Basically India's unemployment is structural in nature. It is associated with the inadequacy of the productive capacity to create enough jobs for all those able and willing in india. Not only is the productive capacity (largely capital stock) much below the needed quantity, it is also found to be increasing at a slow rate. As against this, additions to labour force are being made at a fast rate on account of rapidly rising population. Thus, the absolute level of unemployed persons is rising every year.
