REASONS OF UNEMPLOYMENT

1 INCREASE IN POPULATION
 Constant increase in population has been a big problem in India.
 It is one of the main causes of unemployment.
 India’s population is predicted to exceed China’s by the year 2024; it will, furthermore, probably
be the most populous country for the entirety of the 21st century.
 As the country’s economic growth cannot keep up with population growth, this leads to a larger
share of the society being unemployed

2 AGRICULTURE

 A majority of India’s population is still employed in the primary sector

 Agriculture offers unemployment for a large segment of the population, but only for several
months out of the year.
 The result is that for a considerable portion of the year, many agricultural workers lack needed
employment and income.
 More stable sources of income are essential to permit the fulfilment of basic needs.
 It provides seasonal employment.
 Large part of population is dependent on agriculture.
 But agriculture being seasonal provides work for a few months. So this gives rise to
unemployment.

3 USE OF FOREIGN TECHNIQUES

 As the focus on greater productivity increases, industrialists and employers prefer to employ
machines over humans for various jobs.
 They cost lesser than employing labourers and produce more.
 However, a country like India with rapid population growth need labour-intensive techniques
instead of capital intensive techniques.

4. LOW EDUCATIONAL LEVEL

 Jobs in the capitalist world have become highly specialised, but India’s education system does

not provide the right training and specialisation needed for these jobs. Thus many people who
are willing to work become unemployable due to lack of skills.
 A study reveals that 33% of educated youth in India are unemployed due to a lack of future
skills
 Millions of students in our country even after finishing schooling, remain devoid of hands-on
learning and robust practical knowledge.
 The main cause of structural unemployment is the education provided in schools and colleges
are not as per the current requirements of the industries. 

5. SLOW RATE OF ECONOMIC GROWTH

 Because the Indian economy is relatively underdeveloped, economic growth is considerably

slower than it might otherwise be. This means that as the population increases, the economy
cannot keep up with demands for employment and an increasing share of people are unable to
find work. The result is insuffi cient levels of employment nationwide.
  Inadequate growth of infrastructure and low investments in the manufacturing sector, hence
restricting the employment potential of the secondary sector.
 Indian economy is underdeveloped and role of economic growth is inadequate
 This slow growth fails to provide enough unemployment opportunities to the increasing
population
 This means that as the population increases, the economy cannot keep up with demands for
employment and an increasing share of people are unable to find work. The result is insuffi cient
levels of employment nationwide.

6. LESS SUPPORT TO SMALL SCALE INDUSTRIES

 Legal complexities, Inadequate state support, low infrastructural, financial and market linkages
to small businesses making such enterprises unviable with cost and compliance overruns.
 Industrial development has made cottage and small-scale industries considerably less
economically attractive, as they do not offer the economies of scale generated by large-scale
mass production of goods.
 Oftentimes the demand for cheap, mass-produced goods outweighs the desire for goods that
are handcrafted by those with very specific skill and expertise.
 The result is that the cottage and small-scale industry have significantly declined, and artisans
have become unemployed as a result.

7. LACK OF PROPER PLANNING

8. CASTE SYSTEM
 The caste system—a structure of social stratification that can potentially pervade virtually every
aspect of life in India—is a major factor in generating unemployment.
 In some locations, certain kinds of work are prohibited for members of particular castes.
 This also leads to the result that work is often given to members of a certain community rather
than to those who truly deserve the job—those who have the right skills.
 The result is higher levels of unemployment.

 Regressive social norms that deter women from taking/continuing employment.

9. IMMOBILITY OF WORK
 Mobility and versatility of work in India are low.
 Because of the connection to the family, individuals don't go to distant regions for occupations.
 Elements like language, religion, and atmosphere are additionally in charge of low portability.
 Fixed status of work also adds to unemployment.