Unemployment – simply defined as an absence of gainful employment – may seem like a unidimensional challenge which restricts one’s ability to financially support themselves and their family. However, unemployment is not just about that. It holds multifaceted meanings that go beyond mere joblessness. It is related to individual lives, communities, and entire economies. In India, where diverse narratives intersect, understanding unemployment requires peeling back layers to reveal its profound implications.
Economic Realities and Mental Strain
One of the biggest effects of unemployment is that it disrupts the financial stability of an individual, putting them and their dependents in a constant state of uncertainty. The lack of a regular income makes it difficult to meet basic daily needs—food, shelter, education, and healthcare. Lack of employment often leads to an individual struggling with anxiety, extreme stress, and low self-worth. It can also make someone being seen as worthless by the community or society. This can have an adverse impact on that individual’s mental health and wellbeing.
With a reduced self-worth and constant struggle with anxiety and stress, the individual may suffer from worse effects of poor mental health. It can also put them in a state of depression. The daily struggle to secure employment erodes confidence, leaving scars that linger even after re-entering the workforce.
Identity Crisis and Social Isolation
Imagine yourself as someone who comes from a small town in India. Often, it is observed that young people move out of these towns for higher studies and later to find employment in the cities where opportunities are available. In these new cities and workplaces, these people find new social connections and create communities. This also acts as a social support to them.
However, someone who is in the trap of unemployment for long loses out on these social connections as they have to spend most of their time at home or, in some cases, move back to their hometowns until they find a meaningful employment. This can cut them off from any type of social support and isolate them.
At the same time, it is seen that work becomes a major part of our lives after a particular age. What we do becomes an important part of our identity as well. Losing one’s job can disrupt this balance and equilibrium. The question, “What do you do?” becomes loaded. Unemployed individuals often grapple with self-doubt, questioning their worth beyond their job titles.
Quality of Life and Health
Leading a mentally and physically active life goes a long way in maintaining a strong mental and physical health. However, in the absence of work, an individual might end up in a state of mind where they are constantly dealing with high stress, anxiety, and sometimes depression. This can severely affect their mental health. At the same time, this can have negative effects for their physical health too. And, if that individual does not have an emergency fund to take care of their health-related expenses, they may ignore it at the time when they are unemployed. This can further exacerbate their health problems. Reports suggest that unemployed people are more than five times as likely to report poor health compared to employees.
Beyond health, unemployment affects overall quality of life. The loss of structure, purpose, and social connections compounds the struggle. The absence of meaningful work robs life of fulfilment and purpose. The usual social activities that an individual participates in on a daily basis may become rare as they struggle with low self-worth and financial uncertainty.
Unemployment and Gender
One of the aspects of unemployment that is often ignored or brushed under the carpet is its direct link with gender disparity in our society. Unemployment affects men and women differently. In India, gender disparities persist. Women often face additional challenges—unequal pay, limited access to education, and societal expectations. When women lose jobs, the repercussions extend beyond finances. Their roles as caregivers, homemakers, and community members intersect with their professional identities. Unemployment disrupts this delicate balance, affecting not only women but entire families.
Unemployed women often shoulder a double burden—seeking employment while managing household responsibilities. The lack of affordable childcare facilities and flexible work options further increases this challenge. As women navigate this complex terrain, their mental and physical health suffer. Addressing gender-specific unemployment requires targeted policies and cultural shifts.
Financial and Professional Risk
When an individual loses their job or is not able to find meaningful employment, they tend to lose hope and may end up taking uncalculated risk out of desperation. This risk may come in the form of investing in doubtful business opportunities, taking loans at high interest rates, or putting their money in extremely risky investments. While self-employment and entrepreneurship offer autonomy, it also comes with a high risk, especially when the person does not have necessary experience, social support, financial back-up, and network.
It is also seen in many cases that highly-educated individuals end up in gig-economy because of the desperate situation they are in. India’s informal sector absorbs a significant workforce. Street vendors, artisans, and gig economy workers constitute this dynamic landscape. While self-employment provides flexibility, it lacks social security benefits. Strengthening the informal sector—ensuring fair wages, safety nets, and skill enhancement—can enhance the quality of life for millions.
The Indian Context
India’s unemployment landscape is intricate. Youth unemployment, underemployment, and disguised unemployment coexist. The informal sector absorbs many, but job insecurity persists. The rural-urban divide exacerbates disparities. The Indian government has various schemes to offer employment support to people, like Mahatma Gandhi National Rural Employment Guarantee Act 2005 or MGNREGA. At the same time, the government has been investing heavily in the skill of individuals and has been nurturing a healthy startup ecosystem. However, data suggests that unemployment is still a big challenge in India. While we often see this as a problem which can be solved by creating more job opportunities and filling the skill gap, we must also acknowledge that the effects of unemployment go much deeper and may be long lasting.
Unemployment is not just about statistics. It involves the lives of countless people. It impacts everyday decisions that individuals make, and it has many layers that need to be dissected to understand its true impact. Therefore, by ensuring meaningful employment for people, we do not just create a positive economic impact but also impact their lives at a much deeper level.
What are we doing about it?
Recognising the need to address the root causes of unemployment, Smile Foundation‘s Smile Twin e-Learning Programme (STeP) is designed to bridge the gap between education and employment for youth from low-income families. By providing job-oriented skills, the programme prepares these young individuals for jobs changing their lives for good.
The programme’s holistic approach, which includes training in banking and financial services, English communication, general duty assistance, digital marketing, Business process outsourcing, and retail management, prepares participants to enter the competitive job market with confidence. Through STeP, they not only gain practical skills but also a renewed sense of self-worth and purpose—two critical factors that unemployment often erodes.
In many ways, STeP embodies the broader fight against unemployment. By equipping youth with the tools they need to succeed, we are not just addressing the immediate challenge of joblessness but also fostering long-term economic stability and personal fulfilment. For these young individuals, STeP represents freedom—the freedom to dream, to earn with dignity, and to build a life that reflects their true potential.