Project Work
Project Work
Project Work
(Autonomous)
2022-20
PROJECT REPORT
On
B.COM (C.A)
BY
DEPARTMENT OF COMMERCE
CERTIFICATE
This is to certify the Government City College, Hyderabad, Telangana, Submitted the Project,
“A STUDY ON COVID-19 IMPACT ON UNEMPLOYMENT IN INDIA” as Partial fulfilment of B.COM
(C.A) for the academic year of 2022-2023.
We, of Government City College, Hyderabad, Telangana, during the academic year
2020-2023 hereby declares that this is my original work and submitted the project work on
“A STUDY ON COVID-19 IMPACT ON UNEMPLOYMENT IN INDIA” as partial fulfilment of Degree in
B.COM(CA), (E/M) under the guidance of P.Y. LALITHA CHAITANYA
I,are greatly proud of our GOVT CITY COLLEGE for providing us the needful education. We thank our
principal Dr.P.BALA BHASKAR for encouraging us in the successful completion of the project work.
I,are very Thankful to our Head of the Department Dr. J. RATHNAPRABHAKAR who is our Head of the
Department provided this good project Special thanks for subjecting to make this success under
.his excellence supervision and for this excellent oversight of the project
I owe our grateful acknowledgement to our faculty members, P.Y LALITHA CHAITANYA who gave valuable
suggestions and lab coordinators for providing the lab. We would like to think all friends who gave nice
Un employment is the Serious problem which is being experienced. By most of the countries throughout
the globe .Unemployment is like a giraffe which is easier to make out than to describe .the past few
years, there has been a slow down in the growth in the employment in India despite the boost in the
economic sector. At the same time due to thisCOVID-19 pandemic lockdown, there had been a
devastating effect on the unemployment rate in India as most of the private companies have fired their
employees. The main suffers of this lockdown are the informal sector employees as the majority of the
started losing jobs since construction works were closed. With no capital, thousands of people deserted
cities, marching to their homeland. The paper aims to delineate the impact of COVID19on
BIBLIOGRAPHY
ANNEXURE
CHAPTER 1
INTRODUCTION
INTRODUCTION
On 12 January 2020, the WHO confirmed that a novel corona virus was the cause of a respiratory illness
in a cluster of people in Wuhan city, Hubei, China, which was reported to the WHO on 31 December
2019. The covid-19 pandemic in India is part of the worldwide pandemic of corona virus disease 2019
(COVID-19) cause by severe acute respiratory syndrome corona virus 2 (SARS-Cov-2). The first case of
COVID-19 in India, which originated from china, was reported on 30 January 2020. According to World
Health Organization as on 14 August 2020, number of cases of illness due to the COVID-19 virus on
global level has risen up to 2,07,30,456 confirmed cases and 7,51,154 deaths and on a national level
24,61,190 confirmed cases and 48,048 deaths.The rapid spread of the COVID-19 virus throughout a
country has lead to a lockdown and social distancing policy in several countries including India. Due to
the social distancing policy and COVID-19 rapid increase have hit the economy activity o the country as
whole. Business across the world namely hospitality, entertainment, aviation, tourism etc have seen a
major negative impact. Factories, restaurants, pubs, markets, flights, malls, universities, colleges, schools
etc were shut down. The ear of corona virus has limited the movement of individuals. Direct contact in
daily life; including buying and selling transaction have been decreased significantly. These reductions in
business transaction have led to the lay-off of employees and workers. Major reason noted was, due to
the significant decrease in the sales transaction, which are the key income to the business and which
correspondingly led the business unable to pay salaries or wages of employees and workers.The
inefficiency to pay-off the salaries or wages has led to the lay-off which drastically affected the countries
unemployment rate. According to Centre for Monitoring Indian Economy (CMIE) country’s
unemployment rate had spike to 27.11% for the week ended May 3, from 7% before the start of the
The purpose of this project is to find out whether unemployment or lay-off that occurred are influenced
Statement of problem
Based on the topic “COVID-19 impact on unemployment rate in India”, some questions that need to be
revealed in this study are as follows:
In connection with the problem above, the purpose of the research on “COVID-19 impact on
unemployment rate in India” is:
Research design
It is a well-established fact that any research has to be validated based on the systematic collection and
analyzing the data. For this study survey method is adopted to collect the primary information from the
people residing in Thrissur using a set of questionnaire. The primary data is collected from 50 people
residing in Thrissur and the secondary data is collected from internet and books
Nature of study
For this descriptive and analytical research method is used. The main objective of descriptive and
analytical studies is to depict accuracy.
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Nature of data
Source of data
The primary source of data is through a questionnaire. The secondary data is collected by referring the
internet information and other textbooks are used for the study.
Sample design
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure adopted in selecting items for the sampling design.
Nature of population
Sample unit
Method of sampling
The method used for sampling here is convenient sampling. The data is collected through a
questionnaire. Samples are selected from people residing in Thrissur.
Size of sample
sample of 50 people residing in Thrissur has been considered for this study.
The tools for analysis used on this study are bar diagrams, percentage analysis, pie charts, line charts and
tabular representation of data.
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Limitations
.• The interpretation is based on assumption that the respondents have given the correct information.
Chapterisation
CHAPTER 1 : Introduction
Chapter 02
REVIEW OF
LITERATURE
5
Review of literature
A literature review or narrative review is a type of review article. A literature review is a scholarly paper,
which includes the current knowledge including substantive findings, as well as theoretical and
methodological contribution to a particular topic. Literature reviews are secondary sources, and do not
report new or original experimental work. Most often associated with academic-oriented literature, such
Empherical literature
Arnab Roy (2015) carried out a study on youth unemployment conditions in India. The India is a fastest
economic growing country in world. However, the growths of youngsters’ population were occurred
unemployment. The unemployment is common for both developed and developing countries. The
education level is increased but the skill development is quiet critical subject. The study focuses on youth
unemployment, unemployment trend among youth, problems faced by youth and challenges faced by
youth. For the census of 2011, 28 % of youths were unemployed. More over 93 % of youths are working
in informal sector. The most important point is 40 % of Indian population aged between 13 to 35 years.
The current scenario youth is prone to frustration and lack of interest to do something. The world
development report is report on 2013, 9 % of males and 11 % female youths are unemployed. Finally,
this study concluded that India need to create over one million jobs per annum.
Jabir Hasan Khan & Shemshad (2012) carried out a study on unemployment levels of socio-economic
other problems in the world. It is create severe problems like poverty, malnutrition and under nutrition,
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hunger, houseline’s’, slums and squatter settlements, crimes, child labour, inequality and begging. The
study examine the various forms of unemployment in India to inspect the geo graphical scale of socio-
economic deprivation, to discover the connection between the unemployment (dependent variable) and
socioeconomic variables of deprivation (independent variables) in India. The study area selected from
whole India including union territories. Data collection was carried out from secondary data like census
of India publications New Delhi. The study methodology is test of hypothesis and simple linear
regression model. The results shows the level of unemployment was high in northern parts of India
compared to southern parts of India and the level of socioeconomic deprivation was high in northern
central states.
Jaganath Behera (2013) carried out a study jobless growth in India in 2000’s. This present study mainly
concentrate on growth in output and employment in the post reform era, nature of employment in the
post reform era and relationship between productivity and employment elasticity. The necessary data’s
are carried out from national account statistics (NAS) and national sample survey organization (NSSO).
This study were contains the detail of broad trends of out of the Indian economy and growth in
labours and 16 % peoples are regular labour. Data was carried out from 66th NSS report. The result
shows thatto increase the national production capacity and increase exports on products.
Ritu & Nareshkumar (2013) carried out a study on trend and pattern of unemployment and inflation in
India. The Indian economy is a third largest economy in the world, at the same time the growth of Indian
economy was very slow. For this situation lot of reasons were takes placed like poverty, unemployment,
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inflation, fiscal deficit, account deficit and depreciation of rupees value. The Indian population is
increased in the rate of 2.1 % per year. In this study shows India is the second highest unemployment
country in the world after7South Africa. The unemployment rate is 9.8 million in January 2010. It is
increase to 10.8 million after January 2012. The work force is 47.2 crore. In India 52 %, work forces are
self-employed, 18 % of work force is monthly or daily wages employees and 30 % employees are casual
labours. The study focuses on factors affecting inflation like increase in public expenditure, deficit
financing and erratic agriculture growth. Finally, it is concluding that inflation can be control by tight
monetary policy and unemployment can be reducing by expansionary fiscal policy. The trend and pattern
Elena Philip & Anthonima K. Robin (2015) carried out a study on globalization, employment
unemployment in India. This study based on the analysis of globalization, Indian economy, employment
and unemployment in India. The study focuses on know the conditions of employment in different
sectors and to provide suggestions for employment opportunities. The data collection was carried out
from secondary data. The India having large number of youngsters in world that people’s age is below
40. The employments of those peoples were very difficult. The most of the youngsters from urban and
semi-urban areas is employed, but the people who came from rural areas are still seeking for
employment. This study was carried out the details of statistical reports about agricultural and non-
public and organized private sectors in previous years and percentage distributions of workers in
formal/informal employments. From the survey, it is note that India is having 2.8 percentages of open
unemployment and 4.41 percentages of under unemployment. Overall unemployment rate was 7.32
Chapter 3
CONCEPTUAL REVIEW
3.1 Conceptual framework
The state of being without any work yet looking for work is called unemployment. Economists distinguish
between various overlapping types of and theories of unemployment, including cyclical or Keynesian
additional types of unemployment that are occasionally mentioned are seasonal unemployment,
Though there have been several definitions of "voluntary" and "involuntary unemployment" in the
economics literature, a simple distinction is often applied. Voluntary unemployment is attributed to the
individual's decisions, but involuntary unemployment exists because of the socio-economic environment
(including the market structure, government intervention, and the level of aggregate demand) in which
individuals operate. In these terms, much or most of frictional unemployment is voluntary since it
reflects individual search behavior. Voluntary unemployment includes workers who reject low-wage jobs,
but involuntary unemployment includes workers fired because of an economic crisis, industrial decline,
On the other hand, cyclical unemployment, structural unemployment, and classical unemployment are
largely involuntary in nature. However, the existence of structural unemployment may reflect choices
made by the unemployed in the past, and classical (natural) unemployment may result from the
The clearest cases of involuntary unemployment are those with fewer job vacancies than unemployed
workers even when wages are allowed to adjust and so even if all vacancies were to be filled, some
unemployed workers would still remain. That happens with cyclical unemployment, as macroeconomic
Force
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cause microeconomic unemployment, which can boomerang back and exacerbate those macroeconomic
forces.
Types of Unemployment
It occurs when there is insufficient demand in the economy to maintain full employment.
In a recession (a period of negative economic growth) consumers will be buying fewer goods and
services.
If firms are producing less, this leads to lower demand for workers – either workers are fired, or a firm
cuts back on employing new workers. In the worst case scenario, the fall in demand may be so great a
firm goes bankrupt, and everyone is made redundant. Demand deficient unemployment is associated
with the theory of J.M.Keynes who developed his General Theory of Money (1936) against a backdrop of
the Great Depression. During the Great Depression, unemployment soared in the US due to the collapse
Negative multiplier effect: In many cases, a rise in demand deficient unemployment can further depress
aggregate demand and make the recession worse. Rising unemployment leads to lower demand and
lower economic output, causing a further decline in demand for workers. Furthermore, the rise in
unemployment causes a decline in consumer confidence as households worry that they may be made
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Youth unemployment rates: Unemployment rates amongst young workers often increase the most
during a recession. Older workers may get laid off, but the biggest brunt is borne by young workers who
find firms are not taking on new staff. It is easier for a firm to cut back on hiring new workers than make
Hysteresis: Demand deficient unemployment may also lead to a higher rate of long-term unemployment.
When people are made unemployed they may become de-skilled and demotivated. Therefore, they may
find it more difficult to get work in the future. Therefore a period of demand-deficient unemployment
could cause higher structural unemployment and reduce the economies long-term productive capacity.
2. Frictional unemployment
This is unemployment that occurs from the inevitable time delays in finding new employment in a free
market. It may also be called ‘search unemployment’ as it relates to the time taken to search for new
employment.
For example, if you graduate from university, you can’t necessarily expect to find a job straight away
which matches your skills. This period of searching for a job is known as frictional unemployment.
Frictional unemployment will also occur when people are switching between jobs, either because they
unemployed rather than get the first job that comes along.
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1. Structural unemployment
Structural unemployment is caused by a mismatch of skills between the unemployed and available
jobs. Structural unemployed is caused by changes in the economy, such as deindustrialisation, which
leaves some unemployed workers unable to find work in new industries with different skill
requirements.
Structural unemployment occurs even during periods of strong economic growth. It is a form of
supply-side unemployment and not insufficient aggregate demand (AD). Policies to reduce structural
unemployment include retraining and geographical subsidies. Fiscal or monetary policy to boost AD
Geographical immobility: This occurs when workers are unable to move from areas of high
unemployment to areas with labour shortages. This could occur due to the difficulties of
buying/renting a house. It could also be due to family attachments to their current area. For
example, often there are vacancies in London but unemployment in outlying regions. However, it is
difficult for the unemployed to leave the northeast and find a place to live in London.
Occupational immobility: This occurs after changes in the economy, which lead to shifting demand
for skilled labour. For example, if there is a closure of manufacturing firms, workers with skills for
these types of jobs may struggle to relocate in new industries where very different skills are required
(e.g. IT skills, teaching, accountancy). It takes time for people to retrain and older workers may feel it
is too difficult.
4. Voluntary unemployment
It refers to the situation when the worker deliberately chooses not to work because of a low wage
scale or not able to find out the suitable employment for him.
In other words, the voluntary unemployment is when the person decides not to participate in the
labor market, not because of the unavailability of jobs, but because of not finding the jobs of his/her
The voluntary unemployment also gets created when the worker is neither willing to work nor
searches for a job, as he is satisfied with the amount given by the government in the form of
unemployment benefits. High-income tax rates could also be one of the reasons behind a worker not
choosing to work.
The lack of job information can lead to the unemployment. Such as first-time job seeker might not
have sufficient information about the nature of a job and decides to remain unemployed until the
time he gets the desired opportunity. Frictional unemployment is also a form of voluntary
unemployment wherein the worker deliberately leaves his job in the search for better job pursuits.
Most of the times the unemployment is involuntary caused due to Socio-economic factors such as
aggregate demand, market structure, government intervention, technological advancement, etc. The
involuntary unemployment is therefore beyond the worker’s control and unlike voluntary
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1.Cast system: In India caste system is prevalent. The work is prohibited for specific castes in some
areas. In many cases, the work is not given to the deserving candidates but given to the person
2. Slow economic growth: Indian economy is underdeveloped and role of economic growth is very
slow. This slow growth fails to provide enough unemployment opportunities to the increasing
population.
3. Increase in population: Constant increase in population has been a big problem in India. It is one of
the main causes of unemployment. The rate of unemployment is 11.1% in 10th Plan.
employment. Large part of population is dependent on agriculture. But agriculture being seasonal
5. Joint family system: In big families having big business, many such persons will be available who do
not do any work and depend on the joint income of the family. Many of them seem to be working but
6. Fall of cottage and small industries: The industrial development had adverse effect on cottage and
small industries. The production of cottage industries began to fall and many artisans became
unemployed.
7. Slow growth of industrialization: The rate of industrial growth is slow. Though emphasis is laid on
industrialization yet the avenues of employment created by industrialization are very few.
8. Less savings and investment: There is inadequate capital in India. Above all, this capital has been
16
Due to shortage of savings and investment, opportunities of employment have not been created.
9. Causes of under unemployment: Inadequate availability of means of production is the main cause of
under employment. People do not get employment for the whole year due to shortage of electricity, coal
10. Defective planning: Defective planning is the one of the cause of unemployment. There is wide gap
between supply and demand for labour. No Plan had formulated any long term scheme for removal of
unemployment.
11. Expansion of universities: The number of universities has increased manifold. There are 385
universities. As a result of this educated unemployment or white collar unemployment has increased.
12. Inadequate irrigation facilities: Even after the completion of 9th five plans, 39% of total cultivable
area could get irrigation facilities. Due to lack of irrigation, large area of land can grow only one crop in a
13. Immobility of labour: Mobility of labour in India is low. Due to attachment to the family, people do
not go far off areas for jobs. Factors like language, religion, and climate are also responsible for low
2. Industrial disputes: Industrial disputes arise because of unemployment. It has adverse effects on
17
3. Political instability: There is political instability in the country due to unemployment. Unemployed
persons engage themselves in destructive activities. They consider Government, worthless. Economic
4. Social problems: Many social evils like dishonesty, gambling and immorality etc. arise due to
unemployment. It endangers law and order situation of the country. It causes social disruption in the
society.
5. Increase in poverty: Under the situation of unemployment a man has no source of income.
6. Loss of human resources: Due to unemployment, human resources go waste. No constructive use of
labour force is made. If human resources are properly used, economic growth of the country will
increase.
• The government suffers extra borrowing burden because unemployment causes a decrease in the
• Unemployed persons can easily be enticed by antisocial elements. This makes them lose faith in the
employed to generate resources actually gets dependent on the remaining working population, For
• It is often seen that unemployed people end up getting addicted to drugs and alcohol or attempts
Chapter 4
DATA ANALYSIS AND
INTERPRETATION
Data analysis and Interpretation
Data analysis is a process of inspecting, cleansing, transforming, and molding data with the goal of
discovering useful information, conclusion and supporting decision-making. In today’s business, data
analysis is playing a role in making decision more scientifically and helping the business achieve effective
operation.
Data interpretation refers to the implementation of processes through which data is received for the
purpose of arriving at an inference. The interpretation of data assigns a meaning to the information
The importance of data interpretation is evident and this is why it needs to be done properly. That is to
say, the nature and goal of interpretation will vary from business to business, likely correlating to the
type of data being analyzed. For carrying out any study the importance aspect that researcher need to
look after in relation to any research is with respect to findings of research based upon the objectives of
study. On the basis of this aspect appropriate analysis has been undertaken in order to achieve the
It is revealed that when the global economy is on a slowdown mode no emerging economy can grow at
its normal pace. The Indian economy was grappling with its own issues and COVID-19 made the matters
worse. The industry was facing demand problems, due to which business houses were reluctant to
undertake capex plans, unemployment was at its peak and exports which were consistently down for
several months. India has the problem could be more acute and long lasting , the economy was in
parlous state due to Covid-19 struck. Due to the measures adopted to prevent the spread of the
Coronavirus Disease 2019 (Covid-19), especially social distancing and lockdown, non-essential
expenditures are being postponed. This is causing aggregate demand to collapse across the India. In
addition to the demand reduction, there will also be widespread supply chain disruptions, as some
people stay home, others go back to their villages, imports are disrupted, and foreign travel is stopped.
This will negatively affect production in almost all industries. Gradually the shock will spread to
manufacturing, mining, agriculture, public administration, construction – all sectors of the economy. This
will adversely affect investment, employment, income, and consumption, pulling down the aggregate
growth rate of the economy. Like India, several international economies are becoming cognizant of the
✓ It is found that 40% of the respondents were unemployed at the time of COVID-19 pandemic.
✓ 42% of the respondent where strongly agreeing that they were concern about the employment status
✓ Majority agree to the statement that there was an increase on unemployment due to COVID-19
pandemic.
✓ Majority of the respondent feels worthless and will not be happy in doing day-to-day activities if they
are unemployed.
✓ 72% of respondent feel there is a tight competition in the job market after the lockdown.
Suggestions
The rapid spread of COVID-19 cases has a huge impact on unemployment because companies could not
pay salaries or wages to employees. If the spread continues to increase, the number of layoff cases that
will be suffered by people will also increase. Therefore, the community is expected to stay indoors and
carry out social distancing and other policies at thier best as what has been recommended by the Indian
government.
✓ As most of them are concerned about their work and will feel worthless and unhappy while doing the
day to day activities when they are unemployed there must be steps taken to reduce the unemployment
rate.
✓ Some of the steps which can reduce the unemployment are, by developing/improvising the skills and
✓ In addition, the government should also be more serious in handling COVID-19 cases so that they can
be overcome faster.
Conclusion
1.The COVID-19 case that first appeared on January 12, 2020 in India has increased its number
significantly and has spread to almost all provinces in India. Even though vaccines have reached and
2.The trend between COVID-19 and unemployment shows the same direction. The higher the number of
COVID-19 cases in India, the higher the number of workers affected by layoffs due to the COVID-19
Journals:
Website:
https://www.slideshare.net/
https://www.researchgate.net/publication/341488867_THE_INFLUENCE_OF_COVID-
19_ON_UNEMPLOYMENT_IN_INDIA
https://www.economicshelp.org/
https://www.thehindu.com/
https://www.who.int/
https://unemploymentinindia.cmie.com/
Chapter 6
ANNEXURE