Problem of Unemployment in India

In ordinary language, when a person does not find any work for his livelihood, he is called unemployed and this problem is called the problem of unemployment. In other words, if a person is willing to work and physically fit, and still does not get a job to earn his livelihood, such a condition is called unemployment.

Read about the Types of Unemployment.

Causes of the Unemployment Problem in India

No one reason can be held responsible for the widespread unemployment in India but the

following are the main causes of the problem in India

  1. Rapid Increase in Population

    Unemployment In India
    Unemployment In India

    The present increase in population in India has created an imbalance in the demand and supply in the labour market. The increase in techniques, capital formation, natural resources, etc. is not at the same rate as the rate of increase in population, due to which the additional people are not getting employment and unemployment is increasing.

  2. Uncertainty of Agriculture

    Even after the development of science, agriculture in India is dependent on the mercy of nature. Each year millions of labours lose their jobs due to droughts and floods and other natural calamities and therefore uncertainty in agriculture and unemployment arises.

  3. Improper Attitude

    One of the main reasons in this country is the want of a job by the educated people. They do not want to start their production unit. Unemployment has also increased due to this improper attitude.

  4. Employment to Women

    During the decade 1950 to 1960, very few women were working, but nowadays their number and percentage have increased. This has also increased unemployment among men. This challenge is called The Job Displacement Effect.

  5. Wide Gap between Wages and Productivity

    Inflation is continuing in the country due to which prices keep increasing. Affected by this, the labourers demand more wages and incentives due to which the cost and price of commodities increase, but demand decreases. This follows reduced production and thus, increases in unemployment.

  6. Defective Planning

    Planning work has been going on in the country since independence, but this planning has been defective. Scholars opine that unemployment has also increased due to this reason.

  7. Irrational Mechanization

    The government has intentionally encouraged labour substitution activities, keeping in view the development of heavy industries, due to which difficulties in the progress of employment opportunities have arisen. Labour substitution through irrational mechanization would naturally increase unemployment.

  8. Lack of an Extensive Employment Policy

    India has always lacked an extensive and short-term employment policy. It is true that unless a solid employment-oriented development policy is not evolved and implemented by a stable government of the country, the solution to the problem of unemployment is difficult. Apart from this, the hurdles in production activities, social environment, social evils, religious superstitions, political instability, and industrial unrest are increasing the problem of unemployment.

3 thoughts on “Problem of Unemployment in India”

    1. The point here is that when there is increase in number of employed persons in a single family, while overall employment being the same, there is a slight increase in number of unemployed families.
      Let us assume a hypothetical example of a city that has two families (1 man and 1 woman and children in each), and there are 2 jobs available. The ideal situation would be when only 1 family member is employed from each family. But if both man and woman are employed from same family, the other end up unemployed.

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