India does not have a universal unemployment benefits system to provide financial support to the jobless.
Informal sector workers, constituting over 80% of the workforce, are particularly vulnerable as they lack access to social security schemes.
High Dependency Ratios:
Many unemployed individuals support large families, especially in rural areas. The absence of a steady income puts immense pressure on household resources, leading to a decline in the standard of living.
Poverty and Limited Savings:
Unemployment exacerbates poverty, especially for those with no savings or assets to fall back on.
In rural India, where agricultural livelihoods are seasonal, the lack of alternative employment opportunities leads to periods of acute financial distress.
Underemployment and Informal Work:
Many unemployed individuals turn to informal or gig work, which often provides low wages, irregular income, and no job security, failing to ensure a decent standard of living.
Rising Costs of Living:
Essential expenses such as housing, education, and healthcare are increasing, making it difficult for unemployed individuals to meet even basic needs without external support.
Lack of Skill Development and Education:
Unemployment is often linked to low levels of education and skill mismatches in India.
Unskilled unemployed individuals find it challenging to secure decent-paying jobs, further lowering their quality of life.
