Wednesday 27 July 2016

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  2. We all are aware that India is developing the economy, the nature of unemployment, therefore, acutely differs from the one that prevails in industrially developed countries. Unemployment in developed and advanced economies arises mainly due to deficiency of expected demand. But in developing economy like India cyclical or frictional unemployment is prevalent. It is the main factor behind the presence of chronic under-employment which comes disguised as unemployment which has been affecting the rural section and educated classes of an urban sector of the economy since decades. The unemployment, in fact, doesn't arise because of lack of demand but due to a shortage of capital equipment and resources.

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