The word unemployment belongs to a state in which a respective actively seeks employment but is unsuccessful. It is said to be one of the critical measures of the economy's strength. The unemployment rate is the most generally used method to arbitrate a country's unemployment rate. This can be found by honestly dividing the number of people without jobs by the total population covered in a nation's labor force. National and local governments often effort to offer employment convenience to secure people who meet the acceptability criteria set by them. Commonly, work is availed for groups of particular upon a fixed minimum wage sufficient for bare continuance and provides further chances for them to find permanent jobs. These attempts are made to develop the country's growths and cut down the overall unemployment rate. The rate of unemployment in India has been expanding over the years. The current paper purpose to interpret the element leading to unemployment and its impact on the Indian economy. The study focal point on how employment rate performance a vital role in overall advancement of the economy. The study makes use of secondary data sources and point out on the present outline of unemployment in rural and urban areas. The paper interprets how an increase in population, poverty, illiteracy, inflation and lack of full employment can lead to a downturn in the hike of the economy. The paper deliberate the issue faced by the economy due to high rate of unemployment and prescribe strategies to improve the current status of employment in the country.

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Keywords: Unemployment, Labor, Skill Programmes, Secondary Data, Employment Rate.