UNEMPLOYMENT IN INDIA

When a person actively seeks job but is unable to do so, they are said to be unemployed. As a major indicator of the state of the economy, unemployment is often used.The unemployment rate is the most popular way to quantify unemployment. By dividing the total work force’s size by the number of unemployed people, it is determined.

Causes of Unemployment:

• The Caste System
• Inadequate Economic Growth
• Increase in Population
• Agriculture is a Seasonal Occupation
• Loss of Industries
• Low Rates of Saving and Investment
• Ineffective Economic Planning
• Labor Immobility

Caste System:

In some places, certain castes are not permitted to work. Frequently, the job goes to someone from a specific community rather than one of the deserving candidates. Accordingly, unemployment results from this.

Inadequate Economic Growth:

According to research firm Centre for Monitoring Indian Economy, India’s growth rate of 6% to 8% is insufficient to generate enough jobs for the country’s economy, and the government must step in to ease the labour market issue.

Increase in Population:

Mass unemployment and low employment are the result of the economy being transformed by the constantly expanding population. The ratio of workers to the overall population rises as population grows. As a result, unemployment and low employment rise together with a growth in the labour force.

Agriculture is a Seasonal Occupation:

Since India’s agriculture is primarily dependent on the monsoon season, agricultural laboures are idle throughout the other seasons. This means that the labour is unpaid during the offseason as well. When they don’t have work, they are unemployed for the rest of the year.

Loss of Industries:

Demand for goods and services decreases when the economy weakens. As a result, companies look to fire workers. Unemployed workers do not have enough money to buy necessities, which further affects the revenue for enterprises.

Low Rates of Saving and Investment:

For instance, as borrowing costs decrease, people are more likely to spend money on products and services, and businesses are better able to buy things like real estate and equipment to help them grow. Additionally, businesses have the power to increase employee hiring, which affects employment.

Ineffective Economic Planning:

Growth of unemployment – The most significant planning failure in India has been the increase in the jobless rate. It indicates that neither the organised nor the unorganised sectors were able to produce productive employment possibilities as a result of the planning process. Increase in Price Level – Inflation is yet another significant failure of Indian Planning.

Labor Immobility:

Increased structural unemployment is likely as a result of labour immobility. This is due to the fact that the companies that are expanding and in need of labour, often known as sunrise industries, may not always be able to hire the same people who have been displaced from the decreasing, or sunset,industries.

How to Reduce Unemployment In india:

It is essential to offer the underprivileged, particularly women and young people, quality jobs that both secure money and give them influence. Rapid economic growth has the potential to result in a high rate of expansion of lucrative jobs, which can lower poverty.