Unemployment- Seasonal Unemployment

 Unemployment- Seasonal Unemployment

Unemployment is one of those factors that influence the “Indian economy” in every context. “Seasonal unemployment” is also another key factor that has a huge negative impact on the “Indian economy”.

Unemployment and “Indian economy” are connected since when the rate of unemployment gets increased then the economy of a country also gets badly affected. Since the unemployment rate is high in India, therefore the “Indian economy” has been facing a huge number of problems.

Current overview of unemployment rate in India

Unemployment rate in India has fallen to nearly 6.57 percent in January of 2021. Rate of unemployment has increased sharply in India to nearly 7.91 percent in December. However, the rate of unemployment was nearly 6.97 percent in November as per “Indian economy”. This can be considered as a result of reducing restrictions of COVID-19 and this happened due to the number of COVID cases declining in major states of India. “Centre for Monitoring Indian Economy” (CMIE), has stated that the rate of rural Unemployment was 7.28 percent; however, it reduced to nearly 5.84 percent in January. It has also been noticed that the rate of urban unemployment was nearly 8.16 percent which was nearly 9.30 percent in December as per “Indian economy” in 2021.

Impact of the unemployment on Indian economy

“Indian economy” is not capable of providing enough jobs to those people who are searching for jobs. Scarcity of services and goods offered by the “Indian economy” can be seen as a result of high Unemployment rate in India. As per report of “CMIE”, Haryana, Jharkhand, Rajasthan, Jammu and Kashmir and Bihar have faced the highest unemployment rate in 2021 as per the “Indian economy”. The highest rate of unemployment was seen in Haryana and the rate of unemployment was nearly 34.1%. 

As per the report of “CMIE”, the rate of Unemployment has been noticed in several states of India such as Gujrat, Karnataka, Chhattisgarh and Odisha. Delayed recovery of the “Indian economy”, a slow season of agriculture and a surplus of labour are the negative impact of unemployment on “Indian economy”. Labour market of India has faced a detrimental impact of the pandemic situation. During the pandemic situation, most of the citizens of India had to lose their jobs and most of the businessmen had to close their businesses. Every kind of organisation and institute was forced to close so that outbreak of COVID-19 can be avoided. That is why people who were involved in the services of these institutions and organisations such as movie theatres, schools and gyms were removed from their jobs. This has brought a significant negative impact on the “Indian economy”.

This is right that COVID-19 is one of the biggest key reasons that increased the rate of Unemployment in the “Indian economy”. However, this is partially correct since it is one of the most important key indicators that are used to assess the “Indian economy”. This has also been reported that the current “Indian economy” is not capable enough to provide enough jobs to job seekers. In those states of India where the highest rate of Unemployment is seen, their highest rate of poverty has also been seen. The more an individual will earn the more they will spend money on every commodity. 

Therefore, this results in an increased issue of less contribution to the “Indian economy” as people will spend less money on products and services which are the main income source of the Indian government. Unemployment, purchasing power of an individual and the “Indian economy” are related to each other. Since, if people will be unemployed their purchasing power will also be reduced and it will directly affect the “Indian economy”. This is how the “Indian economy” has been affected due to the increased rate of unemployment.

Definition and concept of seasonal unemployment

In “seasonal unemployment”, people can have the chance of being employed for a specific season. However, the employment time is not for the whole year. When the employment season gets over, those who are involved in “seasonal unemployment” become unemployed due to the decreased demand rate of the labourers. “Seasonal unemployment” is directly related to “Indian economy” as when people become unemployed while the season of employment gets over they become conscious about their spending. That is how “seasonal unemployment” works as a key factor of increasing the rate of unemployment which affects the “Indian economy”.


It can be concluded that there is no doubt that unemployment has a huge negative impact on “Indian economy” since citizens of India do not have enough jobs for survival. During a pandemic, this situation goes beyond description when the majority of people lose their jobs. A downfall has been faced by the “Indian economy” due to Unemployment in a pandemic situation. “Seasonal unemployment” is also considered to be another factor influencing “Indian economy”.