India has a huge population and there is a shortage of jobs. Rather than job seekers, India needs more job creators. This initiative will give people incentive to take up entrepreneurship.
Unemployment is usually kept high by having some workers overworked. This keep labor costs low. Also increases the costs of things so that employment becomes necessary. Oldest trick in the BOOK.
There is no way that everyone in a country will be working. Governments can't ensure that everyone has a job. Government's job is to build the Infrastucture and providing basic services.