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unemployment - Coggle Diagram
unemployment
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The unemployment rate in India has experienced fluctuations. In 2020, it exceeded 7%, which was notably higher than any rate seen in the past three decades, including the economic crisis of 19911.
As of 2022-23, the unemployment rate has seen some changes. The youth unemployment rate (for those aged 15-29) declined to 17.3%, down from 18.5% in the previous quarter. Interestingly, female labor force participation reached its highest level in six years, standing at 24%
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High Unemployment: An economy with high unemployment experiences lower output without a proportional decline in basic consumption needs. Persistent high unemployment can lead to social and political upheaval.
Low Unemployment: A low unemployment rate indicates that the economy likely operates near its full capacity. It maximizes output, drives wage growth, and improves living standards. However, extremely low unemployment can also signal an overheating economy and inflationary pressures.
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The most commonly used measure of unemployment is the unemployment rate. It’s calculated by dividing the number of unemployed individuals by the total labor force.
Governments often provide unemployment insurance to eligible individuals during periods of unemployment.
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Unemployment signals the ability (or inability) of workers to secure gainful employment and contribute to the economy’s productive output.
When more people are unemployed, overall economic production decreases.
Notably, the unemployment definition excludes individuals who leave the workforce due to retirement, higher education, or disability
Recent Trends:
In January 2024, the unemployment rate in India decreased to 8.7%, marking the lowest rate in recent times
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Voluntary Unemployment: Occurs when a person willingly leaves their job in search of other employment
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For individuals aged 15-29, the youth unemployment rate stood at 17.3%. This rate had declined from 18.5% in the July-September 2022 period2.
Interestingly, the female labor force participation reached its highest level in six years, reaching 24%