UNEMPLOYMENT STRUCTURE/SCENARIO IN INDIA AMIDST GLOBAL UNEMPLOYMENT SITUATION

ABSTRACT: Unemployment Rate is a matter of concern both for the developed (OECD)countries and for the developing countries (for example – India and China). According toOkun’s Law, higher is the growth of per capita GDP, there is a tendency of theunemployment rate to decline. In a sense then, growth precludes decline of unemploymentrate. This could be observed through the structural shift of employment from agriculture tomanufacturing to services in the course of rise in the growth rate of per capita GDP/Income(Kuznets, 1966, 1971). Higher is the growth rate of per capita GDP, higher is the absorptionof employment in the economy due to technological shift leading to higher division of labour.So, manufacturing sector and services sector expands and emerges as major employmentproviders in the economy (Kuznets, 1966, 1971, employment shares across sectors withrising PCGDP). Thus along the long run trend growth path, employment grows with risingPCGDP for both the developed and developing economies and the economies remain at fullemployment along the long run trend growth path.