At present about 75% of Indian population lives in rural areas and most of them depend on primary economic activities in general and agriculture and related economic activities in particular for livelihood. The new economic policy is mostly responsible for considerable number of population shifting to the tertiary and secondary sectors.
Disguised unemployment and seasonal unemployment are the characteristic features in Indian agriculture. Successive governments have been making good efforts to encourage entrepreneurs to establish manufacturing industries, services, etc in backward and rural areas to reduce unemployment rate.
Unemployment among the educated and rural uneducated are some of the other characteristics of employment scenario. This is due to the fact that supply far exceeds the demand. Every year many universities do produce graduates and post graduates but such educated have to wait for many years for a satisfactory employment, thus under employment too is a characteristic feature in India.
Governments at central and state levels have also been Implementing many self employment schemes, and employment guarantee programs for at least 100 days in a year.
Women and employment:
In rural India most of the women are engaged in primary economic activities. During the agricultural lean season, they migrate to the neighboring rural and far away urban areas for a contractual work in construction of buildings, schools, business complexes and other services. Some urban women are employers. The working women ratio has been increasing since 1991. Post-1991, the number of women working abroad has also increased.
Brain drain and Migrations:
The highly educated, skilled and unskilled workers still migrate to developed and gulf nations for a better working environment and lucrative perks. Within the country the migrations for better employment avenues take place from rural to rural, rural to urban, urban to urban areas. Due to many economic reasons, the rural areas could not attract desired levels of investment hence increase in migrations. The nation's high economic growth rate for the past several years could not reduce brain drain.
The Indian soft ware and other IT professionals are in great demand in many developed nations. In Gulf countries there has been a lot of demand for skilled workers, technicians, engineers, etc but local supply is less hence the gulf countries depend on cheap but highly skilled Indian artisans. The Indian teachers and doctors too are in demand from several countries of the world.
Out sourcing jobs:
Due to very low labor and other input costs in India, the country has been a favored destination for the out sourcing contracts from several developed economies leading to improvements in employment opportunities to many educated youth of India. The U.S.A., U.K., etc are some of the nations having out sourcing contracts with India.
Mixed economy to market economy:
Providing employment to the people of India has been one of the main objectives of the public sector units. Soon after independence in 1947, India opted for the mixed economic system. Since 1991, there are many international companies, many private firms, etc have been responsible for providing employment to the Indian citizens. The mergers and acquisitions, collaborations too have been providing employment.
Reducing population growth rates, further reducing the dependency on agriculture, increasing alternate employment avenues, encouraging entrepreneurship, better implementation of various employment schemes, etc will pay dividends in reducing unemployment further in India.