice incorporates huge and little organizations, cutting across innovation administrations, assembling and food organizations. 

Causes of Unemployment: 

  1. Large Population

  2. Lack of proper skills 

  3.  Illiteracy rate is very high.

  4. Lack of financial support, infrastructure. 

  5. The main cause of structural unemployment is the education provided in schools and colleges are not as per the current requirements of the industries. 

Impact of Unemployment: 

The causes of unemployment have the following effects on the economy of the country:

  1. Huge rise in poverty. 

  2. Government faces huge borrowing burden 

  3. Reduction in the production of goods and services. 

  4. Increment in illegal activities.

  5. Affects the GDP of the country. 

  6. People tend to opt for usage of drugs and harmful substances. 


To conclude, we can say that the problem of unemployment in India has reached a very strange stage. But now the government and local authorities have taken the problem seriously and are working on it to reduce unemployment. Also, to completely solve the issue of unemployment we have to tackle the main issue of unemployment that is the vast population of India. For this, they have focused on work from home concept.


Website Referred:

1. Aparna Banerjea, Coronavirus update: India's Covid-19 count rises to 33,610, death toll at 1,075. State-wise status, LIVEMINT.COM (30 Apr 2020, 05:43 PM IST), https://www.livemint.com/news/india/coronavirus-update-india-s-covid-19-count-rises-to-33-610-death-toll-at-1-075-state-wise-status-11588243474481.html




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