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Abstract India is a developing country. The developing country is facing problem of unemployment. The major problem of India is underemployment. The reason behind it is underdeveloped secondary sector which is sector of 'employment creation' in the economy. The reason for rural unemployment and urban unemployment are different. In rural unemployment, reason is increasing population, insufficient capitals, seasonal nature of agriculture occupation, lack of skill. The causes of urban unemployment are migration from rural area, more supply of labour, lack of suitable job, new capital-intensive sector. The India is facing such level of unemployment which was never seen in last 45 years that is 6.2 % of unemployment rate. The recent pandemic has largely affected the employment situation in the country. The government has taken various steps in the past to tackle it such as Kaushal Vikas Yojana, MANREGA, Garib Kalyan Yojana and so on. We can also learn a lot of from country like China which is most populous country of the world but also a 'manufacturing hub 'of the world. The government should focus on skill development, adopt population control measure, more industries should be developed, skill enhancement, small and medium enterprises should be encouraged and so on. Present employment scenario As we notice the current employment scenario in India of December 2021, there are around 53 million unemployed people. Among those, 35 million are actively seeking work. And 17 million people are willing but are not actively seeking.