Unemployment- Compulsory Unemployment

 Unemployment- Compulsory Unemployment

Unemployment in the "Indian economy" basically refers to all the individuals who are operable and ardently searching for any job however, they are incompetent in finding jobs.

In the context of the “Indian economy” it can be stated that “compulsory unemployment” refers to a situation wherein the workers are eager in doing the work at a given market wage which is being presented just below. However, they are being prevented by several factors which go beyond control. All these factors mainly encompass the decrease in the total rate of demand, labour market, bargaining of wage and many more.

Basic concept of unemployment

In the background of “Indian economy”, unemployment mainly implies to all those individuals who are generally operable. They are considerably searching for a proper job, however, cannot find an appropriate job. Included in this group are those people in the workforce who are working but do not have an appropriate job.  Included in this group are those people in the workforce who are working but do not have an appropriate job. Basically, we all know that unemployment is usually being measured by several indicators likewise the unemployment rate, which generally divides the total number of people who are unemployed by the total people in the current workforce.

“Compulsory unemployment” mainly serves as one of those vital indicators for which the country’s economic status gets altered. The term “compulsory unemployment” in the context of  “Indian economy” is generally misunderstood, since it encompasses people who wait in return for a job. Although after it is discharged, this does not include any individuals who have stopped searching for the last four weeks mainly due to various significant reasons likewise leaving the job for the achievement of pursuing higher education, disability, temporal retirement, some personal issues and many more. Also, it can be said that in the background of the “Indian economy” individuals who do not cooperatively seek a job, however, they are very much eager to do the work are being categorised and classified by the name of unemployed.

Causes of unemployment

Unemployment in the background of the “Indian economy” is being caused due to numerous various reasons which arise and come down from both sides of demand, or by the hands of the employer and finally the supply side or the worker who works. This is the crucial area where “compulsory unemployment” cause some minor side reductions of demand that might be caused particularly by the rate of high-interest, worldwide recession and economical crisis that leads to the financial backdrop.  Thus, it can be summarised by saying that “compulsory unemployment” arises within the side of supply, whereby the other two typologies of unemployment namely frictional and structural employment are found to play a very significant role in the background of the “Indian economy”.

Impact of compulsory unemployment

The impact of “compulsory unemployment” can be eventually understood by both workers as well as the “Indian economy”. This can eventually in general can be a threatening cause and create a tremendous effect. Although, it can be said that unemployment in the background of the “Indian economy” causes some of the workers to suffer economic hardship which had both positive as well as negative impacts on many family bonds and several other communities. Consumer spending, which is said to be one of the primary key drivers of the growth of an “Indian economy” tends to go the downward direction. As a result, “compulsory unemployment” leads to the worldwide slower rate of recession and also even in specific cases depression is found to be left unaddressed. “Compulsory unemployment” mainly results in an overall reduction rate in supply, demand, purchasing, consuming, and buying power. This in return can cause lower in the making up of profits for various other businesses that are finally leading to cuts in the budget and negativity in the workforce reductions. This helps in the creation of a particular cycle that constantly moves. This is very much difficult for reversing without any spatial category of intervention.


It can be concluded from the above discussion by stating that unemployment in the background of the “Indian economy” is a complex issue for any particular economy. This further helps in creating negative effects for unemployed people since they are found to be jobless and mainly suffer from bad prospects. In finding a new job or work and mainly those who actively feel operable feel not so secure in keeping their jobs for the betterment of future. Thus, we can analyse by saying that the problem of “Compulsory unemployment” in India has further reached a very critical stage. However, nowadays the government bodies and various smaller local authorities are actively found to take the problem in a quite serious way and are found to work on it. In this way, it helps in reduction of unemployment and a positive goal should be reached at the topmost level.