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India unemployment rate stands at 7.32 percent of the labor force. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalised and those serving in the military. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. This page includes: India Unemployment Rate chart, historical data, forecast and news.
What is the relationship between inflation and unemployment? There has been an inverse relation between rate of inflation and the rate of unemployment in an economy. The more the entrepreneur extends the employment opportunity the more he has to pay to that particular factor of production and the more payment to factor of production the increase in the cost of producing a unit will be observed and in order to maintain the profitability of the product the entrepreneur will inflate the price of that product. A similar process will be observed through out the economy when the government intends to create job. The price of products or services, where the workforce is installed, will increase hence an increase in the rate of inflation will be visible through out the economy. It can be concluded from the aforesaid explanation that when a government intend to lower down the rate of unemployment it had to bear the increase rate of inflation in the national economy. Inflation and unemployment go hand in hand. For every country, maintaining a low unemployment rate is the main objective. It is usually believed that inflation and unemployment are inversely proportional. There are many economists, who hold the opinion that low rate of unemployment together with low inflation rate may be a source of concern. Both low inflation rate and low unemployment rate, may be hypothetical. In real practice, this rarely happens. If a particular country, has full employment, it can be said to have minimum rate of unemployment. If a nation maintains a minimum rate of unemployment in a condition when inflation rate is stable, it is said to follow the natural rate of unemployment. In other words, the natural rate of unemployment is the minimum rate of unemployment, which can be sustained
inflation is very high, it does not mean that, there will be a permanent decrease in the rate of unemployment. As a rule, rate of inflation and unemployment adjust themselves to attain the equilibrium state, which is known as the natural rate of unemployment state, effortlessly. It just happens.
Year Inflation rate (consumer prices) (%) 2000 6.7 2001 5.4 2002 5.4 2003 5.4 2004 3.8 2005 4.2 2006 4.2 2007 5.3 2008 6.4 2009 8.3 Year Unemployment rate (%) 2002 8.8 2003 8.8 2004 9.5 2005 9.2 2006 8.9 2007 7.8 2008 7.2 2009 6.8 Year GDP (purchasing power parity) (Billion $) 2000 1805 2001 2200 2002 2660 2003 2660
Year GDP - per capita (PPP) (US$) 2000 1800 2001 2200 2002 2540 2003 2540 2004 2900 2005 3100 2006 3400 2007 3800 2008 2600 2009 2500
11.365
13.115
15.40 %
7.887
-39.86 %
11.869 8.322
50.49 % -29.88 %
4 198 5 198 6 198 7 198 8 198 9 199 0 199 1 199 2 199 3 199 4 199 5 199 6 199 7 199 5.556 -33.24 %
8.731
57.15 %
8.799
0.78 %
9.385
6.66 %
6.159
-34.37 %
8.971
45.66 %
13.87
54.61 %
11.788
-15.01 %
6.362
-46.03 %
10.212
60.52 %
10.225
0.13 %
8.977
-12.21 %
7.164 13.231
-20.20 % 84.69 %
8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 4.67 -64.70 %
4.009
-14.15 %
3.779
-5.74 %
4.297
13.71 %
3.806
-11.43 %
3.767
-1.02 %
4.246
12.72 %
6.177
45.48 %
6.372
3.16 %
8.349
31.03 %
8.664
3.77 %