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 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
Rapid Increase in Population
The present increase in population in India has created an imbalance in the demand and supply in the labor 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.
Uncertainty of Agriculture
Even after the development of science, agriculture in India is dependent on the mercy of nature. Each year millions of laborers have to lose their jobs due to droughts and floods and other natural calamities due to which uncertainty in agriculture and unemployment arises.
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 own production unit. Unemployment has also increased due to this improper attitude.
Employment to Women
During the decade of 1950 to 1960, very few women were working, but nowadays their number and percentage has increased. This has also increased unemployment among men.
Wide Gap between Wages and Productivity
Inflation is continuing in the country due to which prices keep increasing. Affected by this, the laborers demand more wages and incentives due to which the cost and price of commodities increases, but demand decreases. This follows reduced production and thus, increases in unemployment.
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.
The government has intentionally encouraged labor substitution activities, keeping in view the development of heavy industries, due to which difficulties in the progress of employment opportunities have arisen. It is definite that labor substitution through irrational mechanization would naturally increase unemployment.
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.