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Unemployment Types, Causes, MGNREGA, IRDP: ICSE Class 9

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EconomicsICSE Class 9 · Poverty and Unemployment

Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes (ICSE Class 9 Economics)

Updated 18 October 2026 · Fact-checked

Unemployment means that people who are able and willing to work at the current wage rate cannot find work. The syllabus types are seasonal (work only in certain months), structural (changes in the structure of the economy or a skill mismatch) and technological (machines replace workers). MGNREGA guarantees at least 100 days of wage employment a year to rural households, and IRDP gave poor rural families income-generating assets for self-employment.

Understand Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes

Unemployment. People able and willing to work at the current wage rate who cannot find work are unemployed; children, the old, the sick and those who do not want work are not counted. Unemployment rate = (Number of unemployed / Labour force) x 100.

Types in the syllabus.
1. Seasonal unemployment: no work during some months because the work is seasonal (farm labourers between harvest and the next sowing; hotel staff in hill stations in the off-season).
2. Structural unemployment: long-term unemployment caused by changes in the structure of the economy: demand for some skills or industries falls, there is a mismatch between workers' skills and available jobs, or capital is not enough to employ the growing labour force (handloom weavers losing work to mills).
3. Technological unemployment: caused when new machines and technology replace workers (bank tellers replaced by ATMs, toll-booth staff by electronic toll collection).

Causes of unemployment (any five). Rapid growth of population; slow economic growth; dependence on seasonal and overcrowded agriculture (also disguised unemployment); a defective education system that is not job-oriented (skill mismatch); capital-intensive technology that uses few workers; decline of cottage and small industries; lack of capital and infrastructure; and immobility of labour.

Government programmes.
1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA, 2005). Objectives: to guarantee at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer for unskilled manual work; to give a legal right to work, with an unemployment allowance if work is not provided within 15 days of applying; to create durable assets such as ponds, check dams and rural roads; and to strengthen rural livelihood, reduce distress migration and empower women (at least one-third of beneficiaries are to be women).
2. Integrated Rural Development Programme (IRDP, started in 1978-79 and extended to all blocks in 1980). Objectives: to raise rural poor families above the poverty line through self-employment; to give them income-generating assets (milch cattle, a small shop, tools) through a mix of subsidy and bank credit; and to target small and marginal farmers, agricultural labourers and rural artisans, with priority to disadvantaged groups and women. In 1999 it was merged into a new self-employment programme.
Others in the syllabus (recognition only): JRY (wage employment through rural works, 1989), PKVY (promotes organic farming through clusters) and HRIDAY (develops infrastructure and preserves the heritage of selected cities).

Neighbouring topics: the poverty line, absolute and relative poverty and the causes of poverty are on the previous page of this chapter.

Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes: key facts

Unemployment rate
Unemployment rate = Unemployed / Labour force x 100 | able and willing to work
A percentage.
Types
Seasonalmonths
structuralstructure of economy, skill mismatch
technologicalmachines replace workers
Give an example of each.
MGNREGA
  • At least 100 days of wage employment
  • legal right to work
  • allowance if no work in 15 days
  • durable assets
Wage employment.
IRDP
  • Self-employment
  • income-generating assets by subsidy and bank credit
  • poorest families
Started 1978-79.

Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

MGNREGA wages

Suppose a rural household works 64 days under MGNREGA at a wage of Rs 250 a day (an assumed figure).

How much does it earn, and how many days short of the 100 days guaranteed is it?

Try it first, then show the solutionSolution
  1. Earnings: 64 x 250 = Rs 16,000.
  2. Days short of 100: 100 - 64 = 36 days.
  3. At the same wage, 100 days would give Rs 25,000.

Answer: Rs 16,000 for 64 days, 36 days short of the 100-day guarantee (Rs 25,000 at that wage).

Memory hook: Days times wage.

Tricks to remember Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes

Short memory aids. Say each one aloud once, then use it on a question the same day.

  • S-S-T

    Seasonal, Structural, Technological.

    Use it when: Types of unemployment.

  • 100 and 15

    100 days of work; allowance if not given within 15 days.

    Use it when: MGNREGA numbers.

  • Wage versus self

    MGNREGA gives wage employment; IRDP gives self-employment.

    Use it when: Two approaches.

Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Unemployment allowance · 1 mark · MCQBoard level

Under MGNREGA an unemployment allowance is payable if work is not provided within how many days of applying?
(a) 5 (b) 15 (c) 30 (d) 60

Try it first, then show the solutionSolution
  1. The scheme gives a legal right to work; the allowance is due after 15 days.

Answer: (b) 15

Example 2: Unemployment rate · 3 marks · Short answerHarder board level

A labour force has 8,000 persons of whom 600 are unemployed. Find the unemployment rate. If 200 of them find jobs and the labour force stays the same, find the new rate.

Try it first, then show the solutionSolution
  1. Rate = 600 / 8,000 x 100 = 7.5 per cent. (1 mark)
  2. New number unemployed = 600 - 200 = 400. (1 mark)
  3. New rate = 400 / 8,000 x 100 = 5 per cent. (1 mark)

Answer: 7.5 per cent and then 5 per cent

Example 3: Identify the type · 3 marks · Short answerHarder board level

Identify the type of unemployment: (i) workers of a cotton-ginning unit idle between two cotton seasons; (ii) cashiers who lose their jobs when self-service kiosks are installed; (iii) workers of an industry that shuts because demand moves to new products and they lack the skills for the new jobs.

Try it first, then show the solutionSolution
  1. (i) Seasonal unemployment: work exists only in some months. (1 mark)
  2. (ii) Technological unemployment: machines replace workers. (1 mark)
  3. (iii) Structural unemployment: change in the structure of the economy and a skill mismatch. (1 mark)

Answer: (i) seasonal (ii) technological (iii) structural

Example 4: Case study: MGNREGA in a village · 4 marks · Case-basedHOTS / competency

Suppose a village household applies for work under MGNREGA at an assumed wage of Rs 250 a day. It receives work for 64 days in a year.
(i) Find its earnings. (1)
(ii) Find the maximum earnings under the guarantee at that wage. (1)
(iii) State the right the household has if no work is given within 15 days of applying. (1)
(iv) Name one kind of asset created under the scheme. (1)

Try it first, then show the solutionSolution
  1. (i) 64 x 250 = Rs 16,000.
  2. (ii) 100 x 250 = Rs 25,000.
  3. (iii) It is entitled to an unemployment allowance.
  4. (iv) A pond, check dam or rural road (any one).

Answer: (i) Rs 16,000 (ii) Rs 25,000 (iii) unemployment allowance (iv) pond, check dam or road

Example 5: IRDP versus MGNREGA · 3 marks · Short answerHarder board level

State the objectives of IRDP and explain how its approach differs from that of MGNREGA.

Try it first, then show the solutionSolution
  1. IRDP aimed to raise poor rural families above the poverty line through self-employment. (1 mark)
  2. It gave them income-generating assets such as milch cattle or tools through subsidy and bank credit. (1 mark)
  3. IRDP offered self-employment through assets, whereas MGNREGA offers wage employment (at least 100 days) on public works. (1 mark)

Answer: IRDP: self-employment through assets; MGNREGA: guaranteed wage employment.

Where students lose marks in Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes

The slips examiners see most often, and what to write instead.

  • Mistake: Mixing technological and structural

    Both involve job loss.

    Wrong working

    Machines replacing workers is structural

    Right working

    Machines replacing workers is technological

    Do this: Name the cause.

    Usually costs: 1 mark

  • Mistake: Wrong days for MGNREGA

    Numbers are mixed.

    Wrong working

    MGNREGA guarantees 150 days

    Right working

    At least 100 days

    Do this: Remember 100 and 15.

    Usually costs: 1 mark

  • Mistake: Counting non-workers as unemployed

    The definition is ignored.

    Wrong working

    All jobless people are unemployed

    Right working

    Only those able and willing to work

    Do this: Quote the definition.

    Usually costs: 1 mark

Exam tips

  • Give one example with each type of unemployment.
  • Write any five causes with effects.
  • State the objectives of MGNREGA and IRDP in separate numbered points.
  • Mention JRY, PKVY and HRIDAY only by recognition.

Practice questions on Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

  1. Q1 · 1 mark · MCQBoard level

    IRDP aimed mainly at:
    (a) wage employment on rural roads (b) self-employment of the rural poor through assets (c) organic farming (d) heritage city development

    Hint

    Think of milch cattle and tools.

    Answer

    (b) self-employment of the rural poor through assets

  2. Q2 · 2 marks · Very short answerBoard level

    Define unemployment.

    Hint

    Able and willing.

    Answer

    Unemployment is the situation in which people who are able and willing to work at the current wage rate cannot find work.

  3. Q3 · 3 marks · Short answerHarder board level

    The labour force of a district is 12,000 and the number of employed persons is 11,100. Find the number of unemployed and the unemployment rate.

    Hint

    Unemployed = labour force - employed.

    Answer

    Unemployed = 12,000 - 11,100 = 900. Rate = 900 / 12,000 x 100 = 7.5 per cent.

  4. Q4 · 3 marks · Short answerHarder board level

    Explain any three causes of unemployment in India.

    Hint

    Heading and effect.

    Answer

    Rapid population growth makes the labour force grow faster than jobs; a defective, non-job-oriented education system creates a skill mismatch; capital-intensive technology uses few workers (any three valid causes).

  5. Q5 · 3 marks · Short answerHOTS / competency

    MGNREGA is described as giving a legal right to work. Explain how the scheme ensures this right.

    Hint

    Think of the 15 days.

    Answer

    Every rural household whose adults volunteer for unskilled manual work is guaranteed at least 100 days of work in a year, and if work is not provided within 15 days of applying, an unemployment allowance is payable, so the right can be claimed.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

  1. 1.Which Act guarantees 100 days of work?Show answer

    MGNREGA.

  2. 2.What is seasonal unemployment?Show answer

    Lack of work in certain months of the year.

  3. 3.What is disguised unemployment?Show answer

    More people work on a job than are needed.

  4. 4.What does IRDP stand for?Show answer

    Integrated Rural Development Programme.

  5. 5.Which scheme promotes organic farming?Show answer

    PKVY.

  6. 6.Share of women among MGNREGA beneficiaries?Show answer

    At least one-third.

Unemployment, Its Types and Causes, and the MGNREGA and IRDP Programmes: frequently asked questions

Is the syllabus spelling MNREGA the same as MGNREGA?

Yes, it is the same scheme.

Is IRDP still running?

The chapter page says it was merged into a new self-employment programme in 1999.

Do I have to learn both programmes in detail?

Learn any two programmes with their objectives; these two are fully covered here.