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What is the reason behind unemployment in India?



The following are the main causes of unemployment:
(i) Limited land:
Land is the gift of nature. It is always constant and cannot expand like population growth. Since, India population increasing rapidly, therefore, the land is not sufficient for the growing population. As a result, there is heavy pressure on the land. In rural areas, most of the people depend directly on land for their livelihood. Land is very limited in comparison to population. It creates the unemployment situation for a large number of persons who depend on agriculture in rural areas.
(ii) Slow Economic Growth:
Indian economy is underdeveloped and role of economic growth is very slow. This slow growth fails to provide enough unemployment opportunities to the increasing population.
(iii) Increase in Population:
It is the leading cause of unemployment in Rural India. In India, particularly in rural areas, the population is increasing rapidly. It has adversely affected the unemployment situation largely in two ways. In the first place, the growth of population directly encouraged the unemployment by making large addition to labour force. It is because the rate of job expansion could never have been as high as population growth would have required.
It is true that the increasing labour force requires the creation of new job opportunities at an increasing rate. But in actual practice employment expansion has not been sufficient to match the growth of the labor force, and to reduce the back leg of unemployment. This leads to unemployment situation secondly; the rapid population growth indirectly affected the unemployment situation by reducing the resources for capital formation. Any rise in population, over a large absolute base as in India, implies a large absolute number.
It means large additional expenditure on their rearing up, maintenance, and education. As a consequence, more resources get used up in private consumption such as food, clothing, shelter and son on in public consumption like drinking water, electricity medical and educational facilities. This has reduced the opportunities of diverting a larger proportion of incomes to saving and investment. Thus, population growth has created obstacles in the way of first growth of the economy and retarded the growth of job opportunities.
(iv) Agriculture is a Seasonal Occupation:
In Rural Society agriculture is the only means of employment. However, most of the rural people are engaged directly as well as indirectly in agricultural operation. But, agriculture in India is basically a seasonal affair. It provides employment facilities to the rural people only in a particular season of the year. For example, during the sowing and harvesting period, people are fully employed and the period between the post harvest and before the next sowing they remain unemployed. It has adversely affected their standard of living
Backward Method of Agriculture:
The method of agriculture in India is very backward. Till now, the rural farmers followed the old farming methods. As a result, the farmer cannot feed properly many people by the produce of his farm and he is unable to provide his children with proper education or to engage them in any profession. It leads to unemployment problem.
(v) Joint Family System:
In big families having big business, many such persons will be available who do not do any work and depend on the joint income of the family.
Many of them seem to be working but they do not add anything to production. So they encourage disguised unemployment.
(vi) Fall of Cottage and Small industries:
In Rural India, village or cottage industries are the only mans of employment particularly of the landless people. They depend directly on various cottage industries for their livelihood. But, now-a-days, these are adversely affected by the industrialisation process. Actually, it is found that they cannot compete with modern factories in matter or production. As a result of which the village industries suffer a serious loss and gradually closing down. Owing to this, the people who work in there remain unemployed and unable to maintain their livelihood.
(vii) Slow Growth of Industrialisation:
The rate of industrial growth is slow. Though emphasis is laid on industrialization yet the avenues of employment created by industrialization are very few.
(viii)Lack of transport and communication:
In India particularly in rural areas, there are no adequate facilities of transport and communication. Owing to this, the village people who are not engaged in agricultural work are remained unemployed. It is because they are unable to start any business for their livelihood and they are confined only within the limited boundary of the village. It is noted that the modern means of transport and communication are the only way to trade and commerce. Since there is lack of transport and communication in rural areas, therefore, it leads to unemployment problem among the villagers.
(ix) Causes of Under Employment:
Inadequate availability of means of production is the main cause of under employment. People do not get employment for the whole year due to shortage of electricity, coal and raw materials.
(x)Inadequate Employment Planning:
The employment planning of the government is not adequate in comparison to population growth. In India near about two lakh people are added yearly to our existing population. But the employment opportunities did not increase according to the proportionate rate of population growth. As a consequence, a great difference is visible between the job opportunities and population growth.
On the other hand it is a very difficult task on the part of the Government to provide adequate job facilities to all the people. Besides this, the government also does not take adequate step in this direction. The faulty employment planning of the Government expedites this problem to a great extent. As a result the problem of unemployment is increasing day by day.
(xi) Defective education:
The day-to-day education is very defective and is confirmed within the class room only. Its main aim is to acquire certificated only. The present educational system is not job oriented, it is degree oriented. It is defective on the ground that is more general then the vocational. Thus, the people who have getting general education are unable to do any work. They are to be called as good for nothing in the ground that they cannot have any job here, they can find the ways of self employment. It leads to unemployment as well as underemployment.
(xii) Inadequate Irrigation Facilities:
Even after the completion of 9th five plans, 39% of total cultivable area could get irrigation facilities.
Due to lack of irrigation, large area of land can grow only one crop in a year. Farmers remain unemployed for most time of the year.
(xiii) Immobility of labour:
Mobility of labour in India is low. Due to attachment to the family, people do not go to far off areas for jobs. Factors like language, religion, and climate are also responsible for low mobility. Immobility of labour adds to unemployment.
Solution
Every country is trying to solve the unemployment problem in her own way.
1. Increase in national wealth through industrialization: The real remedy lies in an addition to the national wealth, in increased production of industrial goods. If there are more industries, there will be more avenues for employment, particularly for men and women with professional and technological training. Already the River valley projects and power-plant projects are finding employment for a large number of men.
It is only in a rapid industrialization of the country that we have a key to the solution of our economic problem. If more and more industries are established and more commodities are produced, there will be vacancies not merely for technically trained university men but also for laborers – skilled and unskilled.
If we have more wealth, we shall be able to pay our doctors better, we shall require more banks, more schools and colleges and more universities. Thus, rapid industrialization alone opens up new avenues for the educated people for the urban areas as also for mill and factory hands.
If the unemployment of the rural people is to be tackled, emphasis should also be laid on the revival of cottage industries. This will give part-time occupation to agriculturists and relieve the poor people who depend on these small decaying industries such as weaving, making carpets and mats or utensils of ball-metal.
The Government alone can help them with loan and find a market for their goods. If these industries are revived, the rural people will live in happiness and peace.
2. Establishment of Vocational and Technical training institutes: The government should open Technical and Vocational colleges and manual labor should be made compulsory. Big factories should be attached to these colleges. More stress is to be given to practical side.
3. Increased investment in heavy industries: Investment in heavy and basic industries and consumer goods industries should be increased to provide more employment with more production.
4. Revival of cottage and small scale industries: Cottage and small scale industries should be developed. Subsidies and other incentives should be given to private sector.
5. Modernization of agriculture: Modernization and mechanization of agriculture should be done. Wastelands should be utilized.
6. Improved transport and communication: Rural works programs should be increased means of transport and communication should be developed.
7. Self-employment should be encouraged: Government should take initiatives to encourage self-employment. Young entrepreneurs should be assisted with hassle free loans.
The unemployed are a great worry to the Government. Government tried to give some relief to unemployed people, especially to ex-Service men, by opening Employment Exchanges, which are machinery for finding suitable employment for young men and women.
Some Universities, too, have employment boards to help their graduates (and under graduates) to secure employment. Nevertheless, these are no complete remedy. They may have found Employment for some meritorious people.
Conclusion
One of the most disturbing problems in India has been the mounting rate of unemployment, both in the rural and urban sectors. In case of rural sector, there has been both unemployment and under employment. In urban sector, there has been both educated and industrial unemployment.
Unless unemployment problem is solved, the future of India cannot be bright. There will be no peace and prosperity in the country if jobless people do not get a proper channel. More attention should be given otherwise this problem can make jobless youths go to wrong direction.[2]
Other than that there’s psychology of Indians [personal views]:-
-> Business is done primarily to create wealth. Employment generation, country’s economic growth is secondary focus and improving customer life by sophisticated, innovative products is not seek.; Lack in Innovations, creativity is the crux of business. Business is done primarily to manifest technology, creativity, innovation. Taking life of customer to next level, country’s economic growth is primary focus. Wealth creation follows automatically
-> Past. We created Vedas, invented zero etc, Ancient India gave astronomy, geometry, Mathematics to the world; not focusing on future.
-> India has many reservation systems such as caste, gender etc. Indian believes in equal opportunities for all citizen without any discrimination of caste, colour, gender etc. only in constitutional books. Not every job is respected equally without a discrimination it's mostly based on income, powers & popularity.
-> Too many politics and less work ; Lefts, rights, centres, far left, far right, secular, pseudo-secular, regional, religious, nationalists, liberals, hardliners, democrats, republicans, communists, pro-poor, pro-poverty, socialists, third front, united, progressive, capitalist.
-> Being a religious, spiritual country there are no significantly notable entrepreneurs that brought drastic change in people’s lives.Spiritual, religious. Focus is family ; It was supposed to be work which revolutionize business like Jobs & Wozniak, Ford, Benjamin Franklin, Thomas Edison, Benjamin Sie, Ray Krocgel, J.P. Morgan, Charles Schwab, Michael Dell, Bill Gates, Ross Perot, W.K. Kellogg, Estee Lauder, Milton Hershey, Harland Sanders, Sam Walton , Richard Sears, Alvah Roebuck, Larry Page and many more
->Growth, development, industrialization concentrated in big cities like Mumbai, Delhi. Look at Infosys, TCS. They have development centers only in big cities like Bangalore, Pune etc. There’s a rapid growth of unemployment in small cities because of lack of industries there!; Growth, development, industrialization concentrated in small cities.
->People became employee after killing passion and desires to become an musician, writer or anything else due to pressure created by society, parents or our “Great Indian Education system” which is not even in the list of top 200 education systems of world; instead follow passion or explore and know what is success!
-> India: Indian icons and philosophies promotes and advocate modesty, sacrifices, values, tolerance, simplicity, religion, spirituality. Below are popular “generally accepted” Indian icons and their philosophies, just as an example supporting this argument.
  1. Mahatma Gandhi: Non-violence. Pacifism. Truth. Celibacy. Simplicity. Fasting.
  2. Swami Vivekanand: Universal-ism. Social service. Non-injury. Character. Vedanta.
  3. Dr Ambedkar: Social reforms. Un-touchability.
  4. Sri Krishna: Karma Yoga. Action without focusing on fruits of action.
  5. Lord Budha: Meditation. Soul searching. Sufferings. Nirvana.
Lack of philosophies, promotes and advocate self improvements, wealth, education, happiness, success, winning, economy, aggression, wars. Below are popular “generally accepted” American icons and their philosophies, just as an example supporting this argument.
  1. John Dewey: Progressive education. Metaphysics.
  2. Abraham Lincoln: Led the United States through its Civil War. Modernized the economy.
  3. George Washington: Commander-in-Chief of the Continental Army.
  4. Franklin Roosevelt: Led during second world war.
  5. Albert Ellis: Father of modern psychology of self improvement.
  6. Philip Kotler: Father of modern marketing of selling products and winning markets.
  7. Dale Carnegie: Father of self-improvement tactics. Corporate training. Winning friends and influencing people.
  8. Norman Vincent Peale: Power of positive thinking.
  9. Adam Smith (Though he was Scottish, he is father of capitalist economy that US follow completely) : Wealth of nations.
-> The students around whom the whole story revolves, need to stop studying and start educating.


There is a difference, a fundamental one. The current trend is that the students study his subjects and relies on the exams as the final authority to decide whether he is fit to study next set of subjects year-on-year. It is important that student gets a couple of things very clear.
In India people want money for their degrees not for skills.They must prepare appropriately for realistic career paths. Skills relevant to the workplace. Available jobs suited to entry-level skills.


Companies are struggling for candidates more than candidates struggling for job. Companies pay thousands of Rupees for a single candidate. some times pays 2-5 times of offered salary. But are not able to find good candidate.
-> Education system is not a person, neither an organisation nor a political party. Its a mindset. Its a mental illness. We are yet to break the shackles of British education system. I really want to ask what pleasure do you get teaching students age old technology when the world is striding towards technological development every day, every hour. Why is the syllabus nostalgia of past products and methods? Why does a student memories long answers when the corporate world demands skills not even remotely concerned with power of memory?
Footnotes

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