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Economy

Unemployment: Measurement, Patterns, and Schemes

Human Resource: Health, Education, Unemployment, Poverty Eradication

Paper I · Unit 2 Section 5 of 13 0 PYQs 37 min

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Unemployment: Measurement, Patterns, and Schemes

4.1 Unemployment Data

Periodic Labour Force Survey (PLFS) — the primary measurement framework for unemployment in India — provides state-level unemployment rates. Rajasthan's data:

Year Unemployment Rate (PLFS) National Rate
2021-22 5.1% 4.1%
2022-23 4.9% 3.2%
2023-24 4.7% 3.2%

Source: PLFS Annual Reports, Ministry of Statistics and Programme Implementation (MoSPI)

Graduate unemployment: The State of Working India 2026 Report (Azim Premji University, March 2026) flagged Rajasthan's graduate unemployment as a structural concern. Nationally, 40% of graduates face unemployment — a figure that particularly affects Rajasthan's aspirant-heavy demographic (27.8% of state population is youth).

Government Recruitment: The Department of Personnel (DoP) filled 59,236 posts in 2024-25 through competitive examinations. Another 1,72,990 posts are in various stages of recruitment — the largest pipeline in recent history, reflecting the government's commitment to the Vivekanand Employment Assistance Fund's target of 4 lakh government jobs within the broader 10 lakh employment target.

4.2 Types of Unemployment in Rajasthan's Context

  • Structural unemployment: Mismatch between skills possessed and skills demanded; acute in Rajasthan given heavy agriculture dependence (26.92% GSVA share) and limited manufacturing absorption.
  • Seasonal unemployment: Particularly prevalent in the agrarian belts of eastern Rajasthan (Hadoti, Mewar) and semi-arid western districts; MGNREGS is the primary safety valve.
  • Educated/Graduate unemployment: 40% graduate unemployment nationally (State of Working India 2026) signals a crisis in higher education-to-employment transition.
  • Disguised unemployment: Significant in the subsistence farming sector; appears employed but marginal productivity is near zero.

4.3 Employment and Self-Employment Schemes

Mukhyamantri Yuva Swarojgar Yojana:

  • Launched: 12 January 2026 (National Youth Day) by CM Bhajanlal Sharma
  • 100% interest subsidy — government pays entire interest cost
  • Loan amounts: Class 8-12 graduates: ₹3.5 lakh (service) / ₹7.5 lakh (manufacturing); Graduate/ITI holders: ₹5 lakh (service) / ₹10 lakh (manufacturing)
  • Margin money: 10% (max ₹35,000–50,000)
  • Repayment: 5 years with 6-month moratorium
  • Target: 1 lakh entrepreneurs by 31 March 2029
  • Eligibility: Rajasthan resident, 18-45 years, not a bank defaulter
  • Implementing agency: Industries and Commerce Department, Rajasthan

Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana (VYUPY):

  • Announced: 19 February 2025 (Budget 2025-26) by Deputy CM Diya Kumari
  • Corpus fund: ₹150 crore
  • Loans up to ₹2 crore for new/expanded enterprises
  • Base interest subsidy: 8%; additional 1% (total 9%) for women, SC/ST, PwD, rural enterprises, Bunkar/Shilpkar artisans
  • Margin money: 25% of project cost or max ₹5 lakh
  • Eligibility: Age 18-45, permanent Rajasthan resident; includes HUFs, partnerships, LLPs, companies with 51%+ youth ownership
  • Valid until 31 March 2029

Vivekanand Employment Assistance Fund:

  • Corpus: ₹500 crore
  • Services: Counselling for job-seekers, employer-employee linkage (Rojgar Melas at district and state level), establishment of examination preparation centres
  • Part of Rajasthan Employment Policy 2025 targeting 10 lakh total jobs (4 lakh government + 6 lakh private/self-employment)

PM Viksit Bharat Rozgar Yojana (PM-VBRY): Union Cabinet approved 1 July 2025, effective 1 August 2025. Total outlay: ₹99,446 crore over 2 years (Aug 2025–Jul 2027). Target: 3.5 crore+ jobs including 1.92 crore first-time EPFO workers. Rajasthan's formal sector workers benefit under both Part A (employee incentive of one month's EPF wage, max ₹15,000) and Part B (employer incentive of ₹3,000/month per additional employee for 2 years).

RSLDC and Model Career Centres: 8.65 lakh youths trained (2024-25, to December); 16 Model Career Centres operational.

Source: Rajasthan Economic Review 2025-26, Chapter 8; Rajasthan Budget 2025-26 and Budget 2026-27 highlights